Florida 2-40 Health Insurance Exam | 2026/2027 |
Actual Exam Questions and Correct Answers | Florida
Health Insurance Agent License | Graded A+ | New
Update.
1. The purpose of insurance is to:
A) Eliminate all risk
B) Transfer risk from the insured to the insurer
C) Increase hazards
D) Spread moral risk
Answer: B
Rationale: Insurance transfers financial risk to an insurer in exchange for a premium.**
2. The law of large numbers is used to:
A) Limit coverage
B) Predict future losses more accurately
C) Increase moral hazard
D) Reduce underwriting
Answer: B
Rationale: Larger data sets enable more accurate risk prediction and pricing.**
3. An example of a pure risk is:
A) Gambling
B) Premises liability claim from a slip-and-fall
C) Investing in stocks
D) Buying lottery tickets
Answer: B
Rationale: Pure risks involve loss only, not gain (insurable).**
,8. Which type of insurer is owned by policyholders?
A) Stock company
B) Mutual company
C) Fraternal benefit society
D) Reciprocal
Answer: B
Rationale: Mutual insurers are owned by policyholders rather than shareholders.**
9. Adverse selection refers to:
A) High premiums
B) Poor risks seeking insurance more often than good risks
C) Low claims
D) Policy nonrenewal
Answer: B
Rationale: Adverse selection leads to a higher concentration of high-risk insureds.**
4. Which of the following is NOT an element of insurable risk?
A) Definite loss
B) Unlimited exposure
C) Calculable loss
D) Large homogeneous group
Answer: B
Rationale: Unlimited exposure is uninsurable; risks must be definable and measurable.**
5. Indemnity in insurance means:
A) Double payment
B) Restoring the insured to pre-loss financial position
C) Punitive damages
D) Guaranteed profit
Answer: B
Rationale: Indemnity prevents the insured from profiting from a loss.**
,10. Reinsurance is carried out by:
A) Agents
B) Primary insurers transferring risk to other insurers
C) Insureds
D) Beneficiaries
Answer: B
Rationale: Reinsurance helps insurers manage risk by sharing it.**
6. A peril is:
A) A moral hazard
B) The cause of a loss
C) An exclusion
D) A deductible
Answer: B
Rationale: A peril is the event that leads to loss (e.g., illness).**
7. A hazard increases:
A) Profit
B) The chance of loss
C) Coverage limits
D) Premium rebates
Answer: B
Rationale: Hazards increase the likelihood of a peril causing a loss.**
, 11–20 — Florida Insurance Regulation
11. The Florida Office of Insurance Regulation (OIR) is responsible for:
A) Issuing passports
B) Regulating insurance companies and solvency
C) Federal law enforcement
D) Driving licenses
Answer: B
Rationale: OIR regulates insurers’ financial condition and compliance with state law.**
14. An agent’s license may be suspended for:
A) Good performance
B) Failing to pay child support
C) Paying taxes on time
D) Referring a client
Answer: B
Rationale: Failure to meet child support is actionable under Florida law.**
13. An agent must notify the Department of Financial Services of an address change within:
A) 5 days
B) 30 days
C) 60 days
D) 90 days
Answer: B
Rationale: Timely address notification maintains license compliance.**
Actual Exam Questions and Correct Answers | Florida
Health Insurance Agent License | Graded A+ | New
Update.
1. The purpose of insurance is to:
A) Eliminate all risk
B) Transfer risk from the insured to the insurer
C) Increase hazards
D) Spread moral risk
Answer: B
Rationale: Insurance transfers financial risk to an insurer in exchange for a premium.**
2. The law of large numbers is used to:
A) Limit coverage
B) Predict future losses more accurately
C) Increase moral hazard
D) Reduce underwriting
Answer: B
Rationale: Larger data sets enable more accurate risk prediction and pricing.**
3. An example of a pure risk is:
A) Gambling
B) Premises liability claim from a slip-and-fall
C) Investing in stocks
D) Buying lottery tickets
Answer: B
Rationale: Pure risks involve loss only, not gain (insurable).**
,8. Which type of insurer is owned by policyholders?
A) Stock company
B) Mutual company
C) Fraternal benefit society
D) Reciprocal
Answer: B
Rationale: Mutual insurers are owned by policyholders rather than shareholders.**
9. Adverse selection refers to:
A) High premiums
B) Poor risks seeking insurance more often than good risks
C) Low claims
D) Policy nonrenewal
Answer: B
Rationale: Adverse selection leads to a higher concentration of high-risk insureds.**
4. Which of the following is NOT an element of insurable risk?
A) Definite loss
B) Unlimited exposure
C) Calculable loss
D) Large homogeneous group
Answer: B
Rationale: Unlimited exposure is uninsurable; risks must be definable and measurable.**
5. Indemnity in insurance means:
A) Double payment
B) Restoring the insured to pre-loss financial position
C) Punitive damages
D) Guaranteed profit
Answer: B
Rationale: Indemnity prevents the insured from profiting from a loss.**
,10. Reinsurance is carried out by:
A) Agents
B) Primary insurers transferring risk to other insurers
C) Insureds
D) Beneficiaries
Answer: B
Rationale: Reinsurance helps insurers manage risk by sharing it.**
6. A peril is:
A) A moral hazard
B) The cause of a loss
C) An exclusion
D) A deductible
Answer: B
Rationale: A peril is the event that leads to loss (e.g., illness).**
7. A hazard increases:
A) Profit
B) The chance of loss
C) Coverage limits
D) Premium rebates
Answer: B
Rationale: Hazards increase the likelihood of a peril causing a loss.**
, 11–20 — Florida Insurance Regulation
11. The Florida Office of Insurance Regulation (OIR) is responsible for:
A) Issuing passports
B) Regulating insurance companies and solvency
C) Federal law enforcement
D) Driving licenses
Answer: B
Rationale: OIR regulates insurers’ financial condition and compliance with state law.**
14. An agent’s license may be suspended for:
A) Good performance
B) Failing to pay child support
C) Paying taxes on time
D) Referring a client
Answer: B
Rationale: Failure to meet child support is actionable under Florida law.**
13. An agent must notify the Department of Financial Services of an address change within:
A) 5 days
B) 30 days
C) 60 days
D) 90 days
Answer: B
Rationale: Timely address notification maintains license compliance.**
