FLORIDA 2-15 INSURANCE LICENCE EXAM 2025
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS |FREQUENTLY
TESTED QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|BRAND NEW!!!|GUARANTEED PASS
|LATEST UPDATE
WHICH of the following would best describe the illegal practice of Twisting?
a) It is the agent convincing the applicant that another agent lied in order to obtain the insurance
business
b) Twisting, also called External Replacement, involves a person illegally convincing another to drop their
existing coverage to purchase similar coverage with another agent or insurance company.
c) Twisting is the unfair trade practice of selling a person an additional life policy when it is not needed.
d) Twisting is the replacement of an existing policy with a different policy issued by the same insurance
company
Twisting, also called External Replacement, involves a person illegally convincing another to drop their
existing coverage to purchase similar coverage with another agent or insurance company.
The insured must only perform if there is a loss and the insurer must only perform if the loss is covered.
This is what governs:
a) Personal contracts
b) Conditional contracts
c) Adhesive contracts
d) Aleatory contracts
Conditional contracts
If an agent sends the insurer an incomplete application, WHAT would be the result?
a) The application will immediately be rejected by the insurer
b) The insurer will issue the policy based on the information it has received
c) The insurer will reject the application and place the agent under disciplinary action
d) The insurer will return the application to the agent for completion
The insurer will return the application to the agent for completion
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,WHICH of these receipts provides coverage effective the date of application or the medical examination
if the insured is a standard or better risk?
a) An insurability receipt
b) An approval receipt
c) An unconditional receipt
d) A non-binding receipt
An insurability receipt
In terms of Personally Identifiable Health Information, HIPAA requires WHICH of the following?
a) Reasonable safeguards to protect confidentiality of medical information
b) That all medical information on clients and applicants be locked up when not in use
c) That this information only be available to the agent and the primary insurer
d) That insurers file copies of medical information with state agencies to ensure accuracy
Reasonable safeguards to protect confidentiality of medical information
If a policy is issued to a substandard, special class risk, coverage is not effective until:
a) The applicant accepts the policy as issued and agrees to pay the additional premium once a billing is
sent by the insurer
b) The incontestability period has elapsed
c) The agent completes a satisfactory Statement of Good Health from information collected from the
insured and collects the required premium
d) One of the insurance company's executive officers approves the issue of the policy
The agent completes a satisfactory Statement of Good Health from information collected from the
insured and collects the required premium
All of the following are risk categories used by agents and insurers EXCEPT:
a) Standard risk
b) Preferred risk
c) Healthy
Healthy
Duties of the agent to their clients include all of the following EXCEPT:
a) Make sure that the beneficiaries are notified of their designations via registered mail
b) Explain any increases to the premium
c) Review and discuss the riders attached to the policy
d) Explain the pertinent details of the plan, including coverage, limitations and exclusions
Make sure that the beneficiaries are notified of their designations via registered mail
2|Page
,Any ambiguities in a contract of adhesion are ruled against the party that drew up the contract. This is
known as the:
a) Rule of Valued Contracts
b) Rule of Strict Construction
c) Rule of Indemnity
d) Law of Large Numbers
Rule of Strict Construction
WHEN must an agent present and read a replacement notice to the applicant?
a) No later than the time of application
b) Replacement notices are not required for life insurance policies, only for health insurance contracts
c) When the policy is issued
d) Only if requested by the applicant
No later than the time of application
Money laundering is best described as:
a) The practice of transferring funds from one account to another to ensure that written checks will be
honored
b) Making sure that all cash value accounts are kept clean and not associated with other accounts held
by the insurer
c) Exchanging old, worn-out currency for new currency at the bank
d) The illegal practice of hiding the origins of money that has been obtained unlawfully
The illegal practice of hiding the origins of money that has been obtained unlawfully
Agents who initiate any life insurance transaction must submit WHICH of the following statements
signed by the agent and the applicant?
a) A notice that states that the insurance company is backed by the Federal Deposit Insurance
Corporation
b) A notice that guarantees the growth of the policy's cash value at specific times during the life of the
policy
c) A replacement notice listing any in-force life insurance policies that must be signed by the agent and
the applicant
d) A disclosure statement describing the insurer's percentage of policies that have been applied for and
issued
A replacement notice listing any in-force life insurance policies that must be signed by the agent and the
applicant
What is a "material misrepresentation?"
a) They are representations made by the applicant that can cause a policy to be canceled after it has
3|Page
, been in force for at least two years
b) They are considered statements of fact and can cause fraud charges to be brought against the
applicant
c) A material misrepresentation is one that if the insurer had known the correct information, it would
have altered their issuance decision
d) They are representations that have no bearing on the issuance of the policy
A material misrepresentation is one that if the insurer had known the correct information, it would have
altered their issuance decision
How long does information remain on a person's credit report?
a) Ten years for bankruptcies and seven years for other entries
b) Seven years for bankruptcies and ten years for other entries
c) Ten years for all entities on a credit report
d) Ten years for personal bankruptcies, 20 years for business bankruptcies, and ten years for all other
entries
Ten years for bankruptcies and seven years for other entries
If a policy is "rated up," this means:
a) The policy will be issued at lower premiums than applied for
b) The amount of coverage issued will be at a larger face amount than applied for
c) The insured qualifies for a rate discount based on their healthy lifestyle
d) The premiums charges will be higher than standard rates
The premiums charges will be higher than standard rates
Constructive delivery of a policy is best described as:
a) When the policyowner decides to keep the policy after the free look period has expired
b) When the insurer delegates delivery of the policy to another, for example, the agent, and the agent
delivers the policy
c) When the policyowner initially applies for the insurance
d) Acceptance of the policy by the policyowner
When the insurer delegates delivery of the policy to another, for example, the agent, and the agent
delivers the policy
All of the following are methods of rating-up the premium on a policy EXCEPT:
a) Placing the insured into a preferred risk category instead of a standard risk category
b) Permanent or flat-extra premium method
c) Percentage of standard, aka Table Rating
d) The Lien method or Rating Up in Age
Placing the insured into a preferred risk category instead of a standard risk category
4|Page
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS |FREQUENTLY
TESTED QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|BRAND NEW!!!|GUARANTEED PASS
|LATEST UPDATE
WHICH of the following would best describe the illegal practice of Twisting?
a) It is the agent convincing the applicant that another agent lied in order to obtain the insurance
business
b) Twisting, also called External Replacement, involves a person illegally convincing another to drop their
existing coverage to purchase similar coverage with another agent or insurance company.
c) Twisting is the unfair trade practice of selling a person an additional life policy when it is not needed.
d) Twisting is the replacement of an existing policy with a different policy issued by the same insurance
company
Twisting, also called External Replacement, involves a person illegally convincing another to drop their
existing coverage to purchase similar coverage with another agent or insurance company.
The insured must only perform if there is a loss and the insurer must only perform if the loss is covered.
This is what governs:
a) Personal contracts
b) Conditional contracts
c) Adhesive contracts
d) Aleatory contracts
Conditional contracts
If an agent sends the insurer an incomplete application, WHAT would be the result?
a) The application will immediately be rejected by the insurer
b) The insurer will issue the policy based on the information it has received
c) The insurer will reject the application and place the agent under disciplinary action
d) The insurer will return the application to the agent for completion
The insurer will return the application to the agent for completion
1|Page
,WHICH of these receipts provides coverage effective the date of application or the medical examination
if the insured is a standard or better risk?
a) An insurability receipt
b) An approval receipt
c) An unconditional receipt
d) A non-binding receipt
An insurability receipt
In terms of Personally Identifiable Health Information, HIPAA requires WHICH of the following?
a) Reasonable safeguards to protect confidentiality of medical information
b) That all medical information on clients and applicants be locked up when not in use
c) That this information only be available to the agent and the primary insurer
d) That insurers file copies of medical information with state agencies to ensure accuracy
Reasonable safeguards to protect confidentiality of medical information
If a policy is issued to a substandard, special class risk, coverage is not effective until:
a) The applicant accepts the policy as issued and agrees to pay the additional premium once a billing is
sent by the insurer
b) The incontestability period has elapsed
c) The agent completes a satisfactory Statement of Good Health from information collected from the
insured and collects the required premium
d) One of the insurance company's executive officers approves the issue of the policy
The agent completes a satisfactory Statement of Good Health from information collected from the
insured and collects the required premium
All of the following are risk categories used by agents and insurers EXCEPT:
a) Standard risk
b) Preferred risk
c) Healthy
Healthy
Duties of the agent to their clients include all of the following EXCEPT:
a) Make sure that the beneficiaries are notified of their designations via registered mail
b) Explain any increases to the premium
c) Review and discuss the riders attached to the policy
d) Explain the pertinent details of the plan, including coverage, limitations and exclusions
Make sure that the beneficiaries are notified of their designations via registered mail
2|Page
,Any ambiguities in a contract of adhesion are ruled against the party that drew up the contract. This is
known as the:
a) Rule of Valued Contracts
b) Rule of Strict Construction
c) Rule of Indemnity
d) Law of Large Numbers
Rule of Strict Construction
WHEN must an agent present and read a replacement notice to the applicant?
a) No later than the time of application
b) Replacement notices are not required for life insurance policies, only for health insurance contracts
c) When the policy is issued
d) Only if requested by the applicant
No later than the time of application
Money laundering is best described as:
a) The practice of transferring funds from one account to another to ensure that written checks will be
honored
b) Making sure that all cash value accounts are kept clean and not associated with other accounts held
by the insurer
c) Exchanging old, worn-out currency for new currency at the bank
d) The illegal practice of hiding the origins of money that has been obtained unlawfully
The illegal practice of hiding the origins of money that has been obtained unlawfully
Agents who initiate any life insurance transaction must submit WHICH of the following statements
signed by the agent and the applicant?
a) A notice that states that the insurance company is backed by the Federal Deposit Insurance
Corporation
b) A notice that guarantees the growth of the policy's cash value at specific times during the life of the
policy
c) A replacement notice listing any in-force life insurance policies that must be signed by the agent and
the applicant
d) A disclosure statement describing the insurer's percentage of policies that have been applied for and
issued
A replacement notice listing any in-force life insurance policies that must be signed by the agent and the
applicant
What is a "material misrepresentation?"
a) They are representations made by the applicant that can cause a policy to be canceled after it has
3|Page
, been in force for at least two years
b) They are considered statements of fact and can cause fraud charges to be brought against the
applicant
c) A material misrepresentation is one that if the insurer had known the correct information, it would
have altered their issuance decision
d) They are representations that have no bearing on the issuance of the policy
A material misrepresentation is one that if the insurer had known the correct information, it would have
altered their issuance decision
How long does information remain on a person's credit report?
a) Ten years for bankruptcies and seven years for other entries
b) Seven years for bankruptcies and ten years for other entries
c) Ten years for all entities on a credit report
d) Ten years for personal bankruptcies, 20 years for business bankruptcies, and ten years for all other
entries
Ten years for bankruptcies and seven years for other entries
If a policy is "rated up," this means:
a) The policy will be issued at lower premiums than applied for
b) The amount of coverage issued will be at a larger face amount than applied for
c) The insured qualifies for a rate discount based on their healthy lifestyle
d) The premiums charges will be higher than standard rates
The premiums charges will be higher than standard rates
Constructive delivery of a policy is best described as:
a) When the policyowner decides to keep the policy after the free look period has expired
b) When the insurer delegates delivery of the policy to another, for example, the agent, and the agent
delivers the policy
c) When the policyowner initially applies for the insurance
d) Acceptance of the policy by the policyowner
When the insurer delegates delivery of the policy to another, for example, the agent, and the agent
delivers the policy
All of the following are methods of rating-up the premium on a policy EXCEPT:
a) Placing the insured into a preferred risk category instead of a standard risk category
b) Permanent or flat-extra premium method
c) Percentage of standard, aka Table Rating
d) The Lien method or Rating Up in Age
Placing the insured into a preferred risk category instead of a standard risk category
4|Page
