FLORIDA LIFE AND HEALTH INSURANCE STATE 2025/2026
EXAM QUESTIONS AND ANSWERS|GRADED A+
1. Disclosure - ANSWER Providing sufficient information to help someone make informed
decision.
2. An agent offer a client free tickets to a sporting event in exchange for the purchase of an
insurance policy. What is the agent guilty of? - ANSWER Rebating
3. If an insurer meets the states financial requirements and is approved to transact business in
the state, it is considered what type of insurer? - ANSWER Authorized
4. What information are the members of the medical information bureau required to report? -
ANSWER Adverse medical information about the applicants or insureds.
5.What type of beneficiary can be changed at any point by the policy owner? - ANSWER
Revocable
6. What document describes the specific information about a policy? - ANSWER Policy Summary
7. What is the term for the causes of loss insured against in an insurance policy? - ANSWER Peril
8. Whom does an insurance agent represent? - ANSWER Insurance Company
9. What is an unfair trade practice? - ANSWER Any fraudulent, deceptive, or dishonest business
practice that is prohibited by statutes and regulations.
10. Insurer - ANSWER The company that issues an insurance policy.
,11. Peril - ANSWER Cause of loss
12. Contract of Adhesion - ANSWER A contract prepared by one party that must be accepted as
written or be rejected by the other party.
13. What are the four elements of an insurance contract? - ANSWER Agreement (Offer and
Acceptance), consideration, competent parties, and legal purpose.
14. Policy Provision - ANSWER A clause that stipulates the rights and obligations under an
insurance contract.
15. Fiduciary - ANSWER A producer who handles insurer's funds in a trust capacity.
16. Who is considered a nonresident agent? - ANSWER An agent who resides and is licensed in
another state, but is authorized to transact insurance in Florida.
17. What is underwriting? - ANSWER The risk selection and classification process.
18. What is the best way to handle incomplete insurance applications? - ANSWER Return the
application to the applicant for completion.
19. What are the five characteristics of an ideally insurable risk? - ANSWER Loss must be:
1. Due to Change
2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
20.What type of policy issues certificates of insurance to the insurance? - ANSWER Group Policy
, 21. What is the purpose of a free-look period? - ANSWER To allow the insured to return the
policy and get a full refund (if done during the free-look period)
22. Whose responsibility is it to determine that all of the questions on an insurance application
are answered? - ANSWER The Agent's
23. What types of licensee represents the insurance company? - ANSWER Agent
24. Who must be notified of the producers change of address? - ANSWER The department of
Insurance
25. Certificate of Insurance - ANSWER A document issued to insureds under a group plan that
states the coverage being issued, and indicates the coverage type and amounts.
26. Nonrenewal - ANSWER Termination of a policy by an insurer on the anniversary or renewal
date.
27. Representation - ANSWER A statement made by the applicant on the insurance application
that is believed to be true.
28. What is a warranty? - ANSWER An absolutely true statement that, if breached, may viod an
insurance contract.
29.Insured - ANSWER The person covered by the insurance policy.
30. Rider - ANSWER A written modification attached to a policy that increases or decreases
coverage and/or premiums.
EXAM QUESTIONS AND ANSWERS|GRADED A+
1. Disclosure - ANSWER Providing sufficient information to help someone make informed
decision.
2. An agent offer a client free tickets to a sporting event in exchange for the purchase of an
insurance policy. What is the agent guilty of? - ANSWER Rebating
3. If an insurer meets the states financial requirements and is approved to transact business in
the state, it is considered what type of insurer? - ANSWER Authorized
4. What information are the members of the medical information bureau required to report? -
ANSWER Adverse medical information about the applicants or insureds.
5.What type of beneficiary can be changed at any point by the policy owner? - ANSWER
Revocable
6. What document describes the specific information about a policy? - ANSWER Policy Summary
7. What is the term for the causes of loss insured against in an insurance policy? - ANSWER Peril
8. Whom does an insurance agent represent? - ANSWER Insurance Company
9. What is an unfair trade practice? - ANSWER Any fraudulent, deceptive, or dishonest business
practice that is prohibited by statutes and regulations.
10. Insurer - ANSWER The company that issues an insurance policy.
,11. Peril - ANSWER Cause of loss
12. Contract of Adhesion - ANSWER A contract prepared by one party that must be accepted as
written or be rejected by the other party.
13. What are the four elements of an insurance contract? - ANSWER Agreement (Offer and
Acceptance), consideration, competent parties, and legal purpose.
14. Policy Provision - ANSWER A clause that stipulates the rights and obligations under an
insurance contract.
15. Fiduciary - ANSWER A producer who handles insurer's funds in a trust capacity.
16. Who is considered a nonresident agent? - ANSWER An agent who resides and is licensed in
another state, but is authorized to transact insurance in Florida.
17. What is underwriting? - ANSWER The risk selection and classification process.
18. What is the best way to handle incomplete insurance applications? - ANSWER Return the
application to the applicant for completion.
19. What are the five characteristics of an ideally insurable risk? - ANSWER Loss must be:
1. Due to Change
2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
20.What type of policy issues certificates of insurance to the insurance? - ANSWER Group Policy
, 21. What is the purpose of a free-look period? - ANSWER To allow the insured to return the
policy and get a full refund (if done during the free-look period)
22. Whose responsibility is it to determine that all of the questions on an insurance application
are answered? - ANSWER The Agent's
23. What types of licensee represents the insurance company? - ANSWER Agent
24. Who must be notified of the producers change of address? - ANSWER The department of
Insurance
25. Certificate of Insurance - ANSWER A document issued to insureds under a group plan that
states the coverage being issued, and indicates the coverage type and amounts.
26. Nonrenewal - ANSWER Termination of a policy by an insurer on the anniversary or renewal
date.
27. Representation - ANSWER A statement made by the applicant on the insurance application
that is believed to be true.
28. What is a warranty? - ANSWER An absolutely true statement that, if breached, may viod an
insurance contract.
29.Insured - ANSWER The person covered by the insurance policy.
30. Rider - ANSWER A written modification attached to a policy that increases or decreases
coverage and/or premiums.
