FLORIDA 2-15 INSURANCE EXAM UPDATED 2025-2026
(ACTUAL) WITH CORRECT DETAILED ANSWERS
A licensed agent legally represents
| | | |
A. The insurer |
B. The applicant/insured |
C. The state insurance department
| | |
D. Himself or herself - ANSWER_A. An agent is an individual who has been
| | | | | | | | | | | |
authorized by an insurer to be its representative to the public and to offer for sale its
| | | | | | | | | | | | | | | | |
goods and services.
| | |
After a week in the hospital, Lola receives a bill for $9,000 of covered expenses.
| | | | | | | | | | | | | |
Her major medical policy has a $250 deductible and a 75.25 coinsurance feature.
| | | | | | | | | | | | |
How much of the total expense will Lola's policy cover?
| | | | | | | | | |
A. $2,063
B. $6,063
C. $6,563
D. $8,753 - ANSWER_C. Responsibility for payment would be as follows:
| | | | | | | | |
Total expenses $9,000
| |
Deductible Lola pays - 250
| | | | |
Basis for insurer's payment $8,750 X
| | | | |
.75
|
Amount insurer pays $6,563 | | |
Coinsurance Lola pays $2,187
| | | |
,A basic surgical expense policy that covers surgeon's fees per a schedule approach
| | | | | | | | | | | |
A. Bases its benefits on what is customary for a particular area
| | | | | | | | | |
B. Assigns a set of points to each surgical procedure | | | | | | | |
C. Assigns a dollar amount to each surgical procedure | | | | | | |
D. Bases its benefits on a percentage of hospital room and board expenses -
| | | | | | | | | | | |
ANSWER_C. Under the surgical schedule method, every surgical procedure is
| | | | | | | | | |
assigned a dollar amount by the insurer. When a claim is submitted to the insurer, the
| | | | | | | | | | | | | | | |
claims examiner reviews the policy to determine what amount is payable; if the
| | | | | | | | | | | | |
surgeon's bill is more than the allowed charge set by the insurer, it is up to the insured
| | | | | | | | | | | | | | | | | |
to pay the surgeon the difference. If the surgeon's bill is less than the allowed charge,
| | | | | | | | | | | | | | | |
the insurer will pay only the full amount billed; the claim payment will never exceed
| | | | | | | | | | | | | | |
the amount charged.
| | |
A stop-loss feature in a major medical policy specifies the maximum
| | | | | | | | | |
A. Benefit amount the policy provides each year | | | | | |
B. Benefit amount the policy provides in a lifetime | | | | | | |
C. Amount the insured must pay in premiums | | | | | |
D. Amount the insured must pay toward covered expenses - ANSWER_D. To | | | | | | | | | |
provide a safeguard for insureds, many major medical policies contain a stop-loss
| | | | | | | | | | | |
feature that limits the insured's out-of-pocket expenses. This means that once the
| | | | | | | | | | | |
insured has paid a specified amount toward the insured's covered expenses - usually
| | | | | | | | | | | | |
$1,000 to $2,000 - the company pays 100% of covered expenses after that point.
| | | | | | | | | | | | | |
Which of the following is a standard optional provision for health policies?
| | | | | | | | | | |
,A. Grace period |
B. Physical exam and autopsy | | |
C. Change of beneficiary | |
D. Misstatement of age - ANSWER_D. Misstatement of age is 1 of 11 optional | | | | | | | | | | | |
policy provisions. Companies may ignore them or use them in their policy forms.
| | | | | | | | | | | | |
All of the following statements regarding policy replacement are correct EXCEPT
| | | | | | | | | |
A. Replacement involves convincing a policyholder to lapse or terminate an | | | | | | | | |
existing policy and to purchase another
| | | | | |
B. Interrupting one cash value insurance plan to begin another could cause serious | | | | | | | | | | |
financial problems for the policyowner
| | | | |
C. Even if the customer wants to replace his or her existing policy, an agent can
| | | | | | | | | | | | | |
effect a policy replacement only by following the replacement regulations in the
| | | | | | | | | | | |
agent's state
| |
D. Premiums for the replacement policies are generally lower than premiums for the
| | | | | | | | | | |
existing policies they replace - ANSWER_D. The new policy will probably be at a
| | | | | | | | | | | | | |
higher premium rate because it will be based on the insured's then-attained age.
| | | | | | | | | | | | |
Ralph owns a $50,000 nonpar whole life policy. Its cash value has accumulated to
| | | | | | | | | | | | |
$15,000, and he has paid a total of $9,500 in premiums. If he surrenders the policy for
| | | | | | | | | | | | | | | |
its cash value, how will it be taxed?
| | | | | | | |
A. Ralph will receive the $15,000 tax free | | | | | |
B. Ralph will receive $5,500 tax free; the $9,500 balance is taxable as income
| | | | | | | | | | | |
C. Ralph will receive the $9,500 tax free; the $5,500 balance is taxable as income
| | | | | | | | | | | | |
D. Ralph will receive the $15,000 as taxable income - ANSWER_C. A
| | | | | | | | | |
policyowner is allowed to receive tax free an amount equal to what the
| | | | | | | | | | | | |
policyowner paid into the policy over the years in the form of premiums.
| | | | | | | | | | | | |
, Which of the following would NOT apply when a life insurance policy is reinstated
| | | | | | | | | | | | |
after a lapse?
| | |
A. All back premiums must be paid
| | | | |
B. All outstanding loans must be paid
| | | | |
C. A new contestable period goes into effect
| | | | | |
D. A new suicide exclusion period goes into effect - ANSWER_D. There is no
| | | | | | | | | | | |
new suicide exclusion period when a policy is reinstated.
| | | | | | | | |
Jane, age 35, has just purchased a 20-pay whole life policy. When she turns 55, she
| | | | | | | | | | | | | | |
will
|
A. Receive the policy's face value benefit | | | | |
B. Have a fully matured policy | | | |
C. Cease paying premiums | |
D. No longer be covered by the policy - ANSWER_C. Limited pay whole life
| | | | | | | | | | | |
policies have level premiums that are limited to a certain period (less than life),
| | | | | | | | | | | | | |
after which no more premiums are owed.
| | | | | | |
If a life insurance applicant is given a binding receipt, when does the applicant's coverage
| | | | | | | | | | | | | |
become effective?
| |
A. The date the policy is issued | | | | |
B. The date the applicant proves to be insurable
| | | | | | |
C. The date the receipt is given | | | | |
D. The date the policy is delivered - ANSWER_C. Under a binding receipt (or
| | | | | | | | | | | |
temporary insurance agreement), coverage is guaranteed at the time of application
| | | | | | | | | | |
for the amount of insurance applied for. The temporary coverage continues until
| | | | | | | | | | | |
(ACTUAL) WITH CORRECT DETAILED ANSWERS
A licensed agent legally represents
| | | |
A. The insurer |
B. The applicant/insured |
C. The state insurance department
| | |
D. Himself or herself - ANSWER_A. An agent is an individual who has been
| | | | | | | | | | | |
authorized by an insurer to be its representative to the public and to offer for sale its
| | | | | | | | | | | | | | | | |
goods and services.
| | |
After a week in the hospital, Lola receives a bill for $9,000 of covered expenses.
| | | | | | | | | | | | | |
Her major medical policy has a $250 deductible and a 75.25 coinsurance feature.
| | | | | | | | | | | | |
How much of the total expense will Lola's policy cover?
| | | | | | | | | |
A. $2,063
B. $6,063
C. $6,563
D. $8,753 - ANSWER_C. Responsibility for payment would be as follows:
| | | | | | | | |
Total expenses $9,000
| |
Deductible Lola pays - 250
| | | | |
Basis for insurer's payment $8,750 X
| | | | |
.75
|
Amount insurer pays $6,563 | | |
Coinsurance Lola pays $2,187
| | | |
,A basic surgical expense policy that covers surgeon's fees per a schedule approach
| | | | | | | | | | | |
A. Bases its benefits on what is customary for a particular area
| | | | | | | | | |
B. Assigns a set of points to each surgical procedure | | | | | | | |
C. Assigns a dollar amount to each surgical procedure | | | | | | |
D. Bases its benefits on a percentage of hospital room and board expenses -
| | | | | | | | | | | |
ANSWER_C. Under the surgical schedule method, every surgical procedure is
| | | | | | | | | |
assigned a dollar amount by the insurer. When a claim is submitted to the insurer, the
| | | | | | | | | | | | | | | |
claims examiner reviews the policy to determine what amount is payable; if the
| | | | | | | | | | | | |
surgeon's bill is more than the allowed charge set by the insurer, it is up to the insured
| | | | | | | | | | | | | | | | | |
to pay the surgeon the difference. If the surgeon's bill is less than the allowed charge,
| | | | | | | | | | | | | | | |
the insurer will pay only the full amount billed; the claim payment will never exceed
| | | | | | | | | | | | | | |
the amount charged.
| | |
A stop-loss feature in a major medical policy specifies the maximum
| | | | | | | | | |
A. Benefit amount the policy provides each year | | | | | |
B. Benefit amount the policy provides in a lifetime | | | | | | |
C. Amount the insured must pay in premiums | | | | | |
D. Amount the insured must pay toward covered expenses - ANSWER_D. To | | | | | | | | | |
provide a safeguard for insureds, many major medical policies contain a stop-loss
| | | | | | | | | | | |
feature that limits the insured's out-of-pocket expenses. This means that once the
| | | | | | | | | | | |
insured has paid a specified amount toward the insured's covered expenses - usually
| | | | | | | | | | | | |
$1,000 to $2,000 - the company pays 100% of covered expenses after that point.
| | | | | | | | | | | | | |
Which of the following is a standard optional provision for health policies?
| | | | | | | | | | |
,A. Grace period |
B. Physical exam and autopsy | | |
C. Change of beneficiary | |
D. Misstatement of age - ANSWER_D. Misstatement of age is 1 of 11 optional | | | | | | | | | | | |
policy provisions. Companies may ignore them or use them in their policy forms.
| | | | | | | | | | | | |
All of the following statements regarding policy replacement are correct EXCEPT
| | | | | | | | | |
A. Replacement involves convincing a policyholder to lapse or terminate an | | | | | | | | |
existing policy and to purchase another
| | | | | |
B. Interrupting one cash value insurance plan to begin another could cause serious | | | | | | | | | | |
financial problems for the policyowner
| | | | |
C. Even if the customer wants to replace his or her existing policy, an agent can
| | | | | | | | | | | | | |
effect a policy replacement only by following the replacement regulations in the
| | | | | | | | | | | |
agent's state
| |
D. Premiums for the replacement policies are generally lower than premiums for the
| | | | | | | | | | |
existing policies they replace - ANSWER_D. The new policy will probably be at a
| | | | | | | | | | | | | |
higher premium rate because it will be based on the insured's then-attained age.
| | | | | | | | | | | | |
Ralph owns a $50,000 nonpar whole life policy. Its cash value has accumulated to
| | | | | | | | | | | | |
$15,000, and he has paid a total of $9,500 in premiums. If he surrenders the policy for
| | | | | | | | | | | | | | | |
its cash value, how will it be taxed?
| | | | | | | |
A. Ralph will receive the $15,000 tax free | | | | | |
B. Ralph will receive $5,500 tax free; the $9,500 balance is taxable as income
| | | | | | | | | | | |
C. Ralph will receive the $9,500 tax free; the $5,500 balance is taxable as income
| | | | | | | | | | | | |
D. Ralph will receive the $15,000 as taxable income - ANSWER_C. A
| | | | | | | | | |
policyowner is allowed to receive tax free an amount equal to what the
| | | | | | | | | | | | |
policyowner paid into the policy over the years in the form of premiums.
| | | | | | | | | | | | |
, Which of the following would NOT apply when a life insurance policy is reinstated
| | | | | | | | | | | | |
after a lapse?
| | |
A. All back premiums must be paid
| | | | |
B. All outstanding loans must be paid
| | | | |
C. A new contestable period goes into effect
| | | | | |
D. A new suicide exclusion period goes into effect - ANSWER_D. There is no
| | | | | | | | | | | |
new suicide exclusion period when a policy is reinstated.
| | | | | | | | |
Jane, age 35, has just purchased a 20-pay whole life policy. When she turns 55, she
| | | | | | | | | | | | | | |
will
|
A. Receive the policy's face value benefit | | | | |
B. Have a fully matured policy | | | |
C. Cease paying premiums | |
D. No longer be covered by the policy - ANSWER_C. Limited pay whole life
| | | | | | | | | | | |
policies have level premiums that are limited to a certain period (less than life),
| | | | | | | | | | | | | |
after which no more premiums are owed.
| | | | | | |
If a life insurance applicant is given a binding receipt, when does the applicant's coverage
| | | | | | | | | | | | | |
become effective?
| |
A. The date the policy is issued | | | | |
B. The date the applicant proves to be insurable
| | | | | | |
C. The date the receipt is given | | | | |
D. The date the policy is delivered - ANSWER_C. Under a binding receipt (or
| | | | | | | | | | | |
temporary insurance agreement), coverage is guaranteed at the time of application
| | | | | | | | | | |
for the amount of insurance applied for. The temporary coverage continues until
| | | | | | | | | | | |
