Florida Laws And Rules Pertinent To Insurance Exam
2026
Page | 1
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of
the policy's face value.? - CORRECT ANSWER ✔✔✔✔✔ Viatical settlement provider.
(To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a
viatical settlement provider.)
Agents that have been licensed for less than six years must complete __ hours of continuing
education every two years.? - CORRECT ANSWER ✔✔✔✔✔ 24.
(Florida agents licensed less than six years are required to complete 24 hours of continuing
education.)
T is an employee covered under a Group Life policy. If T's employment is terminated, the
conversion privilege gives T the right to convert? - CORRECT ANSWER ✔✔✔✔✔ To an
individual policy upon employment termination.
(When an employee covered on a Group Life policy leaves the group, the conversion privilege
gives the employee the right to convert to an individual policy upon termination of employment.
Which of the following activities will NOT result in the suspension of an agent's license? -
CORRECT ANSWER ✔✔✔✔✔ Working for a foreign insurer.
(Working for a foreign insurance company does not result in the revocation or suspension of an
agent's license.)
In Florida, which of the following practitioners normally do NOT receive payment from health
insurance policies? - CORRECT ANSWER ✔✔✔✔✔ Naturopaths.
(Health insurance policies in Florida must cover payment to all of these practitioners EXCEPT
naturopaths.)
An example of sliding would be? - CORRECT ANSWER ✔✔✔✔✔ Charging for an
additional product without the applicant's consent".
(Sliding involves selling additional coverage to an insurance applicant who doesn't want or need it.
An agent will often "slide" this additional coverage in without the customer's knowledge or consent.)
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement
policy? - CORRECT ANSWER ✔✔✔✔✔ Limitation on pre-existing conditions for up to 12
months.
(There is only a 6-month limitation on pre-existing conditions for Medicare Supplements.)
Which of the following situations are NOT subject to Florida life insurance laws? - CORRECT
ANSWER ✔✔✔✔✔ Insurance companies' day-to-day operations .
( Florida life insurance laws apply to all of these situations EXCEPT "Insurance companies' day-to-
day operations".)
EXAMPREPMASTER
, The Bureau of Unclaimed Property is overseen by the
Chief Financial Officer - CORRECT ANSWER ✔✔✔✔✔ The Chief Financial Officer
oversees the Bureau of Unclaimed Property.
Page | 2 An example of unfair discrimination would be? - CORRECT ANSWER ✔✔✔✔✔ Offering
different terms of coverage for different policyowners having the same risk classification.
(Providing different terms of coverage for different policyowners in the same risk classification
would be an example of unfair discrimination.)
A foreign insurance company doing business in Florida? - CORRECT ANSWER ✔✔✔✔✔
Is a company that was formed under the laws of another state.
(In Florida, a foreign insurance company is a company that is formed under the laws of a state other
than Florida.)
An agent selling Medicare Supplement policies must provide every applicant with a(n)? -
CORRECT ANSWER ✔✔✔✔✔ Suitability form.
(Every agent soliciting Medicare Supplements must provide a suitability form.)
A person insured under a health policy is required to give the insurance company a Notice of Claim
within how many days after a covered loss? - CORRECT ANSWER ✔✔✔✔✔ Twenty.
(Written notice of a claim must be given to the insurer within 20 days.)
What do families pay that are covered by the Florida Healthy Kids Corporation? - CORRECT
ANSWER ✔✔✔✔✔ A portion of the premium.
(Families with children covered by the Florida Healthy Kids Corporation program pay only a portion
of the premium.)
How many hours of continuing education must a newly licensed agent complete every two years? -
CORRECT ANSWER ✔✔✔✔✔ 24 HRS
(A newly licensed agent must complete 24 hours of continuing education every 2 years.)
An insurance company incorporated under the laws of the state in which its home office is located is
called a(n) ____ company.? - CORRECT ANSWER ✔✔✔✔✔ Domestic.
(A domestic insurance company is domiciled and incorporated under the laws of the state in which
its home office is located.)
When is a Group Health policy required to provide coverage for a newborn child? - CORRECT
ANSWER ✔✔✔✔✔ At the moment of birth.
(A Group Health policy is required to provide coverage for a newborn child at the moment of birth).
A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - CORRECT
ANSWER ✔✔✔✔✔ Insurance.
(A Multiple Employer Welfare Arrangement (MEWA) provides insurance benefits.)
What is the required minimum percentage of employee participation for a noncontributory group
health insurance plan according to Florida Law? - CORRECT ANSWER ✔✔✔✔✔ 0%
EXAMPREPMASTER
, (Most noncontributory group health plans require 100% participation by eligible members. Under
Florida law, there is no specific minimum percentage participation for employees covered by
employee group health insurance.)
What are adjustable rates for life policy loans in Florida based on? - CORRECT ANSWER
Page | 3 ✔✔✔✔✔ Moody's corporate bond index.
(Adjustable rates for life insurance policy loans in Florida are based on Moody's corporate bond
index.)
In Florida, most life insurance policies have a contestability period of? - CORRECT ANSWER
✔✔✔✔✔ 2 years.
(The maximum contestability period for most life insurance policies is 2 years.)
An example of an unfair trade practice is? - CORRECT ANSWER ✔✔✔✔✔ An agent
making a material misrepresentation to the insured.
(Making a material misrepresentation to an insured is considered to be an unfair trade practice.)
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective
actions would the Department of Financial Services likely order K to take? - CORRECT
ANSWER ✔✔✔✔✔ Pay monetary restitution to the client.
(The Department of Financial Services may order the agent to pay monetary restitution to the
client.)
Which of the following situations does NOT apply to the Florida Replacement Rule? - CORRECT
ANSWER ✔✔✔✔✔ An existing policyholder purchases an additional policy from the same
insurer.
(Florida's Replacement Rule applies to all of these situations EXCEPT "An existing policyholder
purchases an additional policy from the same insurer".)
Which two entities regulate variable annuities? - CORRECT ANSWER ✔✔✔✔✔
Department of Financial Services; and Securities Exchange Commission.
(Variable annuities are regulated by both the Department of Financial Services and the Securities
Exchange Commission.)
According to Florida's life insurance replacement laws, a policyowner must be provided with a
written Comparison and Summary Statement when it's requested by? - CORRECT ANSWER
✔✔✔✔✔ The policyowner.
(The replacement of existing life insurance policies with new contracts of life insurance requires a
written Comparison and Summary Statement at the policyowner's request.
All of the following are Nonforfeiture Options EXCEPT? - CORRECT ANSWER ✔✔✔✔✔
Automatic Premium Loan Option.
(An automatic premium loan is not considered a Nonforfeiture Option.)
Group Life policies in Florida are required to contain a conversion privilege that allows for
conversion? - CORRECT ANSWER ✔✔✔✔✔ To an individual policy for a stated period of
time.
EXAMPREPMASTER
, (In Florida, Group Life policies must contain a conversion privilege that allows for conversion to an
individual policy for a specified period of time.)
In Florida, monthly-premium health insurance policies must provide a grace period of at least? -
CORRECT ANSWER ✔✔✔✔✔ 10 days.
Page | 4 (In Florida, monthly-premium health insurance policies must provide a grace period of at least 10
days.)
T is an employee covered under a Group Life policy. If T's employment is terminated, the
conversion privilege gives T the right to convert? - CORRECT ANSWER ✔✔✔✔✔ To an
individual policy upon employment Termination.
(When an employee covered on a Group Life policy leaves the group, the conversion privilege gives
the employee the right to convert to an individual policy upon termination of employment.)
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement
policy? - CORRECT ANSWER ✔✔✔✔✔ Limitation on pre-existing conditions for up to 12
months.
(There is only a 6-month limitation on pre-existing conditions for Medicare Supplements).
What do families pay that are covered by the Florida Healthy Kids Corporation? - CORRECT
ANSWER ✔✔✔✔✔ A portion of the premium.
(Families with children covered by the Florida Healthy Kids Corporation program pay only a portion
of the premium.)
When replacing or exchanging an annuity, the agent must disclose to the annuitant? - CORRECT
ANSWER ✔✔✔✔✔ The possible tax ramifications as a result of the transaction.
(An agent must disclose the possible tax consequences of replacing or exchanging an existing
annuity or life insurance policy.)
What is Florida's definition of Life insurance replacement? - CORRECT ANSWER ✔✔✔✔✔
A transaction in which a new policy is bought and an old policy is terminated
( Florida's Replacement Rule defines replacement of Life insurance as a transaction in which a new
policy is bought and an old policy is discontinued.)
An agent's license can be suspended or revoked by? - CORRECT ANSWER ✔✔✔✔✔
"writing primarily controlled business".
An agent's license can be suspended or revoked by writing primarily controlled business.
Which two entities regulate variable annuities? - CORRECT ANSWER ✔✔✔✔✔
"Department of Financial Services; and Securities Exchange Commission".
Variable annuities are regulated by both the Department of Financial Services and the Securities
Exchange Commission.
In Florida, a health policy that is paid on a quarterly basis requires a grace period of?
. - CORRECT ANSWER ✔✔✔✔✔ 31 days
Florida law requires that the minimum grace period on a health insurance policy paid on a quarterly
basis is 31 days.
EXAMPREPMASTER
2026
Page | 1
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of
the policy's face value.? - CORRECT ANSWER ✔✔✔✔✔ Viatical settlement provider.
(To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a
viatical settlement provider.)
Agents that have been licensed for less than six years must complete __ hours of continuing
education every two years.? - CORRECT ANSWER ✔✔✔✔✔ 24.
(Florida agents licensed less than six years are required to complete 24 hours of continuing
education.)
T is an employee covered under a Group Life policy. If T's employment is terminated, the
conversion privilege gives T the right to convert? - CORRECT ANSWER ✔✔✔✔✔ To an
individual policy upon employment termination.
(When an employee covered on a Group Life policy leaves the group, the conversion privilege
gives the employee the right to convert to an individual policy upon termination of employment.
Which of the following activities will NOT result in the suspension of an agent's license? -
CORRECT ANSWER ✔✔✔✔✔ Working for a foreign insurer.
(Working for a foreign insurance company does not result in the revocation or suspension of an
agent's license.)
In Florida, which of the following practitioners normally do NOT receive payment from health
insurance policies? - CORRECT ANSWER ✔✔✔✔✔ Naturopaths.
(Health insurance policies in Florida must cover payment to all of these practitioners EXCEPT
naturopaths.)
An example of sliding would be? - CORRECT ANSWER ✔✔✔✔✔ Charging for an
additional product without the applicant's consent".
(Sliding involves selling additional coverage to an insurance applicant who doesn't want or need it.
An agent will often "slide" this additional coverage in without the customer's knowledge or consent.)
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement
policy? - CORRECT ANSWER ✔✔✔✔✔ Limitation on pre-existing conditions for up to 12
months.
(There is only a 6-month limitation on pre-existing conditions for Medicare Supplements.)
Which of the following situations are NOT subject to Florida life insurance laws? - CORRECT
ANSWER ✔✔✔✔✔ Insurance companies' day-to-day operations .
( Florida life insurance laws apply to all of these situations EXCEPT "Insurance companies' day-to-
day operations".)
EXAMPREPMASTER
, The Bureau of Unclaimed Property is overseen by the
Chief Financial Officer - CORRECT ANSWER ✔✔✔✔✔ The Chief Financial Officer
oversees the Bureau of Unclaimed Property.
Page | 2 An example of unfair discrimination would be? - CORRECT ANSWER ✔✔✔✔✔ Offering
different terms of coverage for different policyowners having the same risk classification.
(Providing different terms of coverage for different policyowners in the same risk classification
would be an example of unfair discrimination.)
A foreign insurance company doing business in Florida? - CORRECT ANSWER ✔✔✔✔✔
Is a company that was formed under the laws of another state.
(In Florida, a foreign insurance company is a company that is formed under the laws of a state other
than Florida.)
An agent selling Medicare Supplement policies must provide every applicant with a(n)? -
CORRECT ANSWER ✔✔✔✔✔ Suitability form.
(Every agent soliciting Medicare Supplements must provide a suitability form.)
A person insured under a health policy is required to give the insurance company a Notice of Claim
within how many days after a covered loss? - CORRECT ANSWER ✔✔✔✔✔ Twenty.
(Written notice of a claim must be given to the insurer within 20 days.)
What do families pay that are covered by the Florida Healthy Kids Corporation? - CORRECT
ANSWER ✔✔✔✔✔ A portion of the premium.
(Families with children covered by the Florida Healthy Kids Corporation program pay only a portion
of the premium.)
How many hours of continuing education must a newly licensed agent complete every two years? -
CORRECT ANSWER ✔✔✔✔✔ 24 HRS
(A newly licensed agent must complete 24 hours of continuing education every 2 years.)
An insurance company incorporated under the laws of the state in which its home office is located is
called a(n) ____ company.? - CORRECT ANSWER ✔✔✔✔✔ Domestic.
(A domestic insurance company is domiciled and incorporated under the laws of the state in which
its home office is located.)
When is a Group Health policy required to provide coverage for a newborn child? - CORRECT
ANSWER ✔✔✔✔✔ At the moment of birth.
(A Group Health policy is required to provide coverage for a newborn child at the moment of birth).
A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - CORRECT
ANSWER ✔✔✔✔✔ Insurance.
(A Multiple Employer Welfare Arrangement (MEWA) provides insurance benefits.)
What is the required minimum percentage of employee participation for a noncontributory group
health insurance plan according to Florida Law? - CORRECT ANSWER ✔✔✔✔✔ 0%
EXAMPREPMASTER
, (Most noncontributory group health plans require 100% participation by eligible members. Under
Florida law, there is no specific minimum percentage participation for employees covered by
employee group health insurance.)
What are adjustable rates for life policy loans in Florida based on? - CORRECT ANSWER
Page | 3 ✔✔✔✔✔ Moody's corporate bond index.
(Adjustable rates for life insurance policy loans in Florida are based on Moody's corporate bond
index.)
In Florida, most life insurance policies have a contestability period of? - CORRECT ANSWER
✔✔✔✔✔ 2 years.
(The maximum contestability period for most life insurance policies is 2 years.)
An example of an unfair trade practice is? - CORRECT ANSWER ✔✔✔✔✔ An agent
making a material misrepresentation to the insured.
(Making a material misrepresentation to an insured is considered to be an unfair trade practice.)
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective
actions would the Department of Financial Services likely order K to take? - CORRECT
ANSWER ✔✔✔✔✔ Pay monetary restitution to the client.
(The Department of Financial Services may order the agent to pay monetary restitution to the
client.)
Which of the following situations does NOT apply to the Florida Replacement Rule? - CORRECT
ANSWER ✔✔✔✔✔ An existing policyholder purchases an additional policy from the same
insurer.
(Florida's Replacement Rule applies to all of these situations EXCEPT "An existing policyholder
purchases an additional policy from the same insurer".)
Which two entities regulate variable annuities? - CORRECT ANSWER ✔✔✔✔✔
Department of Financial Services; and Securities Exchange Commission.
(Variable annuities are regulated by both the Department of Financial Services and the Securities
Exchange Commission.)
According to Florida's life insurance replacement laws, a policyowner must be provided with a
written Comparison and Summary Statement when it's requested by? - CORRECT ANSWER
✔✔✔✔✔ The policyowner.
(The replacement of existing life insurance policies with new contracts of life insurance requires a
written Comparison and Summary Statement at the policyowner's request.
All of the following are Nonforfeiture Options EXCEPT? - CORRECT ANSWER ✔✔✔✔✔
Automatic Premium Loan Option.
(An automatic premium loan is not considered a Nonforfeiture Option.)
Group Life policies in Florida are required to contain a conversion privilege that allows for
conversion? - CORRECT ANSWER ✔✔✔✔✔ To an individual policy for a stated period of
time.
EXAMPREPMASTER
, (In Florida, Group Life policies must contain a conversion privilege that allows for conversion to an
individual policy for a specified period of time.)
In Florida, monthly-premium health insurance policies must provide a grace period of at least? -
CORRECT ANSWER ✔✔✔✔✔ 10 days.
Page | 4 (In Florida, monthly-premium health insurance policies must provide a grace period of at least 10
days.)
T is an employee covered under a Group Life policy. If T's employment is terminated, the
conversion privilege gives T the right to convert? - CORRECT ANSWER ✔✔✔✔✔ To an
individual policy upon employment Termination.
(When an employee covered on a Group Life policy leaves the group, the conversion privilege gives
the employee the right to convert to an individual policy upon termination of employment.)
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement
policy? - CORRECT ANSWER ✔✔✔✔✔ Limitation on pre-existing conditions for up to 12
months.
(There is only a 6-month limitation on pre-existing conditions for Medicare Supplements).
What do families pay that are covered by the Florida Healthy Kids Corporation? - CORRECT
ANSWER ✔✔✔✔✔ A portion of the premium.
(Families with children covered by the Florida Healthy Kids Corporation program pay only a portion
of the premium.)
When replacing or exchanging an annuity, the agent must disclose to the annuitant? - CORRECT
ANSWER ✔✔✔✔✔ The possible tax ramifications as a result of the transaction.
(An agent must disclose the possible tax consequences of replacing or exchanging an existing
annuity or life insurance policy.)
What is Florida's definition of Life insurance replacement? - CORRECT ANSWER ✔✔✔✔✔
A transaction in which a new policy is bought and an old policy is terminated
( Florida's Replacement Rule defines replacement of Life insurance as a transaction in which a new
policy is bought and an old policy is discontinued.)
An agent's license can be suspended or revoked by? - CORRECT ANSWER ✔✔✔✔✔
"writing primarily controlled business".
An agent's license can be suspended or revoked by writing primarily controlled business.
Which two entities regulate variable annuities? - CORRECT ANSWER ✔✔✔✔✔
"Department of Financial Services; and Securities Exchange Commission".
Variable annuities are regulated by both the Department of Financial Services and the Securities
Exchange Commission.
In Florida, a health policy that is paid on a quarterly basis requires a grace period of?
. - CORRECT ANSWER ✔✔✔✔✔ 31 days
Florida law requires that the minimum grace period on a health insurance policy paid on a quarterly
basis is 31 days.
EXAMPREPMASTER
