Florida Health and Life Insurance Exam
With Actual Questions & Verified
Answers ,Plus Explained
Rationales/Expert Verified For
Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. Which of the following is the primary purpose of life insurance?
a) To accumulate wealth quickly
b) To provide financial protection for beneficiaries
c) To avoid paying taxes
d) To pay for everyday living expenses
b) To provide financial protection for beneficiaries
Rationale: Life insurance is designed to provide financial security to
beneficiaries upon the death of the insured, not for day-to-day
expenses or rapid wealth accumulation.
2. What type of life insurance provides coverage for a specific
period of time?
a) Whole life insurance
b) Term life insurance
c) Universal life insurance
d) Variable life insurance
,b) Term life insurance
Rationale: Term life insurance offers coverage for a specified term,
such as 10, 20, or 30 years, and does not accumulate cash value.
3. Which provision allows a policyowner to cancel a policy and
receive a refund of premiums?
a) Free-look provision
b) Nonforfeiture provision
c) Dividend option
d) Assignment clause
a) Free-look provision
Rationale: The free-look provision gives policyowners a specified
period to review the policy and return it for a full refund if
dissatisfied.
4. Which type of policy combines life insurance with an
investment savings element?
a) Term life
b) Whole life
c) Universal life
d) Credit life
c) Universal life
Rationale: Universal life policies combine life insurance protection
with a cash value account that can earn interest.
5. What is the purpose of an insurance underwriting process?
a) To sell as many policies as possible
b) To evaluate and classify risk
c) To provide investment advice
d) To determine the premium tax
,b) To evaluate and classify risk
Rationale: Underwriting assesses the risk profile of applicants to
determine coverage eligibility and premium rates.
6. Which of the following is considered a nonforfeiture option?
a) Cash surrender
b) Paid-up additions
c) Automatic premium loan
d) Interest-sensitive feature
a) Cash surrender
Rationale: Nonforfeiture options allow policyowners to access some
value from a policy if they stop paying premiums; cash surrender is
one such option.
7. In health insurance, what does the term “premium” refer to?
a) The maximum benefit
b) The cost of coverage
c) The deductible amount
d) The co-payment
b) The cost of coverage
Rationale: Premiums are the payments made to the insurance
company to maintain coverage.
8. Which policy provision prevents the insurer from denying a
claim after a certain period of time, even if misstatements were
made in the application?
a) Incontestability clause
b) Grace period
c) Reinstatement clause
d) Free-look period
, a) Incontestability clause
Rationale: The incontestability clause ensures that after a set period
(usually two years), the insurer cannot void the policy for
misstatements.
9. What is a characteristic of a renewable term policy?
a) Premiums decrease with age
b) Coverage expires and cannot be renewed
c) Coverage can be renewed without evidence of insurability
d) Cash value accumulates
c) Coverage can be renewed without evidence of insurability
Rationale: Renewable term policies allow the insured to renew
coverage at the end of the term without proving good health.
10. Which type of life insurance pays a benefit only if the
insured dies within a specific term?
a) Whole life
b) Term life
c) Universal life
d) Variable life
b) Term life
Rationale: Term life insurance provides death benefits only if the
insured dies during the policy term.
11. What is the main advantage of a group health insurance
plan?
a) Lower premiums due to shared risk
b) Guaranteed individual benefits
c) Investment growth
d) No underwriting required for any applicant
With Actual Questions & Verified
Answers ,Plus Explained
Rationales/Expert Verified For
Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. Which of the following is the primary purpose of life insurance?
a) To accumulate wealth quickly
b) To provide financial protection for beneficiaries
c) To avoid paying taxes
d) To pay for everyday living expenses
b) To provide financial protection for beneficiaries
Rationale: Life insurance is designed to provide financial security to
beneficiaries upon the death of the insured, not for day-to-day
expenses or rapid wealth accumulation.
2. What type of life insurance provides coverage for a specific
period of time?
a) Whole life insurance
b) Term life insurance
c) Universal life insurance
d) Variable life insurance
,b) Term life insurance
Rationale: Term life insurance offers coverage for a specified term,
such as 10, 20, or 30 years, and does not accumulate cash value.
3. Which provision allows a policyowner to cancel a policy and
receive a refund of premiums?
a) Free-look provision
b) Nonforfeiture provision
c) Dividend option
d) Assignment clause
a) Free-look provision
Rationale: The free-look provision gives policyowners a specified
period to review the policy and return it for a full refund if
dissatisfied.
4. Which type of policy combines life insurance with an
investment savings element?
a) Term life
b) Whole life
c) Universal life
d) Credit life
c) Universal life
Rationale: Universal life policies combine life insurance protection
with a cash value account that can earn interest.
5. What is the purpose of an insurance underwriting process?
a) To sell as many policies as possible
b) To evaluate and classify risk
c) To provide investment advice
d) To determine the premium tax
,b) To evaluate and classify risk
Rationale: Underwriting assesses the risk profile of applicants to
determine coverage eligibility and premium rates.
6. Which of the following is considered a nonforfeiture option?
a) Cash surrender
b) Paid-up additions
c) Automatic premium loan
d) Interest-sensitive feature
a) Cash surrender
Rationale: Nonforfeiture options allow policyowners to access some
value from a policy if they stop paying premiums; cash surrender is
one such option.
7. In health insurance, what does the term “premium” refer to?
a) The maximum benefit
b) The cost of coverage
c) The deductible amount
d) The co-payment
b) The cost of coverage
Rationale: Premiums are the payments made to the insurance
company to maintain coverage.
8. Which policy provision prevents the insurer from denying a
claim after a certain period of time, even if misstatements were
made in the application?
a) Incontestability clause
b) Grace period
c) Reinstatement clause
d) Free-look period
, a) Incontestability clause
Rationale: The incontestability clause ensures that after a set period
(usually two years), the insurer cannot void the policy for
misstatements.
9. What is a characteristic of a renewable term policy?
a) Premiums decrease with age
b) Coverage expires and cannot be renewed
c) Coverage can be renewed without evidence of insurability
d) Cash value accumulates
c) Coverage can be renewed without evidence of insurability
Rationale: Renewable term policies allow the insured to renew
coverage at the end of the term without proving good health.
10. Which type of life insurance pays a benefit only if the
insured dies within a specific term?
a) Whole life
b) Term life
c) Universal life
d) Variable life
b) Term life
Rationale: Term life insurance provides death benefits only if the
insured dies during the policy term.
11. What is the main advantage of a group health insurance
plan?
a) Lower premiums due to shared risk
b) Guaranteed individual benefits
c) Investment growth
d) No underwriting required for any applicant
