Florida Health & Life Insurance (2-15)
2025 Study Set | 165-Question Independent Practice
Exam
Seven sections | Original practice scenarios | Answer and rationale after every item
Practice material—not an official exam. Questions in this booklet are independently written study items. They are
not actual Florida examination questions, and answers have not been officially endorsed or graded. This set does not
predict a score or guarantee an exam result.
Official exam format note: The Pearson VUE Florida Insurance Examination Content Outlines effective January 1,
2026 list 150 scored questions plus 15 pretest questions and a 2 hour 45 minute limit for the 2-15 examination. This
165-item practice set is not the state exam and does not identify any item as scored or pretest.
Florida-law note: Statutes, regulations, product forms, and exam outlines may change. Confirm current requirements
with the Florida Department of Financial Services, Office of Insurance Regulation, the Florida Statutes, and the
applicable policy. Where Florida free-look rules are discussed, this exam distinguishes life-policy consumer guidance
from statutory annuity rules; the 21-day annuity period is not limited to buyers age 65 or older.
Suggested practice: answer each question before reading the marked answer and rationale. The
marked option is shown for study and review.
Page 1 of 51
,Contents
Section 1 — Insurance Fundamentals, Risk Management & Contract Law (Q1–Q20) . . . . . . . . 3
Section 2 — Life Insurance Products & Policy Provisions (Q21–Q50) . . . . . . . . . . . . . . . . 9
Section 3 — Annuities, Retirement & Tax Considerations (Q51–Q75) . . . . . . . . . . . . . . . 18
Section 4 — Health Insurance Products & Medical Expense Coverage (Q76–Q105) . . . . . . . 25
Section 5 — Disability, Long-Term Care & Medicare Supplement (Q106–Q130) . . . . . . . . . . 34
Section 6 — Florida Statutes, DFS Regulations & Licensing (Q131–Q150) . . . . . . . . . . . . 41
Section 7 — Ethics, Unfair Trade Practices & Consumer Protection (Q151–Q165) . . . . . . . . 47
Page 2 of 51
,Section 1 — Insurance Fundamentals, Risk Management & Contract
Law (Q1–Q20)
Q1. A bakery owner worries that a kitchen fire could destroy the premises. In insurance
terms, the fire is a:
A. Hazard
B. Peril [CORRECT]
C. Loss exposure
D. Risk classification
Correct Answer: B
Rationale: A peril is the cause of loss; the fire is the event that may produce the damage.
Q2. A driver’s habit of texting while driving increases the chance of a collision. This is
primarily a:
A. Physical hazard
B. Moral hazard
C. Morale hazard [CORRECT]
D. Peril
Correct Answer: C
Rationale: Morale hazard is carelessness or indifference to loss; texting while driving
illustrates it.
Q3. A family faces the possibility that a wage earner may become disabled and lose
income, but there is no possibility of financial gain from that event. This is:
A. A possibility of loss or no loss, but no gain [CORRECT]
B. A possibility of gain or loss
C. A guaranteed financial loss
D. A risk that can always be insured
Correct Answer: A
Rationale: Pure risk presents the chance of loss or no loss, without a chance of profit.
Q4. What term describes intentional dishonesty by an applicant that increases the
insurer's chance of loss?
A. Physical hazard
B. Morale hazard
C. Moral hazard [CORRECT]
D. Peril
Page 3 of 51
, Correct Answer: C
Rationale: Dishonesty that increases the chance or severity of loss is a moral hazard.
Q5. A family cannot avoid the financial consequences of a wage earner’s premature
death, but can transfer some of that exposure. This illustrates risk:
A. Transfer [CORRECT]
B. Retention
C. Avoidance
D. Reduction
Correct Answer: A
Rationale: Insurance transfers specified financial consequences of covered losses to an
insurer.
Q6. An insurer expands a group life plan from 40 to 4,000 similar applicants and observes
that aggregate claims become more predictable. Which principle best explains this?
A. Principle of indemnity
B. Law of large numbers [CORRECT]
C. Doctrine of waiver
D. Rule of subrogation
Correct Answer: B
Rationale: The law of large numbers improves the predictability of aggregate losses across
a sufficiently large pool.
Q7. An applicant’s age and medical history are used to estimate the likelihood and cost of
a covered claim. These details are examples of:
A. Policy exclusions
B. Settlement options
C. Risk characteristics used in underwriting [CORRECT]
D. Reinsurance treaties
Correct Answer: C
Rationale: Underwriters evaluate relevant risk characteristics to classify and price an
application.
Q8. What concept requires a legitimate financial interest in the person or property being
insured?
A. Subrogation
B. Insurable interest [CORRECT]
C. Reinsurance
Page 4 of 51
2025 Study Set | 165-Question Independent Practice
Exam
Seven sections | Original practice scenarios | Answer and rationale after every item
Practice material—not an official exam. Questions in this booklet are independently written study items. They are
not actual Florida examination questions, and answers have not been officially endorsed or graded. This set does not
predict a score or guarantee an exam result.
Official exam format note: The Pearson VUE Florida Insurance Examination Content Outlines effective January 1,
2026 list 150 scored questions plus 15 pretest questions and a 2 hour 45 minute limit for the 2-15 examination. This
165-item practice set is not the state exam and does not identify any item as scored or pretest.
Florida-law note: Statutes, regulations, product forms, and exam outlines may change. Confirm current requirements
with the Florida Department of Financial Services, Office of Insurance Regulation, the Florida Statutes, and the
applicable policy. Where Florida free-look rules are discussed, this exam distinguishes life-policy consumer guidance
from statutory annuity rules; the 21-day annuity period is not limited to buyers age 65 or older.
Suggested practice: answer each question before reading the marked answer and rationale. The
marked option is shown for study and review.
Page 1 of 51
,Contents
Section 1 — Insurance Fundamentals, Risk Management & Contract Law (Q1–Q20) . . . . . . . . 3
Section 2 — Life Insurance Products & Policy Provisions (Q21–Q50) . . . . . . . . . . . . . . . . 9
Section 3 — Annuities, Retirement & Tax Considerations (Q51–Q75) . . . . . . . . . . . . . . . 18
Section 4 — Health Insurance Products & Medical Expense Coverage (Q76–Q105) . . . . . . . 25
Section 5 — Disability, Long-Term Care & Medicare Supplement (Q106–Q130) . . . . . . . . . . 34
Section 6 — Florida Statutes, DFS Regulations & Licensing (Q131–Q150) . . . . . . . . . . . . 41
Section 7 — Ethics, Unfair Trade Practices & Consumer Protection (Q151–Q165) . . . . . . . . 47
Page 2 of 51
,Section 1 — Insurance Fundamentals, Risk Management & Contract
Law (Q1–Q20)
Q1. A bakery owner worries that a kitchen fire could destroy the premises. In insurance
terms, the fire is a:
A. Hazard
B. Peril [CORRECT]
C. Loss exposure
D. Risk classification
Correct Answer: B
Rationale: A peril is the cause of loss; the fire is the event that may produce the damage.
Q2. A driver’s habit of texting while driving increases the chance of a collision. This is
primarily a:
A. Physical hazard
B. Moral hazard
C. Morale hazard [CORRECT]
D. Peril
Correct Answer: C
Rationale: Morale hazard is carelessness or indifference to loss; texting while driving
illustrates it.
Q3. A family faces the possibility that a wage earner may become disabled and lose
income, but there is no possibility of financial gain from that event. This is:
A. A possibility of loss or no loss, but no gain [CORRECT]
B. A possibility of gain or loss
C. A guaranteed financial loss
D. A risk that can always be insured
Correct Answer: A
Rationale: Pure risk presents the chance of loss or no loss, without a chance of profit.
Q4. What term describes intentional dishonesty by an applicant that increases the
insurer's chance of loss?
A. Physical hazard
B. Morale hazard
C. Moral hazard [CORRECT]
D. Peril
Page 3 of 51
, Correct Answer: C
Rationale: Dishonesty that increases the chance or severity of loss is a moral hazard.
Q5. A family cannot avoid the financial consequences of a wage earner’s premature
death, but can transfer some of that exposure. This illustrates risk:
A. Transfer [CORRECT]
B. Retention
C. Avoidance
D. Reduction
Correct Answer: A
Rationale: Insurance transfers specified financial consequences of covered losses to an
insurer.
Q6. An insurer expands a group life plan from 40 to 4,000 similar applicants and observes
that aggregate claims become more predictable. Which principle best explains this?
A. Principle of indemnity
B. Law of large numbers [CORRECT]
C. Doctrine of waiver
D. Rule of subrogation
Correct Answer: B
Rationale: The law of large numbers improves the predictability of aggregate losses across
a sufficiently large pool.
Q7. An applicant’s age and medical history are used to estimate the likelihood and cost of
a covered claim. These details are examples of:
A. Policy exclusions
B. Settlement options
C. Risk characteristics used in underwriting [CORRECT]
D. Reinsurance treaties
Correct Answer: C
Rationale: Underwriters evaluate relevant risk characteristics to classify and price an
application.
Q8. What concept requires a legitimate financial interest in the person or property being
insured?
A. Subrogation
B. Insurable interest [CORRECT]
C. Reinsurance
Page 4 of 51
