FL Life & Health study guide
FL Life & Health · Work through your exam, one topic at a time.
The Florida Life & Health licensing exam is the state exam a candidate must pass to be licensed by the Florida Department of Financial Services to sell life insurance, health insurance, and related products such as annuities. It is intended for new agents entering the insurance business - career changers, agency hires, and anyone building a book of life and health business in Florida - and it is delivered through Pearson (the program page is branded Pearson VUE, which the company says "will now be known as Pearson Professional Assessments"). The FL Life & Health study guide has 11 sections and about 3,752 words.
01Insurance Foundations and Principles of Life and Health Insurance
Insurance handles pure risk (loss or no loss) and never speculative risk (chance of gain or loss), which is uninsurable. A peril is the cause of loss (death, illness, fire); a hazard increases the likelihood or severity of loss (physical, moral, morale, legal).
289 words, about 1 min02Life Insurance Basics and Policy Types
Term covers a defined period with no cash value: level , decreasing (mortgage protection), increasing , annually renewable (ART) - cheapest in year one, costliest later - renewable (guaranteed renewal without evidence of insurability, premium recalculated at attained age), and convertible (attained-age or original-age conversion; original age costs more but preserves younger rates). Whole life: level premium, guaranteed cash value, matures at the stated age.
310 words, about 2 min03Life Insurance Policy Provisions, Options, Riders and Beneficiaries
Entire contract (policy, application and attached riders), free look , grace period (commonly 30 days on life), reinstatement (back premiums plus interest and evidence of insurability within a stated window), incontestability (the insurer cannot contest for misrepresentation after two years; nonpayment of premium remains contestable), suicide clause (typically two years - premium refunded), and misstatement of age or sex (benefit adjusted to what the premium would have purchased). Cash surrender, reduced paid-up , extended term (same face for a shorter period), and the automatic premium loan.
288 words, about 1 min04Annuities and Retirement Products
Annuities are often described as the mirror image of life insurance: they liquidate an estate. Learn the three parties - the owner controls the contract, the annuitant is the life the payout is measured on, and the beneficiary receives any remainder.
311 words, about 2 min05Health Insurance Basics and Medical Expense Policies
A deductible is paid first; coinsurance is the percentage the insured pays after the deductible; a copay is a flat charge per service; the out-of-pocket maximum caps the insured's annual exposure. Also know inside limits, benefit periods, usual/reasonable/customary fee schedules, preauthorization, and preexisting condition provisions.
301 words, about 2 min06Disability Income, Long-Term Care and Other Health Products
Benefits replace roughly 50–70% of income. Key definitions: own occupation (cannot perform the duties of your specific job - broader and more expensive, and often limited to the first two years) versus any occupation (cannot perform any job for which you are reasonably suited by education, training and experience).
298 words, about 1 min07Group Life and Group Health Insurance
A single master contract is issued to the employer, union or association; members receive certificates as evidence of coverage. The employer is the policyholder, the employee is the certificate holder, and the employer usually administers the plan.
298 words, about 1 min08Federal Tax Considerations for Life and Health Insurance
The death benefit is generally received income tax free , though it is included in the insured's estate if the insured held incidents of ownership at death. Cash value grows tax deferred ; policy loans are not taxable while the policy remains in force; surrender is taxable only to the extent of gain over basis.
331 words, about 2 min09Insurance Regulation and Florida Statutes, Rules and Ethics
The Financial Services Commission - the Governor and three Cabinet members - supervises the Office of Insurance Regulation (OIR) , which licenses insurers and reviews policy forms and rates, and the Department of Financial Services (DFS) , headed by the Chief Financial Officer, which licenses agents, handles consumer services and investigates fraud. The Florida Life and Health Insurance Guaranty Association protects policyholders of an insolvent insurer within statutory limits, including limits for death benefits, cash surrender value, health benefits and annuity present values.
663 words, about 3 min10Marketing, Underwriting and Policy Delivery Practices
The insurer must approve advertising and sales materials, and records must be retained. Life insurance sales require a buyer's guide and a policy summary ; illustrations must show both guaranteed and current values with disclosure language.
342 words, about 2 min11Consumer Protection, Replacement and Unfair Trade Practices (Florida)
A replacement occurs whenever a new life policy or annuity is bought and an existing policy is lapsed, surrendered, converted, reduced or used to fund the purchase. The agent must present and read the Notice Regarding Replacement , obtain the applicant's signature, list every policy being replaced, leave a copy with the applicant, and submit it with the application.
321 words, about 2 min