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Florida Course Update December 2022

Florida Insurance courses will be updated on December 15, 2022, to include the state exam outline changes effective January 1, 2023. If you are studying for your Life or Life & Health combination exam, please note that your progress for the Retirement and Other Insurance Concepts chapter will be reset on December 15. To qualify for a Simulate Your Exam or for your Certificate of Completion, you will be required to retake and pass that chapter quiz. Continue reading to view the Life and Health, and Property and Casualty addendums.

Florida Life and Health Addendum

Florida Property and Casualty Addendum


Life and Health

Addendum: for use with Florida Life and Health online ExamFX courses and study guides versions 27119en and 27120en, per exam content outline updates effective 01/01/2023.

The following are content additions to supplement your existing text unless otherwise indicated.


Exam Breakdown – revised exam breakdown

Florida Life and Health Insurance Examination

165 Total Questions (150 scored, 15 pretest)




General Knowledge:

Completing the Application, Underwriting, and Delivering the Policy


Types of Life Policies


Life Policy Provisions, Riders and Options


Retirement and Other Insurance Concepts


Field Underwriting Procedures


Types of Health Policies


Health Policy Provisions, Clauses, and Riders


Social Insurance


Other Health Insurance Concepts


State Law:

Florida Statutes, Rules, and Regulations Common to All Lines


Florida Statutes, Rules, and Regulations Pertinent to Life and Annuity Insurance, Including Variable Products


Florida Statutes, Rules, and Regulations Pertinent to Health Insurance



Completing the Application, Underwriting, and Delivering the Policy

Gramm-Leach-Bliley Act (GLBA) Privacy

The Gramm-Leach-Bliley Act stipulates that in general, an insurance company may not disclose nonpublic personal information to a nonaffiliated third party except for the following reasons:

  • The insurance company clearly and conspicuously discloses to the consumer in writing that information may be disclosed to a third party;
  • The consumer is given the opportunity, before the time that information is initially disclosed, to direct that information not be disclosed to the third party; or
  • The consumer is given an explanation of how the consumer can exercise a nondisclosure option.

The Gramm-Leach-Bliley Act requires 2 disclosures to a customer (a consumer who has an ongoing financial relationship with a financial institution):

  1. When the customer relationship is established (a policy is purchased); and
  2. Before disclosing protected information.

The customer must also receive an annual privacy disclosure, and have the right to opt out, or choose not to have their private information shared with other parties.

Types of Policies

E. Annuities

Payout Options

Annuity payment options specify how annuity funds are to be paid out. They are very similar to the settlement options used in life insurance that determine how the policy proceeds are distributed to the beneficiaries.

Life Contingency Options - Pure Life vs. Life with Guaranteed Minimum

The life annuity will pay a specific amount for the remainder of the annuitant’s life. With pure life, also known as life-only or straight life, this payment ceases at the annuitant's death (no matter how soon in the annuitization period that occurs). This option provides the highest monthly benefits for an individual annuitant. Under this option, while the annuity payments are guaranteed for the lifetime of the annuitant, there is no guarantee that all the proceeds will be fully paid out.

Under the life with guaranteed minimum settlement option, if the annuitant dies before the principal amount has been paid out, the remainder of the principal amount will be refunded to the beneficiary. This option is also called refund life. It guarantees that the entire principal amount will be paid out.

There are two types of refund life annuities:

  • Cash refund — when the annuitant dies, the beneficiary receives a lump-sum refund of the principal minus benefit payments already made to the annuitant. Cash refund option does not guarantee to pay any interest.
  • Installment refund — when the annuitant dies, the beneficiary will continue to receive guaranteed installments until the entire principal amount has been paid out.

Note, however, that any unpaid annuity benefits following the death of an annuitant are taxable when paid to the beneficiary.

Life with period (term) certain is another life contingency payout option. Under this option, the annuity payments are guaranteed for the lifetime of the annuitant, and for a specified period of time for the beneficiary. For example, a life income with a 20-year period certain option would provide the annuitant with an income while he is living (for the entire life). If, however, the annuitant dies shortly after payments begin, the payments will be continued to a beneficiary for the remainder of the period (for a total of 20 years).

Single Life vs. Multiple Life

Single life annuities cover one life, and annuity payments are made with reference to one life only. Contributions can be made with a single premium or on a periodic premium basis with subsequent values accumulating until the contract is annuitized.

Multiple life annuities cover 2 or more lives. The most common multiple life annuities are joint life, and joint and survivor.

Joint Life

Joint life is a payout arrangement where two or more annuitants receive payments until the first death among the annuitants, and then payments stop.

Joint and Survivor

The joint and survivor arrangement is a modification of the life income option in that it guarantees an income for two recipients that neither can outlive. Although it is possible for the surviving recipient(s) to receive payments in the same amount as the first recipient to die, most contracts provide that the surviving recipients will receive a reduced payment after the first recipient dies. Most commonly, this option is written as “joint and ½ survivor” or "joint and 2/3 survivor,” in which the surviving beneficiary receives ½ or 2/3 of what was received when both beneficiaries were alive. This option is commonly selected by a couple in retirement. As with the life income option, there is no guarantee that all the proceeds will be paid out if both beneficiaries die shortly after the installments begin.

Annuities Certain (Types)

In contrast with life contingency benefit payment options, annuities certain are short-term annuities that limit the amounts paid to a certain fixed period or until a certain fixed amount is liquidated.

With fixed-period installments, the annuitant selects the time period for the benefits, and the insurer determines how much each payment will be, based on the value of the account and future earnings projections. This option pays for a specified amount of time only, whether or not the annuitant is living.

With fixed-amount installments, the annuitant selects how much each payment will be, and the insurer determines how long the benefits will be paid by analyzing the value of the account and future earnings. This option pays a specific amount until funds are exhausted, whether or not the annuitant is living.

Policy Riders, Provisions, Options, and Exclusions

A. Policy Provisions

7. Beneficiary Designations

Designation by Class

A class of beneficiary is using a designation such as "my children." This term can be vague if the insured has been married more than once, has adopted children, or has children out of wedlock.

An example of a class that is less vague is "children of the union of Jane Smith and James Smith." Many insurers encourage the insured to name each child specifically and to state the percentage of benefit they are to receive.

When naming beneficiaries, it is most prudent to be specific by naming each individual and by designating the exact amount to be given for that individual. Two class designations are available for use when an insured chooses to "group" the beneficiaries: per capita and per stirpes. Per capita, meaning by the head, evenly distributes benefits among the living named beneficiaries.

Per stirpes, meaning by the bloodline, distributes the benefits of a beneficiary who died before the insured to that beneficiary's heirs.

B. Policy Riders additional riders

Disability Income

With the disability income rider, in the event of disability the insurer will waive the policy premiums and pay a monthly income to the insured. The amount paid is normally based on a percentage of the face amount of the policy to which it is attached.

Cost of Living

The cost of living rider addresses the inflation factor by automatically increasing the amount of insurance without evidence of insurability from the insured. The face value of the policy may be increased by a cost of living factor tied to an inflation index such as the Consumer Price Index (CPI).

Taxation, Retirement, and Other Insurance Conceptschapter has been renamed as “Retirement and Other Insurance Concepts”

Viatical Settlements – topic deleted from the General Knowledge outline

Types of Health Policies

A. Medical Expense Insurance

Health Reimbursement Accounts (HRAs)

Health Reimbursement Accounts (HRAs) consist of funds set aside by employers to reimburse employees for qualified medical expenses, such as deductibles or coinsurance amounts. Employers qualify for preferential tax treatment of funds placed in an HRA in the same way that they qualify for tax advantages by funding an insurance plan. Employers can deduct the cost of a health reimbursement account as a business expense.

The following are key characteristics of HRAs:

  • They are contribution healthcare plans, not defined benefit plans;
  • Not a taxable employee benefit;
  • Employers' contributions are tax deductible;
  • Employees can roll over unused balances at the end of the year;
  • Employers do not need to advance claims payments to employees or healthcare providers during the early months of the plan year;
  • Provided with employer dollars, not employee salary reductions;
  • Permit the employer to reduce health plan costs by coupling the HRA with a high-deductible (and usually lower-cost) health plan; and
  • Balance the group purchasing power of larger employers and smaller employers.

HRAs are open to employees of companies of all sizes; however, the employer determines eligibility and contribution limits.

An HRA has no statutory limit. Limits may be set by employer, and rollover at the end of the year based on employer discretion. Former employees, including retirees, can have continued access to unused HRAs, but this is done at the employer's discretion. HRAs remain with the originating employer and do not follow an employee to new employment.

D. Long-Term Care

Eligibility for Benefits

Normally to be eligible for benefits from a long-term care policy, the insured must be unable to perform some of the activities of daily living (ADLs). Activities of daily living include bathing, dressing, toileting, transferring positions (also called mobility), continence, and eating.

Property and Casualty

Addendum: for use with Florida Property and Casualty online ExamFX course and study guide version 24701en, per exam content outline updates effective 01/01/2023.

The following are content additions to supplement your existing text unless otherwise indicated.


Exam Breakdowns – revised exam breakdowns

Florida Property and Casualty (General Lines) Insurance Examination

175 Total Questions (160 scored, 15 pretest)




General Knowledge:

Property and Casualty Insurance Terms and Related Concepts


Policy Provisions and Contract Law


Types of Property Policies


Types of Casualty Policies, Bonds, and Related Terms


State Law:

Florida Statutes, Rules, and Regulations Common to All Lines


Florida Statutes, Rules, and Regulations Pertinent to General Lines Insurance


Florida Statutes, Rules, and Regulations Pertinent to Health Insurance


Types of Property Policies

B. Commercial Lines

Cyber First-Party Coverage

With an ever-growing reliance on technology, it is no surprise that cyberattacks and data breaches are more common than ever. Businesses that obtain and store personal, financial, or otherwise sensitive data are prone to extortion and fraud. To protect businesses and consumers, cyber insurance is made available to businesses, designed to lessen the financial impact resulting from cyberattacks and data breaches.

Cyber security insurance is broken into the following coverage types:

  • First-party cyber insurance — Protects businesses from damages resulting from cyber losses to the business' own network or system; and
  • Third-party cyber insurance — Covers legal expenses for lawsuits resulting from a business's inability to properly secure consumer data.

Examples of losses covered by a first-party cyber policy include:

  • Business interruption and lost revenue;
  • Customer notifications;
  • Credit monitoring services for affected customers;
  • Ransom payments to extortionists holding data hostage; and
  • Costs associated with public relation campaigns.

Types of Casualty Policies, Bonds, and Related Terms

B. Automotive: Personal Auto and Business Auto

11. Business Auto

Mobile Equipment Endorsement

Under the business auto coverage form, mobile equipment is covered for liability insurance when being carried or towed by a covered auto. If a land vehicle that fits the definition of mobile equipment, but because of where or how it is being used becomes subject to compulsory insurance as if it were an auto, an insured could potentially have a coverage problem. For example, a bulldozer is required to have compulsory insurance because to get from one part of a job site to another, it must drive on a public road. If the insured has a Symbol 7 (Specified Auto) listed on the Declarations, that bulldozer would need to be included on the insured's vehicle schedule to be covered for liability. If it is not listed, a solution would be to use this endorsement. The bulldozer would be specifically described in the endorsement and granted coverage.

Covered autos liability coverage does not apply to bodily injury, property damage, or covered pollution cost or expense resulting from the operation of any machinery or equipment that is on, attached to, or part of any of the covered autos.

E. Professional Liability

Liquor Liability

Liquor liability (also known as dram shop liability) refers to the exposure that bars, restaurants, and other similar establishments face due to the selling, distributing, manufacturing, or serving of alcoholic beverages. Liquor liability provides protection in the event of action brought against the insured for selling liquor to a customer who is later involved in an accident and suffers bodily injury or property damage.

Businesses of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages all may have liability exposure to actions under state or local statutes that establish responsibilities for those injuries arising from the distribution or use of alcoholic beverages and causing injuries to the user or caused to others by the user.

Businessowners Policy (BOP) – please refer to the online course for complete text (“Types of Policies, Bonds, and Related Terms” chapter)