Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License exam with our comprehensive test prep resources. Engage with multiple-choice questions that cover key topics crucial for your success in the insurance field. Get ready to ace your certification exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Which type of annuity pays benefits based on units rather than specific dollar amounts?

Fixed annuity
Immediate annuity
Variable annuity
Indexed annuity

The correct answer is: Variable annuity

Variable annuities pay benefits based on units rather than specific dollar amounts. This is different from fixed and indexed annuities, which have predetermined payout amounts. An immediate annuity is a type of fixed or variable annuity that starts paying out immediately after the initial investment, but the payout is still based on specified dollar amounts. Therefore, option C is the correct answer for this question.