Florida Life and Health Insurance License Test 2025 – 400 Free Practice Questions to Pass the Exam

Group insurance differs from individual insurance in the sense that its premiums are generally lower. This is due to the fact that group insurance is a type of insurance that is purchased by a group (such as an employer or an organization) for its members, instead of each individual purchasing their own insurance plan. With group insurance, the risk is spread across a larger pool of individuals, leading to lower premiums for everyone.

Option A is incorrect because, as mentioned, group insurance typically has lower premiums than individual insurance. So, higher premiums would be a characteristic of individual insurance, not group insurance.

Option B is incorrect because, while group insurance may offer more comprehensive coverage compared to other types of insurance, it is not the defining factor that sets it apart from individual insurance.

Option D is incorrect because fixed term coverage means that the insurance policy is only valid for a specific period of time, while group insurance