Florida 2-40 health license chapters
review Questions Complete With Correct
Answers
\Q\.Loss Sharing - ANSWERS✔-The spreading or pooling of risks over a large group of individuals
\Q\.Risk pooling - ANSWERS✔-Same as loss sharing
\Q\.Law of large numbers - ANSWERS✔-Science of probability and experience of mortality
(death) & morbidity (sickness). The larger and more homogenous the group the more certain
the predictions
\Q\.Risk - ANSWERS✔-Is defined as uncertainty regarding loss
\Q\.Speculative risk - ANSWERS✔-The chance of both loss and gain
\Q\.Pure risk - ANSWERS✔-Involve only the chance of loss. Only Pure risk is insurable
\Q\.Peril - ANSWERS✔-Is an immediate specific event causing loss and giving rise to risk
\Q\.Hazard - ANSWERS✔-Any factor that increases the chance of a peril happening
, \Q\.Physical hazards - ANSWERS✔-Individual characteristics that increase chance of
peril.blindness and deafness as well as racing a motorcycle around on a track are all physical
hazards
\Q\.Moral hazards - ANSWERS✔-Bad behavioral choices like alcoholism drug addiction. These
are moral hazards that increase risk and loss
\Q\.Morale hazards - ANSWERS✔-Attitude or state of mind causing indifference to loss. Example
driving recklessly intentionally ie selfishness
\Q\.Risk avoidance - ANSWERS✔-You NEVER EVER do that. Example fly drive invest in stocks
\Q\.Risk reduction - ANSWERS✔-Lessen possibility of loss by being cautious and taking action to
reduce risk example installing fire alarm
\Q\.Risk Retention - ANSWERS✔-You did not purchase insurance and plan to cover loss on your
own called self- insuring
\Q\.Risk Transference - ANSWERS✔-Transferring your risk to an insurer (insurance company)
\Q\.Elements of Insurance risk - ANSWERS✔-Definate and measurable 2. Predictable 3.cannot
be catastrophic to insurance company 4.loss exposure to insured must be large 5. Loss
exposures must be randomly selected
\Q\.Human life value - ANSWERS✔-Value today of an individual's future earnings that are
devoted to that individuals dependents
review Questions Complete With Correct
Answers
\Q\.Loss Sharing - ANSWERS✔-The spreading or pooling of risks over a large group of individuals
\Q\.Risk pooling - ANSWERS✔-Same as loss sharing
\Q\.Law of large numbers - ANSWERS✔-Science of probability and experience of mortality
(death) & morbidity (sickness). The larger and more homogenous the group the more certain
the predictions
\Q\.Risk - ANSWERS✔-Is defined as uncertainty regarding loss
\Q\.Speculative risk - ANSWERS✔-The chance of both loss and gain
\Q\.Pure risk - ANSWERS✔-Involve only the chance of loss. Only Pure risk is insurable
\Q\.Peril - ANSWERS✔-Is an immediate specific event causing loss and giving rise to risk
\Q\.Hazard - ANSWERS✔-Any factor that increases the chance of a peril happening
, \Q\.Physical hazards - ANSWERS✔-Individual characteristics that increase chance of
peril.blindness and deafness as well as racing a motorcycle around on a track are all physical
hazards
\Q\.Moral hazards - ANSWERS✔-Bad behavioral choices like alcoholism drug addiction. These
are moral hazards that increase risk and loss
\Q\.Morale hazards - ANSWERS✔-Attitude or state of mind causing indifference to loss. Example
driving recklessly intentionally ie selfishness
\Q\.Risk avoidance - ANSWERS✔-You NEVER EVER do that. Example fly drive invest in stocks
\Q\.Risk reduction - ANSWERS✔-Lessen possibility of loss by being cautious and taking action to
reduce risk example installing fire alarm
\Q\.Risk Retention - ANSWERS✔-You did not purchase insurance and plan to cover loss on your
own called self- insuring
\Q\.Risk Transference - ANSWERS✔-Transferring your risk to an insurer (insurance company)
\Q\.Elements of Insurance risk - ANSWERS✔-Definate and measurable 2. Predictable 3.cannot
be catastrophic to insurance company 4.loss exposure to insured must be large 5. Loss
exposures must be randomly selected
\Q\.Human life value - ANSWERS✔-Value today of an individual's future earnings that are
devoted to that individuals dependents
