Florida 2-40 Health Insurance License
& Concepts Questions with Verified
Answers
Florida 2-40 Health Agent License - ANSWERSAllows you to sell, solicit, and explain
health-related insurance products in Florida.
Pure risk - ANSWERSOnly chance of loss (insurable).
Speculative risk - ANSWERSChance of loss or gain (not insurable).
Physical hazard - ANSWERSTangible hazards such as slippery floors or illness.
Moral hazard - ANSWERSDishonesty or fraud.
Morale hazard - ANSWERSCarelessness, exemplified by the attitude 'I'm insured, who
cares'.
Peril - ANSWERSThe cause of loss, e.g., accident or sickness in health insurance.
Loss - ANSWERSThe reduction in value or capability due to a covered peril.
Indemnity - ANSWERSHealth insurance principle that restores you to the same financial
condition as before the loss.
Law of Large Numbers - ANSWERSInsurers predict losses more accurately with large
groups of similar risks.
Individual health insurance - ANSWERSSold directly to one person or family with full
underwriting.
Group health insurance - ANSWERSSold to an employer or organization without
individual underwriting, cheaper due to risk spread.
Franchise Insurance - ANSWERSUsed for small groups too small for true group
coverage, with individual underwriting but group-style rates.
Private insurance - ANSWERSCommercial insurance from stock and mutual companies
like Aetna and Cigna.
Government insurance - ANSWERSSocial insurance programs like Medicare, Medicaid,
TRICARE, Social Security, and Workers' Compensation.
, Limited Policies - ANSWERSCover one specific risk, such as cancer plans or dental
insurance.
Comprehensive Policies - ANSWERSCover a wide range of services including hospital
visits and preventive care.
Disability Income Insurance - ANSWERSReplaces a portion of lost income due to
sickness or accident, paid as periodic income.
Accidental Death & Dismemberment (AD&D) - ANSWERSProvides a lump sum for
death or loss of limbs/vision due to an accident.
Medical Expense Insurance - ANSWERSCovers hospital, physician, and medical bills
on a reimbursement basis.
Long-Term Care - ANSWERSCovers nursing home, assisted living, or home care,
triggered by inability to perform ≥2 ADLs.
Fee-for-Service - ANSWERSPayment model where the insured pays per service and
the insurer reimburses.
Prepaid insurance - ANSWERSPayment model where the provider is paid a set fee
regardless of services rendered.
Scheduled benefit payment - ANSWERSSet dollar amount for each procedure.
Usual, Reasonable & Customary (URC) - ANSWERSPayment based on local average
cost.
Insured - ANSWERSPerson covered under reimbursement-type plans.
Subscriber - ANSWERSMember covered under prepaid/service plans such as HMOs
and PPOs.
Commercial Insurers - ANSWERSFor-profit companies that pay on a reimbursement
basis.
Service Providers - ANSWERSPay directly to doctors/hospitals, often operate as
HMOs, PPOs, or POS plans.
Medicare - ANSWERSFederal program covering individuals 65+, disabled, or with
ESRD.
Medicaid - ANSWERSState and federal program for low-income individuals and
families.
& Concepts Questions with Verified
Answers
Florida 2-40 Health Agent License - ANSWERSAllows you to sell, solicit, and explain
health-related insurance products in Florida.
Pure risk - ANSWERSOnly chance of loss (insurable).
Speculative risk - ANSWERSChance of loss or gain (not insurable).
Physical hazard - ANSWERSTangible hazards such as slippery floors or illness.
Moral hazard - ANSWERSDishonesty or fraud.
Morale hazard - ANSWERSCarelessness, exemplified by the attitude 'I'm insured, who
cares'.
Peril - ANSWERSThe cause of loss, e.g., accident or sickness in health insurance.
Loss - ANSWERSThe reduction in value or capability due to a covered peril.
Indemnity - ANSWERSHealth insurance principle that restores you to the same financial
condition as before the loss.
Law of Large Numbers - ANSWERSInsurers predict losses more accurately with large
groups of similar risks.
Individual health insurance - ANSWERSSold directly to one person or family with full
underwriting.
Group health insurance - ANSWERSSold to an employer or organization without
individual underwriting, cheaper due to risk spread.
Franchise Insurance - ANSWERSUsed for small groups too small for true group
coverage, with individual underwriting but group-style rates.
Private insurance - ANSWERSCommercial insurance from stock and mutual companies
like Aetna and Cigna.
Government insurance - ANSWERSSocial insurance programs like Medicare, Medicaid,
TRICARE, Social Security, and Workers' Compensation.
, Limited Policies - ANSWERSCover one specific risk, such as cancer plans or dental
insurance.
Comprehensive Policies - ANSWERSCover a wide range of services including hospital
visits and preventive care.
Disability Income Insurance - ANSWERSReplaces a portion of lost income due to
sickness or accident, paid as periodic income.
Accidental Death & Dismemberment (AD&D) - ANSWERSProvides a lump sum for
death or loss of limbs/vision due to an accident.
Medical Expense Insurance - ANSWERSCovers hospital, physician, and medical bills
on a reimbursement basis.
Long-Term Care - ANSWERSCovers nursing home, assisted living, or home care,
triggered by inability to perform ≥2 ADLs.
Fee-for-Service - ANSWERSPayment model where the insured pays per service and
the insurer reimburses.
Prepaid insurance - ANSWERSPayment model where the provider is paid a set fee
regardless of services rendered.
Scheduled benefit payment - ANSWERSSet dollar amount for each procedure.
Usual, Reasonable & Customary (URC) - ANSWERSPayment based on local average
cost.
Insured - ANSWERSPerson covered under reimbursement-type plans.
Subscriber - ANSWERSMember covered under prepaid/service plans such as HMOs
and PPOs.
Commercial Insurers - ANSWERSFor-profit companies that pay on a reimbursement
basis.
Service Providers - ANSWERSPay directly to doctors/hospitals, often operate as
HMOs, PPOs, or POS plans.
Medicare - ANSWERSFederal program covering individuals 65+, disabled, or with
ESRD.
Medicaid - ANSWERSState and federal program for low-income individuals and
families.
