215 Insurance License
Exam 2026 | Florida Life &
Health Practice Questions
& Answers
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, pure risk insurable - involves chance of loss, never gain or profit
peril event causing loss
Ex: fire, death, accident, windstorm, disease
hazard any factor that gives rise to peril or increase likelihood of a loss from a peril
physical hazard slippery floor, blindness, deafness, past medical history
moral hazard intentional act, tendencies to take risks;
Ex: alcoholism, drugs, dishonesty
morale hazard carelessness, indifference
Ex: driving recklessly with no fear of injury
risk avoidance avoiding the risk, don't do anything
Ex: choosing not to drive, fly or invest (not practical)
risk reduction reducing the risk of a loss
Ex: installing smoke detectors, quit smoking, don't test and drive
risk retention self-insure, setting up fund to offset your losses; should be limited to what you
can easily afford to pay
risk transfer purchasing insurance, best way; transferring risk from an individual to an insurance
company
adverse selection tendency for less favorable insurance risks to seek and continue insurance to
greater extent than other risks
Ex: people in poor health
human life value economic value measured in part by future earnings potential
needs base approach how much money needed if death occurs today
stock insurers private organization owned by stockholders; in business to make profit for
stockholders
mutual insurers corporation owned by policyholders; issue participating policies that pay policy
dividends
lloyds of london association of individuals and companies that underwrite insurance; coverage for
unusual or high risks
Ex: kidnap or ransom, disability for professional athletes
reinsurers insurer for insurers
risk retention group mutual insurance company formed to insure those in same business, occupation,
or profession
Ex: dentists, engineers, pharmacists
Exam 2026 | Florida Life &
Health Practice Questions
& Answers
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, pure risk insurable - involves chance of loss, never gain or profit
peril event causing loss
Ex: fire, death, accident, windstorm, disease
hazard any factor that gives rise to peril or increase likelihood of a loss from a peril
physical hazard slippery floor, blindness, deafness, past medical history
moral hazard intentional act, tendencies to take risks;
Ex: alcoholism, drugs, dishonesty
morale hazard carelessness, indifference
Ex: driving recklessly with no fear of injury
risk avoidance avoiding the risk, don't do anything
Ex: choosing not to drive, fly or invest (not practical)
risk reduction reducing the risk of a loss
Ex: installing smoke detectors, quit smoking, don't test and drive
risk retention self-insure, setting up fund to offset your losses; should be limited to what you
can easily afford to pay
risk transfer purchasing insurance, best way; transferring risk from an individual to an insurance
company
adverse selection tendency for less favorable insurance risks to seek and continue insurance to
greater extent than other risks
Ex: people in poor health
human life value economic value measured in part by future earnings potential
needs base approach how much money needed if death occurs today
stock insurers private organization owned by stockholders; in business to make profit for
stockholders
mutual insurers corporation owned by policyholders; issue participating policies that pay policy
dividends
lloyds of london association of individuals and companies that underwrite insurance; coverage for
unusual or high risks
Ex: kidnap or ransom, disability for professional athletes
reinsurers insurer for insurers
risk retention group mutual insurance company formed to insure those in same business, occupation,
or profession
Ex: dentists, engineers, pharmacists
