Florida 2-40 Health Insurance Exam (2026/2027) |
Latest Exam-Based Questions | 100% Verified
Answers | Exam Prep Guide | A+
• Loss Sharing -✓✓The spreading or pooling of risks over a large group
of individuals
• Risk pooling -✓✓Same as loss sharing
• Law of large numbers -✓✓Science of probability and experience of
mortality (death) & morbidity (sickness). The larger and more
homogenous the group the more certain the predictions
• Risk -✓✓Is defined as uncertainty regarding loss
• Speculative risk -✓✓The chance of both loss and gain
• Pure risk -✓✓Involve only the chance of loss. Only Pure risk is
insurable
• Peril -✓✓Is an immediate specific event causing loss and giving rise
to risk
• Hazard -✓✓Any factor that increases the chance of a peril happening
, • Physical hazards -✓✓Individual characteristics that increase chance
of peril.blindness and deafness as well as racing a motorcycle around
on a track are all physical hazards
• Moral hazards -✓✓Bad behavioral choices like alcoholism drug
addiction. These are moral hazards that increase risk and loss
• Morale hazards -✓✓Attitude or state of mind causing indifference to
loss. Example driving recklessly intentionally ie selfishness
• Risk avoidance -✓✓You NEVER EVER do that. Example fly drive invest
in stocks
• Risk reduction -✓✓Lessen possibility of loss by being cautious and
taking action to reduce risk example installing fire alarm
• Risk Retention -✓✓You did not purchase insurance and plan to cover
loss on your own called self- insuring
• Risk Transference -✓✓Transferring your risk to an insurer (insurance
company)
Latest Exam-Based Questions | 100% Verified
Answers | Exam Prep Guide | A+
• Loss Sharing -✓✓The spreading or pooling of risks over a large group
of individuals
• Risk pooling -✓✓Same as loss sharing
• Law of large numbers -✓✓Science of probability and experience of
mortality (death) & morbidity (sickness). The larger and more
homogenous the group the more certain the predictions
• Risk -✓✓Is defined as uncertainty regarding loss
• Speculative risk -✓✓The chance of both loss and gain
• Pure risk -✓✓Involve only the chance of loss. Only Pure risk is
insurable
• Peril -✓✓Is an immediate specific event causing loss and giving rise
to risk
• Hazard -✓✓Any factor that increases the chance of a peril happening
, • Physical hazards -✓✓Individual characteristics that increase chance
of peril.blindness and deafness as well as racing a motorcycle around
on a track are all physical hazards
• Moral hazards -✓✓Bad behavioral choices like alcoholism drug
addiction. These are moral hazards that increase risk and loss
• Morale hazards -✓✓Attitude or state of mind causing indifference to
loss. Example driving recklessly intentionally ie selfishness
• Risk avoidance -✓✓You NEVER EVER do that. Example fly drive invest
in stocks
• Risk reduction -✓✓Lessen possibility of loss by being cautious and
taking action to reduce risk example installing fire alarm
• Risk Retention -✓✓You did not purchase insurance and plan to cover
loss on your own called self- insuring
• Risk Transference -✓✓Transferring your risk to an insurer (insurance
company)
