FLORIDA 2 15 INSURANCE FINAL 2026
CERTIFICATION REVIEW SCRIPT TESTED
QUESTIONS WITH VERIFIED ANSWERS
◉ Life Insurance.
Answer: Is based on actuarial or mathematical principles and
guarantees a specified sum of money upon the death of the person
who is insured.
◉ Health Insurance.
Answer: Evolved from scientific principles to provide funds for
medical expensed due to sickness or injury and to cover loss of
income during disability
◉ Annuities.
Answer: Provide a stream of income by making a series of payments
to the annuitant for the annuitant's lifetime or for a specifically
designated period of time.
◉ Risk.
Answer: Uncertainty regarding loss; the probability of loss occurring
for an insured or prospect
,◉ Speculative Risks.
Answer: Involve the possibility of loss and gain. (Not Insurable)
◉ Pure Risks.
Answer: Involve the possibility of loss only. (Insurable)
◉ Peril.
Answer: Cause of risk (when a building burns, fire is the peril)
◉ Hazards.
Answer: The source of danger
◉ Physical Hazard.
Answer: A hazard being of physical nature.
A person being treated of cancer, the disease is the physical
endangerment. (Blindness & deafness)
◉ Risk Avoidance.
Answer: Occurs when individuals evade risk entirely. "If you don't
drive, then you avoid getting in an auto accident."
◉ Risk Reduction.
,Answer: Takes place when the chances of loss are lessened.
Changing a lifestyle to minimize a known risk.
◉ Risk Retention.
Answer: Being aware of the risks involved and taking precautions for
financial protection. Auto policy's deductible is an illustration of risk
retention
◉ Risk Transference.
Answer: The act of shifting the responsibility of risk to another in
the form of an insurance contract.
◉ Adverse Selection.
Answer: Refers to the tendency for those individuals who present
less favorable insurance risk to seek or continue insurance to a great
extent than other risks.
◉ Insuring Pure Risk.
Answer: Loss must be due to chance
Loss must be definite and measurable
Risk must be predictable
Loss must NOT be catastrophic
Exposure to loss must be large
, Loss exposures must be randomly selected
◉ Mutual Insurers.
Answer: Participating policies
Owned by policyholders
Vote for directors and trustees
Directors and management have control
Typically higher rates
◉ Assessment Mutual Insurers.
Answer: Prohibited in Florida
◉ Pure Assessment Mutual Company.
Answer: Don't pay premium and total loss is divided among
members
◉ Lloyds of London.
Answer: NOT considered an insurance company
- An association of individuals and companies that individually
underwriter insurance.
◉ Fraternal Benefit Societies.
CERTIFICATION REVIEW SCRIPT TESTED
QUESTIONS WITH VERIFIED ANSWERS
◉ Life Insurance.
Answer: Is based on actuarial or mathematical principles and
guarantees a specified sum of money upon the death of the person
who is insured.
◉ Health Insurance.
Answer: Evolved from scientific principles to provide funds for
medical expensed due to sickness or injury and to cover loss of
income during disability
◉ Annuities.
Answer: Provide a stream of income by making a series of payments
to the annuitant for the annuitant's lifetime or for a specifically
designated period of time.
◉ Risk.
Answer: Uncertainty regarding loss; the probability of loss occurring
for an insured or prospect
,◉ Speculative Risks.
Answer: Involve the possibility of loss and gain. (Not Insurable)
◉ Pure Risks.
Answer: Involve the possibility of loss only. (Insurable)
◉ Peril.
Answer: Cause of risk (when a building burns, fire is the peril)
◉ Hazards.
Answer: The source of danger
◉ Physical Hazard.
Answer: A hazard being of physical nature.
A person being treated of cancer, the disease is the physical
endangerment. (Blindness & deafness)
◉ Risk Avoidance.
Answer: Occurs when individuals evade risk entirely. "If you don't
drive, then you avoid getting in an auto accident."
◉ Risk Reduction.
,Answer: Takes place when the chances of loss are lessened.
Changing a lifestyle to minimize a known risk.
◉ Risk Retention.
Answer: Being aware of the risks involved and taking precautions for
financial protection. Auto policy's deductible is an illustration of risk
retention
◉ Risk Transference.
Answer: The act of shifting the responsibility of risk to another in
the form of an insurance contract.
◉ Adverse Selection.
Answer: Refers to the tendency for those individuals who present
less favorable insurance risk to seek or continue insurance to a great
extent than other risks.
◉ Insuring Pure Risk.
Answer: Loss must be due to chance
Loss must be definite and measurable
Risk must be predictable
Loss must NOT be catastrophic
Exposure to loss must be large
, Loss exposures must be randomly selected
◉ Mutual Insurers.
Answer: Participating policies
Owned by policyholders
Vote for directors and trustees
Directors and management have control
Typically higher rates
◉ Assessment Mutual Insurers.
Answer: Prohibited in Florida
◉ Pure Assessment Mutual Company.
Answer: Don't pay premium and total loss is divided among
members
◉ Lloyds of London.
Answer: NOT considered an insurance company
- An association of individuals and companies that individually
underwriter insurance.
◉ Fraternal Benefit Societies.
