Actual exam for Florida Insurance 2-
14 Exam Terms 2025 update |
comprehensive questions and
verified answers (complete
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Terms in this set (342)
Financial protection against loss or
harm - An arrangement by which
company gives customers financial
Insurance
protection against loss or harm such
as theft or illness in return for
premium payments.
, Is based on actuarial or mathematical
principles and guarantees a specified
Life Insurance
sum of money upon the death of the
person who is insured.
Provide a stream of income by
making a series of payments to the
Annuities annuitant for the annuitant's lifetime or
for a specifically designated period
of time.
Uncertainty regarding loss; the
Risk probability of loss occurring for an
insured or prospect
Involve the possibility of loss and
Speculative Risks
gain. (Not Insurable)
Involve the possibility of loss only.
Pure Risks
(Insurable)
Cause of risk (when a building burns,
Peril
fire is the peril)
Hazards The source of danger
A hazard being of physical nature.
A person being treated of cancer, the
Physical Hazard
disease is the physical endangerment.
(Blindness & deafness)
, Occurs when individuals evade risk
Risk Avoidance entirely. "If you don't drive, then you
avoid getting in an auto accident."
Takes place when the chances of loss
Risk Reduction are lessened. Changing a lifestyle to
minimize a known risk.
Being aware of the risks involved and
taking precautions for financial
Risk Retention
protection. Auto policy's deductible is
an illustration of risk retention
The act of shifting the responsibility of
Risk Transference risk to another in the form of an
insurance contract.
Refers to the tendency for those
individuals who present less favorable
Adverse
insurance risk to seek or continue
Selection
insurance to a great extent than other
risks.
14 Exam Terms 2025 update |
comprehensive questions and
verified answers (complete
solutions) GRADE A+!!
Save
Terms in this set (342)
Financial protection against loss or
harm - An arrangement by which
company gives customers financial
Insurance
protection against loss or harm such
as theft or illness in return for
premium payments.
, Is based on actuarial or mathematical
principles and guarantees a specified
Life Insurance
sum of money upon the death of the
person who is insured.
Provide a stream of income by
making a series of payments to the
Annuities annuitant for the annuitant's lifetime or
for a specifically designated period
of time.
Uncertainty regarding loss; the
Risk probability of loss occurring for an
insured or prospect
Involve the possibility of loss and
Speculative Risks
gain. (Not Insurable)
Involve the possibility of loss only.
Pure Risks
(Insurable)
Cause of risk (when a building burns,
Peril
fire is the peril)
Hazards The source of danger
A hazard being of physical nature.
A person being treated of cancer, the
Physical Hazard
disease is the physical endangerment.
(Blindness & deafness)
, Occurs when individuals evade risk
Risk Avoidance entirely. "If you don't drive, then you
avoid getting in an auto accident."
Takes place when the chances of loss
Risk Reduction are lessened. Changing a lifestyle to
minimize a known risk.
Being aware of the risks involved and
taking precautions for financial
Risk Retention
protection. Auto policy's deductible is
an illustration of risk retention
The act of shifting the responsibility of
Risk Transference risk to another in the form of an
insurance contract.
Refers to the tendency for those
individuals who present less favorable
Adverse
insurance risk to seek or continue
Selection
insurance to a great extent than other
risks.
