Florida 2-40 Health Agent License - ANSWER Allows you to sell, solicit, and explain
health-related insurance products in Florida.
Pure risk - ANSWER Only chance of loss (insurable).
Speculative risk - ANSWER Chance of loss or gain (not insurable).
Physical hazard - ANSWER Tangible hazards such as slippery floors or illness.
Moral hazard - ANSWER Dishonesty or fraud.
Morale hazard - ANSWER Carelessness, exemplified by the attitude 'I'm insured, who
cares'.
Peril - ANSWER The cause of loss, e.g., accident or sickness in health insurance.
Loss - ANSWER The reduction in value or capability due to a covered peril.
Indemnity - ANSWER Health insurance principle that restores you to the same financial
condition as before the loss.
Law of Large Numbers - ANSWER Insurers predict losses more accurately with large
groups of similar risks.
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, Individual health insurance - ANSWER Sold directly to one person or family with full
underwriting.
Group health insurance - ANSWER Sold to an employer or organization without individual
underwriting, cheaper due to risk spread.
Franchise Insurance - ANSWER Used for small groups too small for true group coverage,
with individual underwriting but group-style rates.
Private insurance - ANSWER Commercial insurance from stock and mutual companies like
Aetna and Cigna.
Government insurance - ANSWER Social insurance programs like Medicare, Medicaid,
TRICARE, Social Security, and Workers' Compensation.
Limited Policies - ANSWER Cover one specific risk, such as cancer plans or dental
insurance.
Comprehensive Policies - ANSWER Cover a wide range of services including hospital visits
and preventive care.
Disability Income Insurance - ANSWER Replaces a portion of lost income due to sickness
or accident, paid as periodic income.
Accidental Death & Dismemberment (AD&D) - ANSWER Provides a lump sum for death
or loss of limbs/vision due to an accident.
Medical Expense Insurance - ANSWER Covers hospital, physician, and medical bills on a
reimbursement basis.
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health-related insurance products in Florida.
Pure risk - ANSWER Only chance of loss (insurable).
Speculative risk - ANSWER Chance of loss or gain (not insurable).
Physical hazard - ANSWER Tangible hazards such as slippery floors or illness.
Moral hazard - ANSWER Dishonesty or fraud.
Morale hazard - ANSWER Carelessness, exemplified by the attitude 'I'm insured, who
cares'.
Peril - ANSWER The cause of loss, e.g., accident or sickness in health insurance.
Loss - ANSWER The reduction in value or capability due to a covered peril.
Indemnity - ANSWER Health insurance principle that restores you to the same financial
condition as before the loss.
Law of Large Numbers - ANSWER Insurers predict losses more accurately with large
groups of similar risks.
1
, Individual health insurance - ANSWER Sold directly to one person or family with full
underwriting.
Group health insurance - ANSWER Sold to an employer or organization without individual
underwriting, cheaper due to risk spread.
Franchise Insurance - ANSWER Used for small groups too small for true group coverage,
with individual underwriting but group-style rates.
Private insurance - ANSWER Commercial insurance from stock and mutual companies like
Aetna and Cigna.
Government insurance - ANSWER Social insurance programs like Medicare, Medicaid,
TRICARE, Social Security, and Workers' Compensation.
Limited Policies - ANSWER Cover one specific risk, such as cancer plans or dental
insurance.
Comprehensive Policies - ANSWER Cover a wide range of services including hospital visits
and preventive care.
Disability Income Insurance - ANSWER Replaces a portion of lost income due to sickness
or accident, paid as periodic income.
Accidental Death & Dismemberment (AD&D) - ANSWER Provides a lump sum for death
or loss of limbs/vision due to an accident.
Medical Expense Insurance - ANSWER Covers hospital, physician, and medical bills on a
reimbursement basis.
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