Florida 2-40 Health Insurance Exam (2026/2027) | Most Recent Question Bank | 100% Accurate Answers | Revision Pack | A+ Verified

Florida 2-40 Health Insurance Exam
(2026/2027) | Most Recent Question Bank |
100% Accurate Answers | Revision Pack |
A+ Verified
• Pure risk. CORRECT ANSWER: Only chance of loss (insurable).


• Speculative risk. CORRECT ANSWER: Chance of loss or gain (not
insurable).


• Physical hazard. CORRECT ANSWER: Tangible hazards such as slippery
floors or illness.


• Moral hazard. CORRECT ANSWER: Dishonesty or fraud.


• Morale hazard. CORRECT ANSWER: Carelessness, exemplified by the
attitude 'I'm insured, who cares'.


• Peril. CORRECT ANSWER: The cause of loss, e.g., accident or sickness
in health insurance.


• Loss. CORRECT ANSWER: The reduction in value or capability due to a
covered peril.

, • Indemnity. CORRECT ANSWER: Health insurance principle that
restores you to the same financial condition as before the loss.


• Law of Large Numbers. CORRECT ANSWER: Insurers predict losses
more accurately with large groups of similar risks.


• Individual health insurance. CORRECT ANSWER: Sold directly to one
person or family with full underwriting.


• Group health insurance. CORRECT ANSWER: Sold to an employer or
organization without individual underwriting, cheaper due to risk
spread.


• Franchise Insurance. CORRECT ANSWER: Used for small groups too
small for true group coverage, with individual underwriting but group-
style rates.


• Private insurance. CORRECT ANSWER: Commercial insurance from
stock and mutual companies like Aetna and Cigna.


• Government insurance. CORRECT ANSWER: Social insurance
programs like Medicare, Medicaid, TRICARE, Social Security, and
Workers' Compensation.