Florida 2-40 Health Insurance Practice Exam 2026/2027 Insurance Licensing
Course – Questions and Answers A+ Study Guide
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.
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.
, Florida 2-40 Health Insurance Practice Exam 2026/2027 Insurance Licensing
Course – Questions and Answers A+ Study Guide
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.
Long-Term Care - (answer)Covers nursing home, assisted living, or home care, triggered by inability to
perform ≥2 ADLs.
Fee-for-Service - (answer)Payment model where the insured pays per service and the insurer reimburses.
Course – Questions and Answers A+ Study Guide
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.
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.
, Florida 2-40 Health Insurance Practice Exam 2026/2027 Insurance Licensing
Course – Questions and Answers A+ Study Guide
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.
Long-Term Care - (answer)Covers nursing home, assisted living, or home care, triggered by inability to
perform ≥2 ADLs.
Fee-for-Service - (answer)Payment model where the insured pays per service and the insurer reimburses.
