Florida Insurance 2-14 Exam Terms with Correct Answers 100% Verified
Florida Insurance 2-14 Exam Terms with Correct Answers 100% Verified Insurance - Correct Answer Financial protection against loss or harm - An arrangement by which company gives customers financial protection against loss or harm such as theft or illness in return for premium payments. Life Insurance - Correct Answer Is based on actuarial or mathematical principles and guarantees a specified sum of money upon the death of the person who is insured. Annuities - Correct 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 - Correct Answer Uncertainty regarding loss; the probability of loss occurring for an insured or prospect Speculative Risks - Correct Answer Involve the possibility of loss and gain. (Not Insurable) Pure Risks - Correct Answer Involve the possibility of loss only. (Insurable) Peril - Correct Answer Cause of risk (when a building burns, fire is the peril) Hazards - Correct Answer The source of danger Physical Hazard - Correct Answer A hazard being of physical nature. A person being treated of cancer, the disease is the physical endangerment. (Blindness & deafness) Risk Avoidance - Correct Answer Occurs when individuals evade risk entirely. "If you don't drive, then you avoid getting in an auto accident." Risk Reduction - Correct Answer Takes place when the chances of loss are lessened. Changing a lifestyle to minimize a known risk. Risk Retention - Correct 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 - Correct Answer The act of shifting the responsibility of risk to another in the form of an insurance contract. Adverse Selection - Correct 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.
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