FLORIDA 2-15 INSURANCE LICENSE EXAM
LATEST 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES |AGRADE|NEW!!
Which of the following insurance concepts is founded on the
ability to predict the approximate number of deaths or frequency
of disabilities within a certain group during a specific time.
A. Principle of large loss
B. Quantum insurance principle
C. Indemnity law
D. Law of large numbers - CORRECT ANSWER >>Law of large
numbers
The owner of a camera store is worried that her new employees
may help themselves to items from inventory without paying for
them. What kind of hazard is described.
A. Physical hazard
B. Ethical hazard
C. Morale hazard
D. Moral hazard - CORRECT ANSWER >>Moral hazard
,All of the following actions are examples of risk avoidance
EXCEPT
A. Bill won't fly in an airplane
B. Wendy keeps her money out of the stock market
C. Pat pays his insurance premium
D. John never drives a car - CORRECT ANSWER >>Pat pays his
insurance premium
Which of the following statements is CORRECT
A. Only speculative risk is insurable
B. Only pure risk is insurable
C. Both pure risk and speculative risks are insurable
D. Neither pure risks nor speculative risks are insurable -
CORRECT ANSWER >>Only pure risk is insurable
Which of the following statements does NOT describe an element
of an insurable risk
A. The loss must not be due to chance
B. The loss must be definite and measurable
,C. The loss cannot be catastrophic
D. The loss exposure to be insured must be large - CORRECT
ANSWER >>The loss must not be due to chance
In the insurance business, risk can best be defined as
A. sharing the possibility of a loss
B. uncertainty regarding the future
C. uncertainty regarding financial loss
D. uncertainty regarding when death will occur - CORRECT
ANSWER >>uncertainty regarding financial loss
Buying insurance is one of the most effective ways of
A. avoiding risk
B. transferring risk
C. reducing risk
D. retaining risk - CORRECT ANSWER >>transferring risk
Which of the following best describes the function of insurance
A. It is a form of legalized gambling
, B. It spreads financial risk over a large group to minimize the loss
to any one individual
C. It protects against living too long
D. It creates and protects risk - CORRECT ANSWER >>It spread
the financial risk over a large group to minimize the loss to any
one individual
tornado is an example of
A. a physical hazard
B. a speculative risk
C. a peril
D. a moral hazard - CORRECT ANSWER >>a peril
Tom buys his wife Mary a $50,000 diamond ring. When she is not
wearing the ring, she keeps it in a safe deposit box at a local
bank. This is an example of risk
A. avoidance
B. reduction
C. retention
D. transference - CORRECT ANSWER >>reduction
LATEST 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES |AGRADE|NEW!!
Which of the following insurance concepts is founded on the
ability to predict the approximate number of deaths or frequency
of disabilities within a certain group during a specific time.
A. Principle of large loss
B. Quantum insurance principle
C. Indemnity law
D. Law of large numbers - CORRECT ANSWER >>Law of large
numbers
The owner of a camera store is worried that her new employees
may help themselves to items from inventory without paying for
them. What kind of hazard is described.
A. Physical hazard
B. Ethical hazard
C. Morale hazard
D. Moral hazard - CORRECT ANSWER >>Moral hazard
,All of the following actions are examples of risk avoidance
EXCEPT
A. Bill won't fly in an airplane
B. Wendy keeps her money out of the stock market
C. Pat pays his insurance premium
D. John never drives a car - CORRECT ANSWER >>Pat pays his
insurance premium
Which of the following statements is CORRECT
A. Only speculative risk is insurable
B. Only pure risk is insurable
C. Both pure risk and speculative risks are insurable
D. Neither pure risks nor speculative risks are insurable -
CORRECT ANSWER >>Only pure risk is insurable
Which of the following statements does NOT describe an element
of an insurable risk
A. The loss must not be due to chance
B. The loss must be definite and measurable
,C. The loss cannot be catastrophic
D. The loss exposure to be insured must be large - CORRECT
ANSWER >>The loss must not be due to chance
In the insurance business, risk can best be defined as
A. sharing the possibility of a loss
B. uncertainty regarding the future
C. uncertainty regarding financial loss
D. uncertainty regarding when death will occur - CORRECT
ANSWER >>uncertainty regarding financial loss
Buying insurance is one of the most effective ways of
A. avoiding risk
B. transferring risk
C. reducing risk
D. retaining risk - CORRECT ANSWER >>transferring risk
Which of the following best describes the function of insurance
A. It is a form of legalized gambling
, B. It spreads financial risk over a large group to minimize the loss
to any one individual
C. It protects against living too long
D. It creates and protects risk - CORRECT ANSWER >>It spread
the financial risk over a large group to minimize the loss to any
one individual
tornado is an example of
A. a physical hazard
B. a speculative risk
C. a peril
D. a moral hazard - CORRECT ANSWER >>a peril
Tom buys his wife Mary a $50,000 diamond ring. When she is not
wearing the ring, she keeps it in a safe deposit box at a local
bank. This is an example of risk
A. avoidance
B. reduction
C. retention
D. transference - CORRECT ANSWER >>reduction
