Florida Insurance 2-15 Exam Terms | Questions and Correct Solutions | Latest Update 2024/2025 | Graded A+

Florida Insurance 2-15 Exam Terms | Questions and Correct Solutions | Latest Update 2024/2025 | Graded A+ Insurance - 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 - Answer -Is based on actuarial or mathematical principles and guarantees a specified sum of money upon the death of the person who is insured. Health Insurance - Answer -Evolved from scientific principles to provide funds for medical expensed due to sickness or injury and to cover loss of income during disability Annuities - 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 - Answer -Uncertainty regarding loss; the probability of loss occurring for an insured or prospectSpeculative Risks - Answer -Involve the possibility of loss and gain. (Not Insurable) Pure Risks - Answer -Involve the possibility of loss only. (Insurable) Peril - Answer -Cause of risk (when a building burns, fire is the peril) Hazards - Answer -The source of danger Physical Hazard - Answer -A hazard being of physical nature. A person being treated of cancer, the disease is the physical endangerment. (Blindness & deafness) Risk Avoidance - Answer -Occurs when individuals evade risk entirely. "If you don't drive, then you avoid getting in an auto accident." Risk Reduction - Answer -Takes place when the chances of