Florida 2-40 health license chapters review QUESTIONS WITH VERIFIED CORRECTANSWERS
LATEST
Loss Sharing - (ANSWER)The spreading or pooling of risks over a large group of individuals
Risk pooling - (ANSWER)Same as loss sharing
Law of large numbers - (ANSWER)Science of probability and experience of mortality (death) & morbidity
(sickness). The larger and more homogenous the group the more certain the predictions
Risk - (ANSWER)Is defined as uncertainty regarding loss
Speculative risk - (ANSWER)The chance of both loss and gain
Pure risk - (ANSWER)Involve only the chance of loss. Only Pure risk is insurable
Peril - (ANSWER)Is an immediate specific event causing loss and giving rise to risk
Hazard - (ANSWER)Any factor that increases the chance of a peril happening
Physical hazards - (ANSWER)Individual characteristics that increase chance of peril.blindness and
deafness as well as racing a motorcycle around on a track are all physical hazards
Moral hazards - (ANSWER)Bad behavioral choices like alcoholism drug addiction. These are moral
hazards that increase risk and loss
Morale hazards - (ANSWER)Attitude or state of mind causing indifference to loss. Example driving
recklessly intentionally ie selfishness
Risk avoidance - (ANSWER)You NEVER EVER do that. Example fly drive invest in stocks
, Florida 2-40 health license chapters review QUESTIONS WITH VERIFIED CORRECTANSWERS
LATEST
Risk reduction - (ANSWER)Lessen possibility of loss by being cautious and taking action to reduce risk
example installing fire alarm
Risk Retention - (ANSWER)You did not purchase insurance and plan to cover loss on your own called
self- insuring
Risk Transference - (ANSWER)Transferring your risk to an insurer (insurance company)
Elements of Insurance risk - (ANSWER)Definate and measurable 2. Predictable 3.cannot be catastrophic
to insurance company 4.loss exposure to insured must be large 5. Loss exposures must be randomly
selected
Human life value - (ANSWER)Value today of an individual's future earnings that are devoted to that
individuals dependents
Insurance is based on these principles - (ANSWER)Risk pooling and the law of large numbers
Insurance - (ANSWER)This transfers risk
Adverse selection - (ANSWER)The tendency of those in dangerous jobs or high risk lifestyles to get life
insurance
Stock insurers - (ANSWER)All profits go to owners, dividends are taxable Participating and Non
participating. Sole purpose is making money for owners or holders
Mutual insurers - (ANSWER)Policy owners own company so dividends go to them. Dividends are tax fee
because they are a refund to owners, Participating only . Purpose same products at lower cost
LATEST
Loss Sharing - (ANSWER)The spreading or pooling of risks over a large group of individuals
Risk pooling - (ANSWER)Same as loss sharing
Law of large numbers - (ANSWER)Science of probability and experience of mortality (death) & morbidity
(sickness). The larger and more homogenous the group the more certain the predictions
Risk - (ANSWER)Is defined as uncertainty regarding loss
Speculative risk - (ANSWER)The chance of both loss and gain
Pure risk - (ANSWER)Involve only the chance of loss. Only Pure risk is insurable
Peril - (ANSWER)Is an immediate specific event causing loss and giving rise to risk
Hazard - (ANSWER)Any factor that increases the chance of a peril happening
Physical hazards - (ANSWER)Individual characteristics that increase chance of peril.blindness and
deafness as well as racing a motorcycle around on a track are all physical hazards
Moral hazards - (ANSWER)Bad behavioral choices like alcoholism drug addiction. These are moral
hazards that increase risk and loss
Morale hazards - (ANSWER)Attitude or state of mind causing indifference to loss. Example driving
recklessly intentionally ie selfishness
Risk avoidance - (ANSWER)You NEVER EVER do that. Example fly drive invest in stocks
, Florida 2-40 health license chapters review QUESTIONS WITH VERIFIED CORRECTANSWERS
LATEST
Risk reduction - (ANSWER)Lessen possibility of loss by being cautious and taking action to reduce risk
example installing fire alarm
Risk Retention - (ANSWER)You did not purchase insurance and plan to cover loss on your own called
self- insuring
Risk Transference - (ANSWER)Transferring your risk to an insurer (insurance company)
Elements of Insurance risk - (ANSWER)Definate and measurable 2. Predictable 3.cannot be catastrophic
to insurance company 4.loss exposure to insured must be large 5. Loss exposures must be randomly
selected
Human life value - (ANSWER)Value today of an individual's future earnings that are devoted to that
individuals dependents
Insurance is based on these principles - (ANSWER)Risk pooling and the law of large numbers
Insurance - (ANSWER)This transfers risk
Adverse selection - (ANSWER)The tendency of those in dangerous jobs or high risk lifestyles to get life
insurance
Stock insurers - (ANSWER)All profits go to owners, dividends are taxable Participating and Non
participating. Sole purpose is making money for owners or holders
Mutual insurers - (ANSWER)Policy owners own company so dividends go to them. Dividends are tax fee
because they are a refund to owners, Participating only . Purpose same products at lower cost
