2/13/26, 11:58 AM 215 Insurance License Exam
215 Insurance License Exam 2026 -
2027 \COMPLETE QUESTIONS AND
CORRECT ANSWERS\VERIFIED 100%
GRADED A+
peril
event causing loss
Ex: fire, death, accident, windstorm, disease
hazard
any factor that gives rise to peril or increase
likelihood of a loss from a peril
physical hazard
slippery floor, blindness, deafness, past medical
history
/ 1/26
,2/13/26, 11:58 AM 215 Insurance License Exam
moral hazard
intentional act, tendencies to
take risks; Ex: alcoholism,
drugs, dishonesty
morale hazard
carelessness, indifference
Ex: driving recklessly with no fear of injury
risk avoidance
avoiding the risk, don't do anything
Ex: choosing not to drive, fly or invest (not practical)
risk reduction
reducing the risk of a loss
Ex: installing smoke detectors, quit smoking, don't
test and drive
/ 2/26
, 2/13/26, 11:58 AM 215 Insurance License Exam
risk retention
self-insure, setting up fund to offset your
losses; should be limited to what you can
easily afford to pay
risk transfer
purchasing insurance, best way; transferring
risk from an individual to an insurance
company
adverse selection
tendency for less favorable insurance risks to seek
and continue insurance to greater extent than
other risks
Ex: people in poor health
risk pooling
/ 3/26
215 Insurance License Exam 2026 -
2027 \COMPLETE QUESTIONS AND
CORRECT ANSWERS\VERIFIED 100%
GRADED A+
peril
event causing loss
Ex: fire, death, accident, windstorm, disease
hazard
any factor that gives rise to peril or increase
likelihood of a loss from a peril
physical hazard
slippery floor, blindness, deafness, past medical
history
/ 1/26
,2/13/26, 11:58 AM 215 Insurance License Exam
moral hazard
intentional act, tendencies to
take risks; Ex: alcoholism,
drugs, dishonesty
morale hazard
carelessness, indifference
Ex: driving recklessly with no fear of injury
risk avoidance
avoiding the risk, don't do anything
Ex: choosing not to drive, fly or invest (not practical)
risk reduction
reducing the risk of a loss
Ex: installing smoke detectors, quit smoking, don't
test and drive
/ 2/26
, 2/13/26, 11:58 AM 215 Insurance License Exam
risk retention
self-insure, setting up fund to offset your
losses; should be limited to what you can
easily afford to pay
risk transfer
purchasing insurance, best way; transferring
risk from an individual to an insurance
company
adverse selection
tendency for less favorable insurance risks to seek
and continue insurance to greater extent than
other risks
Ex: people in poor health
risk pooling
/ 3/26
