2-15 Insurance License Florida exam 2024 with 100% correct answers

Speculative Risk correct answersRisk that involves chance of both loss and gain; not insurable Pure Risk correct answersRisk that involves the chance of loss only, there is no opportunity for gain; insurable Law of Large Numbers correct answersBasic principle of insurance that the larger the number of individual risks combined into a group, the more certainty there is in predicting the amount of loss that will be incurred in any given period. Elements of Insurable Risk correct answersLoss must be: due to chance, definite and measurable, predictable, cannot be catastrophic, loss exposures to be insured must be large, loss exposures to be insured must be randomly selected. Hazard correct answersAny factor that gives rise to a peril. Peril correct answersSpecific event causing loss and giving rise to risk. (Fire is a peril to a burning building) Risk Pooling correct answersBasic principle of insurance whereby a large number contribute to cover the losses of a few. The risk is transferred from an individual to a group. Physical Hazard correct answersIndividual characteristics that increase the chance of peril. (Blindness or deafness) Moral Hazard correct answersTendencies that people may have that increase risk and the chance of loss. (Alcohol and drugs) Morale Hazard correct answersIndividual tendencies that arise from an attitude or state of mind causing indifference to loss. (Driving reckless with no fear of death)