FLORIDA 2-15 INSURANCE LICENCE EXAM QUESTIONS AND CORRECT ANSWERS NEWEST 2025 ACTUAL EXAM COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY GRADED A+BRAND NEW!!.pdf

FLORIDA INSURANCE 2- m m



15 EXAM 2024/2025 WITH 100% ACCURATE SOL
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UTIONS


Insurance - Precise Answer ✔✔Financial protection against loss or harm -
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mAn arrangement by which company gives customers financial protection against l
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oss or harm such as theft or illness in return for premium payments.
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Life Insurance -
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mPrecise Answer ✔✔Is based on actuarial or mathematical principles and guarante
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es a specified sum of money upon the death of the person who is insured.
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Health Insurance - m m


mPrecise Answer ✔✔Evolved from scientific principles to provide funds for medic
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al expensed due to sickness or injury and to cover loss of income during disability
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Annuities - m


mPrecise Answer ✔✔Provide a stream of income by making a series of payments t
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o the annuitant for the annuitant's lifetime or for a specifically designated period o
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f time.
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Risk - m


Precise Answer ✔✔Uncertainty regarding loss; the probability of loss occurring f
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or an insured or prospect
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Speculative Risks - m m


Precise Answer ✔✔Involve the possibility of loss and gain. (Not Insurable)
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,Pure Risks - Precise Answer ✔✔Involve the possibility of loss only. (Insurable)
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Peril - Precise Answer ✔✔Cause of risk (when a building burns, fire is the peril)
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Hazards - Precise Answer ✔✔The source of danger
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Physical Hazard - Precise Answer ✔✔A hazard being of physical nature.
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A person being treated of cancer, the disease is the physical endangerment. (Blind
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ness & deafness)
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Risk Avoidance -
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mPrecise Answer ✔✔Occurs when individuals evade risk entirely. "If you don't dri
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ve, then you avoid getting in an auto accident."
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Risk Reduction -
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mPrecise Answer ✔✔Takes place when the chances of loss are lessened. Changing
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a lifestyle to minimize a known risk.
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Risk Retention -
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mPrecise Answer ✔✔Being aware of the risks involved and taking precautions for
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financial protection. Auto policy's deductible is an illustration of risk retention
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Risk Transference -
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mPrecise Answer ✔✔The act of shifting the responsibility of risk to another in the
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form of an insurance contract.
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Adverse Selection - m m


Precise Answer ✔✔Refers to the tendency for those individuals who present less
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,favorable insurance risk to seek or continue insurance to a great extent than other
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risks.


Insuring Pure Risk - Precise Answer ✔✔Loss must be due to chance
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Loss must be definite and measurable
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Risk must be predictable
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Loss must NOT be catastrophic
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Exposure to loss must be large
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Loss exposures must be randomly selected
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Mutual Insurers - Precise Answer ✔✔Participating policies
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Owned by policyholders
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Vote for directors and trustees
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Directors and management have control
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Typically higher rates m m




Assessment Mutual Insurers - Precise Answer ✔✔Prohibited in Florida
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Pure Assessment Mutual Company -
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Precise Answer ✔✔Don't pay premium and total loss is divided among members
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Lloyds of London - Precise Answer ✔✔NOT considered an insurance company
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-
mAn association of individuals and companies that individually underwriter insuran
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ce.

, Fraternal Benefit Societies -
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mPrecise Answer ✔✔Must be nonprofit, have a lodge system, and offer insurance t
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o its members only
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Service Providers - m m


mPrecise Answer ✔✔Contract for and sell medical and hospital care services. Parti
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cipants are known as subscribers.
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Home Service Insurer -
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mPrecise Answer ✔✔Insurer that offers relatively small policies with premiums pa
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yable on a weekly basis.
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Captive Agents - Precise Answer ✔✔A.k.a. Career agents
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Works for only one insurer and sells only that insurers products
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Independent Agents - Precise Answer ✔✔Is self-
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governing and actually works for himself. This affords him the versatility to repre
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sent several insurers and their different insurance products.
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Special Agents - m m


mPrecise Answer ✔✔Usually not license and don't sell insurance. Assist insurance
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companies field representatives.m m




Career Agency System - Precise Answer ✔✔(GA) -
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mBuild sales staffs and agents are treated as employees. They are recruited and trai
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ned. A principal of the company supervises agents.
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Personal Producing General Agency System - Precise Answer ✔✔(PPGA) -
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The agent supplies his own working environment. Agents hired by a PPGA are c
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