6/28/25, 9:28
AM
FLORIDA 2-40 HEALTH LICENSE CHAPTERS REVIEW EXAM
QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED GRADED A++ 2025/2026
Terms in this set (380)
Loss Sharing The spreading or pooling of risks over a large group of
individuals
Risk pooling Same as loss sharing
Law of large numbers Science of probability and experience of
mortality (death) & morbidity (sickness). The
larger and more homogenous the group the
more certain the predictions
Risk Is defined as uncertainty regarding loss
Speculative risk The chance of both loss and gain
Pure risk Involve only the chance of loss. Only Pure risk is
insurable
Peril Is an immediate specific event causing loss and giving
rise to risk
Hazard Any factor that increases the chance of a peril
1/
10
, 6/28/25, 9:28
AM
happening
Physical hazards 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 Bad behavioral choices like alcoholism drug
addiction. These are moral hazards that
increase risk and loss
Morale hazards Attitude or state of mind causing indifference to
loss. Example driving recklessly intentionally ie
selfishness
Risk avoidance You NEVER EVER do that. Example fly drive invest in
stocks
Risk reduction Lessen possibility of loss by being cautious and
taking action to reduce risk example installing
fire alarm
Risk Retention You did not purchase insurance and plan to
cover loss on your own called self- insuring
Risk Transference Transferring your risk to an insurer (insurance company)
Definate and measurable 2. Predictable
Elements of Insurance 3.cannot be catastrophic to insurance
risk company 4.loss exposure to insured must
2/
10
AM
FLORIDA 2-40 HEALTH LICENSE CHAPTERS REVIEW EXAM
QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED GRADED A++ 2025/2026
Terms in this set (380)
Loss Sharing The spreading or pooling of risks over a large group of
individuals
Risk pooling Same as loss sharing
Law of large numbers Science of probability and experience of
mortality (death) & morbidity (sickness). The
larger and more homogenous the group the
more certain the predictions
Risk Is defined as uncertainty regarding loss
Speculative risk The chance of both loss and gain
Pure risk Involve only the chance of loss. Only Pure risk is
insurable
Peril Is an immediate specific event causing loss and giving
rise to risk
Hazard Any factor that increases the chance of a peril
1/
10
, 6/28/25, 9:28
AM
happening
Physical hazards 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 Bad behavioral choices like alcoholism drug
addiction. These are moral hazards that
increase risk and loss
Morale hazards Attitude or state of mind causing indifference to
loss. Example driving recklessly intentionally ie
selfishness
Risk avoidance You NEVER EVER do that. Example fly drive invest in
stocks
Risk reduction Lessen possibility of loss by being cautious and
taking action to reduce risk example installing
fire alarm
Risk Retention You did not purchase insurance and plan to
cover loss on your own called self- insuring
Risk Transference Transferring your risk to an insurer (insurance company)
Definate and measurable 2. Predictable
Elements of Insurance 3.cannot be catastrophic to insurance
risk company 4.loss exposure to insured must
2/
10
