6/28/25, 9:30
AM
FLORIDA 2-15 INSURANCE EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS LATEST VERSION 2025/2026
Terms in this set (100)
In the insurance business, C. The concept of insurance developed from
risk can best be defined the need to minimize the adverse effects of
as: risk associated with the probability of
financial loss.
A. sharing the possibility of
a loss
B. uncertainty regarding
the future
C. uncertainty regarding
financial loss
D. uncertainty
regarding when death
will occur
Which of the following A. Only pure risks are insurable because they
risks is insurable? involve only the chance of loss. They are pure
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,6/28/25, 9:30
AM
in the sense that they do not mix both profits
A. pure risks and losses. Insurance is
concerned with the economic problems created by
B. gambling
pure risks.
C. speculative risks
D. investing
Buying insurance is B. Buying insurance is one of the most effective
one of the most ways of transferring risk. Through the insurance
effective ways of contract, the burden of carrying the risk and
indemnifying the financial loss is transferred
A. avoiding risk from the individual to the insurance
B. transferring risk company.
C. reducing risk
D. retaining risk
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,6/28/25, 9:30
AM
Which of the following B. The function of insurance is to safeguard
best describes the against financial loss by having the losses of
function of insurance? few paid by the contributions of many who
are exposed to the same risk.
A. it is a form of legalized
gambling.
B. it spreads financial
risk over a large
group to minimize
the loss to any one
individual
C. it protects against living
too long
D. it creates and protects
risks
All of the following C. One of the criteria for an insurable risk is
are elements of an that it NOT be catastrophic. A principle of
insurable risk insurance holds that only a small portion of a
EXCEPT given group will experience loss at any one
time. Risks that would adversely affect
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, 6/28/25, 9:30
AM
A. the loss must be due to large numbers of people or large amounts
chance of property - wars or floods, for example -
B. the loss must be are typically not insurable.
predictable
C. the loss must be
catastrophic
D. the loss must have a
determinable value
The amount of money B. Reserves can be defined as the amounts
an insurer sets aside to that are set aside to fulfill the insurance
pay future claims is company's obligation to pay future claims.
called The reserve is compiled from past
premium payments and interest.
A. a premium
B. a reserve
C. a dividend
D. an accumulated
interest
Which of the following B. Insurable interest requires the policyowner to
constitutes an insurable benefit from the insured's continuing to live or
interest? enjoy good health or to suffer a loss when
4/85
AM
FLORIDA 2-15 INSURANCE EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS LATEST VERSION 2025/2026
Terms in this set (100)
In the insurance business, C. The concept of insurance developed from
risk can best be defined the need to minimize the adverse effects of
as: risk associated with the probability of
financial loss.
A. sharing the possibility of
a loss
B. uncertainty regarding
the future
C. uncertainty regarding
financial loss
D. uncertainty
regarding when death
will occur
Which of the following A. Only pure risks are insurable because they
risks is insurable? involve only the chance of loss. They are pure
1/85
,6/28/25, 9:30
AM
in the sense that they do not mix both profits
A. pure risks and losses. Insurance is
concerned with the economic problems created by
B. gambling
pure risks.
C. speculative risks
D. investing
Buying insurance is B. Buying insurance is one of the most effective
one of the most ways of transferring risk. Through the insurance
effective ways of contract, the burden of carrying the risk and
indemnifying the financial loss is transferred
A. avoiding risk from the individual to the insurance
B. transferring risk company.
C. reducing risk
D. retaining risk
2/85
,6/28/25, 9:30
AM
Which of the following B. The function of insurance is to safeguard
best describes the against financial loss by having the losses of
function of insurance? few paid by the contributions of many who
are exposed to the same risk.
A. it is a form of legalized
gambling.
B. it spreads financial
risk over a large
group to minimize
the loss to any one
individual
C. it protects against living
too long
D. it creates and protects
risks
All of the following C. One of the criteria for an insurable risk is
are elements of an that it NOT be catastrophic. A principle of
insurable risk insurance holds that only a small portion of a
EXCEPT given group will experience loss at any one
time. Risks that would adversely affect
3/85
, 6/28/25, 9:30
AM
A. the loss must be due to large numbers of people or large amounts
chance of property - wars or floods, for example -
B. the loss must be are typically not insurable.
predictable
C. the loss must be
catastrophic
D. the loss must have a
determinable value
The amount of money B. Reserves can be defined as the amounts
an insurer sets aside to that are set aside to fulfill the insurance
pay future claims is company's obligation to pay future claims.
called The reserve is compiled from past
premium payments and interest.
A. a premium
B. a reserve
C. a dividend
D. an accumulated
interest
Which of the following B. Insurable interest requires the policyowner to
constitutes an insurable benefit from the insured's continuing to live or
interest? enjoy good health or to suffer a loss when
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