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FLORIDA INSURANCE 2-15 EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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FLORIDA INSURANCE 2-15 EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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FLORIDA INSURANCE 2-15 EXAM 2024/2025WITH 100% ACCURATE SOLUTIONS
Insurance - Precise Answer ✔✔Financial protection against loss or harm - An
arrangement by which company gives customers financial protection against loss
or harm such as theft or illness in return for premium payments.
Life Insurance - Precise Answer ✔✔Is based on actuarial or mathematical
principles and guarantees a specified sum of money upon the death of the person
who is insured.
Health Insurance - Precise Answer ✔✔Evolved from scientific principles to
provide funds for medical expensed due to sickness or injury and to cover loss of
income during disability
Annuities - Precise Answer ✔✔Provide a stream of income by making a series of
payments to the annuitant for the annuitant's lifetime or for a specifically
designated period of time.
Risk - Precise Answer ✔✔Uncertainty regarding loss; the probability of loss
occurring for an insured or prospect
Speculative Risks - Precise Answer ✔✔Involve the possibility of loss and gain.
(Not Insurable)
Pure Risks - Precise Answer ✔✔Involve the possibility of loss only. (Insurable)
Peril - Precise Answer ✔✔Cause of risk (when a building burns, fire is the peril)
,Hazards - Precise Answer ✔✔The source of danger
Physical Hazard - Precise Answer ✔✔A hazard being of physical nature.
A person being treated of cancer, the disease is the physical endangerment.
(Blindness & deafness)
Risk Avoidance - Precise Answer ✔✔Occurs when individuals evade risk entirely.
"If you don't drive, then you avoid getting in an auto accident."
Risk Reduction - Precise Answer ✔✔Takes place when the chances of loss are
lessened. Changing a lifestyle to minimize a known risk.
Risk Retention - Precise Answer ✔✔Being aware of the risks involved and taking
precautions for financial protection. Auto policy's deductible is an illustration of
risk retention
Risk Transference - Precise Answer ✔✔The act of shifting the responsibility of
risk to another in the form of an insurance contract.
Adverse Selection - Precise Answer ✔✔Refers to the tendency for those
individuals who present less favorable insurance risk to seek or continue insurance
to a great extent than other risks.
Insuring Pure Risk - Precise Answer ✔✔Loss must be due to chance
Loss must be definite and measurable
Risk must be predictable
Loss must NOT be catastrophic
,Exposure to loss must be large
Loss exposures must be randomly selected
Mutual Insurers - Precise Answer ✔✔Participating policies
Owned by policyholders
Vote for directors and trustees
Directors and management have control
Typically higher rates
Assessment Mutual Insurers - Precise Answer ✔✔Prohibited in Florida
Pure Assessment Mutual Company - Precise Answer ✔✔Don't pay premium and
total loss is divided among members
Lloyds of London - Precise Answer ✔✔NOT considered an insurance company
- An association of individuals and companies that individually underwriter
insurance.
Fraternal Benefit Societies - Precise Answer ✔✔Must be nonprofit, have a lodge
system, and offer insurance to its members only
Service Providers - Precise Answer ✔✔Contract for and sell medical and hospital
care services. Participants are known as subscribers.
Home Service Insurer - Precise Answer ✔✔Insurer that offers relatively small
policies with premiums payable on a weekly basis.
, Captive Agents - Precise Answer ✔✔A.k.a. Career agents
Works for only one insurer and sells only that insurers products
Independent Agents - Precise Answer ✔✔Is self-governing and actually works for
himself. This affords him the versatility to represent several insurers and their
different insurance products.
Special Agents - Precise Answer ✔✔Usually not license and don't sell insurance.
Assist insurance companies field representatives.
Career Agency System - Precise Answer ✔✔(GA) - Build sales staffs and agents
are treated as employees. They are recruited and trained. A principal of the
company supervises agents.
Personal Producing General Agency System - Precise Answer ✔✔(PPGA) - The
agent supplies his own working environment. Agents hired by a PPGA are
considered employees of the PPGA, not the insurance company, and are supervised
by the regional salary.
Independent Agency System - Precise Answer ✔✔Agents represent several
insurers through signed contracts and are paid on commission or fee basis, not
through salary.
Regulating the business of insurance - Precise Answer ✔✔Legislation
The Court System
State Insurance Departments
Paul v. Virginia - Precise Answer ✔✔- State tried to control insurance domiciled
from another state.
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