Florida Insurance 2-15 Exam Terms 2025/2026 Top-Graded

Insurance - 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 - 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 - Evolved from scientific principles to provide funds for medical expensed due to
sickness or injury and to cover loss of income during disability
Annuities - 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 - Uncertainty regarding loss; the probability of loss occurring for an insured or prospect
Speculative Risks - Involve the possibility of loss and gain. (Not Insurable)
Pure Risks - Involve the possibility of loss only. (Insurable)
Peril - Cause of risk (when a building burns, fire is the peril)
Hazards - The source of danger
Physical Hazard - A hazard being of physical nature.
A person being treated of cancer, the disease is the physical endangerment. (Blindness & deafness)
Risk Avoidance - Occurs when individuals evade risk entirely. "If you don't drive, then you avoid getting in
an auto accident."