Prepare for your 220 electrical license exam with these practice questions and answers. This guide covers electrical codes, installation methods, and safety requirements.
Q: 1.4 Qualifications for General Lines License
Answer: 1. 18 or older2. resident of FL or place of business in FL3. will be active in business, business is accessible and identifiable by public4. not licensing for writing or handling controlled business5. Qualified via:a) 200 hr courseb) one year full time employee in all lines of property casualty insurancec) one year as a customer rep, personal lines agent, or service rep and 40 hr coursed) earned insurance degree that includes 18 hr semestere) held valid FL license for atleast a yearf) have an original letter from the American Institute for Chartered Property Casualty Underwriters
Q: 1.4 Qualifications for General License Statute
Answer: F.S. 626.371 (3)(a), 626.381Once licensed, you have 48 months to obtain an appointment (the authority given by an insurer or employer to transact insurance or adjust claims). If the appointment is submitted late. the appointing entity will be responsible for the late fee of $250 plus the statutory appointment fee of $60. Once your license has gone beyond 48 months without an appointment, you will have to qualify as a first-time applicant.
Q: 1.7 Duties and Functions of the DFS
Answer: The Department of Financial Services1. Supervise claims activities of various companies so policyholders may be assured of fair treatment and prompt settlement of loss under a policy2. Investigate charges of unethical conduct and take judicious actions in such cases3. DFS Division of Agent and Agency Services- approves issuances of licenses to agents, customer representatives, and claims adjustors
Q: 1.7 Duties and Functions of OIR
Answer: The Office of Insurance Regulation1. Examine qualifications of insurance companies seeking to do business in FL, admitting them to the state when they have met the requirements, and then checking their financial condition periodically2. Responsible for insurance policy forms, rules, and ratings; they approve forms before use, and review companies’ rules and rates every so often
Q: 1.7 Duties and Functions of OFR
Answer: The Office of Financial Regulation1. Provides regulatory oversight to Florida financial service provides like banks, credit unions, finance companies, and security industriesIt was created in 2003 and reports to the Financial Service Commission. It has three divisions and one bureau and is headed by a commissioner who is appointed via the commission
Q: 1.7 Duties and Functions of FSLSO
Answer: The Florida Surplus Lines Service Office1. Reviews all surplus lines insurance policies and documents2. Maintains records of policies and reports to the DFS3. Collect surplus lines taxes4. Collects service fees5. Trains and educates surplus lines agents
Q: 2.1 Risk
Answer: The chance of financial lossAll insurance is designed to offset the financial impact based on loss, and how much of the risk the insured is willing to absorb determines the type of insurance needed, against what perils, and for what amount
Q: 2.2 Insurance Policy
Answer: Statutory Definition:A written contract of or written agreement for or effecting insurance (or whatever else you want to call it) which includes all clauses, riders, endorsements, and papers which are a part of thereof
Q: 2.2 Insurance
Answer: Statutory Definition:A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies
Q: 2.3 Binders
Answer: An oral or written statement providing immediate insurance protection that is valid for a specified period. Designed to provide temporary coverage until a policy can be issued or deniedIncludes all terms of a policyNo notice of cancellation or notice of nonrenewal otherwise required by this unit shall be required unless the duration of the binder exceeds 60 days
Q: 2.3 Binder Statute
Answer: F.S.627.728 and 627.7281Regarding auto coverage, an insurer shall give 5 days prior notice of cancellation of a binder, unless the binder is replaced by a policy or another binder in the same or another company
Q: 2.4 Casualty Insurance
Answer: Casualty, or otherwise known as property, is insurance that may include all kinds of insurance other than life and health
Q: 2.4 Property Insurance
Answer: Any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests
Q: 2.4 Liability Insurance
Answer: Any insurance wherein payment will be made on behalf of the insured to another, based upon the insured’s liability to the recipient
Q: 2.4 Health Insurance
Answer: Health insurance has its own category, but its included here because licensing statutes authorize agents licensed for “property and liability” to sell health insurance
Q: 2.5 Personal Contract
Answer: Property or liability insurance policies cover persons. not property or operations
Q: 2.5 Conditional Contract
Answer: Property and liability insurance polices are said to be conditional because the obligation of the insurer to preform may be conditional upon the insured satisfying certain conditionsAll insurance policies contain conditions
Q: 2.5 Contract of Adhesion
Answer: Parties included are of unequal bargaining power, and one party (the insured) cannot negotiate the terms, having to take the offer of the other party (the insurer) as madeSuch contracts are subject to having any ambiguities resolved in favor of the insured
Q: 2.5 Indemnity Contract
Answer: The principle of indemnity must be present, the principle of indemnity is that one should not profit form the response provided by the policyMost policies will not pay amounts that exceed the actual cash value of property, but there are certain policies that may pay full replacement costs (new for old, aka you cannot replace a 3 year old paint job with 3 year old paint, so it is done with new paint)
Q: 2.5 Insurable Interest
Answer: One wherein economic loss would be suffered from an adverse happening tot he subjectIn order for insurance to respond, there must be an insurable interest; the extent of the insurable interest establishes the limit of the response
Q: 2.5 Insurable Interest Statute
Answer: F.S.627.4051. No contract of insurance of property or of any interest in property arising from property shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured as the time of loss2. “Insurable Interest” as used in this section means any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment3. The measure of an insurable interest in property is the extent to which the insured might be indemnified by loss, injury, or impairment thereof
Q: 2.6 Peril
Answer: A contingency that may cause a loss
Q: 2.6 Hazard
Answer: A condition that introduces or increases the likelihood of loss from a peril
Q: 2.6 Types of Hazards
Answer: 1. Physical- a condition stemming from the physical characteristics of an object that increases the probability and severity of loss given perils2. Moral- stems form the conscious mental attitude of the insured (intentional)3. Morale- stems from the unconscious mental attitude of the insured (unintentional)
Q: 2.6 Proximate Cause
Answer: When there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence
Q: 2.6 Direct Loss
Answer: Physical harm to tangible propertyBuilding example:building burns down: physical value is direct loss
Q: 2.6 Indirect Loss
Answer: Economic loss that flows as a consequence of direct lossBuilding example:building burns down, owner’s loss of profits from its use is indirect loss
Q: 2.6 Lender Interests
Answer: Insurance gives the lender the needed protection to make a loan by assuring that the collateral may be restored if it is damaged
Q: 2.6 Loss Settlement: ACV
Answer: Actual Cash Valuethe current costs to replace the item, less allowance for depreciation; subject to be capped at the dollar limit of the policy
Q: 2.6 Loss Settlement: RC
Answer: Replacement Cost ValuationThe cost to replace a damaged or destroyed item of property, without deducting depreciation.You can get ACV for something regardless, but in order to get the replacement cost, you have to do the replacement
Q: 2.6 Loss Settlement: Valued Policy
Answer: When the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its valueUsually used for things where ACV or replacement coast value are difficult to establish, so things like fine arts or antiques
Q: 2.6 Loss Settlement: Valued Policy Law Statute
Answer: F.S.627.702If there is a total loss caused by a covered peril, the insurer must pay the amount provided in the policy for which the premium has been paid. The requirement to pay the limit does not apply if there is fraud by the insured or if the insured has two or more policies and disclosure of all coverages has not ben made to all companies. Further, the insurer has the option to rebuild or replace the property itself rather than reimbursement to the insured via check
Q: 2.6 Loss Settlement: Unfair Claims Settlement Practices Statute
Answer: F.S.626.9541Requires that insurers thoroughly investigate and promptly settle claims. Before a claim is denied, the insurer must promptly notify the insured of any additional information needed. When a claim is denied, a written explanation is required. When the insured does not agree with the claim settlement, the insured may opt for mediationWhen mediation is chosen, the eligible amount if loss must equal or exceed $500 for property losses (F.F.627.7015)
Q: 2.6 Coinsurance
Answer: A clause that requires an insured to pay part of a loss if the coverage provided under the policy limit is less than a specified percentage of the value of the property at the time of loss. If, at the time of loss, the coverage value, or more, the coinsurance does not apply
Q: 2.6 Coinsurance Formula
Answer: Loss x (Limit of Insurance/ (Value of Property x Coinsurance)) = Loss Settlement
Q: 2.6 Specific Insurance
Answer: Coverage that is subject to separate limits for each building, the contents of each building, the indirect loss exposure of each building, the amount in each safe covered or in possession of each person away from the premises for crime exposure
Q: 2.6 Blanket Insurance
Answer: Coverage that applies a single amount to two or more coverage items that are subject to specific rating, with any part of the full amount available to apply to any item
Q: 2.6 Deductible
Answer: Usually a dollar amount the insured must pay on each loss to which the deductible applies, the insurance then pays the remainder of each covered loss up to the policy limits
Q: 2.6 Straight Deductible
Answer: A deductible that specifies the deduction of a flat amount from a loss payment, regardless of loss
Q: 2.6 Percentage Deductible
Answer: A deductible that requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy limits
Q: 2.6 Franchise Deductible
Answer: A deductible that specifies the no payment will be made until loss equals or exceeds a prescribed amount, then loss is paid in full
Q: 2.7 Third Party Claim
Answer: Policies that pay on behalf of the insured all sums the insured becomes legally obligated to pay as damages
Q: 2.7 Single Limit
Answer: A single amount is the maximum liability of the insurerIE- there is a single limit for all persons injured and property damage arising from an accident or occurrence
Q: 2.7 Split Limit
Answer: The limit of liability is expressed by two figureEx- split into bodily injury and property damage
Q: 2.7 Aggregate Limit
Answer: A limit that is applied that represents the total insurance coverage that will be paid for the policy term for the perils to which the aggregate limit applies
Q: 2.7 Legal Liability
Answer: Rules of law dictate that one must provide reparations to another normally based upon negligence
Q: 2.7 Negligence
Answer: The failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm
Q: 2.7 Insureds Under a Liability Policy
Answer: In order for insurance to pay, the one who is legally liable must have the status if insured under the policyAll liability policies contain a definition of who is insured
Q: 2.7 Damages
Answer: Money amounts; the plaintiff may seek other kinds of remedies, but only money damages deal with liability
Q: 2.8 Insured’s Duties Following Loss: General
Answer: General Duties:1. Prompt notice2. Cooperate with insurer3. Preserve insurer’s rights
Q: 2.8 Insured’s Duties Following Loss: Property
Answer: Property Policies:1. Inventory damaged property2. Protect against further loss3. Show damaged property4. Provide records and documents5. Submit to questions under oath6. Report theft to police7. Reveal other insurance8. Submit proof of loss within given time
Q: 2.8 Insured’s Duties Following Loss: Liability
Answer: Liability Policies:1. Notify insurer of name and address of claimants and witnesses2. Forward all legal papers received3. Aid insurer in settlements4. Avoid voluntary payments or assumption of obligations
Q: 2.8 Subrogation
Answer: When an insured has a right to collect damages from another party, but instead elects to claim damages under his insurance policy, his rights against the other party are transferred to the insurer
Q: 2.8 Assignment
Answer: Condition that specifies that transferring the policy to another will not be valid unless the insurer consents in writing
Q: 2.8 Changes
Answer: All policies state that any changes made to the policy must be made by the insurer in writing
Q: 2.8 Policy Period
Answer: The coverage only applies to losses or occurrences that take place during the policy period
Q: 2.8 Policy Territory
Answer: Some policies cover worldwide and do not need this provision, but most have a condition limiting coverage to occurrences or losses that occur within a specified geographical region
Q: 2.8 Other Insurance
Answer: All standard policies acknowledge that the insured may have other insurance that may apply to the same occurrence or loss, so most policies contain provisions on how the policies will interact and what will cover what
Q: 2.8 Pro Rata
Answer: The company will pay its proportionate partex: if the policy A has a limit of $25,000, policy B has a limit of 15,000, and policy C has a limit of $60,000 and a $10,000 loss occurs, Policy A pays $2,500, Policy B pays $1,500, and Policy C pays $6,000
Q: 2.8 Equal Shares
Answer: The contributions from each policy will be the same regardless of the limit of the individual policiesex- if there is a loss of $10,000 and it is insured by four policies, each of the policies will pay the same amount of $2,500
Q: 2.8 Primary
Answer: The policy applies first up to its limits before the others are applied
Q: 2.8 Excess
Answer: All other insurance policies must ne exhausted before the policy will apply