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University of Georgia
(Risk Management and Insurance Program)
State Insurance Claims Adjusters Certification
Georgia Claims Adjuster Exam
Course Title and Number: Claims Adjuster Exam Exam Title: Board Exam Exam Date: Exam 2024- 2025 Instructor: [Insert Instructor’s Name] Student Name: [Insert Student’s Name] Student ID: [Insert Student ID]
Examination
180 minutes Instructions:
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State Insurance Claims Adjusters Certification 2024- Georgia G.A Claims Adjuster Exam Prep Review Questions with Correct Answers | 100% Pass Guaranteed | Graded A+ | Read All Instructions Carefully and Answer All the Questions Correctly Good Luck: - In the insurance industry, risk can have two meanings: 1) the potential for financial loss; being exposed or open to damage, 2) an insured item. - =Answer>> Risk Insurers' practice of denying insurance applications that they believe would involve an inordinate amount of risk. - =Answer>> Risk Avoidance A ______ deductible is one specific, predetermined amount that a policyholder must pay out-ofpocket before he can be indemnified - =Answer>> Deductible - fixed Deductible that is calculated as a _______ of a covered loss. - =Answer>> Deductible - percentage A ______states that the policyholder only pays for damages that are less than his deductible. If the cost of damages equals or exceeds his deductible, the insurer pays the full Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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written on an actual cash value basis, how much will it pay for the loss? When insurance coverage is written on an actual cash value basis, losses paid are for the replacement cost (at the time of loss), minus depreciation. - =Answer>> $8, When an employee benefit plan pays the premium for a fiduciary liability policy, what provision must be included in that policy? If the premiums are paid from the fund, the policy must allow for subrogation against the individual trustees involved in any loss. - =Answer>> Subrogation The failure to disclose all known facts is called Withholding information that is material to the risk to be insured is concealment and makes a policy voidable. - =Answer>> Concealment Which common policy condition prohibits the insured from changing the rights or duties as defined under the policy to any other person or entity without the written consent of the insurance company? Under the "transfer of rights and duties under the policy" condition, the insured cannot transfer any rights or duties under the policy to any other person or organization without the written consent of the insurance company. - =Answer>> Transfer of rights and duties under the policy Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Pins & Alley, which is owned and operated by Bob Balls, has a commercial general liability policy. Spencer, an employee, was injured while demonstrating the latest, marble bowling ball. Spencer inadvertently dropped the ball on his own foot causing several bone fractures. Will the commercial general liability policy owned by Pins & Alley cover this loss? Employees are not covered for bodily injury or personal injury to an insured or co-employee, or a spouse, parent or sibling of the employee under a CGL policy. - =Answer>> No, because injuries to employees are excluded. An advertising company has its annual holiday party for employees and customers, after which a customer who had too much to drink is involved in an automobile accident. Occupants of the other car involved in the accident sue the company for serving the customer too much alcohol. Will the company's businessowners policy provide coverage? The liquor liability exclusion applies only to insureds in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. In this case, the company's businessowners policy most likely will have to pay. - =Answer>> Yes, none of the exclusions will apply Bulk carriers are used to transport Bulk carriers are used to carry coal, grain, phosphates, and other loose cargo. The ship itself is the container for the cargo. - =Answer>> Loose cargo Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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the amount necessary to bring payment up to the per- person limit (in this case, $100,000). The policy will not pay more than the limits of liability. - =Answer>> $50, In the BOP, Business Income Coverage is Business Income Coverage is an additional coverage in the policy, making it automatically included. - =Answer>> Provided automatically in the policy If an insured desires protection on property, other than money and securities, inside the premises from losses caused by breaking and entering after business hours, which of the following Crime Coverage forms should be purchased? Covers taking of property, other than money or securities, when there is visible sign of forcible entry or exit from the premises. - =Answer>> Premises burglary In insurance, an offer is usually made when In insurance, the offer is usually made by the applicant in the form of the application. Acceptance takes place when an insurer's underwriter approves the application and issues a policy. - =Answer>> The application is submitted When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application. - =Answer>> Consideration An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $ window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover? Damage that results from domestic animals is excluded under the special form dwelling policy. - =Answer>> $ All of the following statements regarding continuing education requirements in this state are true EXCEPT The licensees may not repeat the same CE courses in the same renewal period. All the other statements are true. - =Answer>> Producers may repeat the same courses to meet the required CE hours for a licensing period. An insured has a personal property replacement cost endorsement under her homeowners policy. If an expensive painting and an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement? Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy? An HO-3 covers losses on an open peril basis. An HO- covers losses on a named peril basis. Both forms cover damage to the dwelling caused by ash or dust from a volcanic eruption. - =Answer>> Damage to the dwelling caused by ash or dust from a volcanic eruption Insurance is the transfer of Insurance is the transfer of financial responsibility associated with a potential of a loss (risk) to an insurance company. - =Answer>> Risk CGL Coverage B (Personal Injury and Advertising Injury) will cover Personal injury and advertising injury do not cover professional advertisers, do not cover intentional injury, and do not guarantee the product will perform as advertised. - =Answer>> Inadvertent injury to others caused in the course of advertising the insured's product. Which of the following is NOT consideration on the part of an insured? The binding force in any contract is consideration. Consideration on the part of the insured is the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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promise to pay in the event of loss. - =Answer>> Promise to submit timely claims All of the following are examples of transacting insurance in Georgia EXCEPT Any of the following acts is considered to constitute an act of "transacting insurance" in Georgia: solicitation and inducement to insurance, preliminary insurance negotiations, effectuation of an insurance contract, and transactions of matters subsequent to and arising out of effectuation of an insurance contract. - =Answer>> None of the above. All are examples of transacting insurance. Under the provisions of the business income coverage form, all of the following are true, EXCEPT Business Income will pay beyond the expiration date of a policy. It will pay until the business is restored or the limits of coverage are exhausted. - =Answer>> The insured is reimbursed for the loss from the date of loss to date of restoration or policy expiration date, whichever comes first. Other than collision would cover financial losses due to Other than collision includes losses caused by falling objects, fire, theft, windstorms, hail, and vandalism. - =Answer>> Damage to your car caused by wind or hail. Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT Conditions are part of the policy structure. Consideration is an essential part of a contract - =Answer>> Conditions Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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No matter what the reason, if a policy is canceled within the first 60 days, only 10 days advance notice is required. - =Answer>> 10 days In insurance, the offer is usually made by the applicant, in the form of the application. Acceptance takes place when an insurer's underwriter approves the application and issues a policy. - =Answer>> When an insurer approves a prepaid application In order to be covered by the U.S. Longshore and Harbor Workers Compensation Act, a worker must meet the requirements of the A worker is covered under the LHWCA only if he or she meets a "situs and a status" test. The injury must occur on the navigable waters or on an adjoining wharf, pier, dock, or similar facility used in the loading, unloading, building, or repairing vessels. In addition, the individual must have been engaged in maritime employment when injured. - =Answer>> Situs and status test What are the two causes of loss covered under the Glass Coverage Form? Breakage and accidentally or maliciously applied chemicals are the only two causes of loss listed in the Glass Coverage form. - =Answer>> Breakage and accidentally or maliciously applied chemicals General-cargo ships are used to transport Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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General cargo ships are generally used to carry break-bulk cargo. Break-bulk cargo is cargo that is too large to be carried in a container or boxed goods, or too small to justify use of a full container. - =Answer>> Break bulk cargo All of the following are options of the insurer in the loss settlement of a standard fire policy EXCEPT In most cases, the insurer will pay the ACV or appraised value of a loss. The SFP does give the insurer with two other options in the loss settlement process: 1) take possession, or 2) repair, rebuild, or replace. - =Answer>> Pay replacement cost value Walt has $500,000 auto liability coverage, $100,000 HO liability, and a $3 million personal umbrella with $2,000 SIR. How much would the umbrella pay after a $600,000 auto liability loss? The SIR applies only if no other policy pays anything. - =Answer>> $100, When does the coverage begin under the builders risk form? Coverage begins on the date construction starts. - =Answer>> On the date construction starts Which of the following is a casualty loss? Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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30 days' written notice must be delivered or mailed to the insured before an insurer may cancel or nonrenew a personal auto policy. - =Answer>> 30 days Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? Defamation is making statements which are false as to the financial condition of any insurer and which are calculated to injure any person engaged in the business of insurance. - =Answer>> Defamation Measures taken by an insurance company to ensure that their exposure is not too high and to control the effect of a loss; for example, an insurer might charge higher premiums to drivers who have received speeding tickets. - =Answer>> Risk Management Groups of people with similar insurance needs who form an organization to buy insurance as a group. - =Answer>> Risk Purchasing Groups Risk that does not entail the possibility of gain; the only possible outcomes are a loss or no loss. - =Answer>> Risk, Pure Groups where the members insure each other, using their own capital to write insurance policies. - =Answer>> Risk Retention Groups Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Risk that might result in gain, loss, or no change in circumstance (as opposed to pure risk, which does not include the possibility of gain). - =Answer>> Risk, Speculative A financial device used by people and organizations to protect themselves from unexpected, extraordinary financial losses. It is a 2 party contract. - =Answer>> Insurance defined as "rapid oxidation accompanied by flame, spark, or glow." In order for a fire to be a covered cause of loss, it must also be "hostile" - that is, it must have gotten out of control and spread from where it was intended to burn, or it must have been started by accident in the first place. By - =Answer>> Fire is "an abrupt, discontinuous, natural electric discharge in the atmosphere." This does not include "power surges" or any damages from an electrical current that was generated artificially. - =Answer>> Lightning occurs when the pent up force of confined air or gas suddenly bursts into the open, and the violent release of pressure or energy causes an audible bursting or breaking.
- =Answer>> Explosion Means any wind with enough force to damage property. - =Answer>> Windstorm Precipitation in the form of spherical or irregular pellets of ice. - =Answer>> Hail Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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or Overflow of Water can apply to water or steam from within a plumbing, heating, air conditioning, or automatic fire sprinkler system, or from within a household appliance.
- =Answer>> Accidental Discharge Can mean rupture, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire sprinkler system, or an appliance for heating water. - =Answer>> Sudden and Accidental Tearing Apart Can include the freezing of plumbing, heating or air conditioning systems, automatic fire sprinkler systems or household appliances. - =Answer>> Freezing Includes sudden and accidental damage from any electrical current, except currents that are naturally generated, such as lightning or static electricity. - =Answer>> Artificially Generated Current Includes damage caused by the eruption of a volcano, including volcanic explosion, airborne shockwaves, volcanic ash, and lava flow - =Answer>> Volcanic Eruption Direct financial interest in protecting something or someone - =Answer>> Insurable Interest The actual cause of loss or damge - =Answer>> Peril The transfer of rights that allows the insurer to recover its losses after it has indemnified a polichholder - =Answer>> Subrogation Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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The extent to which a person, item, or organization is open to damage or loss - =Answer>> Exposure A condition increasing the likelihood or severity of a loss - =Answer>> Harzard Occurs when the value of an insured item is reduced by a covered peril - =Answer>> Loss A large number of insured units reduces the possibility of variation from the expected number of claims - =Answer>> Law of Large Numbers restoration to previous financial condition; no more, no less
- =Answer>> Principle of indemnity Occurs when an insured person consciously acts in a way that is more likely to result in a loss - =Answer>> Moral Hazard Occur when someone unconsciously exhibits riskier behavior, usually because she is insured - =Answer>> Morale Hazard Physical conditions that increase the chance of loss - =Answer>> Physical Hazards Physical loss or damage to property directly due to an incident; i.e. fire, wind, etc.. - =Answer>> Direct Loss Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
