Download Georgia Property/Casualty Insurance Exam: 100+ Questions and Answers and more Exams Insurance Economics in PDF only on Docsity!
GEORGIA PROPERTY/CASUALTY INSURANCE EXAM
|| 2025 - 2026||ACTUAL 100+ QUESTIONS AND VERIFIED
ANSWERS. GUARANTEED A+
A bond guaranteeing the obligation of one party to another by a third party is known as a: A. surety bond B. guarantee bond C. fiduciary bond D. municipal bond - CORRECT ANSWER: A. surety bond A building to an insured's business is severely damaged by fire. bc of the nature of the damage to the adjoining property, the insured is denied access to the business by the fire dept. If the insured's property is covered under a business income coverage form, the insurer will cover loss of earnings for a MAX of: A. 6 months B. 3 weeks C. 60 days D. 30 days - CORRECT ANSWER: B. 3 weeks A business insured under a commercial general liability policy has a general aggregate limit of $100,000,000 and an occurrence limit of $100,000. An injured party is awarded $100,000. What remain available to the insured? A. General aggregate of $100,000,000; Occurrence limit of $ B.A. General aggregate of $900,000; Occurrence limit of $100,
C.A. General aggregate of $100,000,000; Occurrence limit of $100, D.A. General aggregate of $900,000; Occurrence limit of $0 - CORRECT ANSWER: B.A. General aggregate of $900,000; Occurrence limit of $100, A candidate for licenses as property ins producer must have completed a MIN of how many of preliencsing education? A. 45 B. C. D.30 - CORRECT ANSWER: C. A candidate for licensure as a casualty ins producer must have complete a MIN of how hours of prelicensing education? A. 45 B. C. D.7.5 - CORRECT ANSWER: B. A Commercial General Liability policy provides coverage for which of the following hazards? A. Pollutions Liability B. Premises Liability C. Employee injury Liability
A personal automobile policy's medical payments coverage will pay for A. damage to the insured's car caused by a collision with another car B. intentional injuries to a passenger caused by the insured C. injury to a family member who is struck by the insured's car D. Damage to the insured's garage caused by the insured's car - CORRECT ANSWER: C. injury to a family member who is struck by the insured's car A restaurant has clogged heating and cooling ducts. This an example of A. Risk B. Hazard C. exclusion D. Peril - CORRECT ANSWER: B. Hazard After an insurance producer license is issued, a licensee MUST complete how many hours approved continuing education courses every two years? A. B. 10 C. D.59 - CORRECT ANSWER: c. after an insurer receives a satisfactory proof of loss from an insured on a fire loss, payment is due within a MAX of how many days?
A.
B. 30
C.
D.90 - CORRECT ANSWER: A.
All of the following are an insured's duties after a property loss EXCEPT A. provide proof loss info B. cooperate with the insurer C. vacate the property promptly D. Provide prompt notice of the claim - CORRECT ANSWER: C. vacate the property promptly All of the following are insured contract under the commercial general Liability (CGL) policy EXCEPT A. lease of business equipment B. elevator maintenance agreement C. agreement to indemnify a municipality D railroad sidetrack agreement - CORRECT ANSWER: A. lease of business equipment ALL of the following items contained in a basement are covered under the standard flood ins policy EXCEPT;
section A limit C. replacement cost is the basis used for paying claims covered by section A D. the personal property limit is automatically set at 50% of the dwelling coverage limit (section A) - CORRECT ANSWER: D. the personal property limit is automatically set at50% of the dwelling coverage limit (section A) All statements and descriptions is any application for an ins. policy by an insured are deemed to be A. representations and not warranties B. neither warranties nor representations C. both warranties and representations D. warranties and not representations - CORRECT ANSWER: A. representations and not warranties an act of terrorism
A. Must be certified by the secretary of the Treasury, the secretary of Homeland security, and US attorney general B. is defined as any act causing property damage and loss of lives in a foreign country C. in which TRIPRA responds, place a cap on federal liability not to exceed $100million D. triggers the Terrorism Risk Ins Program Reauthorization Act (TRIPRA) - CORRECT ANSWER: A. Must be certified by the secretary of the Treasury, the secretary of Homeland security, and US attorney general An Ins policy covers fire, will not cover nuclear contamination, and loss must be reported as soon as possible. In this order, where are these facts found in the policy? A. Dec pages, insuring agreement, and conditions B. Insuring agreement, exclusions, and conditions C. Conditions, endorsements, and declarations D. Insuring agreement, Exclusions, ans proof of loss - CORRECT ANSWER: B. Insuring agreement, exclusions, and conditions An insurance binder is A. a temporary short-term evidence of coverage B. a large bound volume of rules, rates, and forms C. a temporary agreement to pay a claim pending final settlement D. a rate manual supplied by one of the rating organization - CORRECT ANSWER: A. a
An insured's HO- 2 Form has a $100,000 coverage limit on the dwelling and a $50, Personal Property limit with the standard deductible. If a sailboat valued at $1,500 is stolen from the insured's premises, the insured will collect a MAXIMUM of which of the following amounts? A. $1, B. $1, C. $1, D. $1,500 - CORRECT ANSWER: C. $1, AN insurer that generally fails to affirm or deny coverage of claims within reasonable period of time after receiving Proof of Loss may be found guilty of : A. a breach of fiduciary responsibility B. an improper claims practice C. defamation D. misrepresentation - CORRECT ANSWER: B. an improper claims practice Assume lighting strikes a home and starts a fire that destroys the structure and its contents. By definition, the fire is the A. Risk B. Hazard C. indirect loss D. Peril - CORRECT ANSWER: D. Peril
Blanket dishonesty bonds cover all A. theft by employees at a single location B. employees of the insured C. acts of dishonestly committed at 2 or more locations D. Acts of dishonesty by 2 or more employees - CORRECT ANSWER: B. employees of the insured Commercial umbrella policies are written over all of the primary liability coverages EXCEPT A. Employers' liability B. commercial general liability C. business auto D. Workers' comp - CORRECT ANSWER: D. Workers' comp
due to A. failure of pressure or vacuum equipment B. damage to vacuum tubes C. Valve, shaft seal or fitting leakage D. Malfunction of equipment calibration - CORRECT ANSWER: A. failure of pressure or vacuum equipment G insures G's TV repairs shop under the Building and Personal Property Coverage form with limits of $100,000 on the building and $50,000 on business personal property. A fire causes $10,000 in damage to the building and $20,000 in loss to the contents. G also has to pay $1,000for debris removal If the policy has a deductible of $250, G will receive a MAX of which of the following amts from the insurer? A. $29, B. $30, C. $31, D.$30,750 - CORRECT ANSWER: D.$30,
General Damage A. are monetarily quantifiable B. included all direct and specific expenses involved in a particular C. are awarded to punish defendants D. compensate for things such as pain, suffering, and mental anguish - CORRECT ANSWER: D. compensate for things such as pain, suffering, and mental anguish I the event of a loss under a personal auto policy, an insured is required to submit to the ins company all of the following info EXCEPT: A. A notice of claim B. a Proof of Loss statement if required C. an appraisal of the damage property D. a list of any known witnesses - CORRECT ANSWER: C. an appraisal of the damage property In a commercial General liability policy, medical payments expenses MUST be: A. caused by the negligence of the insured B. reported within one year of the date of the accident C. caused by a product manufactured by the insured D. reported within two years of the policy expiration - CORRECT ANSWER: B. reported within one year of the date of the accident
A. operates in this state but is incorporated in another state B. operates in this state but is domiciled in another state C. is headquarters in this state D. is incorporated in this state - CORRECT ANSWER: D. is incorporated in this state Information provided by the insured in a proof of loss is concerned A. a warranty B. an assignment C a representation D. an agreement - CORRECT ANSWER: C. a representation Insurers that deal directly with insureds without the use of agents are known as A. Direct Response B reciprocals C. mass marketers D. Independent Insurers - CORRECT ANSWER: A. Direct Response Investment consultants should purchase which of the following policies themselves from errors and omissions claim? A. owners and contractors protective liability B. premises and operations liability C. Products and completed operations liability D. professional liability - CORRECT ANSWER: D. professional liability
Making a false or misleading statement about dividends or shares of surplus previously paid on an ins policy is known as; A. unfair discrimination B. rebating C. coercion D. misrepresentation - CORRECT ANSWER: D. misrepresentation Misrepresentation is A. Encouraging policyowners to drop existing Ins for another similar policy B. Information that is not true, but will not void an Ins contract C. offering an inducement for the purchase of Ins. - CORRECT ANSWER: B. Information that is not true, but will not void an Ins contract Off premises dwelling property coverage provides up to A. 10% of coverage C B. 10% of coverage A
D. the Workers Compensation Board - CORRECT ANSWER: A. employers only primary obligation of an insurer is to; A. pay the claims covered under the policy B. provide a financial statement with each policy C. prepare an inventory after a loss D. make inspections and surveys of insured property - CORRECT ANSWER: A. pay the claims covered under the policy Product liability coverage would insure damage that arise from which of the following situations? A. A bicycle rider is injured when a wheel malfunctions B. A contractor installs inferior-grade siding on a building C. A malfunctions is required to recall a defective product. D. A customer receives an electrical shock from a curing iron during a in-store demonstration - CORRECT ANSWER: A. A bicycle rider is injured when a wheel malfunctions
Proof of Financial Responsibility for damages caused by an accident may be shown by all of the following documents EXCEPT: A. an automobile insurance policy B. a certification of self-insurance C. a deposit of securities D. a certified financial statement - CORRECT ANSWER: D. a certified financial statement Proof of motor vehicle liability ins is required of a driver: A. when registering a vehicle B. when applying for a driver's license C. after acquiring a vehicle D. after an automobile accident involving bodily injury - CORRECT ANSWER: A. when registering a vehicle Purchasing insurance is an example of risk A. Rentention B. avoidance C. Sharing D transfer - CORRECT ANSWER: D. Transfer Self-insurance is an example of what type of risk management
