Georgia Insurance Adjuster Exam Prep: Key Concepts & Definitions, Exams of Credit and Risk Management

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How to Pass the Georgia Insurance Adjuster Course Exams

aS | Six Special Characteristic of Insurance Contracts - ANS Personal, Adhesion, Utmost Good Coverage F - ANSWER YRS Umore.a~ An umbrella policy provided Liability coverage over and above the normal Risk Transference - A1NS 1/2 SSSSSi SH Oise tele liso Etalisfelniiel ii sen anothel Risk Avoidance - A'S 177 iSaa1SS ESO ainsi Seon INS OAOINSSESH BOP. - NSW) SSE SS none CPP ANSE (SSSR SoS aes Representation - ANS -A statement of a fact Misrepresentation~ AN SW) S§IS0)SS0SHa On tseeHillstaleoe ieee nO bimGaNeva Mn ec ee ee ee ee ee ee ee ee aS | Personal Contract - ESS EES Adhesion Contract - AIS [iSSIRS1SSEs Eee pOHslble Hoinii Helston ise CSniaOnnnine Utmost Good Faith Contract - ANS ___ -Applicants are expected to be completely honest about Aleatory Contract ~ ANSE: SIGHS le ibas Size is stelle lie: Nee veneeheot ()- _-Adiscovery drom commercial crime policy can apply to losses discavered during Rocioroeal Insurer ~ N17 S E SE Risk Reduction "Risk Mitigation" - ANS WER EEGREMMCSS ICO RD NeUGe nner SinvOlecnimien Risks Retention - ANSE) QS zis illite Sie Bainialfe laelells WaeabeeteaSsses Coverage B - ANSWER RRSBEAE ate SE nenEeS Mn ec ee ee ee ee ee ee ee ee aS | Doctrine of Reasonable Expectations - ANS _ -The contract should be interpreted as a Coverage C - ANSWER SEROHEIDEODEEEE HO-3 (special form) ~ ANSE: SURESH aie edie nes nie Elees Ualeeapnelneer HO-2 (broad form) ~ 1S W/E) SSISIBE ain ete Stal Ellss) aie) be sone EO Bene HO- (contents broad fo) - IS HO-5 Comprehensive Form - NS 1/2 SSS SEE eee HO-6 (Condo Form) ~ ANS’: SQES1Beis i BROBEEEOEls eiiees ells eaelseeniana St HO-8 (modified coverage form) - —-designed for older homes. Dwelling and other How long do you have to file a law suit in GA?- ANSWER SRS Mn ec ee ee ee ee ee ee ee ee aS | Which statement about the Federal Employers Liability Act is True?- ANS wer pees In GA, an individual has to file a lawsuit for libel - ANSWER GESRESE In the personal Auto Policy. Part F- General Provisions Provides: - ANS Rules regarding Business Income Coverage - ANSE) FRMISS BO ISU HOn Hon less On ICOMe USO w eoveled collateral-~A sum of cash or valuable property put into a reserve contralled by the Standard Form 25 - AVS WF): (SRSASESIS SE Donen eesaneel nen DESOIaStaanee captive Insurance ~ ANS W/E’: ESN Wes sao toe Bese OniaeNnaneN Tag Insurers - A.NS WER: GSESESASSOe Eon eee ace CPP (Commercial Package Policy) - An elective-based poliey Which of the following is NOT true regarding the Georgia Fair Plan?- ANSWER @MMMGnead Mn ec ee ee ee ee ee ee ee ee aS | Surplus insurer - 4.VSW EX SUSUR SSI ssl Hs hissee O sOne one nO nas eaied In order to be eligible for a resident independent insurance adjuster license in Georgia, you must be a resident of the state, and live in the state at least _____ months per year. - ANSWER s°- ANS WER SRSpARIne ne Hinlalleciastinent he last step in the claim settlement proc What i ‘isa social organization based around common interests Fraternal Benefit Socie Contributory negligence - AIST (RRUREESS lilt ls Sunnie flsestealeasnaat ialnenit After a policyholder files a claim, the insurer has days 1a send proof of loss forms. - ANSWEME Once a claimant files a complaint to the court, the claimant will become the: - ANSWEF- When is a self-insured retention applied in an umbrella policy? - ANSWERS Which of the following homeowners policies provide coverage on an open-peril basis for personal property without endorsement? - ANS Werf Mn ec ee ee ee ee ee ee ee ee aS | Ina DP-2 Broad Form, which of the following would be covered under the peril of Thef?- Broken windows caused by a burglar breaking in The insuring agreement for Part A-Liability in a personal auto policy states that: - ANSWER. Ina garagekeepers policy, PIP coverage is: - ANS available with an endorsement. All of the following are typical exclusions in an insurance policy, EXCEPT: - ANSWER- Atypical mobile home policy: - settles losses on an actual cash value basis. In the Personal Auto Policy, Part F - General Provisions provides: - ANS cules regarding The insuring agreoment for Part A-Liability in a personal auto policy states that: - ANSWER- Which settlement option is usually reserved for the largest claims? - ANSWER-SiRGHned Dwelling policies cover: - properly, and liability with an endorsement. Mental anguish would be an example of - ANS -zeneral damages. Mn ec ee ee ee ee ee ee ee ee aS | The Insurance Guaranty Association is a mechanism that covers claims in the event of - ANSWER SIESESISO Raney Ifa claimant in Georgia has completed a proof of loss form, an insurer has days to accept or deny a claim before it must contact the claimant to explain why more time is required. In that case, the insurer has an additional _____ days to make a decision on the claim. - ANSWERS subrogated — N° 1 El cost An ongoing assurance mad hy the insure that certain conditions in an dirocl loss ASW SSIS ene IS SRSSEE) indiroet loss ~ ANSE: SURGE TOSS ie eels ei ee LIOSs In Georgia, Workers compensation insurance can cover funeral expenses, up to:- ANSWER- States that have special legislation that requires workers compensation coverage to be provided exclusively by the state's workers comp program are: - ANS -Monopolistic Which statement about the Federal Emp] Compensation Act is TRUE? - ANSWER§ Mn ec ee ee ee ee ee ee ee ee aS | Law of Lange Nunbers~ NS //ISSSSESTSR Which type of coverage relates to damage to or destruction of detached structures in a typical homeowners policy? - ANS Vv eB The unfair trade practice of offering inducements for the purchase of insurance is called: - ANSWER SE In which type of group life insurance policy may the holder allocate the net premiums to one or more of several investment accounts? - Group variable universal life insurance How much ofa properly must be unoccupied for it to be defined as vacant by the standard commercial property policy? - ANS WER SORES With regard to homeowners insurance, business is defined as any activity that has: - ANSWER- An expense plan that indicates an employer will reduce benefits for persons over the age of 63 to the extent that they are payable under Medicare for the same expense is known as a: - ANSWER {Rae Which type of claims adjuster handles property and liability claims? - ANSWER-BQHIMIMIEe Which of the following must be true in order for towing charges to be covered under the physical tandard business auto policy? - ANS -All of the labor must be Mn ec ee ee ee ee ee ee ee ee aS | Obligee- ASW’) BEESEROSNHO SDHC ISeONeSneSEnEenOn A processing and servicing company would gualify for a BOP only if they have less than in annual revenues. - ANS wer Sea Which of the following lines of coverage could be found in a Commercial Package Policy? - ANS WE SSHSSS USED eennanee The Severability of Interests condition states that: - ANS _ -coverage applies to each insured By signing a settlement release, the claimant gives up the right to: - ANS —-seek any further ich of the folowing homeowners policics provide coverage on an open-peril basis for porsonal properly without endorsement? - ANS WER SoS Baile Coverage - ANS WISI ei io ois Ae Sates SeaSiBIe Mong Direct Excess Coverage - A1NS1/\-SSBI@QIESEHOMAEsEn eaUess Dt lieve iloleewnens Direct Primary Coverage - ANSP. {SEEESRSSaHHO ieee lia bltEy (SSIEENERUSEO less) Mn ec ee ee ee ee ee ee ee ee aS | Non owner car insurance - 4iVSW ET SSUQ0IaI BOM deslaietiOlpe0sle aOMon naaveneas Multi-Peril Crop Insurance (MPCI - ANS WE) RRS Oe eC onIOnOnOnnederal Inland Marine Insurance ~ ANS’ {SaHSSeSIBHeR nS ISee epi pete Mele eiaaseOeed stall adjuster - ANS 1/7 SSSR aS 1S Ge Sree Sa Onen mene /\ Reservation of Rights letter is sont by - ANS) 2) RS Ree Company Chins Asn individual or basins tha naka lai for eay ant af & oss The four qualifications of a legal contract are- ANS -_-consent, consideration (each party General damages ~ 1 SSS la EE Indemnification may include all of the following except: - ANS -payment for pain and Mn ec ee ee ee ee ee ee ee ee aS | The __ is the Federal Law that regulates the collection, dissemination and use of consumer information by insurance companies, credit agencies, and financial institutions. - ANSE GRASS SIG Rep onneeset Which of the following statements regarding scheduled fidelity bonds is FALSE? - ANSWER- What is the last step in the claim settlement process? - -_-Preparing the final adjustment A is a law set forth by a governing body such as a state or city. - ANSWER. Comparative Negligence - ANS 1/2) UG ISnEn On aoiiels batlelundemnitiestion| Total disability boncfils - ANS WE SRGIBEIEIOIIN OE Ren nO iL [Ote eee nes OpIaOnniun! Under the The Longshore and Harbor Workers’ Compensation AcL, how much would the 's?- ANSWER SO ERneMeeeased surviving spouse of a deceased worker rece: How many employees does an employer have to have in order to be required to provide workers’ compensation insurance for them? - ANSWER{ Mn ec ee ee ee ee ee ee ee ee aS | Equipment Breakdown Protection Coverage Form - ANS Accidental mechanical failure, BOP’s General Aggregate limit and Completed Operations limit - ANSWERS Which of the following is a feature typically found in a Business Owners Policy? - ANSWER- Which settlement option is most often used when a claimant misses work because of bodily oLLlement has nol. yet been reached? - ANS Advance payment scitIcment injury, but. In homeowner policics how much can you receive for a Trailer - ANSWERER Ina dwelling policy, how much will the Fire Department Service Charge coverage pay? - Up to $500 ifthe fire department charges for responding to a covered peril In a homeowners policy, Coverage B - Other Structures provides insurance for which of the following? - ANSWER -SRRSHeaeabaees Which of the following statements about Crop-Hail insurance is FALSE? - ANS WER Ken is getting his certification to adjust large commercial claims for the NFIP. Which of the following is NOT required of Ken in order to qualify for this certification? - ANS wer SeaBe Mn ec ee ee ee ee ee ee ee ee aS | Replacement Cost Policy - ANSWER [JBBRGGIAMOMd est lina iter ior inslitamee Glamis States that allow private insurers to offer workers comp coverage as an alternative to the state workers’ comp fund are called: - ANS -competitive Equipment Breakdown Exclusions - War or military action, nuclear hazards, earth BOP (business owners policy) - — -RCV x(amount of insuranco/ 80% properly value) BOP (Busines Owner Policy Features - 12. month business income coverage, 12 month litigation the process of taking legal action. Is unpredictable of results if claim is natned individuals broadened PIP - ANS Insured ean extend the poliey PIP coverage Lo The BOP provides loss of income on an “actual loss” sustained basis for up to: - ANSWERS Mn ec ee ee ee ee ee ee ee ee aS | What is the standard deductible on an Equipment Breakdown Protection Coverage Form? - ANSWEN SSO Coverage E - Additional Living Expenses - ANS -only available if broad or special form DP-2 Broad Form - ANSi/ 5A SRIGRIBEEIS IS Elatidslsts ee allie Beeline laISBEIne! Both Steve and his wife, Arlene, carry DP-2 policies on their $135,000 home. Steve's policy has a limit of $110,000 and Arlene’s has a $25,000 limit, and both policics pay on a pro rata basi a hailstorm causes $13,000 in damage to their roof, how much of the damage will be covered by Hail is covered under the DP-2 policy and Steve's policy (ignoring any deductib. In the Business Auto Policy, what does the symbol #2 mean? - ANS _ -Any Owned Vehicle Fiduciary Bond - AN SW: ARQ)EBGHGE Weianeelnl Esta BeisOa npSeinneel naa ONnas DP-1 Basic Forma - ANS 17/7 SIRIUS Bester O Gre Dh ues lane nina eNSIONIH DP-3 Special Form - /iVSW 5): (ARMIES SSH eH Iie sinScine eo telase eal ennunien Mn ec ee ee ee ee ee ee ee ee