Insurance Adjuster License Exam Review –
Latest Update 2026 | Exam Prep | Graded A+
Which kind of losses are covered under a standard fire policy? - correct answerDirect
All fires are not covered by the Standard Fire policies, only those that: - correct
answerare hostile and have a flame or glow
At what time does a fire policy go into affect? - correct answer12:01am standard time at
the location of the insured's property
A property is insured under two Standard Fire policies for $25,000 each. A fire causes
$10,000 worth of damage. What is the maximum amount the insured may collect under
each policy? - correct answer$5,000
A fire burning in the middle of the living room would be considered: - correct answera
hostile fire
An insured's house is damaged by fire caused by a neighbor's negligence. The
insurance company will attempt to recover damage from the neighbor. This is called: -
correct answersubrogation
Which of the following statements are true concerning requirements of the standard fire
policy? - correct answerThe insured must separate damaged from undamaged property
in the event there is a loss AND If a loss occurs, the insured normally has 60 days to file
a proof of loss with the insurer
Which types of property are excluded from coverage under the basic fire policy? -
correct answeraccounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? - correct answerthe named insured and
his legal representatives
An agreement which affords temporary insurance protection until the policy is issued is
called: - correct answera binder
as a general rule, a complete fire insurance policy would be made up of: - correct
answerthe Standard Fire policy with one or more forms attached
The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment - correct answerover-insurance
,replacement cost minus depreciation: - correct answerActual Cash Value (ACV)
The Standard Fire policy with an extended coverage endorsement attached covers
which of the following: - correct answerriot
A loss due to order of Civil Authority: - correct answeris excluded unless the loss occurs
because of an order by Civil Authorities for the purpose of controlling a fire
The term "unoccupancy" refers to the absence of : - correct answerpersons from a
building
Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies
the mortgagee the insured has not filed a proof of loss. To protect their interest, the
mortgagee must file a proof of loss within _________ days after what date? - correct
answer60 days after April 30th
For recovery under the Standard Fire policy, a party must: - correct answerbe named in
the policy and show an insurable interest in the property at the time the loss occurs
What is the requirement on how much experience one must have to be elected the
insurance commissioner in Georgia? - correct answerNone
Once elected, how long is the insurance commissioner's term? - correct answer4 years
Is there a limit on the number of terms an insurance commissioner can serve? - correct
answerNo
Who is Georgia's current insurance commissioner? - correct answerRalph Hudgens
What two capacities does Georgia's insurance commissioner serve? - correct answer1.
Chief Officer of Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - correct answerNo
election; the Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - correct answermust
have a bond in the amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials must
be examined? - correct answeronce every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance
Commissioner. Which is it? - correct answerSuperior Court of Fulton County
, What certificate is required for a company to be an authorized insurer in Georgia? -
correct answerCertificate of Authority
Surplus Lines Risk - correct answerhas been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's
certificate to authorize? - correct answerif they're under financial distress
What are the requirements to be a licensed producer in Georgia? - correct answermust
be at least 18 years old, take a 40 hour course, pass licensing exam, apply for license,
pass background check
Which of the following would be considered an "offer"? - correct answerthe applicant
submits an application to the company with payment
All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply - correct answerc) the loss must not be
definite and definable
all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions - correct answerd) inclusions
something that increases the chance of a peril occurring is known as a(n): - correct
answerhazard
open peril, or "all risk", forms: - correct answername the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of
handling risk has been undertaken? - correct answerrisk retention
the insurance industry deals with those areas of risk where the chances of loss are: -
correct answeranywhere between 0% and 100%
which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties - correct answerd) incompetent parties
Actual cash value= - correct answerreplacement cost minus depreciation
Latest Update 2026 | Exam Prep | Graded A+
Which kind of losses are covered under a standard fire policy? - correct answerDirect
All fires are not covered by the Standard Fire policies, only those that: - correct
answerare hostile and have a flame or glow
At what time does a fire policy go into affect? - correct answer12:01am standard time at
the location of the insured's property
A property is insured under two Standard Fire policies for $25,000 each. A fire causes
$10,000 worth of damage. What is the maximum amount the insured may collect under
each policy? - correct answer$5,000
A fire burning in the middle of the living room would be considered: - correct answera
hostile fire
An insured's house is damaged by fire caused by a neighbor's negligence. The
insurance company will attempt to recover damage from the neighbor. This is called: -
correct answersubrogation
Which of the following statements are true concerning requirements of the standard fire
policy? - correct answerThe insured must separate damaged from undamaged property
in the event there is a loss AND If a loss occurs, the insured normally has 60 days to file
a proof of loss with the insurer
Which types of property are excluded from coverage under the basic fire policy? -
correct answeraccounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? - correct answerthe named insured and
his legal representatives
An agreement which affords temporary insurance protection until the policy is issued is
called: - correct answera binder
as a general rule, a complete fire insurance policy would be made up of: - correct
answerthe Standard Fire policy with one or more forms attached
The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment - correct answerover-insurance
,replacement cost minus depreciation: - correct answerActual Cash Value (ACV)
The Standard Fire policy with an extended coverage endorsement attached covers
which of the following: - correct answerriot
A loss due to order of Civil Authority: - correct answeris excluded unless the loss occurs
because of an order by Civil Authorities for the purpose of controlling a fire
The term "unoccupancy" refers to the absence of : - correct answerpersons from a
building
Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies
the mortgagee the insured has not filed a proof of loss. To protect their interest, the
mortgagee must file a proof of loss within _________ days after what date? - correct
answer60 days after April 30th
For recovery under the Standard Fire policy, a party must: - correct answerbe named in
the policy and show an insurable interest in the property at the time the loss occurs
What is the requirement on how much experience one must have to be elected the
insurance commissioner in Georgia? - correct answerNone
Once elected, how long is the insurance commissioner's term? - correct answer4 years
Is there a limit on the number of terms an insurance commissioner can serve? - correct
answerNo
Who is Georgia's current insurance commissioner? - correct answerRalph Hudgens
What two capacities does Georgia's insurance commissioner serve? - correct answer1.
Chief Officer of Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - correct answerNo
election; the Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - correct answermust
have a bond in the amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials must
be examined? - correct answeronce every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance
Commissioner. Which is it? - correct answerSuperior Court of Fulton County
, What certificate is required for a company to be an authorized insurer in Georgia? -
correct answerCertificate of Authority
Surplus Lines Risk - correct answerhas been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's
certificate to authorize? - correct answerif they're under financial distress
What are the requirements to be a licensed producer in Georgia? - correct answermust
be at least 18 years old, take a 40 hour course, pass licensing exam, apply for license,
pass background check
Which of the following would be considered an "offer"? - correct answerthe applicant
submits an application to the company with payment
All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply - correct answerc) the loss must not be
definite and definable
all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions - correct answerd) inclusions
something that increases the chance of a peril occurring is known as a(n): - correct
answerhazard
open peril, or "all risk", forms: - correct answername the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of
handling risk has been undertaken? - correct answerrisk retention
the insurance industry deals with those areas of risk where the chances of loss are: -
correct answeranywhere between 0% and 100%
which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties - correct answerd) incompetent parties
Actual cash value= - correct answerreplacement cost minus depreciation
