GEORGIA PROPERTY AND CASUALTY UPDATED FINAL PAPER QUESTIONS AND ANSWERS GRADED

GEORGIA PROPERTY AND CASUALTY UPDATED FINAL
PAPER QUESTIONS AND ANSWERS GRADED A+
✔✔Policy Provisions and Contract Law.
What is the purpose of the Terrorism Risk Insurance Act (TRIA)? - ✔✔to create a
temporary federal program that would share the risk of loss from future terrorist attacks
with the insurance industry.

✔✔Types of Property Policies.
Personal Lines:
What are the eligibility requirements for a dwelling property policy? - ✔✔The dwelling
policy can insure just the dwelling, only its contents, or both.

✔✔Types of Property Policies.
Personal Lines:
What are the three dwelling policy forms? - ✔✔Basic, Broad, and Special.

✔✔Types of Property Policies.
Personal Lines:
What are extended covered perils? - ✔✔On a basic policy, extended covered perils
include windstorm or hail, explosion , smoke, aircraft and vehicles, riot or civil
commotion, volcanic eruption, and vandalism and malicious mischief.

✔✔Types of Property Policies.
Personal Lines:
What perils are insured against in a special form policy? - ✔✔The special form is an
open peril form. All perils are insured against except those specifically excluded.

✔✔Types of Property Policies.
Personal Lines:
What does fair rental value include? - ✔✔If property under Coverage A, B, or C
becomes damaged or destroyed and unfit for normal use, the policy will pay the fair
rental value of the described premises under Coverage D- Fair Rental Value, or part of
it used as rental property.

✔✔Types of Property Policies.
Personal Lines:
When does worldwide personal property coverage apply? What is not covered? -
✔✔The insured may elect to apply up to 10% of the personal property limit to pay for
losses to personal property away from the premises. There is no coverage for rowboats
or canoes, or for property of guests and servants if away form the insured premises.

✔✔Types of Property Policies.
Personal Lines:

, If more than one person has an insurable interest in the property, is the insurer liable for
more than the insured's interest in the loss or damaged property? - ✔✔The insurer will
not be liable for more than the insured's interest in the loss or damaged property.

✔✔Types of Property Policies.
Personal Lines:
What coverage forms are available under the homeowners program? - ✔✔The 6
coverage forms available under the homeowners program are HO-2 broad form, HO-3
special forms, HO-4 contents broad form, HO-5 comprehensive form, HO-6
condominium unit owners, and HO-8 modified coverage form.

✔✔Types of Property Policies.
Personal Lines:
What is the purpose of a homeowners policy? - ✔✔designed to cover dwellings
primarily used as private homes.

✔✔Types of Property Policies.
Personal Lines:
What homeowners form provides protection for losses from named perils? - ✔✔The
HO-2 broad form provides protection for losses from named perils.

✔✔Types of Property Policies.
Personal Lines:
What type of coverage is expanded upon from HO-2 to HO-3? - ✔✔The peril of vehicles
insured for the personal property is expanded from what is covered in the broad form
(HO-2).

✔✔Types of Property Policies.
Personal Lines:
What type of coverage does the HO-4 tenant broad form provide? - ✔✔ensures
personal property for the same perils as found in the broad form (HO-2)

✔✔Types of Property Policies.
Personal Lines:
What is covered under the HO-5 comprehensive form? - ✔✔covers both the dwelling
and other structures on an open peril basis.

✔✔Types of Property Policies.
Personal Lines:
Under HO-6, where may business property be stored? - ✔✔cover a structure that
contains business property solely owned by an insured or a tenant of the dwelling,
provided that the business property does not include gaseous or liquid fuel, other than
fuel in a permanently installed fuel tank of a vehicle or craft parked or stored in the
structure.