Property & Casualty Practice
Questions
◉ BPP building coverage. Answer: insures the building at the described
location, outdoor, fixtures, furnitures, items used to service the property,
permanently installed machinery and equipment, and additions under
construction, including the materials, supplies, and equipment.
◉ HO limits of property at other residences. Answer: the larger of $1000
or 10% Coverage C. Limit does not apply if property is moved because
the residence premise is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown
on declaration will apply on a proportional basis to each residence
◉ Dwellings under construction. Answer: The limit of liability for a
dwelling under construction is provisional, and is based on the
completed value of the structure. At the time of loss, the applicable limit
is a percentage of the provisional limit, based on the proportion of actual
cash value of the property at the time of loss. Premium is based on an
average amount of insurance during construction.
◉ Water Backup & Sump Pump Endorsement. Answer: Coverage for up
to $5,000 in loss or damage, subject to a $250 deductible, can be
provided for an additional premium with this endorsement.
,◉ Automatic Increase in Insurance Endorsement. Answer: is used to
provide at the annual renewal date of the policy, an automatic increase in
the Coverage A and B limits of insurance to help offset inflation
◉ Other insurance. Answer: A provision in an insurance policy that
defines how the policy will respond if there is another valid insurance
policy written on the same risk.
◉ Stock Companies. Answer: Owned by the stockholders who provide
the capital necessary to establish and operate the insurance company and
who share in any profits or losses.
◉ Mutual companies. Answer: Owned by the policyowners and issue
participating policies. Policyowners are entitled to dividends, which are
a return of excess premium and are nontaxable.
◉ 6 classes of insurance in Georgia. Answer: 1. Life, accident, and
sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
◉ How often must the Insurance Commission examine domestic
insurers?. Answer: Once every 5 years.
,◉ What are the timelines if a hearing is requested?. Answer: A hearing
must be made within 30 days of the receipt of the request.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his
decision.
◉ What are the penalties after a notice, hearing, and cease and desist
order?. Answer: A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
◉ Express authority. Answer: the authority of an agent, stated in the
document or agreement creating the agency
◉ Implied authority. Answer: Authority that is not expressed or written
into the contract, but which the agent is assumed to have in order to
transact the business of insurance for the principal.
◉ Apparent authority. Answer: The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or
because of circumstances the principal created.
◉ When does an agents license expire?. Answer: Licenses are good to
for 2 years and expire on the last day of the licensee's with month.
, ◉ What are the CE requirements for an agent?. Answer: 24 CE credit
hours every 2 years, including 3 credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours,
including ethics.
◉ How long must an agent keep records regarding contracts, premiums,
etc.?. Answer: All records must be kept for 5 years after the completion
of a transaction or for the term of the contract, whichever is greater.
◉ Misrepresentation. Answer: Issuing, publishing, or circulation and
illustration or sales materials that is false, misleading, or deceptive as to
policy benefits or terms, the payments of dividends, etc.
◉ False advertising. Answer: advertising that is misleading in some
important way, including the failure to reveal facts about possible results
from using the advertised products
◉ Rebating. Answer: Any inducement offered in the sale of insurance
products that is not specified in the policy. They are illegal in Georgia.
◉ Twisting. Answer: A form of misrepresentation in which an agent
persuades an insured/owner to cancel, lapse, or switch policies, even
when it's to the insured's disadvantage.
Questions
◉ BPP building coverage. Answer: insures the building at the described
location, outdoor, fixtures, furnitures, items used to service the property,
permanently installed machinery and equipment, and additions under
construction, including the materials, supplies, and equipment.
◉ HO limits of property at other residences. Answer: the larger of $1000
or 10% Coverage C. Limit does not apply if property is moved because
the residence premise is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown
on declaration will apply on a proportional basis to each residence
◉ Dwellings under construction. Answer: The limit of liability for a
dwelling under construction is provisional, and is based on the
completed value of the structure. At the time of loss, the applicable limit
is a percentage of the provisional limit, based on the proportion of actual
cash value of the property at the time of loss. Premium is based on an
average amount of insurance during construction.
◉ Water Backup & Sump Pump Endorsement. Answer: Coverage for up
to $5,000 in loss or damage, subject to a $250 deductible, can be
provided for an additional premium with this endorsement.
,◉ Automatic Increase in Insurance Endorsement. Answer: is used to
provide at the annual renewal date of the policy, an automatic increase in
the Coverage A and B limits of insurance to help offset inflation
◉ Other insurance. Answer: A provision in an insurance policy that
defines how the policy will respond if there is another valid insurance
policy written on the same risk.
◉ Stock Companies. Answer: Owned by the stockholders who provide
the capital necessary to establish and operate the insurance company and
who share in any profits or losses.
◉ Mutual companies. Answer: Owned by the policyowners and issue
participating policies. Policyowners are entitled to dividends, which are
a return of excess premium and are nontaxable.
◉ 6 classes of insurance in Georgia. Answer: 1. Life, accident, and
sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
◉ How often must the Insurance Commission examine domestic
insurers?. Answer: Once every 5 years.
,◉ What are the timelines if a hearing is requested?. Answer: A hearing
must be made within 30 days of the receipt of the request.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his
decision.
◉ What are the penalties after a notice, hearing, and cease and desist
order?. Answer: A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
◉ Express authority. Answer: the authority of an agent, stated in the
document or agreement creating the agency
◉ Implied authority. Answer: Authority that is not expressed or written
into the contract, but which the agent is assumed to have in order to
transact the business of insurance for the principal.
◉ Apparent authority. Answer: The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or
because of circumstances the principal created.
◉ When does an agents license expire?. Answer: Licenses are good to
for 2 years and expire on the last day of the licensee's with month.
, ◉ What are the CE requirements for an agent?. Answer: 24 CE credit
hours every 2 years, including 3 credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours,
including ethics.
◉ How long must an agent keep records regarding contracts, premiums,
etc.?. Answer: All records must be kept for 5 years after the completion
of a transaction or for the term of the contract, whichever is greater.
◉ Misrepresentation. Answer: Issuing, publishing, or circulation and
illustration or sales materials that is false, misleading, or deceptive as to
policy benefits or terms, the payments of dividends, etc.
◉ False advertising. Answer: advertising that is misleading in some
important way, including the failure to reveal facts about possible results
from using the advertised products
◉ Rebating. Answer: Any inducement offered in the sale of insurance
products that is not specified in the policy. They are illegal in Georgia.
◉ Twisting. Answer: A form of misrepresentation in which an agent
persuades an insured/owner to cancel, lapse, or switch policies, even
when it's to the insured's disadvantage.
