GEORGIA PROPERTY AND CASUALTY
INSURANCE ACTUAL TEST PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ 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
INSURANCE ACTUAL TEST PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ 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
