Georgia Adjuster Exam2
$0 - ANS-An insured owns a large dog. The first day he has to leave the dog home
alone to go to work, the insured comes back to find his $400 couch torn apart, his $100
coffee table chewed up, his $50 window curtain shredded, and a $200 window pane
shattered where his dog jumped through. The insured has personal property coverage
under a special form dwelling policy. How much of this loss will the policy cover?
Damage that results from domestic animals is excluded under the special form dwelling
policy.
$100,000 - ANS-Walt has $500,000 auto liability coverage, $100,000 HO liability, and a
$3 million personal umbrella with $2,000 SIR. How much would the umbrella pay after a
$600,000 auto liability loss?
The SIR applies only if no other policy pays anything.
$115,000 - ANS-Super Value Store has a commercial general liability policy written with
a general aggregate limit of $300,000 and an occurrence limit of $100,000. A customer
injured on the premises was awarded $45,000 for medical expenses and loss of
earnings, and $60,000 for pain and suffering. The court costs and attorney fees were
$15,000. How much will the CGL policy pay?
The policy would pay up to the occurrence limit plus, as supplementary payments, the
cost of the court and attorney fees over and above the limit.
$50,000 - ANS-Bob has a personal auto policy with Part C, UM/UIM limits of $100/$300.
He is injured by Jennifer, who has Part A, Bodily Injury Liability limits of $50/$100. The
police determine that Jennifer is at fault for the accident. Bob has $125,000 in medical
expenses. How much will Bob's Part C, UM/UIM pay?
Underinsured motorist coverage acts as excess over the at fault motorist's coverage.
Because of the per-person limits of Bob's underinsured motorist coverage, the policy will
pay the amount necessary to bring payment up to the per-person limit (in this case,
$100,000). The policy will not pay more than the limits of liability.
$8,000 - ANS-Three years ago, an insured moved to an unfurnished apartment. She
bought new furniture that cost $9,000. Last week, there was a fire in the apartment that
destroyed the furniture. Replacement cost is $10,500. The adjuster told the insured her
, furniture depreciated $2,500. If insurance is written on an actual cash value basis, how
much will it pay for the loss?
When insurance coverage is written on an actual cash value basis, losses paid are for
the replacement cost (at the time of loss), minus depreciation.
10 days - ANS-Within the first 60 days of coverage under a dwelling policy, how much
notice is required for the cancellation of a policy?
No matter what the reason, if a policy is canceled within the first 60 days, only 10 days
advance notice is required.
30 days - ANS-A written notice of nonrenewal of a personal auto policy must delivered
or mailed to the insured within how many days of such nonrenewal?
30 days' written notice must be delivered or mailed to the insured before an insurer may
cancel or nonrenew a personal auto policy.
A fire that was caused by the insured's negligence burns a neighboring building. The
owner of the building sues the insured. - ANS-Which of the following is a casualty loss?
Casualty insurance consists primarily of liability coverages, which protect an insured
against injury or damage claims made by other parties. Legal liability arises through
negligence in this case.
Admitted - ANS-Which of the following is the most precise synonym for an "authorized"
insurer?
Insurers who meet the state's financial requirements and are approved to transact
business in the state are considered authorized or admitted into the state as a legal
insurer.
Attach the home day care coverage endorsement to the HO policy - ANS-If an insured
operates a home day care business out of his house, how can he ensure the liability
exposure coverage?
A home day care coverage endorsement may be attached to the homeowners policy to
cover the liability exposure associated with the business.
Break bulk cargo - ANS-General-cargo ships are used to transport
$0 - ANS-An insured owns a large dog. The first day he has to leave the dog home
alone to go to work, the insured comes back to find his $400 couch torn apart, his $100
coffee table chewed up, his $50 window curtain shredded, and a $200 window pane
shattered where his dog jumped through. The insured has personal property coverage
under a special form dwelling policy. How much of this loss will the policy cover?
Damage that results from domestic animals is excluded under the special form dwelling
policy.
$100,000 - ANS-Walt has $500,000 auto liability coverage, $100,000 HO liability, and a
$3 million personal umbrella with $2,000 SIR. How much would the umbrella pay after a
$600,000 auto liability loss?
The SIR applies only if no other policy pays anything.
$115,000 - ANS-Super Value Store has a commercial general liability policy written with
a general aggregate limit of $300,000 and an occurrence limit of $100,000. A customer
injured on the premises was awarded $45,000 for medical expenses and loss of
earnings, and $60,000 for pain and suffering. The court costs and attorney fees were
$15,000. How much will the CGL policy pay?
The policy would pay up to the occurrence limit plus, as supplementary payments, the
cost of the court and attorney fees over and above the limit.
$50,000 - ANS-Bob has a personal auto policy with Part C, UM/UIM limits of $100/$300.
He is injured by Jennifer, who has Part A, Bodily Injury Liability limits of $50/$100. The
police determine that Jennifer is at fault for the accident. Bob has $125,000 in medical
expenses. How much will Bob's Part C, UM/UIM pay?
Underinsured motorist coverage acts as excess over the at fault motorist's coverage.
Because of the per-person limits of Bob's underinsured motorist coverage, the policy will
pay the amount necessary to bring payment up to the per-person limit (in this case,
$100,000). The policy will not pay more than the limits of liability.
$8,000 - ANS-Three years ago, an insured moved to an unfurnished apartment. She
bought new furniture that cost $9,000. Last week, there was a fire in the apartment that
destroyed the furniture. Replacement cost is $10,500. The adjuster told the insured her
, furniture depreciated $2,500. If insurance is written on an actual cash value basis, how
much will it pay for the loss?
When insurance coverage is written on an actual cash value basis, losses paid are for
the replacement cost (at the time of loss), minus depreciation.
10 days - ANS-Within the first 60 days of coverage under a dwelling policy, how much
notice is required for the cancellation of a policy?
No matter what the reason, if a policy is canceled within the first 60 days, only 10 days
advance notice is required.
30 days - ANS-A written notice of nonrenewal of a personal auto policy must delivered
or mailed to the insured within how many days of such nonrenewal?
30 days' written notice must be delivered or mailed to the insured before an insurer may
cancel or nonrenew a personal auto policy.
A fire that was caused by the insured's negligence burns a neighboring building. The
owner of the building sues the insured. - ANS-Which of the following is a casualty loss?
Casualty insurance consists primarily of liability coverages, which protect an insured
against injury or damage claims made by other parties. Legal liability arises through
negligence in this case.
Admitted - ANS-Which of the following is the most precise synonym for an "authorized"
insurer?
Insurers who meet the state's financial requirements and are approved to transact
business in the state are considered authorized or admitted into the state as a legal
insurer.
Attach the home day care coverage endorsement to the HO policy - ANS-If an insured
operates a home day care business out of his house, how can he ensure the liability
exposure coverage?
A home day care coverage endorsement may be attached to the homeowners policy to
cover the liability exposure associated with the business.
Break bulk cargo - ANS-General-cargo ships are used to transport
