Georgia Adjuster Exam questions with correct answers
Consequential also known as Indirect Loss CORRECT ANS an insured's business is damaged because of a fire and he is forced to close business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
Combined Single CORRECT ANS The insured crashes into a porch and the person sitting on the
porch. The person on the porch is injured. The insured's insurance policy has a limit set at $500,000. This amount applies to the total of damages for any bodily injury and property damage
resulting from one accident. Which type of limit of liability does the insured have? This single dollar limit of liability applying to the total of damages for bodily injury and property damage combined resulting from one accident or occurrence
$100,000 CORRECT ANS If a liability policy had split limits of 100/300/100, what is the maximum amount that would be payable in the event of injury to a single person? The first limit shown is the most the policy will pay for bodily injury to any one person
Absolute CORRECT ANS What kind of liability would a person with a swimming pool have?
Any conduct that is inherently dangerous imposes this liability. The claimant does not have to prove anything.
Only to individuals CORRECT ANS An agent license can be issued
A change in the risk that substantially increases the hazard insured against CORRECT ANS If a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be affected for this reason
Authorized Insurer CORRECT ANS An insurer that holds a Certificate of Authority in the state in which it transacts business is considered to be
15% CORRECT ANS An insured must get advanced warning if the premiums will be increased by more than Written notice of an increase in premiums that exceed this amount of the current policy's premium must be delivered or mailed to the insured at least 45 days before the effective date of the change
Indemnity CORRECT ANS The insurance principle that states if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost.
Loss CORRECT ANS Insurance is a contract by which one seeks to protect another from
Pair and Set Clause CORRECT ANS The loss settlement based on the reasonable and fair portion that the lost or damaged part bears to the total value of the set
In the event of a loss to only part of a pair or set, losses will be settled either by repairing or replacing the damaged part or by paying the difference between the actual cash value before and after the loss.
Provides the insurer a method of settling a loss when only a part of the insured pair or set is damaged. The insurer will pay for the loss or damage to an insured item, plus the amount that the
loss of one item detracts from the value of undamaged item(s) of the pair or set.
Insuring clause, Exclusions, Conditions CORRECT ANS The essential parts of an insurance policy
Conditions CORRECT ANS Because an insurance policy is legal contract, it must conform to the state laws governing contracts which require all the following statements except
Legal purpose, Consideration, Conditions, Offer and Acceptance
Beneficiary's consent CORRECT ANS An insurance contract must contain all of the following to be considered legally binding EXCEPT Offer and Acceptance, Consideration, Beneficiary's Consent, Competent Parties
The essential elements of a legal contract are Offer and Acceptance, Consideration, Competent Parties, Legal Purpose
Consideration CORRECT ANS ** Something of value one party gives to another. --The consideration on the part of the insured is the payment of premium and the representations made in the policy.
** When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
-Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application.
A specific time (usually 60 days, time may vary) CORRECT ANS In the event of a loss covered by the policy, the named insured is required to submit to the insurer a signed sworn proof of loss within
Garage keepers Liability CORRECT ANS Physical damage coverage on customers' autos while in care, custody and control of the garage operation.
No coverage is provided for autos stored for more than 45 days at a location not shown in the declarations CORRECT ANS Which of the following statements is true regarding physical damage coverage in a garage form?
Collision coverage is provided only for dealers
Autos held for sale by a dealer are listed individually in the policy
No coverage is provided for autos stored for more than 45 days at a location not shown in the declarations
Consequential also known as Indirect Loss CORRECT ANS an insured's business is damaged because of a fire and he is forced to close business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
Combined Single CORRECT ANS The insured crashes into a porch and the person sitting on the
porch. The person on the porch is injured. The insured's insurance policy has a limit set at $500,000. This amount applies to the total of damages for any bodily injury and property damage
resulting from one accident. Which type of limit of liability does the insured have? This single dollar limit of liability applying to the total of damages for bodily injury and property damage combined resulting from one accident or occurrence
$100,000 CORRECT ANS If a liability policy had split limits of 100/300/100, what is the maximum amount that would be payable in the event of injury to a single person? The first limit shown is the most the policy will pay for bodily injury to any one person
Absolute CORRECT ANS What kind of liability would a person with a swimming pool have?
Any conduct that is inherently dangerous imposes this liability. The claimant does not have to prove anything.
Only to individuals CORRECT ANS An agent license can be issued
A change in the risk that substantially increases the hazard insured against CORRECT ANS If a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be affected for this reason
Authorized Insurer CORRECT ANS An insurer that holds a Certificate of Authority in the state in which it transacts business is considered to be
15% CORRECT ANS An insured must get advanced warning if the premiums will be increased by more than Written notice of an increase in premiums that exceed this amount of the current policy's premium must be delivered or mailed to the insured at least 45 days before the effective date of the change
Indemnity CORRECT ANS The insurance principle that states if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost.
Loss CORRECT ANS Insurance is a contract by which one seeks to protect another from
Pair and Set Clause CORRECT ANS The loss settlement based on the reasonable and fair portion that the lost or damaged part bears to the total value of the set
In the event of a loss to only part of a pair or set, losses will be settled either by repairing or replacing the damaged part or by paying the difference between the actual cash value before and after the loss.
Provides the insurer a method of settling a loss when only a part of the insured pair or set is damaged. The insurer will pay for the loss or damage to an insured item, plus the amount that the
loss of one item detracts from the value of undamaged item(s) of the pair or set.
Insuring clause, Exclusions, Conditions CORRECT ANS The essential parts of an insurance policy
Conditions CORRECT ANS Because an insurance policy is legal contract, it must conform to the state laws governing contracts which require all the following statements except
Legal purpose, Consideration, Conditions, Offer and Acceptance
Beneficiary's consent CORRECT ANS An insurance contract must contain all of the following to be considered legally binding EXCEPT Offer and Acceptance, Consideration, Beneficiary's Consent, Competent Parties
The essential elements of a legal contract are Offer and Acceptance, Consideration, Competent Parties, Legal Purpose
Consideration CORRECT ANS ** Something of value one party gives to another. --The consideration on the part of the insured is the payment of premium and the representations made in the policy.
** When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
-Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application.
A specific time (usually 60 days, time may vary) CORRECT ANS In the event of a loss covered by the policy, the named insured is required to submit to the insurer a signed sworn proof of loss within
Garage keepers Liability CORRECT ANS Physical damage coverage on customers' autos while in care, custody and control of the garage operation.
No coverage is provided for autos stored for more than 45 days at a location not shown in the declarations CORRECT ANS Which of the following statements is true regarding physical damage coverage in a garage form?
Collision coverage is provided only for dealers
Autos held for sale by a dealer are listed individually in the policy
No coverage is provided for autos stored for more than 45 days at a location not shown in the declarations
