Georgia Adjuster Exam exam with complete solution graded A+

Consequential also known as Indirect Loss - 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 - 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 - 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 - 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 anythhing. Only to individuals - An agent license can be issued A change in the risk that substantially increases the hazard insured against - If a policy has been in affect for at least 60 days or is due for renewal, a cancellation may only be affected for this reason Authorized Insurer - An insurer that holds a Certificate of Authority in the state in which it transacts business is considered to be 15% - An insured must get advanced warning if the premiums will be increased by more thanWritten 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 - 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 - Insurance is a contract by which one seeks to protect another from Pair and Set Clause - 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 - The essential parts of an insurance policy