Exam FX GA Property and Casualty| 208 Questions| With Complete Solutions

In Return for premium, and insurance company must.. correct answer: Be Fair in underwriting and pay covered losses In return for premium, an insurance company must be fair and impartial in underwriting of risks and must pay claims made for all covered losses. The part of a policy that clarifies terms in the policy is the correct answer: Definitions The valued policy statute applies in which of the following events? correct answer: In the event of a total loss by fire to a one or two family residential building or structure What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? correct answer: Other Insurance An insured owns several buildings, each at different location and insured on a separate policy. What type of coverage does the insured have? correct answer: Specific Specific insurance provides a specific amount of coverage for each property. A Blanket insurance policy provides coverage for more than one property with a single limit of coverage. Any insurer who issues a crop insurance policy, other than federal crop insurance, for tobacco crops grown in GA, shall make available coverage for what until the crop is harvested? correct answer: Wind or Hail An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $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? correct answer: Combined Single The process of determining the premium charged and how much insurance is required for a particular loss is called? correct answer: loss Valuation An insurance Agent has received a request for a hearing from the commissioner. Within how many days must the hearing be held? correct answer: 30 Days An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some of furniture and clothes in the house. From an insurance standpoint, the insured's house is considered correct answer: Unoccupied Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is correct answer: Provided by the insured's policy on an excess basis. automobile insurance follows the insured auto, so the coverage written on the auto is primary. automobile insurance also follows the insured as excess over other collectible insurance. All of the following types of property are covered by a standard builders risk form EXCEPT: A. tools 50 feet away from the building B.The building itself C. Temporary structures D. Machinery that will be permanently attached to the building correct answer: A. Tools 50 feet away from the building. If a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be effected for which of the following reasons? correct answer: a change in the risk that substantially increases the hazard insured against. Which of the following statements is true regarding the premium computation for workers compensation insurance? correct answer: A Premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis.