Louisiana Insurance Adjuster Exam Questions & Answers Latest Updated

Which kind of losses are covered under a standard fire policy? - Answer Direct All fires are not covered by the Standard Fire policies, only those that: - Answer are hostile and have a flame or glow At what time does a fire policy go into affect? - Answer 12:01am standard time at the location of the insured's property A property is insured under two Standard Fire policies for $25,000 each. A fire causes $10,000 worth of damage. What is the maximum amount the insured may collect under each policy? - Answer $5,000 A fire burning in the middle of the living room would be considered: - Answer a hostile fire An insured's house is damaged by fire caused by a neighbor's negligence. The insurance company will attempt to recover damage from the neighbor. This is called: - Answer subrogation Which of the following statements are true concerning requirements of the standard fire policy? - Answer The insured must separate damaged from undamaged property in the event there is a loss AND If a loss occurs, the insured normally has 60 days to file a proof of loss with the insurer Which types of property are excluded from coverage under the basic fire policy? - Answer accounts, currency, deeds, and securities Who is insured under the Standard Fire policy? - Answer the named insured and his legal representatives An agreement which affords temporary insurance protection until the policy is issued is called: - Answer a binder as a general rule, a complete fire insurance policy would be made up of: - Answer the Standard Fire policy with one or more forms attached The one condition listed below which will not void a fire policy: a) false swearing b) misrepresentation c) over-insurance d) concealment - Answer over-insurance replacement cost minus depreciation: - Answer Actual Cash Value (ACV) The Standard Fire policy with an extended coverage endorsement attached covers which of the following: - Answer riot A loss due to order of Civil Authority: - Answer is excluded unless the loss occurs because of an order by Civil Authorities for the purpose of controlling a fire The term "unoccupancy" refers to the absence of : - Answer persons from a building Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies the mortgagee the insured has not filed a proof of loss. To protect their interest, the mortgagee must file a proof of loss within _________ days after what date? - Answer 60 days after April 30th For recovery under the Standard Fire policy, a party must: - Answer be named in the policy and show an insurable interest in the property at the time the loss occurs What is the requirement on how much experience one must have to be elected the insurance commissioner in Georgia? - Answer None Once elected, how long is the insurance commissioner's term? - Answer 4 years Is there a limit on the number of terms an insurance commissioner can serve? - Answer No Who is Georgia's current insurance commissioner? - Answer Ralph Hudgens What two capacities does Georgia's insurance commissioner serve? - Answer 1. Chief Officer of Insurance Dept. 2. Chief Fire Marshall What happens if the Insurance Commissioner has to resign early? - Answer No election; the Chief Deputy will take over What is the requirement to serve as Chief Deputy in Georgia? - Answer must have a bond in the amount of $15,000 If you are a domestic insurer in Georgia, how often does code say your financials must be examined? - Answer once every 5 years Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner. Which is it? - Answer Superior Court of Fulton County What certificate is required for a company to be an authorized insurer in Georgia? - Answer Certificate of Authority Surplus Lines Risk - Answer has been rejected by 3 authorized insurers What is the primary reason the state of Georgia would revoke an insurance company's certificate to authorize? - Answer if they're under financial distress What are the requirements to be a licensed producer in Georgia? - Answer must be at least 18 years old, take a 40 hour course, pass licensing exam, apply for license, pass background check Which of the following would be considered an "offer"? - Answer the applicant submits an application to the company with payment All of the following are true about insurable risk except: a) the loss must not be catastrophic in nature b) the loss must be large enough to create hardship c) the loss must not be definite and definable d) the law of large numbers should apply - Answer c) the loss must not be definite and definable all of the following are parts of the insurance contract except: a) declarations b) insuring agreements c) conditions d) inclusions - Answer d) inclusions something that increases the chance of a peril occurring is known as a(n): - Answer hazard open peril, or "all risk", forms: - Answer name the exclusions and limitations When a person decides not to buy insurance because of the cost, what method of handling risk has been undertaken? - Answer risk retention the insurance industry deals with those areas of risk where the chances of loss are: - Answer anywhere between 0% and 100% which of the following is not an element for the formation of a valid contract? a) consideration b) legal purpose c) agreement d) incompetent parties - Answer d) incompetent parties Actual cash value= - Answer replacement cost minus depreciation an insurance policy is an aleatory contract, which means: - Answer performance depends on the occurrence of an uncertain event an insured's right to seek damages from someone at-fault may be may be transferred to the insurer under the policy's: - Answer subrogation clause the Law of Large Numbers states that: - Answer the more examples used to develop a statistic, the more reliable the statistic will be Which of the following about insurance policies are true? - Answer policies are usually personal contracts The concept of restoring the insured to approximately the same economic position occupied before the loss is called: - Answer indemnity which of the following is used to modify an insurance policy from its original form? - Answer Endorsements an insurer formed under the law of a state of the United States other than the state where it is licensed, domiciled and chartered is: - Answer a Foreign insurer careless driving because the driver knows he or she is insured is a: - Answer Morale hazard oily rags left to accumulate in the garage is a: - Answer physical hazard insurance policies are contracts of adhesion, which means: - Answer terms of the contract are drawn up by the insurer and the insured simply adheres to the terms It is assumed that any oral agreements made before contract formation were incorporated into the written contract. Once formed, earlier oral evidence will not be admitted in court to change or contradict the contract. This is known as: - Answer Parol Evidence Rule The two major types of insurers in the private sector are: - Answer Stock and Mutual companies temporary contract of insurance that commits the insurer before before a policy is issued is called a: - Answer binder a term that blocks all attempts to change conduct or reassert a right previously waived, and it usually applies after the other party has begun to rely on the conduct or waiver is known as: - Answer estoppel property and liability insurers use different marketing methods. Which of the following are features of the independent agency system? - Answer Agents can represent one or more insurers AND Agent owns renewal rights to policies