Insurance Adjuster Exam
Which kind of losses are covered under a standard fire policy? - ANSDirect
All fires are not covered by the Standard Fire policies, only those that: - ANSare hostile and
have a flame or glow
At what time does a fire policy go into affect? - ANS12:01am 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? -
ANS$5,000
A fire burning in the middle of the living room would be considered: - ANSa 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: - ANSsubrogation
Which of the following statements are true concerning requirements of the standard fire policy? -
ANSThe 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? -
ANSaccounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? - ANSthe named insured and his legal
representatives
An agreement which affords temporary insurance protection until the policy is issued is called: -
ANSa binder
as a general rule, a complete fire insurance policy would be made up of: - ANSthe 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 - ANSover-insurance
replacement cost minus depreciation: - ANSActual Cash Value (ACV)
,The Standard Fire policy with an extended coverage endorsement attached covers which of the
following: - ANSriot
A loss due to order of Civil Authority: - ANSis 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 : - ANSpersons 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? - ANS60 days after April 30th
For recovery under the Standard Fire policy, a party must: - ANSbe 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? - ANSNone
Once elected, how long is the insurance commissioner's term? - ANS4 years
Is there a limit on the number of terms an insurance commissioner can serve? - ANSNo
Who is Georgia's current insurance commissioner? - ANSRalph Hudgens
What two capacities does Georgia's insurance commissioner serve? - ANS1. Chief Officer of
Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - ANSNo election; the Chief
Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - ANSmust 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? - ANSonce every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner.
Which is it? - ANSSuperior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? -
ANSCertificate of Authority
, Surplus Lines Risk - ANShas been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's
certificate to authorize? - ANSif they're under financial distress
What are the requirements to be a licensed producer in Georgia? - ANSmust 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"? - ANSthe 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 - ANSc) 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 - ANSd) inclusions
something that increases the chance of a peril occurring is known as a(n): - ANShazard
open peril, or "all risk", forms: - ANSname the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of handling risk
has been undertaken? - ANSrisk retention
the insurance industry deals with those areas of risk where the chances of loss are: -
ANSanywhere 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 - ANSd) incompetent parties
Actual cash value= - ANSreplacement cost minus depreciation
an insurance policy is an aleatory contract, which means: - ANSperformance depends on the
occurrence of an uncertain event
Which kind of losses are covered under a standard fire policy? - ANSDirect
All fires are not covered by the Standard Fire policies, only those that: - ANSare hostile and
have a flame or glow
At what time does a fire policy go into affect? - ANS12:01am 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? -
ANS$5,000
A fire burning in the middle of the living room would be considered: - ANSa 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: - ANSsubrogation
Which of the following statements are true concerning requirements of the standard fire policy? -
ANSThe 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? -
ANSaccounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? - ANSthe named insured and his legal
representatives
An agreement which affords temporary insurance protection until the policy is issued is called: -
ANSa binder
as a general rule, a complete fire insurance policy would be made up of: - ANSthe 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 - ANSover-insurance
replacement cost minus depreciation: - ANSActual Cash Value (ACV)
,The Standard Fire policy with an extended coverage endorsement attached covers which of the
following: - ANSriot
A loss due to order of Civil Authority: - ANSis 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 : - ANSpersons 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? - ANS60 days after April 30th
For recovery under the Standard Fire policy, a party must: - ANSbe 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? - ANSNone
Once elected, how long is the insurance commissioner's term? - ANS4 years
Is there a limit on the number of terms an insurance commissioner can serve? - ANSNo
Who is Georgia's current insurance commissioner? - ANSRalph Hudgens
What two capacities does Georgia's insurance commissioner serve? - ANS1. Chief Officer of
Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - ANSNo election; the Chief
Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - ANSmust 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? - ANSonce every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner.
Which is it? - ANSSuperior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? -
ANSCertificate of Authority
, Surplus Lines Risk - ANShas been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's
certificate to authorize? - ANSif they're under financial distress
What are the requirements to be a licensed producer in Georgia? - ANSmust 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"? - ANSthe 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 - ANSc) 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 - ANSd) inclusions
something that increases the chance of a peril occurring is known as a(n): - ANShazard
open peril, or "all risk", forms: - ANSname the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of handling risk
has been undertaken? - ANSrisk retention
the insurance industry deals with those areas of risk where the chances of loss are: -
ANSanywhere 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 - ANSd) incompetent parties
Actual cash value= - ANSreplacement cost minus depreciation
an insurance policy is an aleatory contract, which means: - ANSperformance depends on the
occurrence of an uncertain event
