GA Adjuster Exam Review Questions & Answers

In GA, _____insurance cannot be written by a reciprocal type insurer. - ANSWERSlife No insurer or licensee doing business in Georgia may pay any commissions or valuable consideration to any person for services as an agent, subagent, or adjuster unless that person is duly licensed under the - ANSWERSCode Mediation is not _____ on the parties involved, but with arbitration the decision is final and _____. - ANSWERSBinding Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWERSIndependent Rating Services What is the application fee for filing to become a self-insurer for workers compensation in Georgia? - ANSWERS$500 Insurance adjusters have the "power to bind". Which of the following statements best describes what this means? - ANSWERSThe principal is bound to the decisions of the adjuster. The perils most frequently covered by a Difference in Conditions policy are: - ANSWERSFlood and Earthquake What is the purpose of the Georgia Insurance Guaranty Association? - ANSWERSCover claims of insolvent insurers Twisting - ANSWERSThe act of inducing or attempting to induce a policy owner to drop an existing life insurance policy and to take another policy that is substantially the same kind by using misrepresentations or incomplete comparisons of the advantages and disadvantages of the two policies. Most states have enacted legislation making twisting a crime. Churning - ANSWERSChurning occurs when an insurance agent replaces a policyholder's insurance policy for another insurance policy, usually without consulting the policyholder and often with no changes to the coverage itself. Agents who engage in churning do so in order to secure an additional commission for the new policy they swap in. Rebating - ANSWERSRebating — a portion of the premium or the agent's/broker's commission on the premium to the insured or other inducements to place business with a specific insurer. Rebating is illegal in the majority of states. Insurers must use filed rate credits or have supporting methodology. Uninsured motorist coverage law in Georgia applies to bodily injury claims sustained by an insured and caused by an uninsured motorist as defined by the law. UMPD coverage is also included. - ANSWERS In Georgia, the Chief Deputy Commissioner must execute a bond in the amount of: - ANSWERS$15,000 Adjusters must maintain record of each investigation or adjustment undertaken, and a statement of any fee, commission, or other compensation received or to be received on account of the investigation or adjustment. How long must the records be maintained for examination? - ANSWERS5 The limits of the Employers' Liability section of a standard workers' compensation policy are: - ANSWERSListed on the information page An insured has purchased BAP physical damage coverage against specified causes of loss. Protection applies to all of the following perils, EXCEPT: - ANSWERSFalling objects Which of the following statements is NOT TRUE of the Builders' Risk coverage form? - ANSWERST An insured carries a liability policy and an umbrella policy. The verdict in a personal injury liability suit was higher than the insured's underlying liability policy's limit of insurance. In this situation: - ANSWERSThe insurance company providing the insured's umbrella liability policy can appeal the case at its own expense even if the insured and the company providing the underlying policy do not appeal. What is a "notice to show cause?" - ANSWERSA notice that states the proposed action may be taken by the Insurance Department unless the person shows cause at a hearing why the action should not be taken. How long can temporary total disability payments be made to an injured employee? - ANSWERS400 weeks Which of the following is NOT covered by the Federal Employee's Compensation Act (FECA)? - ANSWERSDamages awarded by a court What is the maximum penalty per violation if a person willfully and knowingly or intentionally makes any false or misstatement for the purpose of obtaining or denying benefits or payment of workers compensation coverage? - ANSWERS$10,000 If an injured employee hires an attorney to represent them in a workers compensation claim dispute, what percentage of the income benefits can the attorney charge for the representation? - ANSWERS25% In Georgia, a premium reduction for a defensive driving course applies in which of the following circumstances? - ANSWERSFor each personal or family-type policy of private passenger motor vehicle insurance issued or issued for delivery in this state, the insurer must offer premium reductions of not less than 10% for motor vehicle liability, first party medical, and collision coverages if all named drivers of each motor vehicle covered by the policy satisfy the following requirements: 1. Have committed no traffic offenses for the prior three years. 2. Have no claims based on fault against an insurer for the prior three years. 3. Complete a defensive driving course which is one of the types of courses approved by the Code.