GA Insurance Adjuster Course- Questions
and Answers
Compensatory damages awarded for tangible losses with a quantifiable value. Example: Medical
bill for an accident that caused a broken leg: $5,000. Correct Ans-Special Damages
When Sally applies for an auto policy, her agent issues her a ________ so that she
can benefit from insurance protection while he underwrites the policy. Correct Ans-Binder
Ocean Marine Hull Policy Correct Ans-Covers damages to, and loss of, a marine vessel. Policy
period: One year, Establishes a defined geographic area
In H0-3 Tree, Shrubs, etc Correct Ans-Allows $500 towards replacement cost. Wind is not a
covered peril.
Coverage D :Loss of Use Correct Ans-will pay for loss of use when the insured is prohibited to
use the dwelling by Civil Authority, but only if the cause is a covered peril. Flood is excluded in a
typical HO-3 policy.
A Home Under Construction Correct Ans-is eligible for coverage from covered perils, such as
the fire. However, theft is not covered while the dwelling is under construction. So the damage
caused by the kitchen fire is covered, but the theft of the trim is not.
,When discussing farm insurance, which of the following most accurately describes ""scheduled
property""? Correct Ans-Itemized property
Ocean Marine Hull Policy deductible Correct Ans-If damages exceeds deductible, the insurer
pays for the full cost for damages. If damage is less than the deductible, the policyholder pays
for the damages
Twisting Correct Ans-intentionally tricking a policyholder into lapsing or forfeiting her policy
so that she can purchase a new one.
Policy Limit Correct Ans-When the cost of repairs is more than the policy limit, the final
settlement amount is the full policy limit and the deductible is absorbed into the amount of the
loss that exceeds the limit.
According to the general rules for cancellation of insurance policies in Georgia, how many days
notice must an insurer give the insured before cancelling a policy? Correct Ans-30 days
Fiduciary Duty Correct Ans-A legal relationship of confidence and trust, requiring honesty
and good faith.
Duties: Uphold financial interest of the principal (usually the insurer
Be truthful in all representations of the principal
Adjusters must also ensure that the claimant receives accurate indemnification
,Crop Revenue Insurance Correct Ans-Insurance that protects against loss of crop value.
Includes decline in prices during the growing season. Low crop yields. A combination of both.
Crop Yield Correct Ans-Insurers against losses to actual crops. Provides coverage for physical
loss to the crop.
Crop Hail Correct Ans-Privately sold, offering coverage for a few specified perils
Transitional Yield (T-Yield) Correct Ans-Actual production History(APH) requires at least 4
years of records.
If farmer does not have 4 years of record, the data is taken from other farms in the country.
A CGL can provide liability insurance coverage for all of the following persons, EXCEPT:
Correct Ans-customers.
The Legal Liability Coverage Form Correct Ans-provides insurance protection against
negligent damage to the personal property of others while in the insured's care or on the
insured's premises.
DP 1 Correct Ans-Claims for dwelling and other structures are settled at actual cash value
, Special Loss Settlement Correct Ans-will pay the lowest of the following: the dwelling's
replacement cost, 1.5 times the dwelling's actual cash value, or the policy limit. In Scott's case,
the lowest of these three amounts is 1.5 times the ACV of his mobile home
Actual Cash Value Correct Ans-Key word "worth"
Certified adjusters Correct Ans-Must complete continuing education about NFIP claims every
year, not every three years.
The state of Georgia requires that insurers acknowledge receiving a claim and beginning
investigating it within ___ days. Correct Ans-15
Which unfair claims settlement practice involves an adjuster making false statements about
policy coverage in order to reduce the settlement? Correct Ans-Misrepresentation
The Employee Retirement Income Security Act (ERISA): Correct Ans-requires that every
fiduciary of an employee benefit plan and every person who handles funds or other property of
those plans must be bonded.
Defamation Correct Ans-To make false, maliciously critical, or derogatory statements about
other insurers or their representatives in order to benefit themselves. In making false claims
about competition.
and Answers
Compensatory damages awarded for tangible losses with a quantifiable value. Example: Medical
bill for an accident that caused a broken leg: $5,000. Correct Ans-Special Damages
When Sally applies for an auto policy, her agent issues her a ________ so that she
can benefit from insurance protection while he underwrites the policy. Correct Ans-Binder
Ocean Marine Hull Policy Correct Ans-Covers damages to, and loss of, a marine vessel. Policy
period: One year, Establishes a defined geographic area
In H0-3 Tree, Shrubs, etc Correct Ans-Allows $500 towards replacement cost. Wind is not a
covered peril.
Coverage D :Loss of Use Correct Ans-will pay for loss of use when the insured is prohibited to
use the dwelling by Civil Authority, but only if the cause is a covered peril. Flood is excluded in a
typical HO-3 policy.
A Home Under Construction Correct Ans-is eligible for coverage from covered perils, such as
the fire. However, theft is not covered while the dwelling is under construction. So the damage
caused by the kitchen fire is covered, but the theft of the trim is not.
,When discussing farm insurance, which of the following most accurately describes ""scheduled
property""? Correct Ans-Itemized property
Ocean Marine Hull Policy deductible Correct Ans-If damages exceeds deductible, the insurer
pays for the full cost for damages. If damage is less than the deductible, the policyholder pays
for the damages
Twisting Correct Ans-intentionally tricking a policyholder into lapsing or forfeiting her policy
so that she can purchase a new one.
Policy Limit Correct Ans-When the cost of repairs is more than the policy limit, the final
settlement amount is the full policy limit and the deductible is absorbed into the amount of the
loss that exceeds the limit.
According to the general rules for cancellation of insurance policies in Georgia, how many days
notice must an insurer give the insured before cancelling a policy? Correct Ans-30 days
Fiduciary Duty Correct Ans-A legal relationship of confidence and trust, requiring honesty
and good faith.
Duties: Uphold financial interest of the principal (usually the insurer
Be truthful in all representations of the principal
Adjusters must also ensure that the claimant receives accurate indemnification
,Crop Revenue Insurance Correct Ans-Insurance that protects against loss of crop value.
Includes decline in prices during the growing season. Low crop yields. A combination of both.
Crop Yield Correct Ans-Insurers against losses to actual crops. Provides coverage for physical
loss to the crop.
Crop Hail Correct Ans-Privately sold, offering coverage for a few specified perils
Transitional Yield (T-Yield) Correct Ans-Actual production History(APH) requires at least 4
years of records.
If farmer does not have 4 years of record, the data is taken from other farms in the country.
A CGL can provide liability insurance coverage for all of the following persons, EXCEPT:
Correct Ans-customers.
The Legal Liability Coverage Form Correct Ans-provides insurance protection against
negligent damage to the personal property of others while in the insured's care or on the
insured's premises.
DP 1 Correct Ans-Claims for dwelling and other structures are settled at actual cash value
, Special Loss Settlement Correct Ans-will pay the lowest of the following: the dwelling's
replacement cost, 1.5 times the dwelling's actual cash value, or the policy limit. In Scott's case,
the lowest of these three amounts is 1.5 times the ACV of his mobile home
Actual Cash Value Correct Ans-Key word "worth"
Certified adjusters Correct Ans-Must complete continuing education about NFIP claims every
year, not every three years.
The state of Georgia requires that insurers acknowledge receiving a claim and beginning
investigating it within ___ days. Correct Ans-15
Which unfair claims settlement practice involves an adjuster making false statements about
policy coverage in order to reduce the settlement? Correct Ans-Misrepresentation
The Employee Retirement Income Security Act (ERISA): Correct Ans-requires that every
fiduciary of an employee benefit plan and every person who handles funds or other property of
those plans must be bonded.
Defamation Correct Ans-To make false, maliciously critical, or derogatory statements about
other insurers or their representatives in order to benefit themselves. In making false claims
about competition.
