Georgia Property & Casualty Exam- (Qs & As)
With a business auto policy (BAP), what symbol needs to appear on the declarations page to
provide coverage for the rental cars used by the business?
A.) 1 -- Any Auto
B.) 7 -- Specifically Described Autos
C.) 8 -- Hired Autos Only
D.) 9 -- Non-owned Autos Only Correct Ans-C.) 8 -- Hired Autos Only
With respect to property insurance underwriting, what type of rating system is used when
insureds share similar characteristics?
A.) individual rating
B.) class rating
C.) group rating
D.) state-based rating Correct Ans-B.) class rating
With respect to the tort of negligence, all the following statements regarding the different types
of damages are correct EXCEPT:
A.) Special damages are awarded to an injured party for measurable losses.
B.) Compensatory damages is another term for punitive damages.
,C.) General damages are awarded to an injured party to compensate for pain and suffering
which cannot be measured in dollars and cents.
D.) Punitive damages are amounts a defendant is required to pay as punishment for committing
a civil wrong in a deliberate manner. Correct Ans-B.) Compensatory damages is another term
for punitive damages.
With respect to workers compensation insurance, what term is used to describe a worker's
reduction in his or her ability to perform work, either temporarily or permanently?
A.) rehabilitation
B.) disability
C.) impairment
D.) injury Correct Ans-C.) impairment
With the commercial property policy, which causes of loss form(s), if any, would cover the
insured's exposure to weight of ice and snow?
A.) both the basic and broad causes of loss forms
B.) no causes of loss form
C.) only the broad form causes of loss form
D.) only the basic causes of loss form Correct Ans-C.) only the broad form causes of loss form
,Losses caused by the weight of ice or snow and collapse are covered under the causes of loss
broad form, but not the basic form.
Zahra has an umbrella liability policy with a limit of $1,000,000. Her underlying insurance
includes a personal auto policy with a $500,000 limit. Zahra's PAP lapses before she has an auto
accident that seriously injures the passengers in both vehicles. The claims for personal injury
total $1,000,000. Zahra files a liability claim for $1,000,000 under her umbrella policy. How
much, if anything, will the umbrella policy pay?
A.) $1,500,000
B.) $1,000,000
C.) $500,000, the difference between the PAP limit and the total claim
D.) $0, because Zahra allowed her PAP to lapse Correct Ans-C.) $500,000, the difference
between the PAP limit and the total claim
Zoe was injured on the job and collected workers compensation benefits. However, she sues her
employer, claiming it is also legally responsible under the dual capacity doctrine. What type of
liability coverage does Zoe's employer need to respond to her liability claim?
A.) employer's liability
B.) general liability
C.) auto liability
D.) professional liability Correct Ans-A.) employer's liability
, Employer's liability coverage is provided on a workers compensation policy and provides
coverage for lawsuits filed that pertain to injuries that are not addressed by WC statute.
A business that wants its commercial general liability policy to provide pollution coverage that
includes cleanup costs would want the:
A.) pollution liability coverage form
B.) pollution liability limited coverage form
C.) limited fungi or bacteria coverage
D.) mold extension coverage Correct Ans-A.) pollution liability coverage form
The pollution liability coverage form provides insurance for bodily injury and property damage
liability arising from covered pollution incidents and includes costs for cleanup costs for which
the insured is legally obligated to pay.
A careful driver for many years, William has never been at fault in an auto accident. Interested
in reducing the premium as much as possible, he wants the highest deductible available. What
is the highest deductible normally available to him?
A.) $10,000
B.) $1,000
C.) $500
D.) $250 Correct Ans-B.) $1,000
With a business auto policy (BAP), what symbol needs to appear on the declarations page to
provide coverage for the rental cars used by the business?
A.) 1 -- Any Auto
B.) 7 -- Specifically Described Autos
C.) 8 -- Hired Autos Only
D.) 9 -- Non-owned Autos Only Correct Ans-C.) 8 -- Hired Autos Only
With respect to property insurance underwriting, what type of rating system is used when
insureds share similar characteristics?
A.) individual rating
B.) class rating
C.) group rating
D.) state-based rating Correct Ans-B.) class rating
With respect to the tort of negligence, all the following statements regarding the different types
of damages are correct EXCEPT:
A.) Special damages are awarded to an injured party for measurable losses.
B.) Compensatory damages is another term for punitive damages.
,C.) General damages are awarded to an injured party to compensate for pain and suffering
which cannot be measured in dollars and cents.
D.) Punitive damages are amounts a defendant is required to pay as punishment for committing
a civil wrong in a deliberate manner. Correct Ans-B.) Compensatory damages is another term
for punitive damages.
With respect to workers compensation insurance, what term is used to describe a worker's
reduction in his or her ability to perform work, either temporarily or permanently?
A.) rehabilitation
B.) disability
C.) impairment
D.) injury Correct Ans-C.) impairment
With the commercial property policy, which causes of loss form(s), if any, would cover the
insured's exposure to weight of ice and snow?
A.) both the basic and broad causes of loss forms
B.) no causes of loss form
C.) only the broad form causes of loss form
D.) only the basic causes of loss form Correct Ans-C.) only the broad form causes of loss form
,Losses caused by the weight of ice or snow and collapse are covered under the causes of loss
broad form, but not the basic form.
Zahra has an umbrella liability policy with a limit of $1,000,000. Her underlying insurance
includes a personal auto policy with a $500,000 limit. Zahra's PAP lapses before she has an auto
accident that seriously injures the passengers in both vehicles. The claims for personal injury
total $1,000,000. Zahra files a liability claim for $1,000,000 under her umbrella policy. How
much, if anything, will the umbrella policy pay?
A.) $1,500,000
B.) $1,000,000
C.) $500,000, the difference between the PAP limit and the total claim
D.) $0, because Zahra allowed her PAP to lapse Correct Ans-C.) $500,000, the difference
between the PAP limit and the total claim
Zoe was injured on the job and collected workers compensation benefits. However, she sues her
employer, claiming it is also legally responsible under the dual capacity doctrine. What type of
liability coverage does Zoe's employer need to respond to her liability claim?
A.) employer's liability
B.) general liability
C.) auto liability
D.) professional liability Correct Ans-A.) employer's liability
, Employer's liability coverage is provided on a workers compensation policy and provides
coverage for lawsuits filed that pertain to injuries that are not addressed by WC statute.
A business that wants its commercial general liability policy to provide pollution coverage that
includes cleanup costs would want the:
A.) pollution liability coverage form
B.) pollution liability limited coverage form
C.) limited fungi or bacteria coverage
D.) mold extension coverage Correct Ans-A.) pollution liability coverage form
The pollution liability coverage form provides insurance for bodily injury and property damage
liability arising from covered pollution incidents and includes costs for cleanup costs for which
the insured is legally obligated to pay.
A careful driver for many years, William has never been at fault in an auto accident. Interested
in reducing the premium as much as possible, he wants the highest deductible available. What
is the highest deductible normally available to him?
A.) $10,000
B.) $1,000
C.) $500
D.) $250 Correct Ans-B.) $1,000
