Georgia Property & Casualty Exam
Questions and Answers 100% Pass
An insured's 9-year-old son threw a ball, accidentally breaking a neighbor's
plate glass window. The insured was found legally liable for the cost of
replacing the window. This is an example of - ANSWER✔✔-vicarious
liability
What type of compensatory damages will pay for pain and suffering and
disfigurement? - ANSWER✔✔-General
Which insurance principle states that if a policy allows for greater
compensation than the financial loss incurred, the insured may only
receive benefits for the amount lost? - ANSWER✔✔-Indemnity
Payment for medical expenses, loss of wages, funeral expenses, or the cost
to repair or replace damaged property are known as what type of
compensatory damages? - ANSWER✔✔-Special
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,Which of the following best expresses the purpose of a stated value
contract? - ANSWER✔✔-To pre-establish the amount of coverage available
for property items that are difficult to value
An insured carries a property policy on her home in the amount of
$250,000. A bank is shown as the mortgagor in the policy. Last month the
insured made her final mortgage payment, but did not remove the bank
from the policy. In the event of a covered loss to her home, how much will
the bank receive? - ANSWER✔✔-Nothing
Events or conditions that increase the chances of an insured loss occurring
are referred to as - ANSWER✔✔-Hazards
What is the purpose of the coinsurance clause found in property insurance
policies? - ANSWER✔✔-Encourage the insured to insure the property
closer to its full value
For the purpose of insurance, risk is defined as - ANSWER✔✔-The
uncertainty or chance of loss
A beauty parlor burns to the ground. What type of loss is this to the
owner? - ANSWER✔✔-Direct
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,When a parent is required to pay for damages caused by his or her
children, this is an example of - ANSWER✔✔-Vicarious liability
If a liability policy had split limits of 50/100/30, what is the maximum
amount that would be payable in the event of injury to a single person? -
ANSWER✔✔-$50,000
Which of the following coverages in dwelling and homewoners policies is
for indirect losses? - ANSWER✔✔-Loss of use
Events in which a person has both the chance of winning or losing are
classified as - ANSWER✔✔-Speculative risk
For the reported losses of an insured group to become more likely to equal
the statistical probability of loss for that particular class, the insured group
must become - ANSWER✔✔-Larger
Which method of loss valuation is contrary to the basic concept of
indemnity? - ANSWER✔✔-Replacement cost
What term includes damage where the insured peril was the proximate
cause of loss? - ANSWER✔✔-Direct loss
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, A man is working on the roof of his house, and his neighbor is watching
from the ground. When roof shingles are thrown off the roof, they hit the
neighbor in the face, injuring his eye. Which best classifies the
homeowner's legal liability? - ANSWER✔✔-Bodily injury
An insured's roof cost $4,000 when installed 5 years ago. It has been
damaged by hail and must be replaced. The new roof will cost $6,000 at
today's prices. If the roof has been depreciating at $200 per year and his
policy is ACV, how much will it pay toward the insured's new roof? -
ANSWER✔✔-$5,000
The insured's house is located one mile from the county's new landfill and
across from the entrance of a rock quarry. It would cost $150,000 to rebuild
the house if something happened to it, but when the insured tried to sell it,
the best offer he received was $80,000. The insurance company will insure
the house for only $80,000. What method of valuation is used to insure this
property? - ANSWER✔✔-Market value
Most insurance policies exclude losses by - ANSWER✔✔-mysterious
disappearance
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Questions and Answers 100% Pass
An insured's 9-year-old son threw a ball, accidentally breaking a neighbor's
plate glass window. The insured was found legally liable for the cost of
replacing the window. This is an example of - ANSWER✔✔-vicarious
liability
What type of compensatory damages will pay for pain and suffering and
disfigurement? - ANSWER✔✔-General
Which insurance principle states that if a policy allows for greater
compensation than the financial loss incurred, the insured may only
receive benefits for the amount lost? - ANSWER✔✔-Indemnity
Payment for medical expenses, loss of wages, funeral expenses, or the cost
to repair or replace damaged property are known as what type of
compensatory damages? - ANSWER✔✔-Special
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/66
,Which of the following best expresses the purpose of a stated value
contract? - ANSWER✔✔-To pre-establish the amount of coverage available
for property items that are difficult to value
An insured carries a property policy on her home in the amount of
$250,000. A bank is shown as the mortgagor in the policy. Last month the
insured made her final mortgage payment, but did not remove the bank
from the policy. In the event of a covered loss to her home, how much will
the bank receive? - ANSWER✔✔-Nothing
Events or conditions that increase the chances of an insured loss occurring
are referred to as - ANSWER✔✔-Hazards
What is the purpose of the coinsurance clause found in property insurance
policies? - ANSWER✔✔-Encourage the insured to insure the property
closer to its full value
For the purpose of insurance, risk is defined as - ANSWER✔✔-The
uncertainty or chance of loss
A beauty parlor burns to the ground. What type of loss is this to the
owner? - ANSWER✔✔-Direct
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/66
,When a parent is required to pay for damages caused by his or her
children, this is an example of - ANSWER✔✔-Vicarious liability
If a liability policy had split limits of 50/100/30, what is the maximum
amount that would be payable in the event of injury to a single person? -
ANSWER✔✔-$50,000
Which of the following coverages in dwelling and homewoners policies is
for indirect losses? - ANSWER✔✔-Loss of use
Events in which a person has both the chance of winning or losing are
classified as - ANSWER✔✔-Speculative risk
For the reported losses of an insured group to become more likely to equal
the statistical probability of loss for that particular class, the insured group
must become - ANSWER✔✔-Larger
Which method of loss valuation is contrary to the basic concept of
indemnity? - ANSWER✔✔-Replacement cost
What term includes damage where the insured peril was the proximate
cause of loss? - ANSWER✔✔-Direct loss
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/66
, A man is working on the roof of his house, and his neighbor is watching
from the ground. When roof shingles are thrown off the roof, they hit the
neighbor in the face, injuring his eye. Which best classifies the
homeowner's legal liability? - ANSWER✔✔-Bodily injury
An insured's roof cost $4,000 when installed 5 years ago. It has been
damaged by hail and must be replaced. The new roof will cost $6,000 at
today's prices. If the roof has been depreciating at $200 per year and his
policy is ACV, how much will it pay toward the insured's new roof? -
ANSWER✔✔-$5,000
The insured's house is located one mile from the county's new landfill and
across from the entrance of a rock quarry. It would cost $150,000 to rebuild
the house if something happened to it, but when the insured tried to sell it,
the best offer he received was $80,000. The insurance company will insure
the house for only $80,000. What method of valuation is used to insure this
property? - ANSWER✔✔-Market value
Most insurance policies exclude losses by - ANSWER✔✔-mysterious
disappearance
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/66
