GA Property & Casualty Exam Practice
Questions and Answers 100% Pass
Insurance policy covers what type of losses - ANSWER✔✔-Direct and
Indirect
In order to have an indirect loss, you must have - ANSWER✔✔-a direct
loss
What does property insurance cover? - ANSWER✔✔-structures and
contents
Direct loss - ANSWER✔✔-physical destruction of property by lightening,
wind, fire, theft, etc
Indirect loss - ANSWER✔✔-consequences of direct losses - e.g. loss of
income, additional expenses to live, loss of rental income, etc.
What is the purpose of personal lines insurance? - ANSWER✔✔-Coverage
for personal activities of the insured for losses that might take place
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, What is the purpose of commercial insurance? - ANSWER✔✔-policies that
cover NON personal activities of the insured where losses might take place
Who transfers risk in insurance? - ANSWER✔✔-Insurance involves
transfer of YOUR risk to other people for your losses to be covered
How do insurance companies use premiums? - ANSWER✔✔-Insurance
companies use our premiums to cover losses of the few.
Named Insured - ANSWER✔✔-HIGHEST ranking insured for any policy
Who is the insurance company? - ANSWER✔✔-The author of the policy,
issuer of the policy, and enforcer of policy
Cancellation - ANSWER✔✔-Stop policy mid-term before it has the chance
to expire. Both insurer and insured can cancel a policy
Insured cancels policy - ANSWER✔✔-Request must be made in writing
Risk - ANSWER✔✔-uncertainty of loss. The area between 1 and 100.
Made Whole - ANSWER✔✔-Put you back like you were as if the loss never
happened
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Questions and Answers 100% Pass
Insurance policy covers what type of losses - ANSWER✔✔-Direct and
Indirect
In order to have an indirect loss, you must have - ANSWER✔✔-a direct
loss
What does property insurance cover? - ANSWER✔✔-structures and
contents
Direct loss - ANSWER✔✔-physical destruction of property by lightening,
wind, fire, theft, etc
Indirect loss - ANSWER✔✔-consequences of direct losses - e.g. loss of
income, additional expenses to live, loss of rental income, etc.
What is the purpose of personal lines insurance? - ANSWER✔✔-Coverage
for personal activities of the insured for losses that might take place
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/6
, What is the purpose of commercial insurance? - ANSWER✔✔-policies that
cover NON personal activities of the insured where losses might take place
Who transfers risk in insurance? - ANSWER✔✔-Insurance involves
transfer of YOUR risk to other people for your losses to be covered
How do insurance companies use premiums? - ANSWER✔✔-Insurance
companies use our premiums to cover losses of the few.
Named Insured - ANSWER✔✔-HIGHEST ranking insured for any policy
Who is the insurance company? - ANSWER✔✔-The author of the policy,
issuer of the policy, and enforcer of policy
Cancellation - ANSWER✔✔-Stop policy mid-term before it has the chance
to expire. Both insurer and insured can cancel a policy
Insured cancels policy - ANSWER✔✔-Request must be made in writing
Risk - ANSWER✔✔-uncertainty of loss. The area between 1 and 100.
Made Whole - ANSWER✔✔-Put you back like you were as if the loss never
happened
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/6
