Property and Casualty Insurance Exam
– Georgia Study Guide Solutions
BPP building coverage - ANSWER✔✔-insures the building at the
described location, outdoor, fixtures, furnitures, items used to service the
property, permanently installed machinery and equipment, and additions
under construction, including the materials, supplies, and equipment.
HO limits of property at other residences - ANSWER✔✔-the larger of
$1000 or 10% Coverage C. Limit does not apply if property is moved
because the residence premise is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown on
declaration will apply on a proportional basis to each residence
Dwellings under construction - ANSWER✔✔-The limit of liability for a
dwelling under construction is provisional, and is based on the completed
value of the structure. At the time of loss, the applicable limit is a
percentage of the provisional limit, based on the proportion of actual cash
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/152
,value of the property at the time of loss. Premium is based on an average
amount of insurance during construction.
Water Backup & Sump Pump Endorsement - ANSWER✔✔-Coverage for
up to $5,000 in loss or damage, subject to a $250 deductible, can be
provided for an additional premium with this endorsement.
Automatic Increase in Insurance Endorsement - ANSWER✔✔-is used to
provide at the annual renewal date of the policy, an automatic increase in
the Coverage A and B limits of insurance to help offset inflation
Other insurance - ANSWER✔✔-A provision in an insurance policy that
defines how the policy will respond if there is another valid insurance
policy written on the same risk.
Stock Companies - ANSWER✔✔-Owned by the stockholders who provide
the capital necessary to establish and operate the insurance company and
who share in any profits or losses.
Mutual companies - ANSWER✔✔-Owned by the policyowners and issue
participating policies. Policyowners are entitled to dividends, which are a
return of excess premium and are nontaxable.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/152
,6 classes of insurance in Georgia - ANSWER✔✔-1. Life, accident, and
sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic insurers? -
ANSWER✔✔-Once every 5 years.
What are the timelines if a hearing is requested? - ANSWER✔✔-A hearing
must be made within 30 days of the receipt of the request.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his decision.
What are the penalties after a notice, hearing, and cease and desist order? -
ANSWER✔✔-A fine of up to $10,000 per violation
Suspension/revocation of license
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/152
, Any other appropriate relief.
Express authority - ANSWER✔✔-the authority of an agent, stated in the
document or agreement creating the agency
Implied authority - ANSWER✔✔-Authority that is not expressed or
written into the contract, but which the agent is assumed to have in order
to transact the business of insurance for the principal.
Apparent authority - ANSWER✔✔-The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because
of circumstances the principal created.
When does an agents license expire? - ANSWER✔✔-Licenses are good to
for 2 years and expire on the last day of the licensee's with month.
What are the CE requirements for an agent? - ANSWER✔✔-24 CE credit
hours every 2 years, including 3 credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including
ethics.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/152
– Georgia Study Guide Solutions
BPP building coverage - ANSWER✔✔-insures the building at the
described location, outdoor, fixtures, furnitures, items used to service the
property, permanently installed machinery and equipment, and additions
under construction, including the materials, supplies, and equipment.
HO limits of property at other residences - ANSWER✔✔-the larger of
$1000 or 10% Coverage C. Limit does not apply if property is moved
because the residence premise is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown on
declaration will apply on a proportional basis to each residence
Dwellings under construction - ANSWER✔✔-The limit of liability for a
dwelling under construction is provisional, and is based on the completed
value of the structure. At the time of loss, the applicable limit is a
percentage of the provisional limit, based on the proportion of actual cash
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/152
,value of the property at the time of loss. Premium is based on an average
amount of insurance during construction.
Water Backup & Sump Pump Endorsement - ANSWER✔✔-Coverage for
up to $5,000 in loss or damage, subject to a $250 deductible, can be
provided for an additional premium with this endorsement.
Automatic Increase in Insurance Endorsement - ANSWER✔✔-is used to
provide at the annual renewal date of the policy, an automatic increase in
the Coverage A and B limits of insurance to help offset inflation
Other insurance - ANSWER✔✔-A provision in an insurance policy that
defines how the policy will respond if there is another valid insurance
policy written on the same risk.
Stock Companies - ANSWER✔✔-Owned by the stockholders who provide
the capital necessary to establish and operate the insurance company and
who share in any profits or losses.
Mutual companies - ANSWER✔✔-Owned by the policyowners and issue
participating policies. Policyowners are entitled to dividends, which are a
return of excess premium and are nontaxable.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/152
,6 classes of insurance in Georgia - ANSWER✔✔-1. Life, accident, and
sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic insurers? -
ANSWER✔✔-Once every 5 years.
What are the timelines if a hearing is requested? - ANSWER✔✔-A hearing
must be made within 30 days of the receipt of the request.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his decision.
What are the penalties after a notice, hearing, and cease and desist order? -
ANSWER✔✔-A fine of up to $10,000 per violation
Suspension/revocation of license
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/152
, Any other appropriate relief.
Express authority - ANSWER✔✔-the authority of an agent, stated in the
document or agreement creating the agency
Implied authority - ANSWER✔✔-Authority that is not expressed or
written into the contract, but which the agent is assumed to have in order
to transact the business of insurance for the principal.
Apparent authority - ANSWER✔✔-The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because
of circumstances the principal created.
When does an agents license expire? - ANSWER✔✔-Licenses are good to
for 2 years and expire on the last day of the licensee's with month.
What are the CE requirements for an agent? - ANSWER✔✔-24 CE credit
hours every 2 years, including 3 credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including
ethics.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/152
