Insurance Adjuster Study Guide: Updated A+ Guide
Solution
Which kind of losses are covered under a standard fire policy? - ANSWERDirect
All fires are not covered by the Standard Fire policies, only those that: - ANSWERare
hostile and have a flame or glow
At what time does a fire policy go into affect? - ANSWER12:01am standard time at
the location of the insured's property
A property is insured under two Standard Fire policies for $25,000 each. A fire causes
$10,000 worth of damage. What is the maximum amount the insured may collect
under each policy? - ANSWER$5,000
A fire burning in the middle of the living room would be considered: - ANSWERa
hostile fire
An insured's house is damaged by fire caused by a neighbor's negligence. The
insurance company will attempt to recover damage from the neighbor. This is called:
- ANSWERsubrogation
Which of the following statements are true concerning requirements of the standard
fire policy? - ANSWERThe insured must separate damaged from undamaged
property in the event there is a loss AND If a loss occurs, the insured normally has 60
days to file a proof of loss with the insurer
Which types of property are excluded from coverage under the basic fire policy? -
ANSWERaccounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? - ANSWERthe named insured and his
legal representatives
An agreement which affords temporary insurance protection until the policy is issued
is called: - ANSWERa binder
as a general rule, a complete fire insurance policy would be made up of: -
ANSWERthe Standard Fire policy with one or more forms attached
The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment - ANSWERover-insurance
replacement cost minus depreciation: - ANSWERActual Cash Value (ACV)
,The Standard Fire policy with an extended coverage endorsement attached covers
which of the following: - ANSWERriot
A loss due to order of Civil Authority: - ANSWERis excluded unless the loss occurs
because of an order by Civil Authorities for the purpose of controlling a fire
The term "unoccupancy" refers to the absence of : - ANSWERpersons from a building
Suppose a fire occurs on February 26th. On April 30th, the insurance company
notifies the mortgagee the insured has not filed a proof of loss. To protect their
interest, the mortgagee must file a proof of loss within _________ days after what
date? - ANSWER60 days after April 30th
For recovery under the Standard Fire policy, a party must: - ANSWERbe named in the
policy and show an insurable interest in the property at the time the loss occurs
What is the requirement on how much experience one must have to be elected the
insurance commissioner in Georgia? - ANSWERNone
Once elected, how long is the insurance commissioner's term? - ANSWER4 years
Is there a limit on the number of terms an insurance commissioner can serve? -
ANSWERNo
Who is Georgia's current insurance commissioner? - ANSWERRalph Hudgens
What two capacities does Georgia's insurance commissioner serve? - ANSWER1.
Chief Officer of Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - ANSWERNo
election; the Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - ANSWERmust have a
bond in the amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials
must be examined? - ANSWERonce every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance
Commissioner. Which is it? - ANSWERSuperior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? -
ANSWERCertificate of Authority
Surplus Lines Risk - ANSWERhas been rejected by 3 authorized insurers
, What is the primary reason the state of Georgia would revoke an insurance
company's certificate to authorize? - ANSWERif they're under financial distress
What are the requirements to be a licensed producer in Georgia? - ANSWERmust be
at least 18 years old, take a 40 hour course, pass licensing exam, apply for license,
pass background check
Which of the following would be considered an "offer"? - ANSWERthe applicant
submits an application to the company with payment
All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply - ANSWERc) the loss must not be definite
and definable
all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions - ANSWERd) inclusions
something that increases the chance of a peril occurring is known as a(n): -
ANSWERhazard
open peril, or "all risk", forms: - ANSWERname the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of
handling risk has been undertaken? - ANSWERrisk retention
the insurance industry deals with those areas of risk where the chances of loss are: -
ANSWERanywhere between 0% and 100%
which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties - ANSWERd) incompetent parties
Actual cash value= - ANSWERreplacement cost minus depreciation
an insurance policy is an aleatory contract, which means: - ANSWERperformance
depends on the occurrence of an uncertain event
Solution
Which kind of losses are covered under a standard fire policy? - ANSWERDirect
All fires are not covered by the Standard Fire policies, only those that: - ANSWERare
hostile and have a flame or glow
At what time does a fire policy go into affect? - ANSWER12:01am standard time at
the location of the insured's property
A property is insured under two Standard Fire policies for $25,000 each. A fire causes
$10,000 worth of damage. What is the maximum amount the insured may collect
under each policy? - ANSWER$5,000
A fire burning in the middle of the living room would be considered: - ANSWERa
hostile fire
An insured's house is damaged by fire caused by a neighbor's negligence. The
insurance company will attempt to recover damage from the neighbor. This is called:
- ANSWERsubrogation
Which of the following statements are true concerning requirements of the standard
fire policy? - ANSWERThe insured must separate damaged from undamaged
property in the event there is a loss AND If a loss occurs, the insured normally has 60
days to file a proof of loss with the insurer
Which types of property are excluded from coverage under the basic fire policy? -
ANSWERaccounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? - ANSWERthe named insured and his
legal representatives
An agreement which affords temporary insurance protection until the policy is issued
is called: - ANSWERa binder
as a general rule, a complete fire insurance policy would be made up of: -
ANSWERthe Standard Fire policy with one or more forms attached
The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment - ANSWERover-insurance
replacement cost minus depreciation: - ANSWERActual Cash Value (ACV)
,The Standard Fire policy with an extended coverage endorsement attached covers
which of the following: - ANSWERriot
A loss due to order of Civil Authority: - ANSWERis excluded unless the loss occurs
because of an order by Civil Authorities for the purpose of controlling a fire
The term "unoccupancy" refers to the absence of : - ANSWERpersons from a building
Suppose a fire occurs on February 26th. On April 30th, the insurance company
notifies the mortgagee the insured has not filed a proof of loss. To protect their
interest, the mortgagee must file a proof of loss within _________ days after what
date? - ANSWER60 days after April 30th
For recovery under the Standard Fire policy, a party must: - ANSWERbe named in the
policy and show an insurable interest in the property at the time the loss occurs
What is the requirement on how much experience one must have to be elected the
insurance commissioner in Georgia? - ANSWERNone
Once elected, how long is the insurance commissioner's term? - ANSWER4 years
Is there a limit on the number of terms an insurance commissioner can serve? -
ANSWERNo
Who is Georgia's current insurance commissioner? - ANSWERRalph Hudgens
What two capacities does Georgia's insurance commissioner serve? - ANSWER1.
Chief Officer of Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - ANSWERNo
election; the Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - ANSWERmust have a
bond in the amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials
must be examined? - ANSWERonce every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance
Commissioner. Which is it? - ANSWERSuperior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? -
ANSWERCertificate of Authority
Surplus Lines Risk - ANSWERhas been rejected by 3 authorized insurers
, What is the primary reason the state of Georgia would revoke an insurance
company's certificate to authorize? - ANSWERif they're under financial distress
What are the requirements to be a licensed producer in Georgia? - ANSWERmust be
at least 18 years old, take a 40 hour course, pass licensing exam, apply for license,
pass background check
Which of the following would be considered an "offer"? - ANSWERthe applicant
submits an application to the company with payment
All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply - ANSWERc) the loss must not be definite
and definable
all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions - ANSWERd) inclusions
something that increases the chance of a peril occurring is known as a(n): -
ANSWERhazard
open peril, or "all risk", forms: - ANSWERname the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of
handling risk has been undertaken? - ANSWERrisk retention
the insurance industry deals with those areas of risk where the chances of loss are: -
ANSWERanywhere between 0% and 100%
which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties - ANSWERd) incompetent parties
Actual cash value= - ANSWERreplacement cost minus depreciation
an insurance policy is an aleatory contract, which means: - ANSWERperformance
depends on the occurrence of an uncertain event
