GA Property & casualty Insurance Exam
Practice Questions with Complete
Solutions (Latest 2025)
Replacement cost - Correct Answers ✅the full cost to
repair damage property or replace damaged property, with
property of like kind and quality, at current pricing , without
deduction for depreciation
Market Value - Correct Answers ✅the price a willing buyer
would pay for property purchased from a willing seller under
fair market conditions.
Stated Value - Correct Answers ✅means that the insurer
bases the policy premium on the insureds statement of the
property value. (However the insurers will pay the lesser the
amount between the stated amount or the actual cash value)
Salvage Value - Correct Answers ✅the amount for which
property can be sold at the end of it's useful life
Proximate Cause - Correct Answers ✅also known as
primary cause of loss / the first peril that occurs /direct or
most important cause of loss
Deductible - Correct Answers ✅is specified amount of each
loss that the insured must pay as a way to share the cost of
loss with the insurance company/ must pay before insurance
can give coverage
,GA Property & casualty Insurance Exam
Practice Questions with Complete
Solutions (Latest 2025)
Indemnity - Correct Answers ✅in the event of loss
Limits of liability - Correct Answers ✅is the maximum a
liability policy will pay in the event of loss, regardless of the
number of insureds, claims made, lawsuits filled, or parties
making or filling lawsuits
Coinsurance/ insurance to value - Correct Answers
✅requires insured to carry a certain a certain percentage of
the property total valuation (usually 80%) in order for losses
to be paid in full / prevents losses from not being covered in
full
Occurence - Correct Answers ✅an accident, including
continuous or repeated exposure to the same generally
harmful conditions that results of loss or damage
Cancellation - Correct Answers ✅is the termination of a
policy before its expiration date, and coverage is not provide
as of the effective date it is suppose to end
Nonrenewal - Correct Answers ✅when the insurer chooses
not the renew the policy, and coverage ends at the expiration
of the policy term must also be provided in advance with the
requirements set by law
, GA Property & casualty Insurance Exam
Practice Questions with Complete
Solutions (Latest 2025)
Vacancy - Correct Answers ✅property with NO personal
items or occupants
unoccupancy - Correct Answers ✅Property with NO
occupants but does have personal items
Liability - Correct Answers ✅risk arise without the
involvement of negligence/ can be civil or criminal/ Civil
requires compensation and criminal is NOT covered by
insurance
Absolute Liability - Correct Answers ✅most associated with
dangerous animal ownership, storage of firearms or
weapons , and possession of explosive or highly flammable
material
Strict Liability - Correct Answers ✅used in the context of
manufacturer or seller of a product who is liable for all
damages caused by a defective product
Vicarious - Correct Answers ✅also know as inputed
negligence/ is when someone else is legally liable for the
person who has been negligent
Example: Parents are liable for a child's actions
Practice Questions with Complete
Solutions (Latest 2025)
Replacement cost - Correct Answers ✅the full cost to
repair damage property or replace damaged property, with
property of like kind and quality, at current pricing , without
deduction for depreciation
Market Value - Correct Answers ✅the price a willing buyer
would pay for property purchased from a willing seller under
fair market conditions.
Stated Value - Correct Answers ✅means that the insurer
bases the policy premium on the insureds statement of the
property value. (However the insurers will pay the lesser the
amount between the stated amount or the actual cash value)
Salvage Value - Correct Answers ✅the amount for which
property can be sold at the end of it's useful life
Proximate Cause - Correct Answers ✅also known as
primary cause of loss / the first peril that occurs /direct or
most important cause of loss
Deductible - Correct Answers ✅is specified amount of each
loss that the insured must pay as a way to share the cost of
loss with the insurance company/ must pay before insurance
can give coverage
,GA Property & casualty Insurance Exam
Practice Questions with Complete
Solutions (Latest 2025)
Indemnity - Correct Answers ✅in the event of loss
Limits of liability - Correct Answers ✅is the maximum a
liability policy will pay in the event of loss, regardless of the
number of insureds, claims made, lawsuits filled, or parties
making or filling lawsuits
Coinsurance/ insurance to value - Correct Answers
✅requires insured to carry a certain a certain percentage of
the property total valuation (usually 80%) in order for losses
to be paid in full / prevents losses from not being covered in
full
Occurence - Correct Answers ✅an accident, including
continuous or repeated exposure to the same generally
harmful conditions that results of loss or damage
Cancellation - Correct Answers ✅is the termination of a
policy before its expiration date, and coverage is not provide
as of the effective date it is suppose to end
Nonrenewal - Correct Answers ✅when the insurer chooses
not the renew the policy, and coverage ends at the expiration
of the policy term must also be provided in advance with the
requirements set by law
, GA Property & casualty Insurance Exam
Practice Questions with Complete
Solutions (Latest 2025)
Vacancy - Correct Answers ✅property with NO personal
items or occupants
unoccupancy - Correct Answers ✅Property with NO
occupants but does have personal items
Liability - Correct Answers ✅risk arise without the
involvement of negligence/ can be civil or criminal/ Civil
requires compensation and criminal is NOT covered by
insurance
Absolute Liability - Correct Answers ✅most associated with
dangerous animal ownership, storage of firearms or
weapons , and possession of explosive or highly flammable
material
Strict Liability - Correct Answers ✅used in the context of
manufacturer or seller of a product who is liable for all
damages caused by a defective product
Vicarious - Correct Answers ✅also know as inputed
negligence/ is when someone else is legally liable for the
person who has been negligent
Example: Parents are liable for a child's actions
