Georgia Property & Casualty Exam
Solved Papers - Questions with Complete
Solutions
Which of the following correctly describes a principal
difference between a dwelling policy and a homeowners
policy?
A.) A dwelling policy only covers the dwelling, other
structures, personal property, fair rental value, and additional
living expenses. It does not cover liability.
B.) Both policies are almost identical, except that the
homeowners policy focuses on the more expensive homes.
C.) A dwelling policy requires that the owner occupy the
dwelling.
D.) Although any one- to four-family dwelling is eligible for a
homeowners policy, only a one-family dwelling is eligible for a
dwelling policy. - Correct Answers ✅A.) A dwelling policy
only covers the dwelling, other structures, personal property,
fair rental value, and additional living expenses. It does not
cover liability.
All of the following statements regarding the dwelling policy
are correct EXCEPT:
A.) There are six dwelling policy forms.
B.) An unendorsed dwelling policy provides property coverage
only; it does not include liability coverage.
C.) The dwelling policy can cover a residence for less cost
than a homeowners policy.
,Georgia Property & Casualty Exam
Solved Papers - Questions with Complete
Solutions
D.) The dwelling policy covers personal property as well as
the dwelling itself. - Correct Answers ✅A.) There are six
dwelling policy forms.
There are actually only three: basic, broad, and special.
What endorsement should Jeffrey's Flowers add to its
commercial property policy if it wants coverage for
breakdown or contamination and power outage?
A.) Ordinance or Law
B.) Peak Season
C.) Spoilage Coverage
D.) Value Reporting Form - Correct Answers ✅C.) Spoilage
Coverage
Most insurance regulation is conducted by the:
A.) Federal Insurance Office
B.) U.S. Congress
C.) U.S. Department of Health, Education and Welfare
D.) State Government Agencies - Correct Answers ✅D.)
State Government Agencies
,Georgia Property & Casualty Exam
Solved Papers - Questions with Complete
Solutions
Which of the following is an example of adverse selection?
A.) an applicant who just bought a new car and wants to buy
the least expensive auto policy
B.) a homeowner who wants to meet with her agent to
discuss her current coverages following some recent home
improvements
C.) an applicant whose business was recently burglarized
deciding he had better buy some commercial crime insurance
coverage
D.) a business owner who decides to cancel his business
owner's policy because he believes he can financially handle
any losses that might occur - Correct Answers ✅C.) an
applicant whose business was recently burglarized deciding
he had better buy some commercial crime insurance
coverage
When comparing her insurance company's policies to those
of Zenith Insurance, Melanie makes a misleading statement
to convince an insurance prospect to terminate a policy with
Zenith and buy one from Melanie's company. Melanie has
engaged in:
A.) Twisting
B.) Rebating
, Georgia Property & Casualty Exam
Solved Papers - Questions with Complete
Solutions
C.) Unfair discrimination
D.) Defamation - Correct Answers ✅A.) Twisting
Stuart receives a notice from his insurance company telling
him that his policy will be terminated at the end of the policy
period. The notice provides a reason, which can be any of the
following EXCEPT:
A.) He filed a false claim.
B.) He failed to disclose information necessary to properly
rate the risk.
C.) He failed to pay the premium.
D.) He was in a traffic accident caused by another driver. -
Correct Answers ✅D.) He was in a traffic accident caused
by another driver.
Which type of insurance company pays policy dividends to its
policyowners?
A.) stock insurance company
B.) mutual insurance company
C.) captive insurance company
D.) reinsurance company - Correct Answers ✅B.) mutual
insurance company
Solved Papers - Questions with Complete
Solutions
Which of the following correctly describes a principal
difference between a dwelling policy and a homeowners
policy?
A.) A dwelling policy only covers the dwelling, other
structures, personal property, fair rental value, and additional
living expenses. It does not cover liability.
B.) Both policies are almost identical, except that the
homeowners policy focuses on the more expensive homes.
C.) A dwelling policy requires that the owner occupy the
dwelling.
D.) Although any one- to four-family dwelling is eligible for a
homeowners policy, only a one-family dwelling is eligible for a
dwelling policy. - Correct Answers ✅A.) A dwelling policy
only covers the dwelling, other structures, personal property,
fair rental value, and additional living expenses. It does not
cover liability.
All of the following statements regarding the dwelling policy
are correct EXCEPT:
A.) There are six dwelling policy forms.
B.) An unendorsed dwelling policy provides property coverage
only; it does not include liability coverage.
C.) The dwelling policy can cover a residence for less cost
than a homeowners policy.
,Georgia Property & Casualty Exam
Solved Papers - Questions with Complete
Solutions
D.) The dwelling policy covers personal property as well as
the dwelling itself. - Correct Answers ✅A.) There are six
dwelling policy forms.
There are actually only three: basic, broad, and special.
What endorsement should Jeffrey's Flowers add to its
commercial property policy if it wants coverage for
breakdown or contamination and power outage?
A.) Ordinance or Law
B.) Peak Season
C.) Spoilage Coverage
D.) Value Reporting Form - Correct Answers ✅C.) Spoilage
Coverage
Most insurance regulation is conducted by the:
A.) Federal Insurance Office
B.) U.S. Congress
C.) U.S. Department of Health, Education and Welfare
D.) State Government Agencies - Correct Answers ✅D.)
State Government Agencies
,Georgia Property & Casualty Exam
Solved Papers - Questions with Complete
Solutions
Which of the following is an example of adverse selection?
A.) an applicant who just bought a new car and wants to buy
the least expensive auto policy
B.) a homeowner who wants to meet with her agent to
discuss her current coverages following some recent home
improvements
C.) an applicant whose business was recently burglarized
deciding he had better buy some commercial crime insurance
coverage
D.) a business owner who decides to cancel his business
owner's policy because he believes he can financially handle
any losses that might occur - Correct Answers ✅C.) an
applicant whose business was recently burglarized deciding
he had better buy some commercial crime insurance
coverage
When comparing her insurance company's policies to those
of Zenith Insurance, Melanie makes a misleading statement
to convince an insurance prospect to terminate a policy with
Zenith and buy one from Melanie's company. Melanie has
engaged in:
A.) Twisting
B.) Rebating
, Georgia Property & Casualty Exam
Solved Papers - Questions with Complete
Solutions
C.) Unfair discrimination
D.) Defamation - Correct Answers ✅A.) Twisting
Stuart receives a notice from his insurance company telling
him that his policy will be terminated at the end of the policy
period. The notice provides a reason, which can be any of the
following EXCEPT:
A.) He filed a false claim.
B.) He failed to disclose information necessary to properly
rate the risk.
C.) He failed to pay the premium.
D.) He was in a traffic accident caused by another driver. -
Correct Answers ✅D.) He was in a traffic accident caused
by another driver.
Which type of insurance company pays policy dividends to its
policyowners?
A.) stock insurance company
B.) mutual insurance company
C.) captive insurance company
D.) reinsurance company - Correct Answers ✅B.) mutual
insurance company
