Georgia Property and Casualty Insurance Licensing Exam Prep 2025/2026 | 250 NCLEX-Style & State Licensing Practice Questions with Correct Answers and Detailed Rationales | Comprehensive Study Guide for Georgia Insurance Agents

Georgia Property and Casualty Insurance Licensing
Exam Prep 2025/2026 | 250 NCLEX-Style & State
Licensing Practice Questions with Correct Answers
and Detailed Rationales | Comprehensive Study
Guide for Georgia Insurance Agents

Question 1
What is the primary purpose of property insurance?
A) To provide liability coverage
B) To protect against loss or damage to property (Correct)
C) To cover medical expenses
D) To offer life insurance benefits


Question 2
Which of the following is NOT typically covered under a standard homeowners
insurance policy?
A) Theft of personal property
B) Flood damage (Correct)
C) Fire damage
D) Liability for injuries on the property


Question 3
In Georgia, what is the minimum liability coverage required for personal auto insurance?
A) $10,000 per person, $20,000 per accident
B) $25,000 per person, $50,000 per accident (Correct)
C) $15,000 per person, $30,000 per accident
D) $50,000 per person, $100,000 per accident


Question 4
Which of the following is a common exclusion in a property insurance policy?
A) Fire damage
B) Theft
C) Earthquake damage (Correct)
D) Vandalism


Question 5

,Under the standard personal auto policy, which of the following is covered under "Bodily
Injury Liability"?
A) Damage to another person's vehicle
B) Injuries to others in an accident you caused (Correct)
C) Your own medical expenses
D) Damage to your own vehicle


Question 6
What type of insurance provides coverage for injuries sustained by employees while on
the job?
A) Property insurance
B) Workers' compensation insurance (Correct)
C) General liability insurance
D) Auto insurance


Question 7
Which of the following is a characteristic of "actual cash value" (ACV) in property
insurance?
A) Replacement cost without depreciation
B) Replacement cost minus depreciation (Correct)
C) Cost of repairs only
D) A fixed monetary value established before a claim


Question 8
What does "underinsured motorist coverage" protect against?
A) Damage to your vehicle
B) Injuries when the at-fault driver has insufficient insurance (Correct)
C) Theft of your vehicle
D) Vandalism


Question 9
In Georgia, how long does an insurance company have to pay a claim after it has been
reported?
A) 30 days
B) 60 days (Correct)

,C) 90 days
D) 120 days


Question 10
What is the main purpose of liability insurance in a property and casualty policy?
A) To cover the insured's property
B) To protect the insured against claims for bodily injury and property damage
(Correct)
C) To provide medical payments to the insured
D) To cover loss of income
Question 11
What does a "deductible" in an insurance policy refer to?
A) The amount the insurer pays
B) The amount the insured pays before coverage kicks in (Correct)
C) The total amount of coverage
D) The premium paid for the policy


Question 12
Which of the following is an example of a peril covered under a standard homeowners
insurance policy?
A) Fire (Correct)
B) Wear and tear
C) Negligence
D) Flood


Question 13
What is the primary purpose of liability insurance?
A) To cover property damage
B) To provide medical coverage
C) To protect against legal claims for negligence (Correct)
D) To cover lost wages


Question 14
Which type of insurance covers damage to a policyholder's vehicle from a collision?

, A) Collision coverage (Correct)
B) Comprehensive coverage
C) Liability coverage
D) Personal injury protection


Question 15
What does the term "subrogation" mean in insurance?
A) The insured's right to appeal a claim denial
B) The insurer's right to recover costs from a third party (Correct)
C) The process of underwriting a policy
D) The calculation of premiums


Question 16
Which of the following is typically covered under a commercial general liability
insurance policy?
A) Property damage to the insured's own property
B) Bodily injury to a third party on the insured's premises (Correct)
C) Employee injuries
D) Damage to company vehicles


Question 17
What is the purpose of "medical payments coverage" in a homeowners insurance
policy?
A) To cover property damage
B) To cover medical expenses for injuries sustained on the property (Correct)
C) To provide liability protection
D) To cover legal fees


Question 18
In Georgia, which of the following is true regarding uninsured motorist coverage?
A) It is mandatory for all drivers
B) It provides coverage for injuries caused by an uninsured driver (Correct)
C) It only covers property damage
D) It is not available in Georgia