Georgia Property and Casualty Insurance Exam Study Guide TEST BANK | CONTAINS
4 DIFFERENT ALREADY TESTED VERSIONS WITH EXPERT VERIFIED
QUESTIONS AND ANSWERS | GUARANTEED PASS| ALREADY GRADED A |
LATEST UPDATE
Loss - ✔✔ANSW✔✔..Insurance is a contract by which one seeks to protect another
from.
Replacement cost at the time of the loss, less depreciation - ✔✔ANSW✔✔..In property
insurance, actual cash value is defined as which of the following?
$5000
ACV is calculated as replacement cost less depreciation - ✔✔ANSW✔✔..An insured's
roof cost $4,000 when installed 5 years ago. It has been damaged by hail and must be
replaced. The new roof will cost $6,000 at today's prices. If the roof has been
depreciating at $200 per year and the insured's policy is written on the actual cash value
(ACV), how much will the policy pay toward the insured's new roof?
Actual Cash Value (ACV) - ✔✔ANSW✔✔..Calculated as replacement cost less
depreciation.
Replacement cost - ✔✔ANSW✔✔..Which of the following is use in the formula for
calculating the actual cash value of a property?
Age of property, Replacement cost, and Type and quality of property -
✔✔ANSW✔✔..All of the following are factors in the determination of actual cash value
Loss valuation - ✔✔ANSW✔✔..The process of determining the premium charged and
how much insurance is required for a particular loss is called
Replacement Cost - ✔✔ANSW✔✔..Which method of loss valuation is contrary to the
basic concept of indemnity?
To pre-establish the amount of coverage available for property items that are difficult to
value - ✔✔ANSW✔✔..Which of the following best expresses the purpose of a stated
value contract?
Vicarious Liability - ✔✔ANSW✔✔..When a parent is required to pay for damages
caused by his or her children, this is an example of
, Stated amount - ✔✔ANSW✔✔..When the amount of insurance written in a property
policy is not subject to any coinsurance provision and that amount is paid in the event of
a covered loss, the coverage is said to be written as
Vicarious Liability - ✔✔ANSW✔✔..Liability imposed on one party as a result of the
actions of another person is known as
It is imposed regardless of fault
It is applied in product liability cases
Claimants may need to provide proof that a product defect caused an injury. -
✔✔ANSW✔✔..Describe the concept of strict liability
Stated amount - ✔✔ANSW✔✔..A property insurance policy that is not subject to any
coinsurance requirements but has a set amount of insurance scheduled for the property
would use what loss valuation method?
Agreed value - ✔✔ANSW✔✔..In which of the following types of property valuation will
the policy pay the full value as specified on the policy schedule, regardless of the
insured property's appreciation or depreciation?
Absolute - ✔✔ANSW✔✔..What type of liability would a person who owns wild animals
have?
Agreed Value - ✔✔ANSW✔✔..Which of the following types of valuation works best for
property whose value does not fluctuate much?
Aggregated limit - ✔✔ANSW✔✔..Which of these is defined as the maximum limit of
coverage available under a liability policy during a policy year, regardless of the number
of claims that may be made or the number of accidents that may occur?
$50,000 - ✔✔ANSW✔✔..If a liability policy had split limits of 50/100/30, what is the
maximum amount that would be payable in the event of injury to a single person?
Per Occurrence - ✔✔ANSW✔✔..An insured has a liability policy that sets the amount
for all claims that arise from a single incident at $50,000. Which type of limit of liability
does this insured's policy have?
Combined Single - ✔✔ANSW✔✔..An insured is driving her car through a residential
area when she loses control and crashes into a neighbor's front porch. The neighbor,
who was sitting on the porch, is injured. The insured's liability policy has a limit of
$500,000. This amount applies to the total of damages for any bodily injury and property
damage resulting from one accident. Which type of limit of liability does the insured
have?
4 DIFFERENT ALREADY TESTED VERSIONS WITH EXPERT VERIFIED
QUESTIONS AND ANSWERS | GUARANTEED PASS| ALREADY GRADED A |
LATEST UPDATE
Loss - ✔✔ANSW✔✔..Insurance is a contract by which one seeks to protect another
from.
Replacement cost at the time of the loss, less depreciation - ✔✔ANSW✔✔..In property
insurance, actual cash value is defined as which of the following?
$5000
ACV is calculated as replacement cost less depreciation - ✔✔ANSW✔✔..An insured's
roof cost $4,000 when installed 5 years ago. It has been damaged by hail and must be
replaced. The new roof will cost $6,000 at today's prices. If the roof has been
depreciating at $200 per year and the insured's policy is written on the actual cash value
(ACV), how much will the policy pay toward the insured's new roof?
Actual Cash Value (ACV) - ✔✔ANSW✔✔..Calculated as replacement cost less
depreciation.
Replacement cost - ✔✔ANSW✔✔..Which of the following is use in the formula for
calculating the actual cash value of a property?
Age of property, Replacement cost, and Type and quality of property -
✔✔ANSW✔✔..All of the following are factors in the determination of actual cash value
Loss valuation - ✔✔ANSW✔✔..The process of determining the premium charged and
how much insurance is required for a particular loss is called
Replacement Cost - ✔✔ANSW✔✔..Which method of loss valuation is contrary to the
basic concept of indemnity?
To pre-establish the amount of coverage available for property items that are difficult to
value - ✔✔ANSW✔✔..Which of the following best expresses the purpose of a stated
value contract?
Vicarious Liability - ✔✔ANSW✔✔..When a parent is required to pay for damages
caused by his or her children, this is an example of
, Stated amount - ✔✔ANSW✔✔..When the amount of insurance written in a property
policy is not subject to any coinsurance provision and that amount is paid in the event of
a covered loss, the coverage is said to be written as
Vicarious Liability - ✔✔ANSW✔✔..Liability imposed on one party as a result of the
actions of another person is known as
It is imposed regardless of fault
It is applied in product liability cases
Claimants may need to provide proof that a product defect caused an injury. -
✔✔ANSW✔✔..Describe the concept of strict liability
Stated amount - ✔✔ANSW✔✔..A property insurance policy that is not subject to any
coinsurance requirements but has a set amount of insurance scheduled for the property
would use what loss valuation method?
Agreed value - ✔✔ANSW✔✔..In which of the following types of property valuation will
the policy pay the full value as specified on the policy schedule, regardless of the
insured property's appreciation or depreciation?
Absolute - ✔✔ANSW✔✔..What type of liability would a person who owns wild animals
have?
Agreed Value - ✔✔ANSW✔✔..Which of the following types of valuation works best for
property whose value does not fluctuate much?
Aggregated limit - ✔✔ANSW✔✔..Which of these is defined as the maximum limit of
coverage available under a liability policy during a policy year, regardless of the number
of claims that may be made or the number of accidents that may occur?
$50,000 - ✔✔ANSW✔✔..If a liability policy had split limits of 50/100/30, what is the
maximum amount that would be payable in the event of injury to a single person?
Per Occurrence - ✔✔ANSW✔✔..An insured has a liability policy that sets the amount
for all claims that arise from a single incident at $50,000. Which type of limit of liability
does this insured's policy have?
Combined Single - ✔✔ANSW✔✔..An insured is driving her car through a residential
area when she loses control and crashes into a neighbor's front porch. The neighbor,
who was sitting on the porch, is injured. The insured's liability policy has a limit of
$500,000. This amount applies to the total of damages for any bodily injury and property
damage resulting from one accident. Which type of limit of liability does the insured
have?
