GA Insurance Adjuster Course exam
questions with correct answers
Six Special Characteristic of Insurance Contracts - CORRECT ANSWER-✔✔✅Personal, Adhesion, Utmost
Good Faith, Aleatory, Unilateral, Condition
Coverage F - CORRECT ANSWER-✔✔✅Medical Payments
Umbrella - CORRECT ANSWER-✔✔✅An umbrella policy provided liability coverage over and above the
normal or base limits of liability in a policy. An umbrella policy is a type of excess policy
Risk Transference - CORRECT ANSWER-✔✔✅Management of severe risk by transferring the risk of
another party
Risk Avoidance - CORRECT ANSWER-✔✔✅Eliminates risk by not taking an action that involves risk
B.O.P. - CORRECT ANSWER-✔✔✅Business Owner Package
C.P.P - CORRECT ANSWER-✔✔✅Commercial Package Policies
Representation - CORRECT ANSWER-✔✔✅A statement of a fact
Misrepresentation - CORRECT ANSWER-✔✔✅A false, distorted, or deceitful statement of fact or
opinion, even if made unintentionally
Personal Contract - CORRECT ANSWER-✔✔✅Protects the policyholder from financial losses. It does not
protect property from becoming damaged. Coverage the follows the person, not the property.
Adhesion Contract - CORRECT ANSWER-✔✔✅The insurer is responsible for the term of the contract.
The insured has no say in wording. Courts favor the insured in the event of an ambiguity.
,Utmost Good Faith Contract - CORRECT ANSWER-✔✔✅Applicants are expected to be completely
honest about the risk to the insurer. The insurer must rely on applicants to conceal or misrepresent
pertinent facts.
Aleatory Contract - CORRECT ANSWER-✔✔✅Policy holder could pay more in premiums than they ever
get for claims, or insurer could pay more in claims than it recieves.
60 - CORRECT ANSWER-✔✔✅A discovery from commercial crime policy can apply to losses discovered
during the policy as well as up to many days after his expiration date.
Reciprocal Insurer - CORRECT ANSWER-✔✔✅An unincorporated organization of subscriber that
operates through an attorney in fact to provide insurance benefits for its members
Risk Reduction "Risk Mitigation" - CORRECT ANSWER-✔✔✅Taking measures to reduce the risk involved
in an action
Risk Retention - CORRECT ANSWER-✔✔✅Acknowledging the risk and preparing to handle unexpected
losses that may occur.
Coverage B - CORRECT ANSWER-✔✔✅Detached Private Structures
Coverage D - CORRECT ANSWER-✔✔✅Loss of use; Fair Rental Value, Additional living expenses
Conditional Contract - CORRECT ANSWER-✔✔✅The insurer only has to perform if certain conditions
are met.
Unilateral Contract - CORRECT ANSWER-✔✔✅The insurer has an obligation to pay for covered losses.
The insured has no obligation.
Concealment - CORRECT ANSWER-✔✔✅Deliberately withholding relevant information
, Binder - CORRECT ANSWER-✔✔✅Temporary coverage for an insurance applicant until the policy is
issued
$500 - CORRECT ANSWER-✔✔✅Personal Article Floater have the amount of______deductible
Morale Hazard - CORRECT ANSWER-✔✔✅Takes place when insured acts differently because of the
comfort that insurance protection provides.
Surety - CORRECT ANSWER-✔✔✅Guarantees to pay obligee if principal defaults
Indemnitor - CORRECT ANSWER-✔✔✅Fourth Party to a surety bond who agrees to reimburse the
surety for losses sustained if the principal defaults
Suretyship - CORRECT ANSWER-✔✔✅An arrangement between three parties in which one party
promises to perform for another party, and a third party guarantees they will fulfill that premise
Doctrine of Reasonable Expectations - CORRECT ANSWER-✔✔✅The contract should be interpreted as a
reasonable person would interpret it
Coverage C - CORRECT ANSWER-✔✔✅personal property
HO-3 (special form) - CORRECT ANSWER-✔✔✅covers the dwelling and other structures on a risk-of-
direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded.
Personal property is covered on a named perils basis
HO-2 (broad form) - CORRECT ANSWER-✔✔✅covers the dwelling, other structures, and personal
property on a named perils basis
HO-4 (contents broad form) - CORRECT ANSWER-✔✔✅covers a tenant's personal property on a named
perils basis
questions with correct answers
Six Special Characteristic of Insurance Contracts - CORRECT ANSWER-✔✔✅Personal, Adhesion, Utmost
Good Faith, Aleatory, Unilateral, Condition
Coverage F - CORRECT ANSWER-✔✔✅Medical Payments
Umbrella - CORRECT ANSWER-✔✔✅An umbrella policy provided liability coverage over and above the
normal or base limits of liability in a policy. An umbrella policy is a type of excess policy
Risk Transference - CORRECT ANSWER-✔✔✅Management of severe risk by transferring the risk of
another party
Risk Avoidance - CORRECT ANSWER-✔✔✅Eliminates risk by not taking an action that involves risk
B.O.P. - CORRECT ANSWER-✔✔✅Business Owner Package
C.P.P - CORRECT ANSWER-✔✔✅Commercial Package Policies
Representation - CORRECT ANSWER-✔✔✅A statement of a fact
Misrepresentation - CORRECT ANSWER-✔✔✅A false, distorted, or deceitful statement of fact or
opinion, even if made unintentionally
Personal Contract - CORRECT ANSWER-✔✔✅Protects the policyholder from financial losses. It does not
protect property from becoming damaged. Coverage the follows the person, not the property.
Adhesion Contract - CORRECT ANSWER-✔✔✅The insurer is responsible for the term of the contract.
The insured has no say in wording. Courts favor the insured in the event of an ambiguity.
,Utmost Good Faith Contract - CORRECT ANSWER-✔✔✅Applicants are expected to be completely
honest about the risk to the insurer. The insurer must rely on applicants to conceal or misrepresent
pertinent facts.
Aleatory Contract - CORRECT ANSWER-✔✔✅Policy holder could pay more in premiums than they ever
get for claims, or insurer could pay more in claims than it recieves.
60 - CORRECT ANSWER-✔✔✅A discovery from commercial crime policy can apply to losses discovered
during the policy as well as up to many days after his expiration date.
Reciprocal Insurer - CORRECT ANSWER-✔✔✅An unincorporated organization of subscriber that
operates through an attorney in fact to provide insurance benefits for its members
Risk Reduction "Risk Mitigation" - CORRECT ANSWER-✔✔✅Taking measures to reduce the risk involved
in an action
Risk Retention - CORRECT ANSWER-✔✔✅Acknowledging the risk and preparing to handle unexpected
losses that may occur.
Coverage B - CORRECT ANSWER-✔✔✅Detached Private Structures
Coverage D - CORRECT ANSWER-✔✔✅Loss of use; Fair Rental Value, Additional living expenses
Conditional Contract - CORRECT ANSWER-✔✔✅The insurer only has to perform if certain conditions
are met.
Unilateral Contract - CORRECT ANSWER-✔✔✅The insurer has an obligation to pay for covered losses.
The insured has no obligation.
Concealment - CORRECT ANSWER-✔✔✅Deliberately withholding relevant information
, Binder - CORRECT ANSWER-✔✔✅Temporary coverage for an insurance applicant until the policy is
issued
$500 - CORRECT ANSWER-✔✔✅Personal Article Floater have the amount of______deductible
Morale Hazard - CORRECT ANSWER-✔✔✅Takes place when insured acts differently because of the
comfort that insurance protection provides.
Surety - CORRECT ANSWER-✔✔✅Guarantees to pay obligee if principal defaults
Indemnitor - CORRECT ANSWER-✔✔✅Fourth Party to a surety bond who agrees to reimburse the
surety for losses sustained if the principal defaults
Suretyship - CORRECT ANSWER-✔✔✅An arrangement between three parties in which one party
promises to perform for another party, and a third party guarantees they will fulfill that premise
Doctrine of Reasonable Expectations - CORRECT ANSWER-✔✔✅The contract should be interpreted as a
reasonable person would interpret it
Coverage C - CORRECT ANSWER-✔✔✅personal property
HO-3 (special form) - CORRECT ANSWER-✔✔✅covers the dwelling and other structures on a risk-of-
direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded.
Personal property is covered on a named perils basis
HO-2 (broad form) - CORRECT ANSWER-✔✔✅covers the dwelling, other structures, and personal
property on a named perils basis
HO-4 (contents broad form) - CORRECT ANSWER-✔✔✅covers a tenant's personal property on a named
perils basis
