GEORGIA PROPERTY AND CASUALTY INSURANCE EXAM-
REAL ACTUAL EXAM | LATEST UPDATE 2025-WELL
EXPLAINED QUESTIONS WITH CORRECT ANSWERS |
RATED 100% CORRECT!! ALREADY GRADED A+
What is a Homeowners Insurance Policy? - (answers)A standardized package
insurance policy for residential real estate owners.
What does a Homeowners Insurance Policy cover? - (answers)Financial loss from fire,
theft, public liability, and other common risks.
What is the Dwellings Policy also known as? - (answers)Coverage A
What does the Dwellings Policy cover? - (answers)Repairing or rebuilding your home
after it's damaged by something covered by your insurance.
What are examples of damages covered by the Dwellings Policy? - (answers)A falling
tree branch or bursting frozen pipes.
What is commercial insurance also known as? - (answers)Business insurance
What does commercial insurance protect a business from? - (answers)Future risks
What types of coverage may be included in a commercial insurance policy? -
(answers)Business property damage, loss of income due to business interruption, legal
issues, theft, and employees' grievances
What types of losses does commercial insurance cover? - (answers)Losses related to
unexpected events like lawsuits, accidents, or natural disasters
What is inland marine insurance an offshoot of? - (answers)Ocean marine insurance
What does inland marine insurance cover? - (answers)Equipment, tools, and other
property used at a job site, stored at a warehouse, or moved over land
What is the purpose of each type of inland marine insurance? - (answers)To cover a
specific type of property
National Flood Insurance Program - (answers)The federal government's program to
provide Flood insurance at subsidized rates.
Insurance - (answers)protection against possible financial loss
,Insurable Interest - (answers)Any financial interest in life or property such that, if the life
or property were lost or harmed, the insured would suffer financially.
Risk - (answers)Degree of uncertainty of return on an asset; in business, the likelihood
of loss or reduced profit.
Hazard - (answers)(n.) risk, peril; (v.) to expose to danger or harm; to gamble
Peril - (answers)cause of loss
Loss - (answers)The basis of a claim for damages under the terms of a policy
Loss Valuation - (answers)A factor in determining the premium charged and the amount
of insurance required.
Proximate Cause - (answers)Legal cause; exists when the connection between an act
and an injury is strong enough to justify imposing liability.
Deductible - (answers)Amount you must pay before you begin receiving any benefits
from your insurance company
Indemnity - (answers)a payment for damage or loss
Limits of Liability - (answers)The maximum amount of money the insurance company
will pay for a particular loss, or for loss during a period of time.
Coinsurance/Insurance to Value - (answers)Splitting or spreading of risk among the
insurance company and the insured. It rewards you when you buy adequate amounts of
coverage, but if you dont.
Occurence - (answers)something that happens
Cancellation - (answers)The termination of an in-force insurance policy by either the
insured or the insurer prior to the expiration date shown in the policy.
Non-renewal - (answers)A decision by an insurance company not to renew a policy.
Vacancy - (answers)an empty area or space
Liability - (answers)(n.) a debt; something disadvantageous
Negligence - (answers)careless neglect, often resulting in injury
Binder - (answers)A temporary written or oral agreement to provide insurance coverage
until a formal written policy is issued.
,What is an insurance endorsement? - (answers)An insurance endorsement is an
amendment to a property and casualty insurance policy.
What can an insurance endorsement do? - (answers)It can add, remove, or change the
policy's coverage.
Are endorsements legally binding? - (answers)Yes, endorsements are legally binding
and enforceable by law.
Can endorsements override the original policy document? - (answers)Yes,
endorsements can override whatever the original policy document says.
Can insurers add mandatory endorsements to policies? - (answers)Yes, insurers can
add mandatory endorsements that the insured must accept before buying the policy.
Blanket vs. Specific - (answers)BLANKET COVERAGE-provides coverage for different
classes of property under one policy.
SPECIFIC INSURANCE-is when you insure a specific item or specific kind of property.
Declarations - (answers)The section of an insurance policy containing the basic
underwriting information, such as the insured's name, address, amount of coverage and
premiums, and a description of insured locations, as well as any supplemental
representations by the insured.
Insuring Agreement - (answers)A statement in an insurance policy that the insurer will,
under described circumstances, make a loss payment or provide a service.
Conditions - (answers)provisions in the policy that qualify or place limitations on the
insurer's promise to perform
Exclusions - (answers)Causes of loss, exposures, conditions, etc. listed in the policy for
which the benefits will not be paid.
Definition of the insured - (answers)An insurance contract must identify the persons or
parties who are insured under the policy
Duties of the insured - (answers)-pay premiums
-notify the insurer of insured events within a reasonable time
-cooperate with insurer's investigation
Obligations of the company - (answers)the duty to defend and duty to indemnify
Mortgage Rights - (answers)give the property owner the right to encumber the property
with a mortgage.
, Proof of Loss - (answers)A statement of facts about a loss for which the insured is
making a claim.
Notice of Claim - (answers)A provision that spells out an insured's duty to provide the
insurer with reasonable notice in the event of a loss.
Appraisal - (answers)evaluation or estimation of worth
other-insurance provisions - (answers)prevent profiting from insurance and violation of
the principle of indemnity
Subrogation - (answers)The process by which an insurer can, after it has paid a loss
under the policy, recover the amount paid from any party (other than the insured) who
caused the loss or is otherwise legally liable for the loss.
Elements of Contract - (answers)offer, acceptance, consideration, legality, capacity,
consent, writing
Sources of underwriting - (answers)include the application, medical exams, an
Attending Physician's Statement, the Medical Information Bureau (MIB), an inspection
report, and the agent's report.
Fair Credit Reporting Act - (answers)Law that grants consumers to the right to know
who requests to view their credit report over the past year
Privacy Protection (Gramm Leach Bailey) - (answers)seeks to protect consumer
financial privacy. Its provisions limit when a "financial institution" may disclose a
consumer's "nonpublic personal information" to nonaffiliated third parties.
Policy Application - (answers)printed form that includes questions about a prospective
insured and the desired insurance coverage and limits.
What is the Terrorism Insurance Act? - (answers)A United States federal law.
Who signed the Terrorism Insurance Act into law? - (answers)President George W.
Bush
When was the Terrorism Insurance Act signed into law? - (answers)November 26, 2002
What does the Terrorism Insurance Act create for insurance claims? - (answers)A
federal 'backstop' for insurance claims related to acts of terrorism.
Territory - (answers)an area of land under the jurisdiction of a ruler or state.
What are representations in insurance? - (answers)Representations are the statements
made by the insured on the insurance application.
REAL ACTUAL EXAM | LATEST UPDATE 2025-WELL
EXPLAINED QUESTIONS WITH CORRECT ANSWERS |
RATED 100% CORRECT!! ALREADY GRADED A+
What is a Homeowners Insurance Policy? - (answers)A standardized package
insurance policy for residential real estate owners.
What does a Homeowners Insurance Policy cover? - (answers)Financial loss from fire,
theft, public liability, and other common risks.
What is the Dwellings Policy also known as? - (answers)Coverage A
What does the Dwellings Policy cover? - (answers)Repairing or rebuilding your home
after it's damaged by something covered by your insurance.
What are examples of damages covered by the Dwellings Policy? - (answers)A falling
tree branch or bursting frozen pipes.
What is commercial insurance also known as? - (answers)Business insurance
What does commercial insurance protect a business from? - (answers)Future risks
What types of coverage may be included in a commercial insurance policy? -
(answers)Business property damage, loss of income due to business interruption, legal
issues, theft, and employees' grievances
What types of losses does commercial insurance cover? - (answers)Losses related to
unexpected events like lawsuits, accidents, or natural disasters
What is inland marine insurance an offshoot of? - (answers)Ocean marine insurance
What does inland marine insurance cover? - (answers)Equipment, tools, and other
property used at a job site, stored at a warehouse, or moved over land
What is the purpose of each type of inland marine insurance? - (answers)To cover a
specific type of property
National Flood Insurance Program - (answers)The federal government's program to
provide Flood insurance at subsidized rates.
Insurance - (answers)protection against possible financial loss
,Insurable Interest - (answers)Any financial interest in life or property such that, if the life
or property were lost or harmed, the insured would suffer financially.
Risk - (answers)Degree of uncertainty of return on an asset; in business, the likelihood
of loss or reduced profit.
Hazard - (answers)(n.) risk, peril; (v.) to expose to danger or harm; to gamble
Peril - (answers)cause of loss
Loss - (answers)The basis of a claim for damages under the terms of a policy
Loss Valuation - (answers)A factor in determining the premium charged and the amount
of insurance required.
Proximate Cause - (answers)Legal cause; exists when the connection between an act
and an injury is strong enough to justify imposing liability.
Deductible - (answers)Amount you must pay before you begin receiving any benefits
from your insurance company
Indemnity - (answers)a payment for damage or loss
Limits of Liability - (answers)The maximum amount of money the insurance company
will pay for a particular loss, or for loss during a period of time.
Coinsurance/Insurance to Value - (answers)Splitting or spreading of risk among the
insurance company and the insured. It rewards you when you buy adequate amounts of
coverage, but if you dont.
Occurence - (answers)something that happens
Cancellation - (answers)The termination of an in-force insurance policy by either the
insured or the insurer prior to the expiration date shown in the policy.
Non-renewal - (answers)A decision by an insurance company not to renew a policy.
Vacancy - (answers)an empty area or space
Liability - (answers)(n.) a debt; something disadvantageous
Negligence - (answers)careless neglect, often resulting in injury
Binder - (answers)A temporary written or oral agreement to provide insurance coverage
until a formal written policy is issued.
,What is an insurance endorsement? - (answers)An insurance endorsement is an
amendment to a property and casualty insurance policy.
What can an insurance endorsement do? - (answers)It can add, remove, or change the
policy's coverage.
Are endorsements legally binding? - (answers)Yes, endorsements are legally binding
and enforceable by law.
Can endorsements override the original policy document? - (answers)Yes,
endorsements can override whatever the original policy document says.
Can insurers add mandatory endorsements to policies? - (answers)Yes, insurers can
add mandatory endorsements that the insured must accept before buying the policy.
Blanket vs. Specific - (answers)BLANKET COVERAGE-provides coverage for different
classes of property under one policy.
SPECIFIC INSURANCE-is when you insure a specific item or specific kind of property.
Declarations - (answers)The section of an insurance policy containing the basic
underwriting information, such as the insured's name, address, amount of coverage and
premiums, and a description of insured locations, as well as any supplemental
representations by the insured.
Insuring Agreement - (answers)A statement in an insurance policy that the insurer will,
under described circumstances, make a loss payment or provide a service.
Conditions - (answers)provisions in the policy that qualify or place limitations on the
insurer's promise to perform
Exclusions - (answers)Causes of loss, exposures, conditions, etc. listed in the policy for
which the benefits will not be paid.
Definition of the insured - (answers)An insurance contract must identify the persons or
parties who are insured under the policy
Duties of the insured - (answers)-pay premiums
-notify the insurer of insured events within a reasonable time
-cooperate with insurer's investigation
Obligations of the company - (answers)the duty to defend and duty to indemnify
Mortgage Rights - (answers)give the property owner the right to encumber the property
with a mortgage.
, Proof of Loss - (answers)A statement of facts about a loss for which the insured is
making a claim.
Notice of Claim - (answers)A provision that spells out an insured's duty to provide the
insurer with reasonable notice in the event of a loss.
Appraisal - (answers)evaluation or estimation of worth
other-insurance provisions - (answers)prevent profiting from insurance and violation of
the principle of indemnity
Subrogation - (answers)The process by which an insurer can, after it has paid a loss
under the policy, recover the amount paid from any party (other than the insured) who
caused the loss or is otherwise legally liable for the loss.
Elements of Contract - (answers)offer, acceptance, consideration, legality, capacity,
consent, writing
Sources of underwriting - (answers)include the application, medical exams, an
Attending Physician's Statement, the Medical Information Bureau (MIB), an inspection
report, and the agent's report.
Fair Credit Reporting Act - (answers)Law that grants consumers to the right to know
who requests to view their credit report over the past year
Privacy Protection (Gramm Leach Bailey) - (answers)seeks to protect consumer
financial privacy. Its provisions limit when a "financial institution" may disclose a
consumer's "nonpublic personal information" to nonaffiliated third parties.
Policy Application - (answers)printed form that includes questions about a prospective
insured and the desired insurance coverage and limits.
What is the Terrorism Insurance Act? - (answers)A United States federal law.
Who signed the Terrorism Insurance Act into law? - (answers)President George W.
Bush
When was the Terrorism Insurance Act signed into law? - (answers)November 26, 2002
What does the Terrorism Insurance Act create for insurance claims? - (answers)A
federal 'backstop' for insurance claims related to acts of terrorism.
Territory - (answers)an area of land under the jurisdiction of a ruler or state.
What are representations in insurance? - (answers)Representations are the statements
made by the insured on the insurance application.
