Georgia Property and Casualty Insurance
Exam Questions + Verified Answers
100% correct, Update 2026
BPP building coverage -
correct answer ✅insures the building at the described location,
outdoor, fixtures, furnitures, items used to service the property,
permanently installed machinery and equipment, and additions
under construction, including the materials, supplies, and
equipment.
HO limits of property at other residences -
correct answer ✅the larger of $1000 or 10% Coverage C. Limit
does not apply if property is moved because the residence premise
is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit
shown on declaration will apply on a proportional basis to each
residence
Dwellings under construction -
correct answer ✅The limit of liability for a dwelling under
construction is provisional, and is based on the completed value of
the structure. At the time of loss, the applicable limit is a
percentage of the provisional limit, based on the proportion of
actual cash value of the property at the time of loss. Premium is
based on an average amount of insurance during construction.
,Georgia Property and Casualty Insurance
Exam Questions + Verified Answers
100% correct, Update 2026
Water Backup & Sump Pump Endorsement -
correct answer ✅Coverage for up to $5,000 in loss or damage,
subject to a $250 deductible, can be provided for an additional
premium with this endorsement.
Automatic Increase in Insurance Endorsement -
correct answer ✅is used to provide at the annual renewal date of
the policy, an automatic increase in the Coverage A and B limits of
insurance to help offset inflation
Other insurance -
correct answer ✅A provision in an insurance policy that defines
how the policy will respond if there is another valid insurance policy
written on the same risk.
Stock Companies -
correct answer ✅Owned by the stockholders who provide the
capital necessary to establish and operate the insurance company
and who share in any profits or losses.
,Georgia Property and Casualty Insurance
Exam Questions + Verified Answers
100% correct, Update 2026
Mutual companies -
correct answer ✅Owned by the policyowners and issue
participating policies. Policyowners are entitled to dividends, which
are a return of excess premium and are nontaxable.
6 classes of insurance in Georgia -
correct answer ✅1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic
insurers? -
correct answer ✅Once every 5 years.
What are the timelines if a hearing is requested? -
correct answer ✅A hearing must be made within 30 days of the
receipt of the request.
, Georgia Property and Casualty Insurance
Exam Questions + Verified Answers
100% correct, Update 2026
A notification of the hearing must be sent at least 15 days in
advance.
Within 30 days of the hearing, the Commissioner must release his
decision.
What are the penalties after a notice, hearing, and cease and desist
order? -
correct answer ✅A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority -
correct answer ✅the authority of an agent, stated in the
document or agreement creating the agency
Implied authority -
correct answer ✅Authority that is not expressed or written into
the contract, but which the agent is assumed to have in order to
transact the business of insurance for the principal.
Exam Questions + Verified Answers
100% correct, Update 2026
BPP building coverage -
correct answer ✅insures the building at the described location,
outdoor, fixtures, furnitures, items used to service the property,
permanently installed machinery and equipment, and additions
under construction, including the materials, supplies, and
equipment.
HO limits of property at other residences -
correct answer ✅the larger of $1000 or 10% Coverage C. Limit
does not apply if property is moved because the residence premise
is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit
shown on declaration will apply on a proportional basis to each
residence
Dwellings under construction -
correct answer ✅The limit of liability for a dwelling under
construction is provisional, and is based on the completed value of
the structure. At the time of loss, the applicable limit is a
percentage of the provisional limit, based on the proportion of
actual cash value of the property at the time of loss. Premium is
based on an average amount of insurance during construction.
,Georgia Property and Casualty Insurance
Exam Questions + Verified Answers
100% correct, Update 2026
Water Backup & Sump Pump Endorsement -
correct answer ✅Coverage for up to $5,000 in loss or damage,
subject to a $250 deductible, can be provided for an additional
premium with this endorsement.
Automatic Increase in Insurance Endorsement -
correct answer ✅is used to provide at the annual renewal date of
the policy, an automatic increase in the Coverage A and B limits of
insurance to help offset inflation
Other insurance -
correct answer ✅A provision in an insurance policy that defines
how the policy will respond if there is another valid insurance policy
written on the same risk.
Stock Companies -
correct answer ✅Owned by the stockholders who provide the
capital necessary to establish and operate the insurance company
and who share in any profits or losses.
,Georgia Property and Casualty Insurance
Exam Questions + Verified Answers
100% correct, Update 2026
Mutual companies -
correct answer ✅Owned by the policyowners and issue
participating policies. Policyowners are entitled to dividends, which
are a return of excess premium and are nontaxable.
6 classes of insurance in Georgia -
correct answer ✅1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic
insurers? -
correct answer ✅Once every 5 years.
What are the timelines if a hearing is requested? -
correct answer ✅A hearing must be made within 30 days of the
receipt of the request.
, Georgia Property and Casualty Insurance
Exam Questions + Verified Answers
100% correct, Update 2026
A notification of the hearing must be sent at least 15 days in
advance.
Within 30 days of the hearing, the Commissioner must release his
decision.
What are the penalties after a notice, hearing, and cease and desist
order? -
correct answer ✅A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority -
correct answer ✅the authority of an agent, stated in the
document or agreement creating the agency
Implied authority -
correct answer ✅Authority that is not expressed or written into
the contract, but which the agent is assumed to have in order to
transact the business of insurance for the principal.
