GEORGIA PROPERTY AND CASUALTY UPDATED EXAMS
SCRIPT QUESTIONS AND ANSWERS GRADED A+
✔✔Insurance Terms and Related Concepts.
If a product is unsafe, what kind of liability applies to the manufacturer? - ✔✔Strict
liability.
✔✔Insurance Terms and Related Concepts.
Compare bodily injury liability and personal injury liability. - ✔✔Bodily injury liability is
physical injury, while personal injury liability includes injury to the character of another
person.
✔✔Insurance Terms and Related Concepts.
What is proximate cause? - ✔✔an act or event considered a natural and reasonably
foreseeable cause of the damage to property or injures a plaintiff.
✔✔Insurance Terms and Related Concepts.
What type of policies may include the insurance to value provision? - ✔✔Homeowners
policies.
✔✔Insurance Terms and Related Concepts.
What is a certificate of insurance? - ✔✔Written evidence showing that an insurance
policy has been issued.
✔✔Policy Provisions and Contract Law.
What are the four elements of an insurance contract? - ✔✔Agreement- offer and
acceptance, consideration, competent parties, and legal purpose.
✔✔Policy Provisions and Contract Law.
What does representation mean and how does it differ from a warranty? -
✔✔statements believed to be true to the best of one's knowledge. A warranty is an
absolutely true statement upon which the validity of the insurance policy depends.
✔✔Policy Provisions and Contract Law.
What is a binder? - ✔✔a temporary oral or written agreement issued by an agent or
insurer that provides temporary coverage until a policy becomes effective.
✔✔Policy Provisions and Contract Law.
What information is included in a policy's declarations? - ✔✔include the basic
underwriting information (such as the insured's name, address, amount of coverage and
premiums, and a description of insured locations), and any supplemental
representations by the insured.
,✔✔Policy Provisions and Contract Law.
What are additional or supplementary payments? - ✔✔The additional coverage portion
of a policy provides an additional amount of coverage for specific loss expense, at no
additional premium.
✔✔Policy Provisions and Contract Law.
What is included in the conditions section of a policy? - ✔✔details what perils are not
insured against and what persons are not insured.
✔✔Policy Provisions and Contract Law.
When is an appraisal needed? How is it requested? - ✔✔If there is a disagreement
between the insured and the insurer on the value of any property loss, either party can
make a written demand for an appraisal. Each party will select a competent appraiser
who will then select a competent appraiser who will then select an umpire if they are
unable to agree on a fair value.
✔✔Policy Provisions and Contract Law.
What is proof of loss? - ✔✔A sworn statement that must usually be furnished by the
insured to an insurer before any loss under a policy can be paid.
✔✔Policy Provisions and Contract Law.
What is the difference between cancellation and nonrenewal? - ✔✔Cancellation is the
termination of an insurance policy by either party to the contract prior to the expiration
date shown in the policy. Nonrenewal is the termination of an insurance policy at its
expiration date by not offering a continuation of the existing policy or a replacement
policy.
✔✔Policy Provisions and Contract Law.
What is the purpose of the Fair Credit Reporting Act? - ✔✔It established procedures
that consumer-reporting agencies must follow in order to ensure that records are
confidential, accurate, relevant, and properly used. It also protects consumers against
the circulation of inaccurate or obsolete information.
✔✔Policy Provisions and Contract Law.
What is the purpose of the Terrorism Risk Insurance Act (TRIA)? - ✔✔to create a
temporary federal program that would share the risk of loss from future terrorist attacks
with the insurance industry.
✔✔Types of Property Policies.
Personal Lines:
What are the eligibility requirements for a dwelling property policy? - ✔✔The dwelling
policy can insure just the dwelling, only its contents, or both.
✔✔Types of Property Policies.
, Personal Lines:
What are the three dwelling policy forms? - ✔✔Basic, Broad, and Special.
✔✔Types of Property Policies.
Personal Lines:
What are extended covered perils? - ✔✔On a basic policy, extended covered perils
include windstorm or hail, explosion , smoke, aircraft and vehicles, riot or civil
commotion, volcanic eruption, and vandalism and malicious mischief.
✔✔Types of Property Policies.
Personal Lines:
What perils are insured against in a special form policy? - ✔✔The special form is an
open peril form. All perils are insured against except those specifically excluded.
✔✔Types of Property Policies.
Personal Lines:
What does fair rental value include? - ✔✔If property under Coverage A, B, or C
becomes damaged or destroyed and unfit for normal use, the policy will pay the fair
rental value of the described premises under Coverage D- Fair Rental Value, or part of
it used as rental property.
✔✔Types of Property Policies.
Personal Lines:
When does worldwide personal property coverage apply? What is not covered? -
✔✔The insured may elect to apply up to 10% of the personal property limit to pay for
losses to personal property away from the premises. There is no coverage for rowboats
or canoes, or for property of guests and servants if away form the insured premises.
✔✔Types of Property Policies.
Personal Lines:
If more than one person has an insurable interest in the property, is the insurer liable for
more than the insured's interest in the loss or damaged property? - ✔✔The insurer will
not be liable for more than the insured's interest in the loss or damaged property.
✔✔Types of Property Policies.
Personal Lines:
What coverage forms are available under the homeowners program? - ✔✔The 6
coverage forms available under the homeowners program are HO-2 broad form, HO-3
special forms, HO-4 contents broad form, HO-5 comprehensive form, HO-6
condominium unit owners, and HO-8 modified coverage form.
✔✔Types of Property Policies.
Personal Lines:
SCRIPT QUESTIONS AND ANSWERS GRADED A+
✔✔Insurance Terms and Related Concepts.
If a product is unsafe, what kind of liability applies to the manufacturer? - ✔✔Strict
liability.
✔✔Insurance Terms and Related Concepts.
Compare bodily injury liability and personal injury liability. - ✔✔Bodily injury liability is
physical injury, while personal injury liability includes injury to the character of another
person.
✔✔Insurance Terms and Related Concepts.
What is proximate cause? - ✔✔an act or event considered a natural and reasonably
foreseeable cause of the damage to property or injures a plaintiff.
✔✔Insurance Terms and Related Concepts.
What type of policies may include the insurance to value provision? - ✔✔Homeowners
policies.
✔✔Insurance Terms and Related Concepts.
What is a certificate of insurance? - ✔✔Written evidence showing that an insurance
policy has been issued.
✔✔Policy Provisions and Contract Law.
What are the four elements of an insurance contract? - ✔✔Agreement- offer and
acceptance, consideration, competent parties, and legal purpose.
✔✔Policy Provisions and Contract Law.
What does representation mean and how does it differ from a warranty? -
✔✔statements believed to be true to the best of one's knowledge. A warranty is an
absolutely true statement upon which the validity of the insurance policy depends.
✔✔Policy Provisions and Contract Law.
What is a binder? - ✔✔a temporary oral or written agreement issued by an agent or
insurer that provides temporary coverage until a policy becomes effective.
✔✔Policy Provisions and Contract Law.
What information is included in a policy's declarations? - ✔✔include the basic
underwriting information (such as the insured's name, address, amount of coverage and
premiums, and a description of insured locations), and any supplemental
representations by the insured.
,✔✔Policy Provisions and Contract Law.
What are additional or supplementary payments? - ✔✔The additional coverage portion
of a policy provides an additional amount of coverage for specific loss expense, at no
additional premium.
✔✔Policy Provisions and Contract Law.
What is included in the conditions section of a policy? - ✔✔details what perils are not
insured against and what persons are not insured.
✔✔Policy Provisions and Contract Law.
When is an appraisal needed? How is it requested? - ✔✔If there is a disagreement
between the insured and the insurer on the value of any property loss, either party can
make a written demand for an appraisal. Each party will select a competent appraiser
who will then select a competent appraiser who will then select an umpire if they are
unable to agree on a fair value.
✔✔Policy Provisions and Contract Law.
What is proof of loss? - ✔✔A sworn statement that must usually be furnished by the
insured to an insurer before any loss under a policy can be paid.
✔✔Policy Provisions and Contract Law.
What is the difference between cancellation and nonrenewal? - ✔✔Cancellation is the
termination of an insurance policy by either party to the contract prior to the expiration
date shown in the policy. Nonrenewal is the termination of an insurance policy at its
expiration date by not offering a continuation of the existing policy or a replacement
policy.
✔✔Policy Provisions and Contract Law.
What is the purpose of the Fair Credit Reporting Act? - ✔✔It established procedures
that consumer-reporting agencies must follow in order to ensure that records are
confidential, accurate, relevant, and properly used. It also protects consumers against
the circulation of inaccurate or obsolete information.
✔✔Policy Provisions and Contract Law.
What is the purpose of the Terrorism Risk Insurance Act (TRIA)? - ✔✔to create a
temporary federal program that would share the risk of loss from future terrorist attacks
with the insurance industry.
✔✔Types of Property Policies.
Personal Lines:
What are the eligibility requirements for a dwelling property policy? - ✔✔The dwelling
policy can insure just the dwelling, only its contents, or both.
✔✔Types of Property Policies.
, Personal Lines:
What are the three dwelling policy forms? - ✔✔Basic, Broad, and Special.
✔✔Types of Property Policies.
Personal Lines:
What are extended covered perils? - ✔✔On a basic policy, extended covered perils
include windstorm or hail, explosion , smoke, aircraft and vehicles, riot or civil
commotion, volcanic eruption, and vandalism and malicious mischief.
✔✔Types of Property Policies.
Personal Lines:
What perils are insured against in a special form policy? - ✔✔The special form is an
open peril form. All perils are insured against except those specifically excluded.
✔✔Types of Property Policies.
Personal Lines:
What does fair rental value include? - ✔✔If property under Coverage A, B, or C
becomes damaged or destroyed and unfit for normal use, the policy will pay the fair
rental value of the described premises under Coverage D- Fair Rental Value, or part of
it used as rental property.
✔✔Types of Property Policies.
Personal Lines:
When does worldwide personal property coverage apply? What is not covered? -
✔✔The insured may elect to apply up to 10% of the personal property limit to pay for
losses to personal property away from the premises. There is no coverage for rowboats
or canoes, or for property of guests and servants if away form the insured premises.
✔✔Types of Property Policies.
Personal Lines:
If more than one person has an insurable interest in the property, is the insurer liable for
more than the insured's interest in the loss or damaged property? - ✔✔The insurer will
not be liable for more than the insured's interest in the loss or damaged property.
✔✔Types of Property Policies.
Personal Lines:
What coverage forms are available under the homeowners program? - ✔✔The 6
coverage forms available under the homeowners program are HO-2 broad form, HO-3
special forms, HO-4 contents broad form, HO-5 comprehensive form, HO-6
condominium unit owners, and HO-8 modified coverage form.
✔✔Types of Property Policies.
Personal Lines:
