GEORGIA PROPERTY AND CASUALTY UPDATED TEST
PAPER QUESTIONS AND ANSWERS GRADED A+
✔✔Which of the following is an example of an indirect loss? - ✔✔B. An insured not
being able to stay in the home and having to stay in a hotel because of the fire damage
to the home
✔✔How are premiums affected if an insurance policy has the additional or
supplementary coverage provision? - ✔✔D. The premium increases
✔✔An "absolutely true statement" that determines the validity of an insurance policy is
a(n) - ✔✔B. Warranty
✔✔To renew its certificate of authority, an insurer must file statements for the preceding
year annually by - ✔✔B. March 1
✔✔Which provision requires that an insured protects property from further damage
following a loss? - ✔✔B. Duties after loss
✔✔Which of the following provisions requires an insurer to receive an insured's
approval, prior to paying out a professional liability policy claim? - ✔✔B. Consent to
settle a loss
✔✔The act that protects consumers against the distribution of incorrect and obsolete
personal or financial information is known as - ✔✔A. The Fair Credit Reporting Act.
✔✔How are premiums handled on a prepackage businessowners policy? - ✔✔C. There
is one premium for property and liability coverage.
✔✔In a personal auto policy, which of the following describes the medical payments
coverage? - ✔✔D. Part B
✔✔Which of the following policy components specifies the maximum amount an insured
may collect for a loss? - ✔✔B. Policy limits
✔✔What is the minimum limit for Uninsured Motorist coverage for bodily injury to one
person in the state of Georgia? - ✔✔C. $25,000
✔✔Which of the following refers to the upper limit a liability policy will pay out for all
claims that arise from a single accident? - ✔✔B. Per occurrence
✔✔An insured must provide which of the following to an insurer, prior to losses being
paid? - ✔✔D. Proof of loss
, ✔✔Drivers A and B are involved in an accident where driver A is 40% at fault and incurs
$5,000 in damages. Under the doctrine of contributory negligence,
how much can driver A collect from driver B? - ✔✔C. $0
✔✔For medical payments to be covered under Coverage C of a CGL policy, incurred
expenses must be reported to the insurer within - ✔✔B. 1 year of the accident.
✔✔What is the maximum fine for a single violation of the Insurance Code if a person
knew or should have known that an act would result in a violation? - ✔✔В. $10,000
✔✔Which of the following provides written evidence that an insurance policy has been
issued? - ✔✔D. certificate of insurance
✔✔The maximum amount of money the insurance company will pay for a particular
loss, or for loss during a period of time is known as what? - ✔✔C. Limits of liability
✔✔Which of the following is normally sent from an insured to an insurer, informing the
insurer of events leading to a possible claim to occur? - ✔✔C. Notice of claim
✔✔If an insurer terminates an insurance policy at the end of the policy period, the action
is referred to as - ✔✔B. Nonrenewal.
✔✔In insurance, the principle of subrogation is defined as - ✔✔A. When an insurer who
pays a claim can seek damages to recover the loss from a third party
✔✔In a liability policy with split limits of 20/40/10, what is the maximum amount payable
for bodily injury to two or more people per occurrence? - ✔✔B. $40,000
✔✔An individual decides that since he is going to die someday anyway, and since he
will be covered by insurance until then, he might as well drink and smoke. From the
underwriter's perspective, this is an example - ✔✔C. Morale hazard
✔✔Which of the following sections of a contract contains the insurer's promise to pay in
the event of a loss? - ✔✔B. Insuring Agreement
✔✔Identify which action constitutes an "offer" - ✔✔C. Submission of the application by
an applicant
✔✔Which of the following is NOT a feature of broad theft coverage under a dwelling
policy? - ✔✔D. It covers property in premises considered vacant for fewer than 60 days
PAPER QUESTIONS AND ANSWERS GRADED A+
✔✔Which of the following is an example of an indirect loss? - ✔✔B. An insured not
being able to stay in the home and having to stay in a hotel because of the fire damage
to the home
✔✔How are premiums affected if an insurance policy has the additional or
supplementary coverage provision? - ✔✔D. The premium increases
✔✔An "absolutely true statement" that determines the validity of an insurance policy is
a(n) - ✔✔B. Warranty
✔✔To renew its certificate of authority, an insurer must file statements for the preceding
year annually by - ✔✔B. March 1
✔✔Which provision requires that an insured protects property from further damage
following a loss? - ✔✔B. Duties after loss
✔✔Which of the following provisions requires an insurer to receive an insured's
approval, prior to paying out a professional liability policy claim? - ✔✔B. Consent to
settle a loss
✔✔The act that protects consumers against the distribution of incorrect and obsolete
personal or financial information is known as - ✔✔A. The Fair Credit Reporting Act.
✔✔How are premiums handled on a prepackage businessowners policy? - ✔✔C. There
is one premium for property and liability coverage.
✔✔In a personal auto policy, which of the following describes the medical payments
coverage? - ✔✔D. Part B
✔✔Which of the following policy components specifies the maximum amount an insured
may collect for a loss? - ✔✔B. Policy limits
✔✔What is the minimum limit for Uninsured Motorist coverage for bodily injury to one
person in the state of Georgia? - ✔✔C. $25,000
✔✔Which of the following refers to the upper limit a liability policy will pay out for all
claims that arise from a single accident? - ✔✔B. Per occurrence
✔✔An insured must provide which of the following to an insurer, prior to losses being
paid? - ✔✔D. Proof of loss
, ✔✔Drivers A and B are involved in an accident where driver A is 40% at fault and incurs
$5,000 in damages. Under the doctrine of contributory negligence,
how much can driver A collect from driver B? - ✔✔C. $0
✔✔For medical payments to be covered under Coverage C of a CGL policy, incurred
expenses must be reported to the insurer within - ✔✔B. 1 year of the accident.
✔✔What is the maximum fine for a single violation of the Insurance Code if a person
knew or should have known that an act would result in a violation? - ✔✔В. $10,000
✔✔Which of the following provides written evidence that an insurance policy has been
issued? - ✔✔D. certificate of insurance
✔✔The maximum amount of money the insurance company will pay for a particular
loss, or for loss during a period of time is known as what? - ✔✔C. Limits of liability
✔✔Which of the following is normally sent from an insured to an insurer, informing the
insurer of events leading to a possible claim to occur? - ✔✔C. Notice of claim
✔✔If an insurer terminates an insurance policy at the end of the policy period, the action
is referred to as - ✔✔B. Nonrenewal.
✔✔In insurance, the principle of subrogation is defined as - ✔✔A. When an insurer who
pays a claim can seek damages to recover the loss from a third party
✔✔In a liability policy with split limits of 20/40/10, what is the maximum amount payable
for bodily injury to two or more people per occurrence? - ✔✔B. $40,000
✔✔An individual decides that since he is going to die someday anyway, and since he
will be covered by insurance until then, he might as well drink and smoke. From the
underwriter's perspective, this is an example - ✔✔C. Morale hazard
✔✔Which of the following sections of a contract contains the insurer's promise to pay in
the event of a loss? - ✔✔B. Insuring Agreement
✔✔Identify which action constitutes an "offer" - ✔✔C. Submission of the application by
an applicant
✔✔Which of the following is NOT a feature of broad theft coverage under a dwelling
policy? - ✔✔D. It covers property in premises considered vacant for fewer than 60 days
