GA SURPLUS LINES - EXAM PREP QUESTIONS AND ANSWERS. 2026/2027

GA SURPLUS LINES - EXAM PREP QUESTIONS AND ANSWERS. 2026/2027 who assumes control over an insurances company's funds and management if they become insolvent - ANSWER -department of insurance the transfer of an insured's right to seek damages from a negligent party to the insurer is found in which of the following clauses - ANSWER -subrogration every insured who procures or causes to be procured insurance with an unauthorized insurere w/in this state other than through a surplus lines broker must - ANSWER -file a report of the same w/ the commissioner w/in 30 days after the date the insurance was procured Mr. Kem owns a building which his real estate agent says will sell for $400,000. to comply w/ the 80% coinsurance provision of his insurance policy, how much should he insured it for - ANSWER -80% of ACV or more insurable interest is most closely related to which of the following - ANSWER principle of indemnity all of the following policies contain an automatic reinstatement provision which, after a loss is paid, restores the limits of coverage except - ANSWER -a) personal automobile liability b) homeowners c) general liability written w/ an aggregate limit d) business automobile liability C in property insurance policy, what is ther term for the amount of a loss which the insured must cover out of their own pocket and the insurer will only pay for the additional amount of the loss above this limit - ANSWER -deductible which of the following would not limit the amount payable by the insurer in the event of a covered property loss - ANSWER -the market value of the damaged property a company that has not received permission from the insurance commissioner to do business is call - ANSWER -an unauthorized company when an agent broker, solicitor, counselor or adjuster is examined because of a complaint filed, and the commissioner finds that the complaint was not justified, the expenses of the examination will be assessed against - ANSWER -the insurance department Whenever the commissioner has reason to belive that any person is or has been engaged in unfair or deceptive act, he may issue and serve a statement of charges. IF, after a hearing, the charges are proved, a cease and desist order is subject to a fine of up to: - ANSWER -$10,000 any person found to be in violation of Georgia's insurance code will be issued a cease and desist order and subject to a fine of up to $ - ANSWER -$500 each violation a market established by the state that allows risks, unable to purchase insurance in the normal market, to purchase coverage from an insurer who they are assigned to is best described as a - ANSWER -shared market mechanism rebates are defined as - ANSWER -an illegal inducement to get individuals to purchase coverage which of the following statements is incorrect w/ regard to surplus lines insurance - ANSWER -policies wirtten by a surplus lines insurer typically contain standard coverage's and forms an individual whose insurance license is revoked by the commissioner will not be eligible to apply for another insurance license for a period of - ANSWER -5 years the requirement that agents and brokers must account for all insurance funds collected and without the expressed consent of the insurance company(ies) are not permited to co-mingle those funds with their own funds is known as - ANSWER fiduciary responsibility if after a hearing the commissioner determines that a person charged has engaged in an unfair practice prohibited by the code, the amount of the fine will be - ANSWER -up to $5,000 for each act if the practice was not willful which of the following would be an example of the most common form of the unfair trade practice of rebating - ANSWER -a licensee offering a portion of her commission to the prospect in return for the purchase of an insurance policy the floater policy that pays for expenses incurred to replace or restore documents that are lost of damaged on an all risk basis is - ANSWER -valuable papers and records coverage the type of proessional liability coveage a medical doctor needs is - ANSWER malpractice coverage a surplus lines broker shall only insure surplus lines risk with which of the following - ANSWER -a foreign insuere having capital and surplus amounting to at least three million dollars if any surplus lines broker fails to file the quarterly affidavit or fails to remit the tax provided by law within 30 days after the tax is due, the broker shall - ANSWER -be liable for a penalty of $25 for each day of deliquence what hazard would you be concerned about if you lived next to an explosives contractor - ANSWER -physical physical - nature of the premises, the system of heating and lighting, and the security of the premises moral - someone takes risks because they believe their insurance will cover the costs