Georgia Insurance Adjuster Licensing Exam V2
2026/2027 | Real Exam Questions & Verified Answers |
Complete Prep Guide | Grade A
Q: Adam is shopping for a car in a local automobile dealership. While visiting the
showroom, he trips over a rug that has folded over and breaks his arm in the fall. Which
of the following is true?
Answer
Adam may file a third party claim with the dealership's insurance company.
Q: Which of the following refers to being restored to the financial condition you were
in before a loss?
Answer
Indemnification
Q: Tim is the plaintiff in a case involving an auto accident. To recover monies he feels
are due him, Tim produces documents to prove he had to pay over $55,000 in medical
bills. If the court were to award Tim $55,000, the damages would be classified as:
Answer
special damages
(Tim's medical bills are tangible and have a quantifiable value, which makes them
special damages)
,Q: Which of the following is an insurable risk?
Answer
A football stadium
Q: Six Stars Development Company has just purchased several large properties in Las
Vegas. As a result of this large purchase, they are a little short on money and decide to
save money by not purchasing insurance on their new properties. Six Stars is practicing:
Answer
risk retention
(Were Six Stars to purchase insurance for their property, this would constitute risk
transference. Instead, Six Stars has chosen to retain the risks involved in owning these
properties, and is practicing risk retention)
Q: In Georgia, after a policyholder files a claim, the insurer has ______ days to send
proof of loss forms.
Answer
15
Q: A power surge sparks a small electrical fire in an office building. The electrical fire
triggers the automatic sprinkler system. The water from the sprinklers soaks the carpets
and shorts-out all the computers, causing thousands of dollars in damage. What is the
proximate cause of the loss?
Answer
The power surge
,(The power surge caused the fire, which caused the sprinklers to go off, which led to the
water damage to the office and computers. Since there is an unbroken chain of events
starting with the power surge, the power surge is the proximate cause of all the other
damages.)
Q: What is a reserve, in insurance terms?
Answer
A pool of collected premiums that the insurer sets aside to pay claims
Q: Which of the following situations does NOT involve an insurable risk?
Answer
Dale just bought 30 shares of a hot new startup company online.
Q: Frank purchases an automobile policy from publicly-traded XYZ Insurance. He
pays regular monthly premiums, and also purchases stock in XYZ and receives
dividends when the company turns a profit. From which type of company has Frank
purchased insurance?
Answer
Stock insurer
(An insurer trading on the New York Stock Exchange is a stock insurance company.
Stockholders provide capital for the company, and in return, the company shares its
profits with stockholders in the form of dividends.)
, Q: Jason's auto policy states that the insurer may cancel coverage if a premium is
more than 30 days late. However, Jason is currently more than 30 days late, and has
been so five times in the last year, and his insurer has done nothing about it. When
Jason gets into an accident and files a claim, which of the following is most likely to
happen?
Answer
The insurer will pay the claim because of the implied waiver they have made by not
canceling Jason's policy the previous times he was late with his payments.
Q: When an insurer buys insurance to reduce its exposure to loss, this is called:
Answer
re-insurance.
Q: Strict liability:
Answer
holds a person liable for his actions regardless of how much care he demonstrates.
Q: An insurer that adheres to the laws of a state but is located outside of that state is
called a(n) ___________ insurer.
Answer
foreign
(Foreign Insurers adhere to the laws of the United States or the laws of a particular state
but are not necessarily housed in that state.)
2026/2027 | Real Exam Questions & Verified Answers |
Complete Prep Guide | Grade A
Q: Adam is shopping for a car in a local automobile dealership. While visiting the
showroom, he trips over a rug that has folded over and breaks his arm in the fall. Which
of the following is true?
Answer
Adam may file a third party claim with the dealership's insurance company.
Q: Which of the following refers to being restored to the financial condition you were
in before a loss?
Answer
Indemnification
Q: Tim is the plaintiff in a case involving an auto accident. To recover monies he feels
are due him, Tim produces documents to prove he had to pay over $55,000 in medical
bills. If the court were to award Tim $55,000, the damages would be classified as:
Answer
special damages
(Tim's medical bills are tangible and have a quantifiable value, which makes them
special damages)
,Q: Which of the following is an insurable risk?
Answer
A football stadium
Q: Six Stars Development Company has just purchased several large properties in Las
Vegas. As a result of this large purchase, they are a little short on money and decide to
save money by not purchasing insurance on their new properties. Six Stars is practicing:
Answer
risk retention
(Were Six Stars to purchase insurance for their property, this would constitute risk
transference. Instead, Six Stars has chosen to retain the risks involved in owning these
properties, and is practicing risk retention)
Q: In Georgia, after a policyholder files a claim, the insurer has ______ days to send
proof of loss forms.
Answer
15
Q: A power surge sparks a small electrical fire in an office building. The electrical fire
triggers the automatic sprinkler system. The water from the sprinklers soaks the carpets
and shorts-out all the computers, causing thousands of dollars in damage. What is the
proximate cause of the loss?
Answer
The power surge
,(The power surge caused the fire, which caused the sprinklers to go off, which led to the
water damage to the office and computers. Since there is an unbroken chain of events
starting with the power surge, the power surge is the proximate cause of all the other
damages.)
Q: What is a reserve, in insurance terms?
Answer
A pool of collected premiums that the insurer sets aside to pay claims
Q: Which of the following situations does NOT involve an insurable risk?
Answer
Dale just bought 30 shares of a hot new startup company online.
Q: Frank purchases an automobile policy from publicly-traded XYZ Insurance. He
pays regular monthly premiums, and also purchases stock in XYZ and receives
dividends when the company turns a profit. From which type of company has Frank
purchased insurance?
Answer
Stock insurer
(An insurer trading on the New York Stock Exchange is a stock insurance company.
Stockholders provide capital for the company, and in return, the company shares its
profits with stockholders in the form of dividends.)
, Q: Jason's auto policy states that the insurer may cancel coverage if a premium is
more than 30 days late. However, Jason is currently more than 30 days late, and has
been so five times in the last year, and his insurer has done nothing about it. When
Jason gets into an accident and files a claim, which of the following is most likely to
happen?
Answer
The insurer will pay the claim because of the implied waiver they have made by not
canceling Jason's policy the previous times he was late with his payments.
Q: When an insurer buys insurance to reduce its exposure to loss, this is called:
Answer
re-insurance.
Q: Strict liability:
Answer
holds a person liable for his actions regardless of how much care he demonstrates.
Q: An insurer that adheres to the laws of a state but is located outside of that state is
called a(n) ___________ insurer.
Answer
foreign
(Foreign Insurers adhere to the laws of the United States or the laws of a particular state
but are not necessarily housed in that state.)
