Property and Casualty Insurance Exam - Georgia
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1. BPP building coverage: insures the building at the described location, outdoor, fixtures, furnitures,
items used to service the property, permanently installed machinery and equipment, and additions under construc-
tion, including the materials, supplies, and equipment.
2. HO limits of property at other residences: 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
3. Dwellings under construction: 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.
4. Water Backup & Sump Pump Endorsement: 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.
5. Automatic Increase in Insurance Endorsement: 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
6. Other insurance: 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.
7. Stock Companies: Owned by the stockholders who provide the capital necessary to establish and operate
the insurance company and who share in any profits or losses.
8. Mutual companies: Owned by the policyowners and issue participating policies. Policyowners are entitled
to dividends, which are a return of excess premium and are nontaxable.
9. 6 classes of insurance in Georgia: 1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
10. How often must the Insurance Commission examine domestic insurers?: -
Once every 5 years.
11. What are the timelines if a hearing is requested?: A hearing must be made within 30 days
of the receipt of the request.
, Property and Casualty Insurance Exam - Georgia
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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.
12. What are the penalties after a notice, hearing, and cease and desist order?: A
fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
13. Express authority: the authority of an agent, stated in the document or agreement creating the agency
14. Implied authority: 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.
15. Apparent authority: The appearance or the assumption of authority based on the actions, words, or
deeds of the principal or because of circumstances the principal created.
16. When does an agents license expire?: Licenses are good to for 2 years and expire on the last
day of the licensee's with month.
17. What are the CE requirements for an agent?: 24 CE credit hours every 2 years, including 3
credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including ethics.
18. How long must an agent keep records regarding contracts, premiums,
etc.?: All records must be kept for 5 years after the completion of a transaction or for the term of the contract,
whichever is greater.
19. Misrepresentation: Issuing, publishing, or circulation and illustration or sales materials that is false,
misleading, or deceptive as to policy benefits or terms, the payments of dividends, etc.
20. False advertising: advertising that is misleading in some important way, including the failure to reveal
facts about possible results from using the advertised products
21. Rebating: Any inducement offered in the sale of insurance products that is not specified in the policy. They
are illegal in Georgia.
22. Twisting: A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or
switch policies, even when it's to the insured's disadvantage.
23. Churning: Replacing insurance policies for the sole purpose of making commissions. It is illegal to replace
existing life or disability policies with new policies if the producer cannot demonstrate that the replacement will benefit
the insured.
, Property and Casualty Insurance Exam - Georgia
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24. Coercion: Unfair trade practice where an agent uses physical or mental force with the intense of inducing an
applicant to purchase insurance.
25. Defamation: Defamation occurs when an oral or written statement is made that is intended to injure a
person engaged in the insurance business. This also applies to statements that are maliciously critical of the financial
condition of any person or a company.
26. Controlled business: Controlled business is any coverage written on a producer's own life, health or
property, and/or that of the producer's immediate family or business associates. A licensee is not allowed to collect
commissions on controlled business at rate higher than 25% of the agent' volume per calendar year.
27. What is a binder: A temporary insurance contract that goes in effect prior to the policy issue. No binder
shall be valid pass the issuance of the policy beyond 90 days of its effective date, whichever period is shorted.
28. Georgia FAIR: The Georgia Fair Access to Insurance Requirement provides basic property insurance for
those who cannot obtain it in the ordinary market.
29. Georgia Automobile Insurance Plan: The Georgia Automobile Insurance Plan makes auto-
mobile insurance available for insureds who are unable to purchase coverage in the voluntary market. When an
automobile policy is cancelled or nonrenewed for a reason other than for nonpayment of premium, the insurer must
notify the insured of their eligibility for coverage through the Georgia Automobile Insurance Plan. The notice about
the Plan must accompany the notice of cancellation or nonrenewal.
30. Workman's Compensation: Covers all business with 3 or more employees
31. Workman's Compensation Coverage: Doctors bills
hospital bills
physical therapy
prescriptions
necessary travel expenses
Treatment limited to max of 400 weeks unless injuries are catastrophic.
32. What are the benefit payout requirements for WC?: Workers can collect WC benefits
after being out of work for more than 7 days, and the first check will arrive with 21 days of the first missed workday.
The compensation is limited to 2/3 of the worker's average weekly pay up to $575.
33. Georgia Workers Compensation Assigned Risk Plan: The Georgia Workers Compen-
sation Assigned Risk Plan exists to provide required Workers Compensation coverage for employers who do not
qualify for coverage in the voluntary market. Liability is apportioned among all insurers authorized to write Workers
Compensation and Employers Liability in the state.
, Property and Casualty Insurance Exam - Georgia
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34. How often must an insurer update their rate filings?: Every 2 years
All insurers must file their rates 45 days before their effective date.
When a rate increases more than 10$ or more within 12 months, the Commissioner will order and examination.
35. What is the Commissioner's term of office?: 4 years
36. When does an agent have to notify the Commissioner of a change of
address?: Within 30 days
37. How many days are allowed to report a criminal prosecution against a
licensee?: 30 days
38. What is the total liability of the Georgia Life and Health Insurance Guaranty
Association for any one life?: $300,000
39. PAP Section II Part B: Medical Expenses Coverage: -covers all reasonable medical costs
and funeral expenses incurred, by the insured or the insured's family members within 3 years of an accident
-recommended coverage of $50,000
40. Cancellation and Nonrenewal of Policies other than PA and PP: For all insurance
other than that covering a personal automobile or personal property, a notice of termination, including a notice of
cancellation or nonrenewal, a notice of increase in premiums that exceeds 15% of the current policy's premium unless
due to a change in risk or exposure or a notice of change in any policy provision which limits or restricts coverage
must be delivered or mailed to the insured at least 45 days before the effective date of such termination or change.
Failure to comply with this requirement entitles the policyholder to purchase a policy for an additional 30 days beyond
the current expiration date (on the same terms and conditions and with the same premium as the expiring policy). If
the policy will incur a premium increase of more than 15%, the dollar amount of that increase must be stated in the
notice.
41. Valuation of Loss For a 1-2 family residence: Georgia law contains a valued policy statute.
An insurer is required to value the property at the amount of insurance in effect at the time of the loss, minus any
depreciation. If the loss occurs within 30 days of policy issuance, the actual loss sustain up to the LOL will be paid.
42. What does the valued policy statute exclude?: This valuation provision does not apply to
the following situations:
The building or structure is not wholly destroyed by fire;
Insurance policies are issued by more than 1 company, insuring the same structure against fire, and the existence of
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1. BPP building coverage: insures the building at the described location, outdoor, fixtures, furnitures,
items used to service the property, permanently installed machinery and equipment, and additions under construc-
tion, including the materials, supplies, and equipment.
2. HO limits of property at other residences: 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
3. Dwellings under construction: 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.
4. Water Backup & Sump Pump Endorsement: 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.
5. Automatic Increase in Insurance Endorsement: 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
6. Other insurance: 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.
7. Stock Companies: Owned by the stockholders who provide the capital necessary to establish and operate
the insurance company and who share in any profits or losses.
8. Mutual companies: Owned by the policyowners and issue participating policies. Policyowners are entitled
to dividends, which are a return of excess premium and are nontaxable.
9. 6 classes of insurance in Georgia: 1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
10. How often must the Insurance Commission examine domestic insurers?: -
Once every 5 years.
11. What are the timelines if a hearing is requested?: A hearing must be made within 30 days
of the receipt of the request.
, Property and Casualty Insurance Exam - Georgia
Study online at https://quizlet.com/_5z30hi
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.
12. What are the penalties after a notice, hearing, and cease and desist order?: A
fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
13. Express authority: the authority of an agent, stated in the document or agreement creating the agency
14. Implied authority: 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.
15. Apparent authority: The appearance or the assumption of authority based on the actions, words, or
deeds of the principal or because of circumstances the principal created.
16. When does an agents license expire?: Licenses are good to for 2 years and expire on the last
day of the licensee's with month.
17. What are the CE requirements for an agent?: 24 CE credit hours every 2 years, including 3
credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including ethics.
18. How long must an agent keep records regarding contracts, premiums,
etc.?: All records must be kept for 5 years after the completion of a transaction or for the term of the contract,
whichever is greater.
19. Misrepresentation: Issuing, publishing, or circulation and illustration or sales materials that is false,
misleading, or deceptive as to policy benefits or terms, the payments of dividends, etc.
20. False advertising: advertising that is misleading in some important way, including the failure to reveal
facts about possible results from using the advertised products
21. Rebating: Any inducement offered in the sale of insurance products that is not specified in the policy. They
are illegal in Georgia.
22. Twisting: A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or
switch policies, even when it's to the insured's disadvantage.
23. Churning: Replacing insurance policies for the sole purpose of making commissions. It is illegal to replace
existing life or disability policies with new policies if the producer cannot demonstrate that the replacement will benefit
the insured.
, Property and Casualty Insurance Exam - Georgia
Study online at https://quizlet.com/_5z30hi
24. Coercion: Unfair trade practice where an agent uses physical or mental force with the intense of inducing an
applicant to purchase insurance.
25. Defamation: Defamation occurs when an oral or written statement is made that is intended to injure a
person engaged in the insurance business. This also applies to statements that are maliciously critical of the financial
condition of any person or a company.
26. Controlled business: Controlled business is any coverage written on a producer's own life, health or
property, and/or that of the producer's immediate family or business associates. A licensee is not allowed to collect
commissions on controlled business at rate higher than 25% of the agent' volume per calendar year.
27. What is a binder: A temporary insurance contract that goes in effect prior to the policy issue. No binder
shall be valid pass the issuance of the policy beyond 90 days of its effective date, whichever period is shorted.
28. Georgia FAIR: The Georgia Fair Access to Insurance Requirement provides basic property insurance for
those who cannot obtain it in the ordinary market.
29. Georgia Automobile Insurance Plan: The Georgia Automobile Insurance Plan makes auto-
mobile insurance available for insureds who are unable to purchase coverage in the voluntary market. When an
automobile policy is cancelled or nonrenewed for a reason other than for nonpayment of premium, the insurer must
notify the insured of their eligibility for coverage through the Georgia Automobile Insurance Plan. The notice about
the Plan must accompany the notice of cancellation or nonrenewal.
30. Workman's Compensation: Covers all business with 3 or more employees
31. Workman's Compensation Coverage: Doctors bills
hospital bills
physical therapy
prescriptions
necessary travel expenses
Treatment limited to max of 400 weeks unless injuries are catastrophic.
32. What are the benefit payout requirements for WC?: Workers can collect WC benefits
after being out of work for more than 7 days, and the first check will arrive with 21 days of the first missed workday.
The compensation is limited to 2/3 of the worker's average weekly pay up to $575.
33. Georgia Workers Compensation Assigned Risk Plan: The Georgia Workers Compen-
sation Assigned Risk Plan exists to provide required Workers Compensation coverage for employers who do not
qualify for coverage in the voluntary market. Liability is apportioned among all insurers authorized to write Workers
Compensation and Employers Liability in the state.
, Property and Casualty Insurance Exam - Georgia
Study online at https://quizlet.com/_5z30hi
34. How often must an insurer update their rate filings?: Every 2 years
All insurers must file their rates 45 days before their effective date.
When a rate increases more than 10$ or more within 12 months, the Commissioner will order and examination.
35. What is the Commissioner's term of office?: 4 years
36. When does an agent have to notify the Commissioner of a change of
address?: Within 30 days
37. How many days are allowed to report a criminal prosecution against a
licensee?: 30 days
38. What is the total liability of the Georgia Life and Health Insurance Guaranty
Association for any one life?: $300,000
39. PAP Section II Part B: Medical Expenses Coverage: -covers all reasonable medical costs
and funeral expenses incurred, by the insured or the insured's family members within 3 years of an accident
-recommended coverage of $50,000
40. Cancellation and Nonrenewal of Policies other than PA and PP: For all insurance
other than that covering a personal automobile or personal property, a notice of termination, including a notice of
cancellation or nonrenewal, a notice of increase in premiums that exceeds 15% of the current policy's premium unless
due to a change in risk or exposure or a notice of change in any policy provision which limits or restricts coverage
must be delivered or mailed to the insured at least 45 days before the effective date of such termination or change.
Failure to comply with this requirement entitles the policyholder to purchase a policy for an additional 30 days beyond
the current expiration date (on the same terms and conditions and with the same premium as the expiring policy). If
the policy will incur a premium increase of more than 15%, the dollar amount of that increase must be stated in the
notice.
41. Valuation of Loss For a 1-2 family residence: Georgia law contains a valued policy statute.
An insurer is required to value the property at the amount of insurance in effect at the time of the loss, minus any
depreciation. If the loss occurs within 30 days of policy issuance, the actual loss sustain up to the LOL will be paid.
42. What does the valued policy statute exclude?: This valuation provision does not apply to
the following situations:
The building or structure is not wholly destroyed by fire;
Insurance policies are issued by more than 1 company, insuring the same structure against fire, and the existence of
