GEORGIA PROPERTY AND CASUALTY
INSURANCE COMPREHENSIVE TEST 2026
QUESTIONS WITH SOLUTIONS
◉ 3 types of hazards. Answer: Physical, Moral, Morale
◉ Physical hazard. Answer: Physical hazards are those arising from
the material, structural, or operational features of the risk, apart
from the persons owning or managing it.
◉ Moral hazard. Answer: Moral hazards refer to those applicants
that may lie on an application for insurance, or in the past, have
submitted fraudulent claims against an insurer.
◉ Morale hazard. Answer: A condition of carelessness or
indifference that increases the frequency or severity of loss.
◉ Loss. Answer: The reduction, decrease, or disappearance of value
of the person or property insured in a policy, by a peril insured
against.
◉ Indemnity. Answer: Indemnity (sometimes referred to as
reimbursement) is a provision in an insurance policy that states that
,in the event of loss, an insured or a beneficiary is permitted to
collect only to the extent of the financial loss, and is not allowed to
gain financially because of the existence of an insurance contract.
◉ Subrogation. Answer: The process by which an insurer can, after it
has paid a loss under the policy, recover the amount paid from any
party (other than the insured) who caused the loss or is otherwise
legally liable for the loss.
◉ Accident. Answer: An unexpected happening that may result in
injury, loss, or damage.
◉ Occurrence. Answer: those losses caused by continuous or
repeated exposure to conditions resulting in injury to persons or
damage to property that is neither intended nor expected.
◉ Direct loss. Answer: Loss that is a direct result of a peril, such as
fire.
◉ Indirect loss. Answer: Loss that is a result or consequence of a
direct loss
◉ Named peril. Answer: A specific cause of loss listed and described
in an insurance policy. Also used to describe policies containing
named perils.
,◉ Open peril. Answer: Term used in property insurance to describe
the breadth of coverage provided under an insurance policy form
that insures against "any risk of loss" that is not specifically
excluded.
◉ What are the two classes of compensatory damages?. Answer:
special and general
◉ Special damages. Answer: A form of compensatory damages that
awards a sum of money for specific, identifiable expenses associated
with the injured person's loss, such as medical expenses or lost
wages.
◉ General damages. Answer: A monetary award to compensate a
victim for losses, such as pain and suffering, that do not involve
specific measurable expenses.
◉ Punitive damages. Answer: A third class of compensatory
damages. It is a form of punishment for extreme outrageous
behavior, gross negligence or willful intent.
◉ Negligence. Answer: The failure to use the care that a reasonable,
prudent person would have taken under the same/similar
circumstances.
, ◉ Burglary. Answer: entering a building unlawfully with intent to
commit a felony or to steal valuable property
◉ Robbery. Answer: the unlawful taking of property from a person's
immediate possession by force or intimidation
◉ Theft. Answer: Any act of stealing and encompasses both burglary
and robbery.
◉ Mysterious Disappearance. Answer: A disappearance of property
that cannot be explained as to the location, time or the manner of
property loss.
◉ Vacancy. Answer: Vacancy refers to an insured structure in which
no people have been living or working, and no property has been
stored for the period of time required as stated in the policy (usually
60 days).
◉ Unoccupied. Answer: A property that has contents or furnishings
in it, but is not being used or lived in.
◉ Blanket insurance. Answer: A single property insurance policy
that provides coverage for multiple classes of property at one
INSURANCE COMPREHENSIVE TEST 2026
QUESTIONS WITH SOLUTIONS
◉ 3 types of hazards. Answer: Physical, Moral, Morale
◉ Physical hazard. Answer: Physical hazards are those arising from
the material, structural, or operational features of the risk, apart
from the persons owning or managing it.
◉ Moral hazard. Answer: Moral hazards refer to those applicants
that may lie on an application for insurance, or in the past, have
submitted fraudulent claims against an insurer.
◉ Morale hazard. Answer: A condition of carelessness or
indifference that increases the frequency or severity of loss.
◉ Loss. Answer: The reduction, decrease, or disappearance of value
of the person or property insured in a policy, by a peril insured
against.
◉ Indemnity. Answer: Indemnity (sometimes referred to as
reimbursement) is a provision in an insurance policy that states that
,in the event of loss, an insured or a beneficiary is permitted to
collect only to the extent of the financial loss, and is not allowed to
gain financially because of the existence of an insurance contract.
◉ Subrogation. Answer: The process by which an insurer can, after it
has paid a loss under the policy, recover the amount paid from any
party (other than the insured) who caused the loss or is otherwise
legally liable for the loss.
◉ Accident. Answer: An unexpected happening that may result in
injury, loss, or damage.
◉ Occurrence. Answer: those losses caused by continuous or
repeated exposure to conditions resulting in injury to persons or
damage to property that is neither intended nor expected.
◉ Direct loss. Answer: Loss that is a direct result of a peril, such as
fire.
◉ Indirect loss. Answer: Loss that is a result or consequence of a
direct loss
◉ Named peril. Answer: A specific cause of loss listed and described
in an insurance policy. Also used to describe policies containing
named perils.
,◉ Open peril. Answer: Term used in property insurance to describe
the breadth of coverage provided under an insurance policy form
that insures against "any risk of loss" that is not specifically
excluded.
◉ What are the two classes of compensatory damages?. Answer:
special and general
◉ Special damages. Answer: A form of compensatory damages that
awards a sum of money for specific, identifiable expenses associated
with the injured person's loss, such as medical expenses or lost
wages.
◉ General damages. Answer: A monetary award to compensate a
victim for losses, such as pain and suffering, that do not involve
specific measurable expenses.
◉ Punitive damages. Answer: A third class of compensatory
damages. It is a form of punishment for extreme outrageous
behavior, gross negligence or willful intent.
◉ Negligence. Answer: The failure to use the care that a reasonable,
prudent person would have taken under the same/similar
circumstances.
, ◉ Burglary. Answer: entering a building unlawfully with intent to
commit a felony or to steal valuable property
◉ Robbery. Answer: the unlawful taking of property from a person's
immediate possession by force or intimidation
◉ Theft. Answer: Any act of stealing and encompasses both burglary
and robbery.
◉ Mysterious Disappearance. Answer: A disappearance of property
that cannot be explained as to the location, time or the manner of
property loss.
◉ Vacancy. Answer: Vacancy refers to an insured structure in which
no people have been living or working, and no property has been
stored for the period of time required as stated in the policy (usually
60 days).
◉ Unoccupied. Answer: A property that has contents or furnishings
in it, but is not being used or lived in.
◉ Blanket insurance. Answer: A single property insurance policy
that provides coverage for multiple classes of property at one
