INSURANCE ADJUSTER UPDATED EXAMS SCRIPT
QUESTIONS AND ANSWERS SURE A+
✔✔The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment - ✔✔over-insurance
✔✔replacement cost minus depreciation: - ✔✔Actual Cash Value (ACV)
✔✔The Standard Fire policy with an extended coverage endorsement attached covers
which of the following: - ✔✔riot
✔✔A loss due to order of Civil Authority: - ✔✔is excluded unless the loss occurs
because of an order by Civil Authorities for the purpose of controlling a fire
✔✔The term "unoccupancy" refers to the absence of : - ✔✔persons from a building
✔✔Suppose a fire occurs on February 26th. On April 30th, the insurance company
notifies the mortgagee the insured has not filed a proof of loss. To protect their interest,
,the mortgagee must file a proof of loss within _________ days after what date? - ✔✔60
days after April 30th
✔✔For recovery under the Standard Fire policy, a party must: - ✔✔be named in the
policy and show an insurable interest in the property at the time the loss occurs
✔✔What is the requirement on how much experience one must have to be elected the
insurance commissioner in Georgia? - ✔✔None
✔✔Once elected, how long is the insurance commissioner's term? - ✔✔4 years
✔✔Is there a limit on the number of terms an insurance commissioner can serve? -
✔✔No
✔✔Who is Georgia's current insurance commissioner? - ✔✔Ralph Hudgens
✔✔What two capacities does Georgia's insurance commissioner serve? - ✔✔1. Chief
Officer of Insurance Dept.
2. Chief Fire Marshall
✔✔What happens if the Insurance Commissioner has to resign early? - ✔✔No election;
the Chief Deputy will take over
✔✔What is the requirement to serve as Chief Deputy in Georgia? - ✔✔must have a
bond in the amount of $15,000
✔✔If you are a domestic insurer in Georgia, how often does code say your financials
must be examined? - ✔✔once every 5 years
✔✔Only one court in Georgia has the right to overturn the decision of the Insurance
Commissioner. Which is it? - ✔✔Superior Court of Fulton County
✔✔What certificate is required for a company to be an authorized insurer in Georgia? -
✔✔Certificate of Authority
✔✔Surplus Lines Risk - ✔✔has been rejected by 3 authorized insurers
✔✔What is the primary reason the state of Georgia would revoke an insurance
company's certificate to authorize? - ✔✔if they're under financial distress
✔✔What are the requirements to be a licensed producer in Georgia? - ✔✔must be at
least 18 years old, take a 40 hour course, pass licensing exam, apply for license, pass
background check
, ✔✔Which of the following would be considered an "offer"? - ✔✔the applicant submits an
application to the company with payment
✔✔All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply - ✔✔c) the loss must not be definite and
definable
✔✔all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions - ✔✔d) inclusions
✔✔something that increases the chance of a peril occurring is known as a(n): -
✔✔hazard
✔✔open peril, or "all risk", forms: - ✔✔name the exclusions and limitations
✔✔When a person decides not to buy insurance because of the cost, what method of
handling risk has been undertaken? - ✔✔risk retention
✔✔the insurance industry deals with those areas of risk where the chances of loss are:
- ✔✔anywhere between 0% and 100%
✔✔which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties - ✔✔d) incompetent parties
✔✔Actual cash value= - ✔✔replacement cost minus depreciation
✔✔an insurance policy is an aleatory contract, which means: - ✔✔performance
depends on the occurrence of an uncertain event
✔✔an insured's right to seek damages from someone at-fault may be may be
transferred to the insurer under the policy's: - ✔✔subrogation clause
QUESTIONS AND ANSWERS SURE A+
✔✔The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment - ✔✔over-insurance
✔✔replacement cost minus depreciation: - ✔✔Actual Cash Value (ACV)
✔✔The Standard Fire policy with an extended coverage endorsement attached covers
which of the following: - ✔✔riot
✔✔A loss due to order of Civil Authority: - ✔✔is excluded unless the loss occurs
because of an order by Civil Authorities for the purpose of controlling a fire
✔✔The term "unoccupancy" refers to the absence of : - ✔✔persons from a building
✔✔Suppose a fire occurs on February 26th. On April 30th, the insurance company
notifies the mortgagee the insured has not filed a proof of loss. To protect their interest,
,the mortgagee must file a proof of loss within _________ days after what date? - ✔✔60
days after April 30th
✔✔For recovery under the Standard Fire policy, a party must: - ✔✔be named in the
policy and show an insurable interest in the property at the time the loss occurs
✔✔What is the requirement on how much experience one must have to be elected the
insurance commissioner in Georgia? - ✔✔None
✔✔Once elected, how long is the insurance commissioner's term? - ✔✔4 years
✔✔Is there a limit on the number of terms an insurance commissioner can serve? -
✔✔No
✔✔Who is Georgia's current insurance commissioner? - ✔✔Ralph Hudgens
✔✔What two capacities does Georgia's insurance commissioner serve? - ✔✔1. Chief
Officer of Insurance Dept.
2. Chief Fire Marshall
✔✔What happens if the Insurance Commissioner has to resign early? - ✔✔No election;
the Chief Deputy will take over
✔✔What is the requirement to serve as Chief Deputy in Georgia? - ✔✔must have a
bond in the amount of $15,000
✔✔If you are a domestic insurer in Georgia, how often does code say your financials
must be examined? - ✔✔once every 5 years
✔✔Only one court in Georgia has the right to overturn the decision of the Insurance
Commissioner. Which is it? - ✔✔Superior Court of Fulton County
✔✔What certificate is required for a company to be an authorized insurer in Georgia? -
✔✔Certificate of Authority
✔✔Surplus Lines Risk - ✔✔has been rejected by 3 authorized insurers
✔✔What is the primary reason the state of Georgia would revoke an insurance
company's certificate to authorize? - ✔✔if they're under financial distress
✔✔What are the requirements to be a licensed producer in Georgia? - ✔✔must be at
least 18 years old, take a 40 hour course, pass licensing exam, apply for license, pass
background check
, ✔✔Which of the following would be considered an "offer"? - ✔✔the applicant submits an
application to the company with payment
✔✔All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply - ✔✔c) the loss must not be definite and
definable
✔✔all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions - ✔✔d) inclusions
✔✔something that increases the chance of a peril occurring is known as a(n): -
✔✔hazard
✔✔open peril, or "all risk", forms: - ✔✔name the exclusions and limitations
✔✔When a person decides not to buy insurance because of the cost, what method of
handling risk has been undertaken? - ✔✔risk retention
✔✔the insurance industry deals with those areas of risk where the chances of loss are:
- ✔✔anywhere between 0% and 100%
✔✔which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties - ✔✔d) incompetent parties
✔✔Actual cash value= - ✔✔replacement cost minus depreciation
✔✔an insurance policy is an aleatory contract, which means: - ✔✔performance
depends on the occurrence of an uncertain event
✔✔an insured's right to seek damages from someone at-fault may be may be
transferred to the insurer under the policy's: - ✔✔subrogation clause
