INSURANCE ADJUSTER EXAMINATION SET ACTUAL TEST PAPER QUESTIONS CORRECT
ANSWERS GRADED A PLUS
commissions or valuable consideration to any person for services as an
agent, subagent, or adjuster unless that person is duly licensed under the
Answer: Code
● Mediation is not _____ on the parties involved, but with arbitration the
decision is final and _____. Answer: Binding
● Standard and Poor's, A.M. Best and Moody's are examples of: Answer:
Independent Rating Services
● What is the application fee for filing to become a self-insurer for
workers compensation in Georgia? Answer: $500
● Insurance adjusters have the "power to bind". Which of the following
statements best describes what this means? Answer: The principal is
bound to the decisions of the adjuster.
● The perils most frequently covered by a Difference in Conditions
policy are: Answer: Flood and Earthquake
,● What is the purpose of the Georgia Insurance Guaranty Association?
Answer: Cover claims of insolvent insurers
● Twisting Answer: The act of inducing or attempting to induce a policy
owner to drop an existing life insurance policy and to take another
policy that is substantially the same kind by using misrepresentations or
incomplete comparisons of the advantages and disadvantages of the two
policies. Most states have enacted legislation making twisting a crime.
● Churning Answer: Churning occurs when an insurance agent replaces
a policyholder's insurance policy for another insurance policy, usually
without consulting the policyholder and often with no changes to the
coverage itself. Agents who engage in churning do so in order to secure
an additional commission for the new policy they swap in.
● Rebating Answer: Rebating — a portion of the premium or the
agent's/broker's commission on the premium to the insured or other
inducements to place business with a specific insurer. Rebating is illegal
in the majority of states. Insurers must use filed rate credits or have
supporting methodology.
● Uninsured motorist coverage law in Georgia applies to bodily injury
claims sustained by an insured and caused by an uninsured motorist as
defined by the law. UMPD coverage is also included. Answer:
, ● In Georgia, the Chief Deputy Commissioner must execute a bond in
the amount of: Answer: $15,000
● Adjusters must maintain record of each investigation or adjustment
undertaken, and a statement of any fee, commission, or other
compensation received or to be received on account of the investigation
or adjustment. How long must the records be maintained for
examination? Answer: 5
● The limits of the Employers' Liability section of a standard workers'
compensation policy are: Answer: Listed on the information page
● An insured has purchased BAP physical damage coverage against
specified causes of loss. Protection applies to all of the following perils,
EXCEPT: Answer: Falling objects
● Which of the following statements is NOT TRUE of the Builders' Risk
coverage form? Answer: T
● An insured carries a liability policy and an umbrella policy. The
verdict in a personal injury liability suit was higher than the insured's
underlying liability policy's limit of insurance. In this situation: Answer:
The insurance company providing the insured's umbrella liability policy
can appeal the case at its own expense even if the insured and the
company providing the underlying policy do not appeal.
ANSWERS GRADED A PLUS
commissions or valuable consideration to any person for services as an
agent, subagent, or adjuster unless that person is duly licensed under the
Answer: Code
● Mediation is not _____ on the parties involved, but with arbitration the
decision is final and _____. Answer: Binding
● Standard and Poor's, A.M. Best and Moody's are examples of: Answer:
Independent Rating Services
● What is the application fee for filing to become a self-insurer for
workers compensation in Georgia? Answer: $500
● Insurance adjusters have the "power to bind". Which of the following
statements best describes what this means? Answer: The principal is
bound to the decisions of the adjuster.
● The perils most frequently covered by a Difference in Conditions
policy are: Answer: Flood and Earthquake
,● What is the purpose of the Georgia Insurance Guaranty Association?
Answer: Cover claims of insolvent insurers
● Twisting Answer: The act of inducing or attempting to induce a policy
owner to drop an existing life insurance policy and to take another
policy that is substantially the same kind by using misrepresentations or
incomplete comparisons of the advantages and disadvantages of the two
policies. Most states have enacted legislation making twisting a crime.
● Churning Answer: Churning occurs when an insurance agent replaces
a policyholder's insurance policy for another insurance policy, usually
without consulting the policyholder and often with no changes to the
coverage itself. Agents who engage in churning do so in order to secure
an additional commission for the new policy they swap in.
● Rebating Answer: Rebating — a portion of the premium or the
agent's/broker's commission on the premium to the insured or other
inducements to place business with a specific insurer. Rebating is illegal
in the majority of states. Insurers must use filed rate credits or have
supporting methodology.
● Uninsured motorist coverage law in Georgia applies to bodily injury
claims sustained by an insured and caused by an uninsured motorist as
defined by the law. UMPD coverage is also included. Answer:
, ● In Georgia, the Chief Deputy Commissioner must execute a bond in
the amount of: Answer: $15,000
● Adjusters must maintain record of each investigation or adjustment
undertaken, and a statement of any fee, commission, or other
compensation received or to be received on account of the investigation
or adjustment. How long must the records be maintained for
examination? Answer: 5
● The limits of the Employers' Liability section of a standard workers'
compensation policy are: Answer: Listed on the information page
● An insured has purchased BAP physical damage coverage against
specified causes of loss. Protection applies to all of the following perils,
EXCEPT: Answer: Falling objects
● Which of the following statements is NOT TRUE of the Builders' Risk
coverage form? Answer: T
● An insured carries a liability policy and an umbrella policy. The
verdict in a personal injury liability suit was higher than the insured's
underlying liability policy's limit of insurance. In this situation: Answer:
The insurance company providing the insured's umbrella liability policy
can appeal the case at its own expense even if the insured and the
company providing the underlying policy do not appeal.
