GEORGIA PROPERTY AND CASUALTY |
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
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Updated 2026 Questions and Answers
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,Insurance Terms and Related Concepts. the acquisition by an insurer of an insured's rights against any third party for
Define subrogation. indemnification of loss or other payment, to the extent that the insurer pays the loss.
Insurance Terms and Related Concepts. Both result in injury to persons or damage to property that is neither intended nor
What is the difference between an accident and an expected; however, an accident is a sudden, unplanned and unexpected event, and an
occurrence? occurrence includes those losses caused by continuous or repeated exposure to certain
conditions.
Insurance Terms and Related Concepts. Direct losses can cause indirect losses.
How are indirect and direct loss related?
Insurance Terms and Related Concepts. It is more difficult to determine the loss monetarily with bodily injury, since it may lead to
In which of the two types of damage - property damage and claims by the injured party not only for medical expenses and lost wages, but also for
bodily injury - is it more difficult to determine the monetary disfigurement, pain and suffering , mental anguish, and loss of consortium.
value of the loss and why?
Insurance Terms and Related Concepts. An insured structure in which no people have been living or working and no property
What is the difference between vacancy and unoccupancy? has been stored for the specified period of time constitutes vacancy. Unoccupancy
refers to an insured structure in which no people have been living or working within the
required period of the time, but some property is stored.
Insurance Terms and Related Concepts. Blanket insurance is a single property insurance policy provides coverage for multiple
What type of insurance provides coverage for multiple classes classes of property at one location, or for one or more classes of property at multiple
of property at one location? locations.
Insurance Terms and Related Concepts. reinforces the principle of indemnity because it recognizes the reduction of value of
Explain the actual cash value method of valuation. property as it ages and becomes subject to wear and tear and obsolescence.
Insurance Terms and Related Concepts. the injured party does not need to prove negligence.
When absolute liability is involved, does the injured party
need to prove negligence?
Insurance Terms and Related Concepts. Strict liability.
If a product is unsafe, what kind of liability applies to the
manufacturer?
Insurance Terms and Related Concepts. Bodily injury liability is physical injury, while personal injury liability includes injury to the
Compare bodily injury liability and personal injury liability. character of another person.
, Insurance Terms and Related Concepts. an act or event considered a natural and reasonably foreseeable cause of the damage to
What is proximate cause? property or injures a plaintiff.
Insurance Terms and Related Concepts. Homeowners policies.
What type of policies may include the insurance to value
provision?
Insurance Terms and Related Concepts. Written evidence showing that an insurance policy has been issued.
What is a certificate of insurance?
Policy Provisions and Contract Law. Agreement- offer and acceptance, consideration, competent parties, and legal purpose.
What are the four elements of an insurance contract?
Policy Provisions and Contract Law. statements believed to be true to the best of one's knowledge. A warranty is an
What does representation mean and how does it differ from a absolutely true statement upon which the validity of the insurance policy depends.
warranty?
Policy Provisions and Contract Law. a temporary oral or written agreement issued by an agent or insurer that provides
What is a binder? temporary coverage until a policy becomes effective.
Policy Provisions and Contract Law. include the basic underwriting information (such as the insured's name, address, amount
What information is included in a policy's declarations? of coverage and premiums, and a description of insured locations), and any supplemental
representations by the insured.
Policy Provisions and Contract Law. The additional coverage portion of a policy provides an additional amount of coverage
What are additional or supplementary payments? for specific loss expense, at no additional premium.
Policy Provisions and Contract Law. details what perils are not insured against and what persons are not insured.
What is included in the conditions section of a policy?
Policy Provisions and Contract Law. If there is a disagreement between the insured and the insurer on the value of any
When is an appraisal needed? How is it requested? property loss, either party can make a written demand for an appraisal. Each party will
select a competent appraiser who will then select a competent appraiser who will then
select an umpire if they are unable to agree on a fair value.
Policy Provisions and Contract Law. A sworn statement that must usually be furnished by the insured to an insurer before any
What is proof of loss? loss under a policy can be paid.
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Insurance Terms and Related Concepts. the acquisition by an insurer of an insured's rights against any third party for
Define subrogation. indemnification of loss or other payment, to the extent that the insurer pays the loss.
Insurance Terms and Related Concepts. Both result in injury to persons or damage to property that is neither intended nor
What is the difference between an accident and an expected; however, an accident is a sudden, unplanned and unexpected event, and an
occurrence? occurrence includes those losses caused by continuous or repeated exposure to certain
conditions.
Insurance Terms and Related Concepts. Direct losses can cause indirect losses.
How are indirect and direct loss related?
Insurance Terms and Related Concepts. It is more difficult to determine the loss monetarily with bodily injury, since it may lead to
In which of the two types of damage - property damage and claims by the injured party not only for medical expenses and lost wages, but also for
bodily injury - is it more difficult to determine the monetary disfigurement, pain and suffering , mental anguish, and loss of consortium.
value of the loss and why?
Insurance Terms and Related Concepts. An insured structure in which no people have been living or working and no property
What is the difference between vacancy and unoccupancy? has been stored for the specified period of time constitutes vacancy. Unoccupancy
refers to an insured structure in which no people have been living or working within the
required period of the time, but some property is stored.
Insurance Terms and Related Concepts. Blanket insurance is a single property insurance policy provides coverage for multiple
What type of insurance provides coverage for multiple classes classes of property at one location, or for one or more classes of property at multiple
of property at one location? locations.
Insurance Terms and Related Concepts. reinforces the principle of indemnity because it recognizes the reduction of value of
Explain the actual cash value method of valuation. property as it ages and becomes subject to wear and tear and obsolescence.
Insurance Terms and Related Concepts. the injured party does not need to prove negligence.
When absolute liability is involved, does the injured party
need to prove negligence?
Insurance Terms and Related Concepts. Strict liability.
If a product is unsafe, what kind of liability applies to the
manufacturer?
Insurance Terms and Related Concepts. Bodily injury liability is physical injury, while personal injury liability includes injury to the
Compare bodily injury liability and personal injury liability. character of another person.
, Insurance Terms and Related Concepts. an act or event considered a natural and reasonably foreseeable cause of the damage to
What is proximate cause? property or injures a plaintiff.
Insurance Terms and Related Concepts. Homeowners policies.
What type of policies may include the insurance to value
provision?
Insurance Terms and Related Concepts. Written evidence showing that an insurance policy has been issued.
What is a certificate of insurance?
Policy Provisions and Contract Law. Agreement- offer and acceptance, consideration, competent parties, and legal purpose.
What are the four elements of an insurance contract?
Policy Provisions and Contract Law. statements believed to be true to the best of one's knowledge. A warranty is an
What does representation mean and how does it differ from a absolutely true statement upon which the validity of the insurance policy depends.
warranty?
Policy Provisions and Contract Law. a temporary oral or written agreement issued by an agent or insurer that provides
What is a binder? temporary coverage until a policy becomes effective.
Policy Provisions and Contract Law. include the basic underwriting information (such as the insured's name, address, amount
What information is included in a policy's declarations? of coverage and premiums, and a description of insured locations), and any supplemental
representations by the insured.
Policy Provisions and Contract Law. The additional coverage portion of a policy provides an additional amount of coverage
What are additional or supplementary payments? for specific loss expense, at no additional premium.
Policy Provisions and Contract Law. details what perils are not insured against and what persons are not insured.
What is included in the conditions section of a policy?
Policy Provisions and Contract Law. If there is a disagreement between the insured and the insurer on the value of any
When is an appraisal needed? How is it requested? property loss, either party can make a written demand for an appraisal. Each party will
select a competent appraiser who will then select a competent appraiser who will then
select an umpire if they are unable to agree on a fair value.
Policy Provisions and Contract Law. A sworn statement that must usually be furnished by the insured to an insurer before any
What is proof of loss? loss under a policy can be paid.
