Georgia Adjuster Exam
$10,000 for all expenses incurred during a 12-month period - ANS-What is the maximum an
insurer will pay under the equipment dealers cleanup and removal extension of an inland marine
policy?
$100,000 - ANS-If a liability policy had split limits of 100/300/100, what is the maximum amount
that would be payable in the event of injury to a single person? The first limit shown is the most
the policy will pay for bodily injury to any one person
$250,000 - ANS-The regular National Flood Insurance Program would insure an eligible
single-family dwelling for up to
It is written for the value of the dwelling up to $250,000 on a replacement cost basis
$5000 - ANS-A premium discount is the term that describes when an insured owes a total
standard premium greater than .
$5000 - ANS-Under the commercial crime coverage inside the premises - robbery or safe
burglary of other property, what is the special per occurrence limit that applies to loss or damage
to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or
records? A special limit of $5,000 per occurrence applies to loss or damage to precious metals,
precious and semiprecious stones, pearls, furs, manuscripts, drawings or records.
15% - ANS-An insured must get advanced warning if the premiums will be increased by more
than
Written notice of an increase in premiums that exceed this amount of the current policy's
premium must be delivered or mailed to the insured at least 45 days before the effective date of
the change
30 days - ANS-An insured with a homeowners policy has removed property from the insured
location to protect it from loss that could be caused by a covered peril. The removal coverage
applies for Removal coverage applies for 30 days when the property has been removed to be
protected.
4 essential elements of negligence: Duty, Breach, Injury, and Unbroken chain. Libel is a type of
intentional tort. - ANS-Elements of negligence
48 hours - ANS-Jean owns a craft store. The protective safeguards endorsement of her BOP
requires the store to have a functional automatic sprinkler system. A winter storm freezes the
pipes to the sprinkler system, causing the system to shut down. How many hours does Jean
have to restore the system before she must notify her insurer? If the automatic sprinkler system
,is shut down due to breakage, leakage, freezing, or opening of the sprinkler heads, the insured
has 48 hours to restore the system before he or she must notify the insurer.
A change in the risk that substantially increases the hazard insured against - ANS-If a policy has
been in affect for at least 60 days or is due for renewal, a cancellation may only be affected for
this reason
A coin collection valued at $500 lost in a fire - ANS-Which of the following losses would NOT be
covered by a homeowner's policy?
HO will pay up to $2,500 for silverware by theft; $1,500 for boats, motors, trailers; $1,500 for
loss of trailers not used with boats; but no more than $200 for coins.
A cost bond - ANS-When Mary decided to sue her neighbor for damages to her yard, she was
told to get a bond that would guarantee she would be able to pay court costs and resulting
damages if she loses the case. What kind of bond is this?
Cost bonds guarantee that the person (plaintiff) who brings legal action against another
(defendant) will be able to pay court costs and any resulting damages in the event he or she
loses the case.
A fire that was caused by the insured's negligence burns a neighboring building. The owner of
the building sues the insured. - ANS-Which of the following is a casualty loss?
Casualty insurance consists primarily of liability coverages, which protect an insured against
injury or damage claims made by other parties. Legal liability arises through negligence in this
case.
A partial premium refund - ANS-In a participation plan, the insured may be eligible for which of
the following?
The insured is eligible for dividends (partial premium refund) if the experience during the policy
term falls within guidelines established by the insurer at the inception of the policy term.
Dividends are not guaranteed, and to be eligible for participation, the account must generate a
minimum amount of premium.
A specific time (usually 60 days, time may vary) - ANS-In the event of a loss covered by the
policy, the named insured is required to submit to the insurer a signed sworn proof of loss within
A symbol - ANS-Business Auto Coverage applies only to those autos which are identified as
"covered autos" in the declarations of the policy. Covered autos are identified by
Abandonment - ANS-The property condition that precludes the insured from simply turning over
damaged property to the insurer and claiming a total loss is called .
Until the insurer has determined that the loss is total, the insured must protect the property from
further loss.
, Absolute - ANS-What kind of liability would a person with a swimming pool have?
Any conduct that is inherently dangerous imposes this liability. The claimant does not have to
prove anythhing.
Additional coverage clause - ANS-What provision would pay coverage for defense expenses at
no additional premium?
This is a provision in an insurance policy that provides additional amount of coverage for
specific loss expense,
Aggregate limit of liability - ANS-The maximum limit of coverage available under a liability policy
during a policy year regardless of the number of clams that may be made or the number of
accidents that may occur
All accidents at single location at same time by same cause - ANS-Which would be considered
a single accident in equipment breakdown coverage?
If an accident causes other accidents, all related accidents will be treated as one accident. All
accidents occurring at a single location at the same time, and having the same cause, will be
considered to be one accident.
All of the expense up to the Coverage D limit - ANS-An insured works outside the home. The
insured's sister lives with him and cares for his 4 children. When his home is severely damaged
by fire, they move into an apartment while repairs are being made. The largest apartment
available in the area has 2 bedrooms, so the insured's sister stays at a motel while the repairs
are made. How much will the HO-3 pay for their additional living expense?
Coverage D will pay the expenses incurred to maintain the same lifestyle as before the loss.
An auto borrowed from an employee - ANS-What would not qualify as a hired auto?
Hired automobiles include those that are leased, hired, rented or borrowed excluding autos that
are owned by employees
An employee is caught stealing cash from the register. - ANS-Which would NOT be covered by
the inside the premises - robbery or safe burglary of other property coverage? Dishonest or
criminal acts of any employee or representative are specifically excluded.
Arbitration - ANS-** Bob insists that the insurer owes him $10,000 for liability damages, while his
insurer asserts that they owe him no more than $7,000. Which of the following would most likely
describe the type of claim settlement that they might pursue?
-When an insured and insurer cannot agree on how to settle a claim, arbitration is often used.
The settlement is submitted to an arbitrator(s) whose decision may or may not be binding on
both parties dependent on state law.
$10,000 for all expenses incurred during a 12-month period - ANS-What is the maximum an
insurer will pay under the equipment dealers cleanup and removal extension of an inland marine
policy?
$100,000 - ANS-If a liability policy had split limits of 100/300/100, what is the maximum amount
that would be payable in the event of injury to a single person? The first limit shown is the most
the policy will pay for bodily injury to any one person
$250,000 - ANS-The regular National Flood Insurance Program would insure an eligible
single-family dwelling for up to
It is written for the value of the dwelling up to $250,000 on a replacement cost basis
$5000 - ANS-A premium discount is the term that describes when an insured owes a total
standard premium greater than .
$5000 - ANS-Under the commercial crime coverage inside the premises - robbery or safe
burglary of other property, what is the special per occurrence limit that applies to loss or damage
to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or
records? A special limit of $5,000 per occurrence applies to loss or damage to precious metals,
precious and semiprecious stones, pearls, furs, manuscripts, drawings or records.
15% - ANS-An insured must get advanced warning if the premiums will be increased by more
than
Written notice of an increase in premiums that exceed this amount of the current policy's
premium must be delivered or mailed to the insured at least 45 days before the effective date of
the change
30 days - ANS-An insured with a homeowners policy has removed property from the insured
location to protect it from loss that could be caused by a covered peril. The removal coverage
applies for Removal coverage applies for 30 days when the property has been removed to be
protected.
4 essential elements of negligence: Duty, Breach, Injury, and Unbroken chain. Libel is a type of
intentional tort. - ANS-Elements of negligence
48 hours - ANS-Jean owns a craft store. The protective safeguards endorsement of her BOP
requires the store to have a functional automatic sprinkler system. A winter storm freezes the
pipes to the sprinkler system, causing the system to shut down. How many hours does Jean
have to restore the system before she must notify her insurer? If the automatic sprinkler system
,is shut down due to breakage, leakage, freezing, or opening of the sprinkler heads, the insured
has 48 hours to restore the system before he or she must notify the insurer.
A change in the risk that substantially increases the hazard insured against - ANS-If a policy has
been in affect for at least 60 days or is due for renewal, a cancellation may only be affected for
this reason
A coin collection valued at $500 lost in a fire - ANS-Which of the following losses would NOT be
covered by a homeowner's policy?
HO will pay up to $2,500 for silverware by theft; $1,500 for boats, motors, trailers; $1,500 for
loss of trailers not used with boats; but no more than $200 for coins.
A cost bond - ANS-When Mary decided to sue her neighbor for damages to her yard, she was
told to get a bond that would guarantee she would be able to pay court costs and resulting
damages if she loses the case. What kind of bond is this?
Cost bonds guarantee that the person (plaintiff) who brings legal action against another
(defendant) will be able to pay court costs and any resulting damages in the event he or she
loses the case.
A fire that was caused by the insured's negligence burns a neighboring building. The owner of
the building sues the insured. - ANS-Which of the following is a casualty loss?
Casualty insurance consists primarily of liability coverages, which protect an insured against
injury or damage claims made by other parties. Legal liability arises through negligence in this
case.
A partial premium refund - ANS-In a participation plan, the insured may be eligible for which of
the following?
The insured is eligible for dividends (partial premium refund) if the experience during the policy
term falls within guidelines established by the insurer at the inception of the policy term.
Dividends are not guaranteed, and to be eligible for participation, the account must generate a
minimum amount of premium.
A specific time (usually 60 days, time may vary) - ANS-In the event of a loss covered by the
policy, the named insured is required to submit to the insurer a signed sworn proof of loss within
A symbol - ANS-Business Auto Coverage applies only to those autos which are identified as
"covered autos" in the declarations of the policy. Covered autos are identified by
Abandonment - ANS-The property condition that precludes the insured from simply turning over
damaged property to the insurer and claiming a total loss is called .
Until the insurer has determined that the loss is total, the insured must protect the property from
further loss.
, Absolute - ANS-What kind of liability would a person with a swimming pool have?
Any conduct that is inherently dangerous imposes this liability. The claimant does not have to
prove anythhing.
Additional coverage clause - ANS-What provision would pay coverage for defense expenses at
no additional premium?
This is a provision in an insurance policy that provides additional amount of coverage for
specific loss expense,
Aggregate limit of liability - ANS-The maximum limit of coverage available under a liability policy
during a policy year regardless of the number of clams that may be made or the number of
accidents that may occur
All accidents at single location at same time by same cause - ANS-Which would be considered
a single accident in equipment breakdown coverage?
If an accident causes other accidents, all related accidents will be treated as one accident. All
accidents occurring at a single location at the same time, and having the same cause, will be
considered to be one accident.
All of the expense up to the Coverage D limit - ANS-An insured works outside the home. The
insured's sister lives with him and cares for his 4 children. When his home is severely damaged
by fire, they move into an apartment while repairs are being made. The largest apartment
available in the area has 2 bedrooms, so the insured's sister stays at a motel while the repairs
are made. How much will the HO-3 pay for their additional living expense?
Coverage D will pay the expenses incurred to maintain the same lifestyle as before the loss.
An auto borrowed from an employee - ANS-What would not qualify as a hired auto?
Hired automobiles include those that are leased, hired, rented or borrowed excluding autos that
are owned by employees
An employee is caught stealing cash from the register. - ANS-Which would NOT be covered by
the inside the premises - robbery or safe burglary of other property coverage? Dishonest or
criminal acts of any employee or representative are specifically excluded.
Arbitration - ANS-** Bob insists that the insurer owes him $10,000 for liability damages, while his
insurer asserts that they owe him no more than $7,000. Which of the following would most likely
describe the type of claim settlement that they might pursue?
-When an insured and insurer cannot agree on how to settle a claim, arbitration is often used.
The settlement is submitted to an arbitrator(s) whose decision may or may not be binding on
both parties dependent on state law.
