Insurance Adjuster Exam 2023/2024

Insurance Adjuster Exam 2023/2024 Which kind of losses are covered under a standard fire policy? - CORRECT ANSWERDirect All fires are not covered by the Standard Fire policies, only those that: - CORRECT ANSWER-are hostile and have a flame or glow At what time does a fire policy go into affect? - CORRECT ANSWER-12:01am standard time at the location of the insured's property A property is insured under two Standard Fire policies for $25,000 each. A fire causes $10,000 worth of damage. What is the maximum amount the insured may collect under each policy? - CORRECT ANSWER-$5,000 A fire burning in the middle of the living room would be considered: - CORRECT ANSWER-a hostile fire An insured's house is damaged by fire caused by a neighbor's negligence. The insurance company will attempt to recover damage from the neighbor. This is called: - CORRECT ANSWER-subrogation Which of the following statements are true concerning requirements of the standard fire policy? - CORRECT ANSWER-The insured must separate damaged from undamaged property in the event there is a loss AND If a loss occurs, the insured normally has 60 days to file a proof of loss with the insurer Which types of property are excluded from coverage under the basic fire policy? - CORRECT ANSWER-accounts, currency, deeds, and securities Who is insured under the Standard Fire policy? - CORRECT ANSWER-the named insured and his legal representatives An agreement which affords temporary insurance protection until the policy is issued is called: - CORRECT ANSWER-a binder as a general rule, a complete fire insurance policy would be made up of: - CORRECT ANSWER-the Standard Fire policy with one or more forms attached The one condition listed below which will not void a fire policy: a) false swearing b) misrepresentation c) over-insurance d) concealment - CORRECT ANSWER-over-insurance replacement cost minus depreciation: - CORRECT ANSWER-Actual Cash Value (ACV) The Standard Fire policy with an extended coverage endorsement attached covers which of the following: - CORRECT ANSWER-riot A loss due to order of Civil Authority: - CORRECT ANSWER-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 : - CORRECT ANSWER-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? - CORRECT ANSWER-60 days after April 30th For recovery under the Standard Fire policy, a party must: - CORRECT ANSWER-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? - CORRECT ANSWER-None Once elected, how long is the insurance commissioner's term? - CORRECT ANSWER4 years Is there a limit on the number of terms an insurance commissioner can serve? - CORRECT ANSWER-No Who is Georgia's current insurance commissioner? - CORRECT ANSWER-Ralph Hudgens What two capacities does Georgia's insurance commissioner serve? - CORRECT ANSWER-1. Chief Officer of Insurance Dept. 2. Chief Fire Marshall What happens if the Insurance Commissioner has to resign early? - CORRECT ANSWER-No election; the Chief Deputy will take over What is the requirement to serve as Chief Deputy in Georgia? - CORRECT ANSWERmust 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? - CORRECT ANSWER-once every 5 years Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner. Which is it? - CORRECT ANSWER-Superior Court of Fulton County What certificate is required for a company to be an authorized insurer in Georgia? - CORRECT ANSWER-Certificate of Authority Surplus Lines Risk - CORRECT ANSWER-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? - CORRECT ANSWER-if they're under financial distress What are the requirements to be a licensed producer in Georgia? - CORRECT ANSWER-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"? - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-d) inclusions something that increases the chance of a peril occurring is known as a(n): - CORRECT ANSWER-hazard open peril, or "all risk", forms: - CORRECT ANSWER-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? - CORRECT ANSWER-risk retention the insurance industry deals with those areas of risk where the chances of loss are: - CORRECT ANSWER-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 - CORRECT ANSWER-d) incompetent parties Actual cash value= - CORRECT ANSWER-replacement cost minus depreciation an insurance policy is an aleatory contract, which means: - CORRECT ANSWERperformance 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: - CORRECT ANSWER-subrogation clause the Law of Large Numbers states that: - CORRECT ANSWER-the more examples used to develop a statistic, the more reliable the statistic will be Which of the following about insurance policies are true? - CORRECT ANSWERpolicies are usually personal contracts The concept of restoring the insured to approximately the same economic position occupied before the loss is called: - CORRECT ANSWER-indemnity which of the following is used to modify an insurance policy from its original form? - CORRECT ANSWER-Endorsements an insurer formed under the law of a state of the United States other than the state where it is licensed, domiciled and chartered is: - CORRECT ANSWER-a Foreign insurer careless driving because the driver knows he or she is insured is a: - CORRECT ANSWER-Morale hazard oily rags left to accumulate in the garage is a: - CORRECT ANSWER-physical hazard insurance policies are contracts of adhesion, which means: - CORRECT ANSWERterms of the contract are drawn up by the insurer and the insured simply adheres to the terms It is assumed that any oral agreements made before contract formation were incorporated into the written contract. Once formed, earlier oral evidence will not be admitted in court to change or contradict the contract. This is known as: - CORRECT ANSWER-Parol Evidence Rule The two major types of insurers in the private sector are: - CORRECT ANSWER-Stock and Mutual companies temporary contract of insurance that commits the insurer before before a policy is issued is called a: - CORRECT ANSWER-binder a term that blocks all attempts to change conduct or reassert a right previously waived, and it usually applies after the other party has begun to rely on the conduct or waiver is known as: - CORRECT ANSWER-estoppel property and liability insurers use different marketing methods. Which of the following are features of the independent agency system? - CORRECT ANSWER-Agents can represent one or more insurers AND Agent owns renewal rights to policies Concealment is failure of the insurance applicant to reveal a material fact to the insurer. Which of the following statements must be proved before the insurer can deny a claim on the basis of concealment? - CORRECT ANSWER-a concealed fact was known to be material by the insured AND the insured intended to defraud the insurer who is considered the first party to an insurance contract? - CORRECT ANSWER-the Insured the insuring agreement summarizes the insurers obligations and conditions for loss payment. Which of the following is/are types of insuring agreements? - CORRECT ANSWER-open peril policy when a person installs burglar bars and a fire alarm system, what method of managing risks has been undertaken? - CORRECT ANSWER-Reduction All of the following could be covered under a named insured's personal auto policy, except: - CORRECT ANSWER-A private passenger vehicle owned by the named insured's spouse who moved to a separate residence 5 months ago (b/c policy only covers up to 90 days; she's been gone 5 months) The physical damage section of the personal auto policy excludes losses arising from: a) flood b) earthquake c) animals d) mechanical breakdowns - CORRECT ANSWER-d) mechanical breakdowns Which of the following causes of loss is covered by Other-Than-Collision Coverage written under a Personal Auto Policy? a) freezing b) electrical breakdown c) vandalism damage to tires d) upset - CORRECT ANSWER-vandalism damage to tires Which of the following losses would be covered by Other-Than-Collision Coverage under an automobile policy? a) mechanical breakdown b) hail c) wear and tear d) upset - CORRECT ANSWER-b) Hail What is the principle coverage under the Personal Auto Policy coverage Part D? a) liability coverage b) physical damage coverage c) uninsured motorist coverage d) medical payments coverage - CORRECT ANSWER-b) Physical Damage Coverage How much will the Personal Auto Policy Coverage Part A pay towards an appeal bond? - CORRECT ANSWER-unlimited to dollar amount All of the following are true about newly-acquired eligible vehicles, except: a) some coverage applies automatically to all newly acquired eligible vehicles b) comprehensive nor collision coverage is never automatically provided for newly acquired vehicles c) liability coverage for additional vehicles will be provided automatically only for 14 days d) if liability coverage applies to a replacement vehicle the coverage is automatic until the end of the policy term - CORRECT ANSWER-b) comprehensive nor collision coverage is never automatically provided to newly acquired vehicles all of the following statements concerning the physical damage section of the personal auto policy are correct except: a) coverage is provided for transportation expenses if a covered auto is stolen b) coverage is excluded for mechanical breakdown unless it is a result of theft of the covered vehicle c) coverage is excluded for private passenger autos borrowed by the named insured or family members d) the insurer has the option of repairing a damaged auto rather than making a monetary settlement - CORRECT ANSWER-c) coverage is excluded for private passenger autos borrowed by the named insured or family members Which of the following best outlines the intent of automobile liability insurance? - CORRECT ANSWER-To pay on behalf of the insured, all sums which the insured shall become legally obligated to pay as damages caused by accident and arising out of the ownership, or use of the automobile Personal Auto Policy (PAP) provisions includes duties of insured after an accident. All of the following are duties of insured after an accident, except: a) notify insurance company b) cooperate with insurer c) do not leave the auto and accident area