GA Property & Casualty Exam Actual Questions and Answers 2024/2025 with complete solutions;100% verified

Partial Retention - partial responsibility for losses buys policy has deductible Cancellation - Stop policy mid-term before it has the chance to expire. Both insurer and insured can cancel a policy Broker - Producer who represents the insured and NOT the insurer Direct loss - physical destruction of property by lightening, wind, fire, theft, etc Does insurance cover sentimental losses? - No First Named Insured - the ranking insured in a Commercial Lines policy Full Retention - self insured doesn't buy insurance FULLY responsible for losses How do insurance companies use premiums? - Insurance companies use our premiums to cover losses of the few. In order to have an indirect loss, you must have - a direct loss Indirect loss - consequences of direct losses - e.g. loss of income, additional expenses to live, loss of rental income, etc.Insurable Interest - The extent of your financial interest at the time of the loss Insurance policy - A contract of indemnification that deals with pure risk only for losses that might take place Insurance policy covers what type of losses - Direct and Indirect Insured cancels policy - Request must be made in writing Made Whole - Put you back like you were as if the loss never happened 3 ways to manage risks - avoidance, reduction, retention McCarran Ferguson Act - 1945 - gave states the right o regulate insurance Named Insured - HIGHEST ranking insured for any policy Reinsurance - Insurance for the insurance company Risk - uncertainty of loss. The area between 1 and 100. Stock Companies - Run for the benefit of stockholders, company profits provide dividends to the stockholders. Also known as nonparticipating companies Authorized/Admitted - MUST be granted a certificate of authority by GA Dept of Insurance - allows them to use GA agents Surplus Lines Broker - Has a special license that allows them to make contact with unauthorized insurance companies Unauthorized/Nonadmitted - No certificate Cannot use GA agents GA agents have to use a surplus lines broker to write through an unauthorized company Ex: Lloyds What does property insurance cover? - structures and contentsWhat is the purpose of commercial insurance? - policies that cover NON personal activities of the insured where losses might take place What is the purpose of personal lines insurance? - Coverage for personal activities of the insured for losses that might take place What kind of loss is a stolen vehicle? - Direct loss What kind of losses does insurance cover? - Insurance covers financial losses