GA Adjuster Exam Review
1. life: In GA, insurance cannot be written by a reciprocal type insurer.
2. Code: No insurer or licensee doing business in Georgia may pay any commis-
sions or valuable consideration to any person for services as an agent, subagent,
or adjuster unless that person is duly licensed under the
3. Binding: Mediation is not on the parties involved, but with arbitration the
decision is final and .
4. Independent Rating Services: Standard and Poor's, A.M. Best and Moody's are
examples of:
5. $500: What is the application fee for filing to become a self-insurer for workers
compensation in Georgia?
6. The principal is bound to the decisions of the adjuster.: Insurance adjusters
have the "power to bind". Which of the following statements best describes what this
means?
7. Flood and Earthquake: The perils most frequently covered by a Difference in
Conditions policy are:
8. Cover claims of insolvent insurers: What is the purpose of the Georgia Insur-
ance Guaranty Association?
9. 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.: Twisting
10. Churning occurs when an insurance agent replaces a policyholder's in-
surance 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.: Churning
11. 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.: Rebating
12. : 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.
13. $15,000: In Georgia, the Chief Deputy Commissioner must execute a bond in
the amount of:
14. 5: Adjusters must maintain record of each investigation or adjustment undertak-
en, and a statement of any fee, commission, or other compensation received or to be
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, GA Adjuster Exam Review
received on account of the investigation or adjustment. How long must the records
be maintained for examination?
15. Listed on the information page: The limits of the Employers' Liability section
of a standard workers' compensation policy are:
16. Falling objects: An insured has purchased BAP physical damage coverage
against specified causes of loss. Protection applies to all of the following perils,
EXCEPT:
17. T: Which of the following statements is NOT TRUE of the Builders' Risk coverage
form?
18. 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.: 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:
19. A notice that states the proposed action may be taken by the Insurance
Department unless the person shows cause at a hearing why the action should
not be taken.: What is a "notice to show cause?"
20. 400 weeks: How long can temporary total disability payments be made to an
injured employee?
21. Damages awarded by a court: Which of the following is NOT covered by the
Federal Employee's Compensation Act (FECA)?
22. $10,000: What is the maximum penalty per violation if a person willfully and
knowingly or intentionally makes any false or misstatement for the purpose of
obtaining or denying benefits or payment of workers compensation coverage?
23. 25%: If an injured employee hires an attorney to represent them in a workers
compensation claim dispute, what percentage of the income benefits can the attor-
ney charge for the representation?
24. For each personal or family-type policy of private passenger motor vehicle
insurance issued or issued for delivery in this state, the insurer must offer
premium reductions of not less than 10% for motor vehicle liability, first party
medical, and collision coverages if all named drivers of each motor vehicle
covered by the policy satisfy the following requirements: 1. Have committed
no traffic offenses for the prior three years. 2. Have no claims based on fault
against an insurer for the prior three years. 3. Complete a defensive driving
course which is one of the types of courses approved by the Code.: In Georgia,
a premium reduction for a defensive driving course applies in which of the following
circumstances?
25. Immediately following the direct physical damage: The "period of restora-
tion" for the Extra Expense coverage included on the Business Income form is:
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1. life: In GA, insurance cannot be written by a reciprocal type insurer.
2. Code: No insurer or licensee doing business in Georgia may pay any commis-
sions or valuable consideration to any person for services as an agent, subagent,
or adjuster unless that person is duly licensed under the
3. Binding: Mediation is not on the parties involved, but with arbitration the
decision is final and .
4. Independent Rating Services: Standard and Poor's, A.M. Best and Moody's are
examples of:
5. $500: What is the application fee for filing to become a self-insurer for workers
compensation in Georgia?
6. The principal is bound to the decisions of the adjuster.: Insurance adjusters
have the "power to bind". Which of the following statements best describes what this
means?
7. Flood and Earthquake: The perils most frequently covered by a Difference in
Conditions policy are:
8. Cover claims of insolvent insurers: What is the purpose of the Georgia Insur-
ance Guaranty Association?
9. 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.: Twisting
10. Churning occurs when an insurance agent replaces a policyholder's in-
surance 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.: Churning
11. 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.: Rebating
12. : 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.
13. $15,000: In Georgia, the Chief Deputy Commissioner must execute a bond in
the amount of:
14. 5: Adjusters must maintain record of each investigation or adjustment undertak-
en, and a statement of any fee, commission, or other compensation received or to be
1/7
, GA Adjuster Exam Review
received on account of the investigation or adjustment. How long must the records
be maintained for examination?
15. Listed on the information page: The limits of the Employers' Liability section
of a standard workers' compensation policy are:
16. Falling objects: An insured has purchased BAP physical damage coverage
against specified causes of loss. Protection applies to all of the following perils,
EXCEPT:
17. T: Which of the following statements is NOT TRUE of the Builders' Risk coverage
form?
18. 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.: 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:
19. A notice that states the proposed action may be taken by the Insurance
Department unless the person shows cause at a hearing why the action should
not be taken.: What is a "notice to show cause?"
20. 400 weeks: How long can temporary total disability payments be made to an
injured employee?
21. Damages awarded by a court: Which of the following is NOT covered by the
Federal Employee's Compensation Act (FECA)?
22. $10,000: What is the maximum penalty per violation if a person willfully and
knowingly or intentionally makes any false or misstatement for the purpose of
obtaining or denying benefits or payment of workers compensation coverage?
23. 25%: If an injured employee hires an attorney to represent them in a workers
compensation claim dispute, what percentage of the income benefits can the attor-
ney charge for the representation?
24. For each personal or family-type policy of private passenger motor vehicle
insurance issued or issued for delivery in this state, the insurer must offer
premium reductions of not less than 10% for motor vehicle liability, first party
medical, and collision coverages if all named drivers of each motor vehicle
covered by the policy satisfy the following requirements: 1. Have committed
no traffic offenses for the prior three years. 2. Have no claims based on fault
against an insurer for the prior three years. 3. Complete a defensive driving
course which is one of the types of courses approved by the Code.: In Georgia,
a premium reduction for a defensive driving course applies in which of the following
circumstances?
25. Immediately following the direct physical damage: The "period of restora-
tion" for the Extra Expense coverage included on the Business Income form is:
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