GA Property & Casualty Exam with
Complete Solutions
What kind of losses does insurance cover? Correct Ans-Insurance covers financial losses
Does insurance cover sentimental losses? Correct Ans-No
3 ways to manage risks Correct Ans-avoidance, reduction, retention
Full Retention Correct Ans-self insured
doesn't buy insurance
FULLY responsible for losses
Partial Retention Correct Ans-partial responsibility for losses
buys policy
has deductible
Insurable Interest Correct Ans-The extent of your financial interest at the time of the loss
Who owns mutual insurance companies? Correct Ans-the policy holders
, What is a reciprocal insurer? Correct Ans-organization insures only one type of insured for
P&C insurance only and managed by an attorney in fact. Premiums are paid to the attorney in
fact
Authorized/Admitted Correct Ans-MUST be granted a certificate of authority by GA Dept of
Insurance - allows them to use GA agents
Unauthorized/Nonadmitted Correct Ans-No certificate
Cannot use GA agents
GA agents have to use a surplus lines broker to write through an unauthorized company
Ex: Lloyds
Surplus Lines Broker Correct Ans-Has a special license that allows them to make contact with
unauthorized insurance companies
Requirement for use of Surplus Lines Broker Correct Ans-Insured has been rejected by three
authorized insurers
First Named Insured Correct Ans-the ranking insured in a Commercial Lines policy
What kind of loss is a stolen vehicle? Correct Ans-Direct loss
Complete Solutions
What kind of losses does insurance cover? Correct Ans-Insurance covers financial losses
Does insurance cover sentimental losses? Correct Ans-No
3 ways to manage risks Correct Ans-avoidance, reduction, retention
Full Retention Correct Ans-self insured
doesn't buy insurance
FULLY responsible for losses
Partial Retention Correct Ans-partial responsibility for losses
buys policy
has deductible
Insurable Interest Correct Ans-The extent of your financial interest at the time of the loss
Who owns mutual insurance companies? Correct Ans-the policy holders
, What is a reciprocal insurer? Correct Ans-organization insures only one type of insured for
P&C insurance only and managed by an attorney in fact. Premiums are paid to the attorney in
fact
Authorized/Admitted Correct Ans-MUST be granted a certificate of authority by GA Dept of
Insurance - allows them to use GA agents
Unauthorized/Nonadmitted Correct Ans-No certificate
Cannot use GA agents
GA agents have to use a surplus lines broker to write through an unauthorized company
Ex: Lloyds
Surplus Lines Broker Correct Ans-Has a special license that allows them to make contact with
unauthorized insurance companies
Requirement for use of Surplus Lines Broker Correct Ans-Insured has been rejected by three
authorized insurers
First Named Insured Correct Ans-the ranking insured in a Commercial Lines policy
What kind of loss is a stolen vehicle? Correct Ans-Direct loss
