GA Personal Lines Insurance Terms
Exam Questions With Correct Answers
Adverse Selection☑️Correct Ans-The insuring of risks that are of a poorer class (more prone to
losses) than the average risk
Agent☑️Correct Ans-A person who acts on the behalf of the insurer to sell, negotiate, or effect
insurance contracts; also known as a producer
Aggregate Limit☑️Correct Ans-The maximum limit of coverage available under a liability
policy during a policy year regardless of the number of claims that may be made or the number
of accidents that may occur
Agreed Value☑️Correct Ans-A property policy with a provision agreed upon by the insurer and
insured as to the amount of insurance that represents a fair valuation for the property at the time
the insurance is written
Aleatory☑️Correct Ans-A contract in which unequal amounts or values are exchanged. The
premium paid by the insured is small in relation to the amount that will be paid by the insurer in
the event of loss
Alien Insurer☑️Correct Ans-An insurance company that is incorporated outside the United
States
Apparent Authority☑️Correct Ans-The appearance of the assumption of authority based on the
actions, words, or deed of the principal or because of circumstances the principal created
Appraisal☑️Correct Ans-An assessment of property to determine either the correct amount of
insurance to be written or the amount of loss to be paid
,Arbitration☑️Correct Ans-Method of claim settlement used when the insured and insurer
cannot agree upon the amount of the loss
Assignment☑️Correct Ans-The transfer of a legal right or interest in an insurance policy
Authorized Insurer☑️Correct Ans-An insurance company that has qualified and received a
certificate of authority from the department of insurance to transact insurance in the state
Auto☑️Correct Ans-A land motor vehicle, trailer, or semi-trailer designed for use on public
roads, including attached machinery or equipment;auto does not include mobile equipment
Bailee☑️Correct Ans-A person or entity that has possession of personal property entrusted to
him/her by the owner.
Beneficiary☑️Correct Ans-The person who receives the benefits from the policy of insurance
Binder☑️Correct Ans-A temporary contract of insurance issued by an insurer or its agent that
places insurance in effect prior to the policy being issued
Blanket Bond☑️Correct Ans-This type of bond covers losses caused by dishonest employees
Blanket Insurance☑️Correct Ans-A single property insurance policy that provides coverage for
multiple classes of property at one location or provide coverage for one or more classes of
property at multiple locations
Bodily Injury Liability☑️Correct Ans-Legal liability arising from physical trauma to a person
or death arising from the negligent or purposeful act and omissions by an insured
Boycott☑️Correct Ans-An unfair trade practice in which one person refuses to do business with
another until he or she agrees to certain conditions
, Burglary☑️Correct Ans-The forced entry into another's premises with felonious intent
Cancellation☑️Correct Ans-The termination of an in-force insurance policy by either the
insured or the insurer prior to the expiration date shown in the policy. Termination may be
voluntary, involuntary, or in mutual accordance with provisions contained in the policy
Casualty Insurance☑️Correct Ans-A type of insurance that covers losses caused by injury to
persons or damage to the property of others
Cease and Desist Order☑️Correct Ans-Requires a person to stop committing an action that is in
violation of a provision
Certificate of Authority☑️Correct Ans-Authorizes a company to start conducting business and
specifies the kind(s) of insurance a company can transact. It is illegal for an insurance company
to transact insurance without this certificate
Class Rating☑️Correct Ans-The practice of computing a price per unit of insurance that applies
to all applicants possessing a given set of characteristics
Coercion☑️Correct Ans-An unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance
Coinsurance Clause☑️Correct Ans-A clause in which the insured agrees to share in the loss to
the extent that he/she is underinsured at the time of loss
Combined Single☑️Correct Ans-A single dollar limit of liability applying to the total damages
for bodily injury and property damaged combined, resulting from one accident or occurrence
Exam Questions With Correct Answers
Adverse Selection☑️Correct Ans-The insuring of risks that are of a poorer class (more prone to
losses) than the average risk
Agent☑️Correct Ans-A person who acts on the behalf of the insurer to sell, negotiate, or effect
insurance contracts; also known as a producer
Aggregate Limit☑️Correct Ans-The maximum limit of coverage available under a liability
policy during a policy year regardless of the number of claims that may be made or the number
of accidents that may occur
Agreed Value☑️Correct Ans-A property policy with a provision agreed upon by the insurer and
insured as to the amount of insurance that represents a fair valuation for the property at the time
the insurance is written
Aleatory☑️Correct Ans-A contract in which unequal amounts or values are exchanged. The
premium paid by the insured is small in relation to the amount that will be paid by the insurer in
the event of loss
Alien Insurer☑️Correct Ans-An insurance company that is incorporated outside the United
States
Apparent Authority☑️Correct Ans-The appearance of the assumption of authority based on the
actions, words, or deed of the principal or because of circumstances the principal created
Appraisal☑️Correct Ans-An assessment of property to determine either the correct amount of
insurance to be written or the amount of loss to be paid
,Arbitration☑️Correct Ans-Method of claim settlement used when the insured and insurer
cannot agree upon the amount of the loss
Assignment☑️Correct Ans-The transfer of a legal right or interest in an insurance policy
Authorized Insurer☑️Correct Ans-An insurance company that has qualified and received a
certificate of authority from the department of insurance to transact insurance in the state
Auto☑️Correct Ans-A land motor vehicle, trailer, or semi-trailer designed for use on public
roads, including attached machinery or equipment;auto does not include mobile equipment
Bailee☑️Correct Ans-A person or entity that has possession of personal property entrusted to
him/her by the owner.
Beneficiary☑️Correct Ans-The person who receives the benefits from the policy of insurance
Binder☑️Correct Ans-A temporary contract of insurance issued by an insurer or its agent that
places insurance in effect prior to the policy being issued
Blanket Bond☑️Correct Ans-This type of bond covers losses caused by dishonest employees
Blanket Insurance☑️Correct Ans-A single property insurance policy that provides coverage for
multiple classes of property at one location or provide coverage for one or more classes of
property at multiple locations
Bodily Injury Liability☑️Correct Ans-Legal liability arising from physical trauma to a person
or death arising from the negligent or purposeful act and omissions by an insured
Boycott☑️Correct Ans-An unfair trade practice in which one person refuses to do business with
another until he or she agrees to certain conditions
, Burglary☑️Correct Ans-The forced entry into another's premises with felonious intent
Cancellation☑️Correct Ans-The termination of an in-force insurance policy by either the
insured or the insurer prior to the expiration date shown in the policy. Termination may be
voluntary, involuntary, or in mutual accordance with provisions contained in the policy
Casualty Insurance☑️Correct Ans-A type of insurance that covers losses caused by injury to
persons or damage to the property of others
Cease and Desist Order☑️Correct Ans-Requires a person to stop committing an action that is in
violation of a provision
Certificate of Authority☑️Correct Ans-Authorizes a company to start conducting business and
specifies the kind(s) of insurance a company can transact. It is illegal for an insurance company
to transact insurance without this certificate
Class Rating☑️Correct Ans-The practice of computing a price per unit of insurance that applies
to all applicants possessing a given set of characteristics
Coercion☑️Correct Ans-An unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance
Coinsurance Clause☑️Correct Ans-A clause in which the insured agrees to share in the loss to
the extent that he/she is underinsured at the time of loss
Combined Single☑️Correct Ans-A single dollar limit of liability applying to the total damages
for bodily injury and property damaged combined, resulting from one accident or occurrence
