Georgia Adjuster Exam with 137 Questions
and answers RATED A+ 100% PASS NEWEST
Consequential also known as Indirect Loss - Correct Answers An insured's business is damaged because II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
of a fire and he is forced to close business temporarily for repairs. As a result the insured lost income.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
What type of loss is this?
II! II! II! II! II! II!
II! Combined Single - Correct Answers The insured crashes into a porch and the person sitting on the porch.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! The person on the porch is injured. The insured's insurance policy has a limit set at $500,000. This amount
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! applies to the total of damages for any bodily injury and property damage resulting from one accident.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Which type of limit of liability does the insured have? This single dollar limit of liability applying to the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! total of damages for bodily injury and property damage combined resulting from one accident or
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! occurrence
II! $100,000 - Correct Answers If a liability policy had split limits of 100/300/100, what is the maximum
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! amount that would be payable in the event of injury to a single person? The first limit shown is the most
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! the policy will pay for bodily injury to any one person
II! II! II! II! II! II! II! II! II! II!
II! Absolute - Correct Answers What kind of liability would a person with a swimming pool have?
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Any conduct that is inherently dangerous imposes this liability. The claimant does not have to prove
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
anythhing.
II!
II! Only to individuals - Correct Answers An agent license can be issued
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! A change in the risk that substantially increases the hazard insured against - Correct Answers If a policy
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! has been in affect for at least 60 days or is due for renewal, a cancellation may only be affected for this
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! reason
II! Authorized Insurer - Correct Answers An insurer that holds a Certificate of Authority in the state in which
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! it transacts business is considered to be
II! II! II! II! II! II!
,II! 15% - Correct Answers An insured must get advanced warning if the premiums will be increased by
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! more than II!
Written notice of an increase in premiums that exceed this amount of the current policy's premium must
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
be delivered or mailed to the insured at least 45 days before the effective date of the change
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Indemnity - Correct Answers The insurance principle that states if a policy allows for greater
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! compensation than the financial loss incurred, the insured may only receive benefits for the amount lost. II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Loss - Correct Answers Insurance is a contract by which one seeks to protect another from
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Pair and Set Clause - Correct Answers The loss settlement based on the reasonable and fair portion that
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! the lost or damaged part bears to the total value of the set
II! II! II! II! II! II! II! II! II! II! II! II!
In the event of a loss to only part of a pair or set, losses will be settled either by repairing or replacing the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
damaged part or by paying the difference between the actual cash value before and after the loss.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Provides the insurer a method of settling a loss when only a part of the insured pair or set is damaged. The
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
insurer will pay for the loss or damage to an insured item, plus the amount that the loss of one item
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
detracts from the value of undamaged item(s) of the pair or set.
II! II! II! II! II! II! II! II! II! II! II! II!
II! Insuring clause, Exclusions, Conditions - Correct Answers The essential parts of an insurance policy
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Conditions - Correct Answers Because an insurance policy is legal contract, it must conform to the state
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! laws governing contracts which require all the following statements except
II! II! II! II! II! II! II! II! II!
Legal purpose, Consideration, Conditions, Offer and Acceptance
II! II! II! II! II! II!
II! Beneficiary's consent - Correct Answers An insurance contract must contain all of the following to be II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! considered legally binding EXCEPT II! II! II!
Offer and Acceptance, Consideration, Beneficiary's Consent, Competent Parties
II! II! II! II! II! II! II!
, The essential elements of a legal contract are
II! II! II! II! II! II! II! II!
Offer and Acceptance, Consideration, Competent Parties, Legal Purpose
II! II! II! II! II! II! II!
II! Consideration - Correct Answers ** Something of value one party gives to another. --The consideration II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! on the part of the insured is the payment of premium and the representations made in the policy.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
** When an insured makes truthful statements on the application for insurance and pays the required
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
premium, it is known as which of the following?
II! II! II! II! II! II! II! II! II!
-Consideration is something of value that each party gives to the other. The consideration on the part of II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
the insured is the payment of premium and the representations made in the application.
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! A specific time (usually 60 days, time may vary) - Correct Answers In the event of a loss covered by the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! policy, the named insured is required to submit to the insurer a signed sworn proof of loss within
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Garagekeepers Liability - Correct Answers Physical damage coverage on customers' autos while in care, II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! custody and control of the garage operation. II! II! II! II! II! II!
II! No coverage is provided for autos stored for more than 45 days at a location not shown in the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! declarations - Correct Answers Which of the following statements is true regarding physical damage II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! coverage in a garage form? II! II! II! II!
Collision coverage is provided only for dealers II! II! II! II! II! II!
Autos held for sale by a dealer are listed individually in the policy
II! II! II! II! II! II! II! II! II! II! II! II!
No coverage is provided for autos stored for more than 45 days at a location not shown in the declarations
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Specific causes-of loss coverage is not available for physical damage coverage
II! II! II! II! II! II! II! II! II! II!
and answers RATED A+ 100% PASS NEWEST
Consequential also known as Indirect Loss - Correct Answers An insured's business is damaged because II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
of a fire and he is forced to close business temporarily for repairs. As a result the insured lost income.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
What type of loss is this?
II! II! II! II! II! II!
II! Combined Single - Correct Answers The insured crashes into a porch and the person sitting on the porch.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! The person on the porch is injured. The insured's insurance policy has a limit set at $500,000. This amount
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! applies to the total of damages for any bodily injury and property damage resulting from one accident.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Which type of limit of liability does the insured have? This single dollar limit of liability applying to the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! total of damages for bodily injury and property damage combined resulting from one accident or
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! occurrence
II! $100,000 - Correct Answers If a liability policy had split limits of 100/300/100, what is the maximum
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! amount that would be payable in the event of injury to a single person? The first limit shown is the most
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! the policy will pay for bodily injury to any one person
II! II! II! II! II! II! II! II! II! II!
II! Absolute - Correct Answers What kind of liability would a person with a swimming pool have?
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Any conduct that is inherently dangerous imposes this liability. The claimant does not have to prove
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
anythhing.
II!
II! Only to individuals - Correct Answers An agent license can be issued
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! A change in the risk that substantially increases the hazard insured against - Correct Answers If a policy
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! has been in affect for at least 60 days or is due for renewal, a cancellation may only be affected for this
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! reason
II! Authorized Insurer - Correct Answers An insurer that holds a Certificate of Authority in the state in which
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! it transacts business is considered to be
II! II! II! II! II! II!
,II! 15% - Correct Answers An insured must get advanced warning if the premiums will be increased by
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! more than II!
Written notice of an increase in premiums that exceed this amount of the current policy's premium must
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
be delivered or mailed to the insured at least 45 days before the effective date of the change
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Indemnity - Correct Answers The insurance principle that states if a policy allows for greater
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! compensation than the financial loss incurred, the insured may only receive benefits for the amount lost. II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Loss - Correct Answers Insurance is a contract by which one seeks to protect another from
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Pair and Set Clause - Correct Answers The loss settlement based on the reasonable and fair portion that
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! the lost or damaged part bears to the total value of the set
II! II! II! II! II! II! II! II! II! II! II! II!
In the event of a loss to only part of a pair or set, losses will be settled either by repairing or replacing the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
damaged part or by paying the difference between the actual cash value before and after the loss.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Provides the insurer a method of settling a loss when only a part of the insured pair or set is damaged. The
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
insurer will pay for the loss or damage to an insured item, plus the amount that the loss of one item
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
detracts from the value of undamaged item(s) of the pair or set.
II! II! II! II! II! II! II! II! II! II! II! II!
II! Insuring clause, Exclusions, Conditions - Correct Answers The essential parts of an insurance policy
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Conditions - Correct Answers Because an insurance policy is legal contract, it must conform to the state
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! laws governing contracts which require all the following statements except
II! II! II! II! II! II! II! II! II!
Legal purpose, Consideration, Conditions, Offer and Acceptance
II! II! II! II! II! II!
II! Beneficiary's consent - Correct Answers An insurance contract must contain all of the following to be II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! considered legally binding EXCEPT II! II! II!
Offer and Acceptance, Consideration, Beneficiary's Consent, Competent Parties
II! II! II! II! II! II! II!
, The essential elements of a legal contract are
II! II! II! II! II! II! II! II!
Offer and Acceptance, Consideration, Competent Parties, Legal Purpose
II! II! II! II! II! II! II!
II! Consideration - Correct Answers ** Something of value one party gives to another. --The consideration II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! on the part of the insured is the payment of premium and the representations made in the policy.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
** When an insured makes truthful statements on the application for insurance and pays the required
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
premium, it is known as which of the following?
II! II! II! II! II! II! II! II! II!
-Consideration is something of value that each party gives to the other. The consideration on the part of II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
the insured is the payment of premium and the representations made in the application.
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! A specific time (usually 60 days, time may vary) - Correct Answers In the event of a loss covered by the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! policy, the named insured is required to submit to the insurer a signed sworn proof of loss within
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Garagekeepers Liability - Correct Answers Physical damage coverage on customers' autos while in care, II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! custody and control of the garage operation. II! II! II! II! II! II!
II! No coverage is provided for autos stored for more than 45 days at a location not shown in the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! declarations - Correct Answers Which of the following statements is true regarding physical damage II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! coverage in a garage form? II! II! II! II!
Collision coverage is provided only for dealers II! II! II! II! II! II!
Autos held for sale by a dealer are listed individually in the policy
II! II! II! II! II! II! II! II! II! II! II! II!
No coverage is provided for autos stored for more than 45 days at a location not shown in the declarations
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Specific causes-of loss coverage is not available for physical damage coverage
II! II! II! II! II! II! II! II! II! II!
