Georgia Adjuster Exam2 Questions and
answers Latest 2025/26
Admitted - Correct Answers Which of the following is the most precise synonym for an "authorized"
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
insurer?
ii!
Insurers who meet the state's financial requirements and are approved to transact business in the state
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
are considered authorized or admitted into the state as a legal insurer.
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! Replacement cost - Correct Answers All of the following are additional causes of loss included in the ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! broad form of a commercial property policy EXCEPT
ii! ii! ii! ii! ii! ii! ii!
Broad form causes of loss adds falling objects; weight of ice, snow, or sleet; water damage; collapse; and
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
breakage of glass to those perils covered under the basic causes of loss.
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! $8,000 - Correct Answers Three years ago, an insured moved to an unfurnished apartment. She bought
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! new furniture that cost $9,000. Last week, there was a fire in the apartment that destroyed the furniture.
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! Replacement cost is $10,500. The adjuster told the insured her furniture depreciated $2,500. If insurance ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! is written on an actual cash value basis, how much will it pay for the loss?
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
When insurance coverage is written on an actual cash value basis, losses paid are for the replacement cost
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
(at the time of loss), minus depreciation.
ii! ii! ii! ii! ii! ii! ii!
ii! Subrogation - Correct Answers When an employee benefit plan pays the premium for a fiduciary liability ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! policy, what provision must be included in that policy?
ii! ii! ii! ii! ii! ii! ii! ii!
If the premiums are paid from the fund, the policy must allow for subrogation against the individual
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
trustees involved in any loss.
ii! ii! ii! ii! ii!
ii! Concealment - Correct Answers The failure to disclose all known facts is called ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
, Withholding information that is material to the risk to be insured is concealment and makes a policy
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
voidable.
ii!
ii! Transfer of rights and duties under the policy - Correct Answers Which common policy condition
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! prohibits the insured from changing the rights or duties as defined under the policy to any other person or
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! entity without the written consent of the insurance company?
ii! ii! ii! ii! ii! ii! ii! ii!
Under the "transfer of rights and duties under the policy" condition, the insured cannot transfer any rights
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
or duties under the policy to any other person or organization without the written consent of the
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
insurance company.
ii! ii!
ii! No, because injuries to employees are excluded. - Correct Answers Pins & Alley, which is owned and
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! operated by Bob Balls, has a commercial general liability policy. Spencer, an employee, was injured while
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! demonstrating the latest, marble bowling ball. Spencer inadvertently dropped the ball on his own foot ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! causing several bone fractures. Will the commercial general liability policy owned by Pins & Alley cover
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! this loss?ii!
Employees are not covered for bodily injury or personal injury to an insured or co-employee, or a spouse,
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
parent or sibling of the employee under a CGL policy.
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! Yes, none of the exclusions will apply - Correct Answers An advertising company has its annual holiday
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! party for employees and customers, after which a customer who had too much to drink is involved in an
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! automobile accident. Occupants of the other car involved in the accident sue the company for serving the
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! customer too much alcohol. Will the company's businessowners policy provide coverage?
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
The liquor liability exclusion applies only to insureds in the business of manufacturing, distributing, selling,
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
serving, or furnishing alcoholic beverages. In this case, the company's businessowners policy most likely
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
will have to pay.
ii! ii! ii! ii!
ii! Loose cargo - Correct Answers Bulk carriers are used to transport
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
Bulk carriers are used to carry coal, grain, phosphates, and other loose cargo. The ship itself is the
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
container for the cargo.
ii! ii! ii! ii!
answers Latest 2025/26
Admitted - Correct Answers Which of the following is the most precise synonym for an "authorized"
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
insurer?
ii!
Insurers who meet the state's financial requirements and are approved to transact business in the state
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
are considered authorized or admitted into the state as a legal insurer.
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! Replacement cost - Correct Answers All of the following are additional causes of loss included in the ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! broad form of a commercial property policy EXCEPT
ii! ii! ii! ii! ii! ii! ii!
Broad form causes of loss adds falling objects; weight of ice, snow, or sleet; water damage; collapse; and
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
breakage of glass to those perils covered under the basic causes of loss.
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! $8,000 - Correct Answers Three years ago, an insured moved to an unfurnished apartment. She bought
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! new furniture that cost $9,000. Last week, there was a fire in the apartment that destroyed the furniture.
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! Replacement cost is $10,500. The adjuster told the insured her furniture depreciated $2,500. If insurance ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! is written on an actual cash value basis, how much will it pay for the loss?
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
When insurance coverage is written on an actual cash value basis, losses paid are for the replacement cost
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
(at the time of loss), minus depreciation.
ii! ii! ii! ii! ii! ii! ii!
ii! Subrogation - Correct Answers When an employee benefit plan pays the premium for a fiduciary liability ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! policy, what provision must be included in that policy?
ii! ii! ii! ii! ii! ii! ii! ii!
If the premiums are paid from the fund, the policy must allow for subrogation against the individual
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
trustees involved in any loss.
ii! ii! ii! ii! ii!
ii! Concealment - Correct Answers The failure to disclose all known facts is called ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
, Withholding information that is material to the risk to be insured is concealment and makes a policy
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
voidable.
ii!
ii! Transfer of rights and duties under the policy - Correct Answers Which common policy condition
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! prohibits the insured from changing the rights or duties as defined under the policy to any other person or
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! entity without the written consent of the insurance company?
ii! ii! ii! ii! ii! ii! ii! ii!
Under the "transfer of rights and duties under the policy" condition, the insured cannot transfer any rights
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
or duties under the policy to any other person or organization without the written consent of the
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
insurance company.
ii! ii!
ii! No, because injuries to employees are excluded. - Correct Answers Pins & Alley, which is owned and
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! operated by Bob Balls, has a commercial general liability policy. Spencer, an employee, was injured while
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! demonstrating the latest, marble bowling ball. Spencer inadvertently dropped the ball on his own foot ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! causing several bone fractures. Will the commercial general liability policy owned by Pins & Alley cover
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! this loss?ii!
Employees are not covered for bodily injury or personal injury to an insured or co-employee, or a spouse,
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
parent or sibling of the employee under a CGL policy.
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! Yes, none of the exclusions will apply - Correct Answers An advertising company has its annual holiday
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! party for employees and customers, after which a customer who had too much to drink is involved in an
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! automobile accident. Occupants of the other car involved in the accident sue the company for serving the
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
ii! customer too much alcohol. Will the company's businessowners policy provide coverage?
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
The liquor liability exclusion applies only to insureds in the business of manufacturing, distributing, selling,
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
serving, or furnishing alcoholic beverages. In this case, the company's businessowners policy most likely
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
will have to pay.
ii! ii! ii! ii!
ii! Loose cargo - Correct Answers Bulk carriers are used to transport
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
Bulk carriers are used to carry coal, grain, phosphates, and other loose cargo. The ship itself is the
ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii! ii!
container for the cargo.
ii! ii! ii! ii!
