Georgia Adjuster Exam 2 2025
Questions and Answers
Admitted - --Answer --Which of the following is the most precise synonym
for an "authorized" insurer?
Insurers who meet the state's financial requirements and are approved to transact
business in the state are considered authorized or admitted into the state as a legal
insurer.
Replacement cost - --Answer --All of the following are additional causes of
loss included in the broad form of a commercial property policy EXCEPT
Broad form causes of loss adds falling objects; weight of ice, snow, or sleet; water
damage; collapse; and breakage of glass to those perils covered under the basic
causes of loss.
$8,000 - --Answer --Three years ago, an insured moved to an unfurnished
apartment. She bought new furniture that cost $9,000. Last week, there was a fire
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,in the apartment that destroyed the furniture. Replacement cost is $10,500. The
adjuster told the insured her furniture depreciated $2,500. If insurance is written on
an actual cash value basis, how much will it pay for the loss?
When insurance coverage is written on an actual cash value basis, losses paid are
for the replacement cost (at the time of loss), minus depreciation.
Subrogation - --Answer --When an employee benefit plan pays the premium
for a fiduciary liability policy, what provision must be included in that policy?
If the premiums are paid from the fund, the policy must allow for subrogation
against the individual trustees involved in any loss.
Concealment - --Answer --The failure to disclose all known facts is called
Withholding information that is material to the risk to be insured is concealment
and makes a policy voidable.
Transfer of rights and duties under the policy - --Answer --Which common
policy condition prohibits the insured from changing the rights or duties as defined
under the policy to any other person or entity without the written consent of the
insurance company?
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, Under the "transfer of rights and duties under the policy" condition, the insured
cannot transfer any rights or duties under the policy to any other person or
organization without the written consent of the insurance company.
No, because injuries to employees are excluded. - --Answer --Pins & Alley,
which is owned and operated by Bob Balls, has a commercial general liability
policy. Spencer, an employee, was injured while demonstrating the latest, marble
bowling ball. Spencer inadvertently dropped the ball on his own foot causing
several bone fractures. Will the commercial general liability policy owned by Pins &
Alley cover this loss?
Employees are not covered for bodily injury or personal injury to an insured or co-
employee, or a spouse, parent or sibling of the employee under a CGL policy.
Yes, none of the exclusions will apply - --Answer --An advertising company
has its annual holiday party for employees and customers, after which a customer
who had too much to drink is involved in an automobile accident. Occupants of
the other car involved in the accident sue the company for serving the customer
too much alcohol. Will the company's businessowners policy provide coverage?
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Questions and Answers
Admitted - --Answer --Which of the following is the most precise synonym
for an "authorized" insurer?
Insurers who meet the state's financial requirements and are approved to transact
business in the state are considered authorized or admitted into the state as a legal
insurer.
Replacement cost - --Answer --All of the following are additional causes of
loss included in the broad form of a commercial property policy EXCEPT
Broad form causes of loss adds falling objects; weight of ice, snow, or sleet; water
damage; collapse; and breakage of glass to those perils covered under the basic
causes of loss.
$8,000 - --Answer --Three years ago, an insured moved to an unfurnished
apartment. She bought new furniture that cost $9,000. Last week, there was a fire
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,in the apartment that destroyed the furniture. Replacement cost is $10,500. The
adjuster told the insured her furniture depreciated $2,500. If insurance is written on
an actual cash value basis, how much will it pay for the loss?
When insurance coverage is written on an actual cash value basis, losses paid are
for the replacement cost (at the time of loss), minus depreciation.
Subrogation - --Answer --When an employee benefit plan pays the premium
for a fiduciary liability policy, what provision must be included in that policy?
If the premiums are paid from the fund, the policy must allow for subrogation
against the individual trustees involved in any loss.
Concealment - --Answer --The failure to disclose all known facts is called
Withholding information that is material to the risk to be insured is concealment
and makes a policy voidable.
Transfer of rights and duties under the policy - --Answer --Which common
policy condition prohibits the insured from changing the rights or duties as defined
under the policy to any other person or entity without the written consent of the
insurance company?
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Under the "transfer of rights and duties under the policy" condition, the insured
cannot transfer any rights or duties under the policy to any other person or
organization without the written consent of the insurance company.
No, because injuries to employees are excluded. - --Answer --Pins & Alley,
which is owned and operated by Bob Balls, has a commercial general liability
policy. Spencer, an employee, was injured while demonstrating the latest, marble
bowling ball. Spencer inadvertently dropped the ball on his own foot causing
several bone fractures. Will the commercial general liability policy owned by Pins &
Alley cover this loss?
Employees are not covered for bodily injury or personal injury to an insured or co-
employee, or a spouse, parent or sibling of the employee under a CGL policy.
Yes, none of the exclusions will apply - --Answer --An advertising company
has its annual holiday party for employees and customers, after which a customer
who had too much to drink is involved in an automobile accident. Occupants of
the other car involved in the accident sue the company for serving the customer
too much alcohol. Will the company's businessowners policy provide coverage?
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