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Property and Casualty Insurance Exam – Georgia Questions
and Answers with Complete Solutions
BPP building coverage - ANSWER insures the building at the
described location, outdoor, fixtures, furnitures, items used to
service the property, permanently installed machinery and
equipment, and additions under construction, including the
materials, supplies, and equipment.
HO limits of property at other residences - ANSWER the larger
of $1000 or 10% Coverage C. Limit does not apply if property is
moved because the residence premise is being repaired or
rebuilt.
When property is moved to newly acquired residence, the limit
shown on declaration will apply on a proportional basis to each
residence
Dwellings under construction - ANSWER The limit of liability for
a dwelling under construction is provisional, and is based on the
completed value of the structure. At the time of loss, the
applicable limit is a percentage of the provisional limit, based
on the proportion of actual cash value of the property at the
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time of loss. Premium is based on an average amount of
insurance during construction.
Water Backup & Sump Pump Endorsement - ANSWER Coverage
for up to $5,000 in loss or damage, subject to a $250
deductible, can be provided for an additional premium with this
endorsement.
Automatic Increase in Insurance Endorsement - ANSWER is
used to provide at the annual renewal date of the policy, an
automatic increase in the Coverage A and B limits of insurance
to help offset inflation
Other insurance - ANSWER A provision in an insurance policy
that defines how the policy will respond if there is another valid
insurance policy written on the same risk.
Stock Companies - ANSWER Owned by the stockholders who
provide the capital necessary to establish and operate the
insurance company and who share in any profits or losses.
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Mutual companies - ANSWER Owned by the policyowners and
issue participating policies. Policyowners are entitled to
dividends, which are a return of excess premium and are
nontaxable.
6 classes of insurance in Georgia - ANSWER 1. Life, accident,
and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic
insurers? - ANSWER Once every 5 years.
What are the timelines if a hearing is requested? - ANSWER A
hearing must be made within 30 days of the receipt of the
request.
A notification of the hearing must be sent at least 15 days in
advance.
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Within 30 days of the hearing, the Commissioner must release
his decision.
What are the penalties after a notice, hearing, and cease and
desist order? - ANSWER A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority - ANSWER the authority of an agent, stated in
the document or agreement creating the agency
Implied authority - ANSWER Authority that is not expressed or
written into the contract, but which the agent is assumed to
have in order to transact the business of insurance for the
principal.
Apparent authority - ANSWER The appearance or the
assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal
created.
Property and Casualty Insurance Exam – Georgia Questions
and Answers with Complete Solutions
BPP building coverage - ANSWER insures the building at the
described location, outdoor, fixtures, furnitures, items used to
service the property, permanently installed machinery and
equipment, and additions under construction, including the
materials, supplies, and equipment.
HO limits of property at other residences - ANSWER the larger
of $1000 or 10% Coverage C. Limit does not apply if property is
moved because the residence premise is being repaired or
rebuilt.
When property is moved to newly acquired residence, the limit
shown on declaration will apply on a proportional basis to each
residence
Dwellings under construction - ANSWER The limit of liability for
a dwelling under construction is provisional, and is based on the
completed value of the structure. At the time of loss, the
applicable limit is a percentage of the provisional limit, based
on the proportion of actual cash value of the property at the
,2|Page
time of loss. Premium is based on an average amount of
insurance during construction.
Water Backup & Sump Pump Endorsement - ANSWER Coverage
for up to $5,000 in loss or damage, subject to a $250
deductible, can be provided for an additional premium with this
endorsement.
Automatic Increase in Insurance Endorsement - ANSWER is
used to provide at the annual renewal date of the policy, an
automatic increase in the Coverage A and B limits of insurance
to help offset inflation
Other insurance - ANSWER A provision in an insurance policy
that defines how the policy will respond if there is another valid
insurance policy written on the same risk.
Stock Companies - ANSWER Owned by the stockholders who
provide the capital necessary to establish and operate the
insurance company and who share in any profits or losses.
,3|Page
Mutual companies - ANSWER Owned by the policyowners and
issue participating policies. Policyowners are entitled to
dividends, which are a return of excess premium and are
nontaxable.
6 classes of insurance in Georgia - ANSWER 1. Life, accident,
and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic
insurers? - ANSWER Once every 5 years.
What are the timelines if a hearing is requested? - ANSWER A
hearing must be made within 30 days of the receipt of the
request.
A notification of the hearing must be sent at least 15 days in
advance.
, 4|Page
Within 30 days of the hearing, the Commissioner must release
his decision.
What are the penalties after a notice, hearing, and cease and
desist order? - ANSWER A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority - ANSWER the authority of an agent, stated in
the document or agreement creating the agency
Implied authority - ANSWER Authority that is not expressed or
written into the contract, but which the agent is assumed to
have in order to transact the business of insurance for the
principal.
Apparent authority - ANSWER The appearance or the
assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal
created.
