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Property and Casualty Insurance
Exam Qustions With (100%)
Verified Correct answers
BPP building coverage correct 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 correct 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 correct 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 time of loss. Premium is based on
an average amount of insurance during construction.
Water Backup & Sump Pump Endorsement correct 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 correct 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 correct 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 correct 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.
Mutual companies correct answer-Owned by the policyowners and issue participating
policies. Policyowners are entitled to dividends, which are a return of excess premium
and are nontaxable.
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6 classes of insurance in Georgia correct 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? correct
answer-Once every 5 years.
What are the timelines if a hearing is requested? correct 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.
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? correct
answer -A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority correct answer-the authority of an agent, stated in the document or
agreement creating the agency
Implied authority correct 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 correct 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.
When does an agents license expire? correct answer-Licenses are good to for 2 years
and expire on the last day of the licensee's with month.
What are the CE requirements for an agent? correct answer-24 CE credit hours every 2
years, including 3 credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including ethics.
How long must an agent keep records regarding contracts, premiums, etc.? correct
answer-All records must be kept for 5 years after the completion of a transaction or for
the term of the contract, whichever is greater.
Misrepresentation correct answer-Issuing, publishing, or circulation and illustration or
sales materials that is false, misleading, or deceptive as to policy benefits or terms, the
payments of dividends, etc.
,3
False advertising correct answer-advertising that is misleading in some important way,
including the failure to reveal facts about possible results from using the advertised
products
Rebating correct answer-Any inducement offered in the sale of insurance products that
is not specified in the policy. They are illegal in Georgia.
Twisting correct answer-A form of misrepresentation in which an agent persuades an
insured/owner to cancel, lapse, or switch policies, even when it's to the insured's
disadvantage.
Churning correct answer-Replacing insurance policies for the sole purpose of making
commissions. It is illegal to replace existing life or disability policies with new policies if
the producer cannot demonstrate that the replacement will benefit the insured.
Coercion correct answer-Unfair trade practice where an agent uses physical or mental
force with the intense of inducing an applicant to purchase insurance.
Defamation correct answer-Defamation occurs when an oral or written statement is
made that is intended to injure a person engaged in the insurance business. This also
applies to statements that are maliciously critical of the financial condition of any person
or a company.
Controlled business correct answer-Controlled business is any coverage written on a
producer's own life, health or property, and/or that of the producer's immediate family or
business associates. A licensee is not allowed to collect commissions on controlled
business at rate higher than 25% of the agent' volume per calendar year.
What is a binder correct answer-A temporary insurance contract that goes in effect
prior to the policy issue. No binder shall be valid pass the issuance of the policy beyond
90 days of its effective date, whichever period is shorted.
Georgia FAIR correct answer-The Georgia Fair Access to Insurance Requirement
provides basic property insurance for those who cannot obtain it in the ordinary market.
Georgia Automobile Insurance Plan correct answer-The Georgia Automobile Insurance
Plan makes automobile insurance available for insureds who are unable to purchase
coverage in the voluntary market. When an automobile policy is cancelled or
nonrenewed for a reason other than for nonpayment of premium, the insurer must notify
the insured of their eligibility for coverage through the Georgia Automobile Insurance
Plan. The notice about the Plan must accompany the notice of cancellation or
nonrenewal.
Workman's Compensation correct answer-Covers all business with 3 or more
employees
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Workman's Compensation Coverage correct answer-Doctors bills
hospital bills
physical therapy
prescriptions
necessary travel expenses
Treatment limited to max of 400 weeks unless injuries are catastrophic.
What are the benefit payout requirements for WC? correct answer-Workers can collect
WC benefits after being out of work for more than 7 days, and the first check will arrive
with 21 days of the first missed workday. The compensation is limited to 2/3 of the
worker's average weekly pay up to $575.
Georgia Workers Compensation Assigned Risk Plan correct answer-The Georgia
Workers Compensation Assigned Risk Plan exists to provide required Workers
Compensation coverage for employers who do not qualify for coverage in the voluntary
market. Liability is apportioned among all insurers authorized to write Workers
Compensation and Employers Liability in the state.
How often must an insurer update their rate filings? correct answer-Every 2 years
All insurers must file their rates 45 days before their effective date.
When a rate increases more than 10$ or more within 12 months, the Commissioner will
order and examination.
What is the Commissioner's term of office? correct answer-4 years
When does an agent have to notify the Commissioner of a change of address? correct
answer-Within 30 days
How many days are allowed to report a criminal prosecution against a licensee? correct
answer-30 days
What is the total liability of the Georgia Life and Health Insurance Guaranty Association
for any one life? correct answer-$300,000
PAP Section II Part B: Medical Expenses Coverage correct answer--covers all
reasonable medical costs and funeral expenses incurred, by the insured or the insured's
family members within 3 years of an accident
-recommended coverage of $50,000
Cancellation and Nonrenewal of Policies other than PA and PP correct answer-For all
insurance other than that covering a personal automobile or personal property, a notice
of termination, including a notice of cancellation or nonrenewal, a notice of increase in
Property and Casualty Insurance
Exam Qustions With (100%)
Verified Correct answers
BPP building coverage correct 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 correct 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 correct 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 time of loss. Premium is based on
an average amount of insurance during construction.
Water Backup & Sump Pump Endorsement correct 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 correct 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 correct 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 correct 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.
Mutual companies correct answer-Owned by the policyowners and issue participating
policies. Policyowners are entitled to dividends, which are a return of excess premium
and are nontaxable.
,2
6 classes of insurance in Georgia correct 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? correct
answer-Once every 5 years.
What are the timelines if a hearing is requested? correct 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.
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? correct
answer -A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority correct answer-the authority of an agent, stated in the document or
agreement creating the agency
Implied authority correct 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 correct 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.
When does an agents license expire? correct answer-Licenses are good to for 2 years
and expire on the last day of the licensee's with month.
What are the CE requirements for an agent? correct answer-24 CE credit hours every 2
years, including 3 credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including ethics.
How long must an agent keep records regarding contracts, premiums, etc.? correct
answer-All records must be kept for 5 years after the completion of a transaction or for
the term of the contract, whichever is greater.
Misrepresentation correct answer-Issuing, publishing, or circulation and illustration or
sales materials that is false, misleading, or deceptive as to policy benefits or terms, the
payments of dividends, etc.
,3
False advertising correct answer-advertising that is misleading in some important way,
including the failure to reveal facts about possible results from using the advertised
products
Rebating correct answer-Any inducement offered in the sale of insurance products that
is not specified in the policy. They are illegal in Georgia.
Twisting correct answer-A form of misrepresentation in which an agent persuades an
insured/owner to cancel, lapse, or switch policies, even when it's to the insured's
disadvantage.
Churning correct answer-Replacing insurance policies for the sole purpose of making
commissions. It is illegal to replace existing life or disability policies with new policies if
the producer cannot demonstrate that the replacement will benefit the insured.
Coercion correct answer-Unfair trade practice where an agent uses physical or mental
force with the intense of inducing an applicant to purchase insurance.
Defamation correct answer-Defamation occurs when an oral or written statement is
made that is intended to injure a person engaged in the insurance business. This also
applies to statements that are maliciously critical of the financial condition of any person
or a company.
Controlled business correct answer-Controlled business is any coverage written on a
producer's own life, health or property, and/or that of the producer's immediate family or
business associates. A licensee is not allowed to collect commissions on controlled
business at rate higher than 25% of the agent' volume per calendar year.
What is a binder correct answer-A temporary insurance contract that goes in effect
prior to the policy issue. No binder shall be valid pass the issuance of the policy beyond
90 days of its effective date, whichever period is shorted.
Georgia FAIR correct answer-The Georgia Fair Access to Insurance Requirement
provides basic property insurance for those who cannot obtain it in the ordinary market.
Georgia Automobile Insurance Plan correct answer-The Georgia Automobile Insurance
Plan makes automobile insurance available for insureds who are unable to purchase
coverage in the voluntary market. When an automobile policy is cancelled or
nonrenewed for a reason other than for nonpayment of premium, the insurer must notify
the insured of their eligibility for coverage through the Georgia Automobile Insurance
Plan. The notice about the Plan must accompany the notice of cancellation or
nonrenewal.
Workman's Compensation correct answer-Covers all business with 3 or more
employees
, 4
Workman's Compensation Coverage correct answer-Doctors bills
hospital bills
physical therapy
prescriptions
necessary travel expenses
Treatment limited to max of 400 weeks unless injuries are catastrophic.
What are the benefit payout requirements for WC? correct answer-Workers can collect
WC benefits after being out of work for more than 7 days, and the first check will arrive
with 21 days of the first missed workday. The compensation is limited to 2/3 of the
worker's average weekly pay up to $575.
Georgia Workers Compensation Assigned Risk Plan correct answer-The Georgia
Workers Compensation Assigned Risk Plan exists to provide required Workers
Compensation coverage for employers who do not qualify for coverage in the voluntary
market. Liability is apportioned among all insurers authorized to write Workers
Compensation and Employers Liability in the state.
How often must an insurer update their rate filings? correct answer-Every 2 years
All insurers must file their rates 45 days before their effective date.
When a rate increases more than 10$ or more within 12 months, the Commissioner will
order and examination.
What is the Commissioner's term of office? correct answer-4 years
When does an agent have to notify the Commissioner of a change of address? correct
answer-Within 30 days
How many days are allowed to report a criminal prosecution against a licensee? correct
answer-30 days
What is the total liability of the Georgia Life and Health Insurance Guaranty Association
for any one life? correct answer-$300,000
PAP Section II Part B: Medical Expenses Coverage correct answer--covers all
reasonable medical costs and funeral expenses incurred, by the insured or the insured's
family members within 3 years of an accident
-recommended coverage of $50,000
Cancellation and Nonrenewal of Policies other than PA and PP correct answer-For all
insurance other than that covering a personal automobile or personal property, a notice
of termination, including a notice of cancellation or nonrenewal, a notice of increase in
