INSURANCE ADJUSTER EXAM
QUESTIONS AND ANSWERS
Which kind of losses are covered under a standard fire policy? - Direct
All fires are not covered by the Standard Fire policies, only those that: - are hostile and
have a flame or glow
At what time does a fire policy go into affect? - 12:01am standard time at the location of
the insured's property
A property is insured under two Standard Fire policies for $25,000 each. A fire causes
$10,000 worth of damage. What is the maximum amount the insured may collect under
each policy? - $5,000
A fire burning in the middle of the living room would be considered: - a hostile fire
An insured's house is damaged by fire caused by a neighbor's negligence. The
insurance company will attempt to recover damage from the neighbor. This is called: -
subrogation
Which of the following statements are true concerning requirements of the standard fire
policy? - The insured must separate damaged from undamaged property in the event
there is a loss AND If a loss occurs, the insured normally has 60 days to file a proof of
loss with the insurer
Which types of property are excluded from coverage under the basic fire policy? -
accounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? - the named insured and his legal
representatives
An agreement which affords temporary insurance protection until the policy is issued is
called: - a binder
as a general rule, a complete fire insurance policy would be made up of: - the Standard
Fire policy with one or more forms attached
,The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment - over-insurance
replacement cost minus depreciation: - Actual Cash Value (ACV)
The Standard Fire policy with an extended coverage endorsement attached covers
which of the following: - riot
A loss due to order of Civil Authority: - is excluded unless the loss occurs because of an
order by Civil Authorities for the purpose of controlling a fire
The term "unoccupancy" refers to the absence of : - persons from a building
Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies
the mortgagee the insured has not filed a proof of loss. To protect their interest, the
mortgagee must file a proof of loss within _________ days after what date? - 60 days
after April 30th
For recovery under the Standard Fire policy, a party must: - be named in the policy and
show an insurable interest in the property at the time the loss occurs
What is the requirement on how much experience one must have to be elected the
insurance commissioner in Georgia? - None
Once elected, how long is the insurance commissioner's term? - 4 years
Is there a limit on the number of terms an insurance commissioner can serve? - No
Who is Georgia's current insurance commissioner? - Ralph Hudgens
What two capacities does Georgia's insurance commissioner serve? - 1. Chief Officer of
Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - No election; the
Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - must have a bond in the
amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials must
be examined? - once every 5 years
, Only one court in Georgia has the right to overturn the decision of the Insurance
Commissioner. Which is it? - Superior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? -
Certificate of Authority
Surplus Lines Risk - has been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's
certificate to authorize? - if they're under financial distress
What are the requirements to be a licensed producer in Georgia? - must be at least 18
years old, take a 40 hour course, pass licensing exam, apply for license, pass
background check
Which of the following would be considered an "offer"? - the applicant submits an
application to the company with payment
All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply - c) the loss must not be definite and definable
all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions - d) inclusions
something that increases the chance of a peril occurring is known as a(n): - hazard
open peril, or "all risk", forms: - name the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of
handling risk has been undertaken? - risk retention
the insurance industry deals with those areas of risk where the chances of loss are: -
anywhere between 0% and 100%
which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties - d) incompetent parties
QUESTIONS AND ANSWERS
Which kind of losses are covered under a standard fire policy? - Direct
All fires are not covered by the Standard Fire policies, only those that: - are hostile and
have a flame or glow
At what time does a fire policy go into affect? - 12:01am standard time at the location of
the insured's property
A property is insured under two Standard Fire policies for $25,000 each. A fire causes
$10,000 worth of damage. What is the maximum amount the insured may collect under
each policy? - $5,000
A fire burning in the middle of the living room would be considered: - a hostile fire
An insured's house is damaged by fire caused by a neighbor's negligence. The
insurance company will attempt to recover damage from the neighbor. This is called: -
subrogation
Which of the following statements are true concerning requirements of the standard fire
policy? - The insured must separate damaged from undamaged property in the event
there is a loss AND If a loss occurs, the insured normally has 60 days to file a proof of
loss with the insurer
Which types of property are excluded from coverage under the basic fire policy? -
accounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? - the named insured and his legal
representatives
An agreement which affords temporary insurance protection until the policy is issued is
called: - a binder
as a general rule, a complete fire insurance policy would be made up of: - the Standard
Fire policy with one or more forms attached
,The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment - over-insurance
replacement cost minus depreciation: - Actual Cash Value (ACV)
The Standard Fire policy with an extended coverage endorsement attached covers
which of the following: - riot
A loss due to order of Civil Authority: - is excluded unless the loss occurs because of an
order by Civil Authorities for the purpose of controlling a fire
The term "unoccupancy" refers to the absence of : - persons from a building
Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies
the mortgagee the insured has not filed a proof of loss. To protect their interest, the
mortgagee must file a proof of loss within _________ days after what date? - 60 days
after April 30th
For recovery under the Standard Fire policy, a party must: - be named in the policy and
show an insurable interest in the property at the time the loss occurs
What is the requirement on how much experience one must have to be elected the
insurance commissioner in Georgia? - None
Once elected, how long is the insurance commissioner's term? - 4 years
Is there a limit on the number of terms an insurance commissioner can serve? - No
Who is Georgia's current insurance commissioner? - Ralph Hudgens
What two capacities does Georgia's insurance commissioner serve? - 1. Chief Officer of
Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - No election; the
Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - must have a bond in the
amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials must
be examined? - once every 5 years
, Only one court in Georgia has the right to overturn the decision of the Insurance
Commissioner. Which is it? - Superior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? -
Certificate of Authority
Surplus Lines Risk - has been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's
certificate to authorize? - if they're under financial distress
What are the requirements to be a licensed producer in Georgia? - must be at least 18
years old, take a 40 hour course, pass licensing exam, apply for license, pass
background check
Which of the following would be considered an "offer"? - the applicant submits an
application to the company with payment
All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply - c) the loss must not be definite and definable
all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions - d) inclusions
something that increases the chance of a peril occurring is known as a(n): - hazard
open peril, or "all risk", forms: - name the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of
handling risk has been undertaken? - risk retention
the insurance industry deals with those areas of risk where the chances of loss are: -
anywhere between 0% and 100%
which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties - d) incompetent parties
