GA SURPLUS LINES - EXAM PREP
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
Which of the following is one of the normal conditions for procurement of surplus lines license?
- ANS A diligent effort must be made to place the risk in the authorized modes first (three
attempts)
In Georgia, an individual whose surplus lines license is REVOKED for cause will not be eligible to
apply for another license for: - ANS 2 years
Upon placing a surplus line coverage, the broker shall promptly issue and deliver to the insured
evidence of the insurance consisting of the policy by the insurer or: - ANS surplus lines broker
certificate
the surplus lines broker shall remit to the commisioner at the time the broker's quarterly
affidavit is submitted: - ANS a tax of 4% on all premiums paid or due payable during the
preceeding quarter
Dollar Value Stor has a CGL policy that is written with a general aggregate limit of $300,000, and
an occurrence limit of $100,000. A customer who was injured on their premises was awared
$45,000 for medical expenses and loss of earnings and $60,000 for pain an suffering. the court
cost and attorney fees were $15,000. how much will their CGL policy pay? - ANS $115,000
($100k occurrence plus $15k in defense)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Each surplus lines broker shall file with the commissioner on a quarterly basis an affidavit and
taxes on or before the: - ANS 15th day of April, July, October, January
think 4/1, 7/1, 10/1, 1/1
an action shall be brought against any unauthorized insurer under any contract issued by it as a
surplus lines contract in the: - ANS superior court of the county in which the cause of action
arose
notice of a hearing on alleged unfair trade practice must be served at least how many days
before the hearing may be held - ANS 15 days
what procedure is prescribed by the standard fire policy when the insured and the insurer
cannot agree upon the amount of a loss - ANS each party selects an appraiser who in turn
selects an umpire. these three determine the amount of loss
an insured falsely reports the theft of a valuable item in order to collect payment for the
insurance policy - ANS fraud
concerning prohibited practices, illegal inducements would include all of the following except -
ANS a) reducing an insureds premium due to differences in hazards
b) to give a special dividend under the contract
c) to rebate a part of the insured's premium not specified in the policy
d) giving a prospective some additional incentive to purchase insurance
A
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, an order issued by the commissioner shall stat each of the following except - ANS a) its intent
or purpose
b) its effective date
c) precedents in which similiar action was taken
d) grounds on which it is based
C
the purpose of the coinsurance clause found in property insurance is to - ANS encourage
insurance to value
casualty insurance embraces all the following types of insurance except - ANS a) liability
b) crime
c) surety
d) boiler and machinery
D
Driver A is carrying uninsured/underinsured motorist limits of $100/300/50 when struck by an
at fault Driver B carrying liability limits of $25/50/25. the accident causes $150,000 of bodily
injury to Driver A. what is the maximum amount recoverable to Driver A from their own
underinsured motorists limits - ANS $75,000
First # - the amount the insurer will pay for each person's injuries
Second # - the amount the insurer will pay for all injuries associated with the accident
Third # - the amount the insurer will pay for property damage
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
Which of the following is one of the normal conditions for procurement of surplus lines license?
- ANS A diligent effort must be made to place the risk in the authorized modes first (three
attempts)
In Georgia, an individual whose surplus lines license is REVOKED for cause will not be eligible to
apply for another license for: - ANS 2 years
Upon placing a surplus line coverage, the broker shall promptly issue and deliver to the insured
evidence of the insurance consisting of the policy by the insurer or: - ANS surplus lines broker
certificate
the surplus lines broker shall remit to the commisioner at the time the broker's quarterly
affidavit is submitted: - ANS a tax of 4% on all premiums paid or due payable during the
preceeding quarter
Dollar Value Stor has a CGL policy that is written with a general aggregate limit of $300,000, and
an occurrence limit of $100,000. A customer who was injured on their premises was awared
$45,000 for medical expenses and loss of earnings and $60,000 for pain an suffering. the court
cost and attorney fees were $15,000. how much will their CGL policy pay? - ANS $115,000
($100k occurrence plus $15k in defense)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Each surplus lines broker shall file with the commissioner on a quarterly basis an affidavit and
taxes on or before the: - ANS 15th day of April, July, October, January
think 4/1, 7/1, 10/1, 1/1
an action shall be brought against any unauthorized insurer under any contract issued by it as a
surplus lines contract in the: - ANS superior court of the county in which the cause of action
arose
notice of a hearing on alleged unfair trade practice must be served at least how many days
before the hearing may be held - ANS 15 days
what procedure is prescribed by the standard fire policy when the insured and the insurer
cannot agree upon the amount of a loss - ANS each party selects an appraiser who in turn
selects an umpire. these three determine the amount of loss
an insured falsely reports the theft of a valuable item in order to collect payment for the
insurance policy - ANS fraud
concerning prohibited practices, illegal inducements would include all of the following except -
ANS a) reducing an insureds premium due to differences in hazards
b) to give a special dividend under the contract
c) to rebate a part of the insured's premium not specified in the policy
d) giving a prospective some additional incentive to purchase insurance
A
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, an order issued by the commissioner shall stat each of the following except - ANS a) its intent
or purpose
b) its effective date
c) precedents in which similiar action was taken
d) grounds on which it is based
C
the purpose of the coinsurance clause found in property insurance is to - ANS encourage
insurance to value
casualty insurance embraces all the following types of insurance except - ANS a) liability
b) crime
c) surety
d) boiler and machinery
D
Driver A is carrying uninsured/underinsured motorist limits of $100/300/50 when struck by an
at fault Driver B carrying liability limits of $25/50/25. the accident causes $150,000 of bodily
injury to Driver A. what is the maximum amount recoverable to Driver A from their own
underinsured motorists limits - ANS $75,000
First # - the amount the insurer will pay for each person's injuries
Second # - the amount the insurer will pay for all injuries associated with the accident
Third # - the amount the insurer will pay for property damage
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
