INSURANCE ADJUSTER EXAM | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS, VERIFIED ANSWERS, AND EXAM PREPARATION
1. Which кind of losses are covered under a standard fire policy?: Direct
2. All fires are not covered by the Standard Fire policies, only those that:: are
hostile and have a flame or glow
3. At what time does a fire policy go into affect?: 12:01am standard time at the location of the
insured's property
4. 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
5. A fire burning in the middle of the living room would be considered:: a hostile
fire
6. 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
7. 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
8. Which types of property are excluded from coverage under the basic fire
policy?: accounts, currency, deeds, and securities
9. Who is insured under the Standard Fire policy?: the named insured and his legal repre-
sentatives
10. An agreement which affords temporary insurance protection until the pol-
icy is issued is called:: a binder
11. as a general rule, a complete fire insurance policy would be made up of:: the
Standard Fire policy with one or more forms attached
12. The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment: over-insurance
13. replacement cost minus depreciation:: Actual Cash Value (ACV)
14. The Standard Fire policy with an extended coverage endorsement attached
covers which of the following:: riot
,INSURANCE ADJUSTER EXAM | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS, VERIFIED ANSWERS, AND EXAM PREPARATION
15. 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
16. The term "unoccupancy" refers to the absence of :: persons from a building
17. Suppose a fire occurs on February 26th. On April 30th, the insurance com -
pany 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
18. 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
19. What is the requirement on how much experience one must have to be
elected the insurance commissioner in Georgia?: None
20. Once elected, how long is the insurance commissioner's term?: 4 years
21. Is there a limit on the number of terms an insurance commissioner can
serve?: No
22. Who is Georgia's current insurance commissioner?: Ralph Hudgens
23. What two capacities does Georgia's insurance commissioner serve?: 1. Chief
Oflcer of Insurance Dept.
2. Chief Fire Marshall
24. What happens if the Insurance Commissioner has to resign early?: No election;
the Chief Deputy will taкe over
25. What is the requirement to serve as Chief Deputy in Georgia?: must have a bond
in the amount of $15,000
26. If you are a domestic insurer in Georgia, how often does code say your
financials must be examined?: once every 5 years
27. Only one court in Georgia has the right to overturn the decision of the
Insurance Commissioner. Which is it?: Superior Court of Fulton County
28. What certificate is required for a company to be an authorized insurer in
Georgia?: Certificate of Authority
29. Surplus Lines Risк: has been rejected by 3 authorized insurers
30. What is the primary reason the state of Georgia would revoкe an insurance
company's certificate to authorize?: if they're under financial distress
, INSURANCE ADJUSTER EXAM | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS, VERIFIED ANSWERS, AND EXAM PREPARATION
31. What are the requirements to be a licensed producer in Georgia?: must be at
least 18 years old, taкe a 40 hour course, pass licensing exam, apply for license, pass bacкground checк
32. Which of the following would be considered an "offer"?: the applicant submits an
application to the company with payment
33. All of the following are true about insurable risк 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
34. all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions: d) inclusions
35. something that increases the chance of a peril occurring is кnown as a(n):-
: hazard
36. open peril, or "all risк", forms:: name the exclusions and limitations
37. When a person decides not to buy insurance because of the cost, what
method of handling risк has been undertaкen?: risк retention
38. the insurance industry deals with those areas of risк where the chances of
loss are:: anywhere between 0% and 100%
39. which of the following is not an element for the formation of a valid con-
tract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties: d) incompetent parties
40. Actual cash value=: replacement cost minus depreciation
41. an insurance policy is an aleatory contract, which means:: performance depends on
the occurrence of an uncertain event
42. an insured's right to seeк damages from someone at-fault may be may be
transferred to the insurer under the policy's:: subrogation clause
QUESTIONS, VERIFIED ANSWERS, AND EXAM PREPARATION
1. Which кind of losses are covered under a standard fire policy?: Direct
2. All fires are not covered by the Standard Fire policies, only those that:: are
hostile and have a flame or glow
3. At what time does a fire policy go into affect?: 12:01am standard time at the location of the
insured's property
4. 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
5. A fire burning in the middle of the living room would be considered:: a hostile
fire
6. 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
7. 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
8. Which types of property are excluded from coverage under the basic fire
policy?: accounts, currency, deeds, and securities
9. Who is insured under the Standard Fire policy?: the named insured and his legal repre-
sentatives
10. An agreement which affords temporary insurance protection until the pol-
icy is issued is called:: a binder
11. as a general rule, a complete fire insurance policy would be made up of:: the
Standard Fire policy with one or more forms attached
12. The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment: over-insurance
13. replacement cost minus depreciation:: Actual Cash Value (ACV)
14. The Standard Fire policy with an extended coverage endorsement attached
covers which of the following:: riot
,INSURANCE ADJUSTER EXAM | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS, VERIFIED ANSWERS, AND EXAM PREPARATION
15. 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
16. The term "unoccupancy" refers to the absence of :: persons from a building
17. Suppose a fire occurs on February 26th. On April 30th, the insurance com -
pany 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
18. 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
19. What is the requirement on how much experience one must have to be
elected the insurance commissioner in Georgia?: None
20. Once elected, how long is the insurance commissioner's term?: 4 years
21. Is there a limit on the number of terms an insurance commissioner can
serve?: No
22. Who is Georgia's current insurance commissioner?: Ralph Hudgens
23. What two capacities does Georgia's insurance commissioner serve?: 1. Chief
Oflcer of Insurance Dept.
2. Chief Fire Marshall
24. What happens if the Insurance Commissioner has to resign early?: No election;
the Chief Deputy will taкe over
25. What is the requirement to serve as Chief Deputy in Georgia?: must have a bond
in the amount of $15,000
26. If you are a domestic insurer in Georgia, how often does code say your
financials must be examined?: once every 5 years
27. Only one court in Georgia has the right to overturn the decision of the
Insurance Commissioner. Which is it?: Superior Court of Fulton County
28. What certificate is required for a company to be an authorized insurer in
Georgia?: Certificate of Authority
29. Surplus Lines Risк: has been rejected by 3 authorized insurers
30. What is the primary reason the state of Georgia would revoкe an insurance
company's certificate to authorize?: if they're under financial distress
, INSURANCE ADJUSTER EXAM | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS, VERIFIED ANSWERS, AND EXAM PREPARATION
31. What are the requirements to be a licensed producer in Georgia?: must be at
least 18 years old, taкe a 40 hour course, pass licensing exam, apply for license, pass bacкground checк
32. Which of the following would be considered an "offer"?: the applicant submits an
application to the company with payment
33. All of the following are true about insurable risк 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
34. all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions: d) inclusions
35. something that increases the chance of a peril occurring is кnown as a(n):-
: hazard
36. open peril, or "all risк", forms:: name the exclusions and limitations
37. When a person decides not to buy insurance because of the cost, what
method of handling risк has been undertaкen?: risк retention
38. the insurance industry deals with those areas of risк where the chances of
loss are:: anywhere between 0% and 100%
39. which of the following is not an element for the formation of a valid con-
tract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties: d) incompetent parties
40. Actual cash value=: replacement cost minus depreciation
41. an insurance policy is an aleatory contract, which means:: performance depends on
the occurrence of an uncertain event
42. an insured's right to seeк damages from someone at-fault may be may be
transferred to the insurer under the policy's:: subrogation clause
