GA Personal Lines Insurance Terms Questions and Answers 100% Pass

GA Personal Lines Insurance Terms Questions and Answers 100% Pass Abandonment - Correct Answer ✔️✔️-The abdication of insured property into the hands of another or into the possession of no one in particular Accident - Correct Answer ✔️✔️-A sudden unplanned and unexpected event not under the control of the insured resulting in injury or damage that is neither expected or intended Actual Cash Value - Correct Answer ✔️✔️-The replacement cost of lost or damaged property minus depreciation Additional coverage - Correct Answer ✔️✔️-A provision in an insurance policy that provides additional amounts of coverage for a specific loss expense at no additional premium Additional Insureds - Correct Answer ✔️✔️-Individuals or business that are not named as insureds on the declaration page but are protected by the policy usually in regard to a specif ic interest Adhesion - Correct Answer ✔️✔️-A contract which is offered on a take it or leave it basis. The insured's only option is to either accept or reject the contract; he/she has no input concerning its terms Admitted Insurer - Correct Answer ✔️✔️-An insurance company that has qualified and received a certificate of authority from the department of insurance to transact insurance in the state Adverse Selection - Correct Answer ✔️✔️-The insuring of risks that are of a poorer class (more prone to losses) than the average risk Agent - Correct Answer ✔️✔️-A person who acts on the behalf of the insurer to sell, negotiate, or effect insurance contrac ts; also known as a producer Aggregate Limit - Correct Answer ✔️✔️-The maximum limit of coverage available under a liability policy during a policy year regardless of the number of claims that may be made or the number of accidents that may occur Agreed Va lue - Correct Answer ✔️✔️-A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written Aleatory - Correct Answer ✔️✔️-A contra ct in which unequal amounts or values are exchanged. The premium paid by the insured is small in relation to the amount that will be paid by the insurer in the event of loss Alien Insurer - Correct Answer ✔️✔️-An insurance company that is incorporated outs ide the United States Apparent Authority - Correct Answer ✔️✔️-The appearance of the assumption of authority based on the actions, words, or deed of the principal or because of circumstances the principal created Appraisal - Correct Answer ✔️✔️-An assessme nt of property to determine either the correct amount of insurance to be written or the amount of loss to be paid Arbitration - Correct Answer ✔️✔️-Method of claim settlement used when the insured and insurer cannot agree upon the amount of the loss Assign ment - Correct Answer ✔️✔️-The transfer of a legal right or interest in an insurance policy Authorized Insurer - Correct Answer ✔️✔️-An insurance company that has qualified and received a certificate of authority from the department of insurance to transac t insurance in the state Auto - Correct Answer ✔️✔️-A land motor vehicle, trailer, or semi -trailer designed for use on public roads, including attached machinery or equipment;auto does not include mobile equipment Bailee - Correct Answer ✔️✔️-A person or e ntity that has possession of personal property entrusted to him/her by the owner. Beneficiary - Correct Answer ✔️✔️-The person who receives the benefits from the policy of insurance Binder - Correct Answer ✔️✔️-A temporary contract of insurance issued by a n insurer or its agent that places insurance in effect prior to the policy being issued Blanket Bond - Correct Answer ✔️✔️-This type of bond covers losses caused by dishonest employees