2025 GEORGIA PROPERTY AND CASUALTY INSURANCE
EXAM QUESTION WITH ANSWERS 2025/2026
What can an insurance endorsement do? - It can add, remove, or change the policy's
coverage.
Are endorsements legally binding? - Yes, endorsements are legally binding and
enforceable by law.
Can endorsements override the original policy document? - Yes, endorsements can
override whatever the original policy document says.
Can insurers add mandatory endorsements to policies? - Yes, insurers can add
mandatory endorsements that the insured must accept before buying the policy.
Blanket vs. Specific - BLANKET COVERAGE-provides coverage for different classes of
property under one policy.
SPECIFIC INSURANCE-is when you insure a specific item or specific kind of property.
Declarations - The section of an insurance policy containing the basic underwriting
information, such as the insured's name, address, amount of coverage and premiums,
and a description of insured locations, as well as any supplemental representations by
the insured.
Insuring Agreement - A statement in an insurance policy that the insurer will, under
described circumstances, make a loss payment or provide a service.
Conditions - provisions in the policy that qualify or place limitations on the insurer's
promise to perform
Exclusions - Causes of loss, exposures, conditions, etc. listed in the policy for which the
benefits will not be paid.
Definition of the insured - An insurance contract must identify the persons or parties
who are insured under the policy
Duties of the insured - -pay premiums
-notify the insurer of insured events within a reasonable time
-cooperate with insurer's investigation
Obligations of the company - the duty to defend and duty to indemnify
Mortgage Rights - give the property owner the right to encumber the property with a
mortgage.
, Proof of Loss - A statement of facts about a loss for which the insured is making a
claim.
Notice of Claim - A provision that spells out an insured's duty to provide the insurer with
reasonable notice in the event of a loss.
Appraisal - evaluation or estimation of worth
other-insurance provisions - prevent profiting from insurance and violation of the
principle of indemnity
Subrogation - The process by which an insurer can, after it has paid a loss under the
policy, recover the amount paid from any party (other than the insured) who caused the
loss or is otherwise legally liable for the loss.
Elements of Contract - offer, acceptance, consideration, legality, capacity, consent,
writing
Sources of underwriting - include the application, medical exams, an Attending
Physician's Statement, the Medical Information Bureau (MIB), an inspection report, and
the agent's report.
Fair Credit Reporting Act - Law that grants consumers to the right to know who requests
to view their credit report over the past year
Privacy Protection (Gramm Leach Bailey) - seeks to protect consumer financial privacy.
Its provisions limit when a "financial institution" may disclose a consumer's "nonpublic
personal information" to nonaffiliated third parties.
Policy Application - printed form that includes questions about a prospective insured
and the desired insurance coverage and limits.
What is the Terrorism Insurance Act? - A United States federal law.
Who signed the Terrorism Insurance Act into law? - President George W. Bush
When was the Terrorism Insurance Act signed into law? - November 26, 2002
What does the Terrorism Insurance Act create for insurance claims? - A federal
'backstop' for insurance claims related to acts of terrorism.
Territory - an area of land under the jurisdiction of a ruler or state.
What are representations in insurance? - Representations are the statements made by
the insured on the insurance application.
EXAM QUESTION WITH ANSWERS 2025/2026
What can an insurance endorsement do? - It can add, remove, or change the policy's
coverage.
Are endorsements legally binding? - Yes, endorsements are legally binding and
enforceable by law.
Can endorsements override the original policy document? - Yes, endorsements can
override whatever the original policy document says.
Can insurers add mandatory endorsements to policies? - Yes, insurers can add
mandatory endorsements that the insured must accept before buying the policy.
Blanket vs. Specific - BLANKET COVERAGE-provides coverage for different classes of
property under one policy.
SPECIFIC INSURANCE-is when you insure a specific item or specific kind of property.
Declarations - The section of an insurance policy containing the basic underwriting
information, such as the insured's name, address, amount of coverage and premiums,
and a description of insured locations, as well as any supplemental representations by
the insured.
Insuring Agreement - A statement in an insurance policy that the insurer will, under
described circumstances, make a loss payment or provide a service.
Conditions - provisions in the policy that qualify or place limitations on the insurer's
promise to perform
Exclusions - Causes of loss, exposures, conditions, etc. listed in the policy for which the
benefits will not be paid.
Definition of the insured - An insurance contract must identify the persons or parties
who are insured under the policy
Duties of the insured - -pay premiums
-notify the insurer of insured events within a reasonable time
-cooperate with insurer's investigation
Obligations of the company - the duty to defend and duty to indemnify
Mortgage Rights - give the property owner the right to encumber the property with a
mortgage.
, Proof of Loss - A statement of facts about a loss for which the insured is making a
claim.
Notice of Claim - A provision that spells out an insured's duty to provide the insurer with
reasonable notice in the event of a loss.
Appraisal - evaluation or estimation of worth
other-insurance provisions - prevent profiting from insurance and violation of the
principle of indemnity
Subrogation - The process by which an insurer can, after it has paid a loss under the
policy, recover the amount paid from any party (other than the insured) who caused the
loss or is otherwise legally liable for the loss.
Elements of Contract - offer, acceptance, consideration, legality, capacity, consent,
writing
Sources of underwriting - include the application, medical exams, an Attending
Physician's Statement, the Medical Information Bureau (MIB), an inspection report, and
the agent's report.
Fair Credit Reporting Act - Law that grants consumers to the right to know who requests
to view their credit report over the past year
Privacy Protection (Gramm Leach Bailey) - seeks to protect consumer financial privacy.
Its provisions limit when a "financial institution" may disclose a consumer's "nonpublic
personal information" to nonaffiliated third parties.
Policy Application - printed form that includes questions about a prospective insured
and the desired insurance coverage and limits.
What is the Terrorism Insurance Act? - A United States federal law.
Who signed the Terrorism Insurance Act into law? - President George W. Bush
When was the Terrorism Insurance Act signed into law? - November 26, 2002
What does the Terrorism Insurance Act create for insurance claims? - A federal
'backstop' for insurance claims related to acts of terrorism.
Territory - an area of land under the jurisdiction of a ruler or state.
What are representations in insurance? - Representations are the statements made by
the insured on the insurance application.
