Georgia
Ga Property & Casualty Insurance Study
Guide Exam 2025
Personal Automobile Policy - Correct Ans-• Accounts for 40% of all premiums
• Vehicles registered to individuals and operated primarily for personal activities
o Driving to work is a personal activity
o Policy allows use of vehicle for incidental business activities
Financial Responsibility State - Correct Ans-• Georgia is a financial responsibility state
o To legally operate an automobile in the state of Georgia, a person must show that
they are able to financially compensate the person(s) that they may injure or where they
damage the other person's property
Financial Responsibility - Correct Ans-may be show by the following:
1. Personal automobile insurance - Liability coverage
2. Motor vehicle bond
3.Cash or security deposit
Compulsory Insurance Laws - Correct Ans-25/50/25 state minimum limits (split)
$25,000 bodily injury per person
$50,000 bodily injury per occurrence
$25,000 property damage
Or
$75,000 - Combined single limits
Policy Terms - Correct Ans-either 6 months or 1 year
Personal umbrella - Correct Ans-separate policy for catastrophic liability claims, in
excess of primary coverage; must have primary coverage in force and raise the limits of
liability
Eligible Vehicles - Correct Ans-o Private passenger automobiles
o Trucks <10,000 lbs.
o Vans <10,000 lbs.
Owned or Leased
No business activities covered for trucks and vans
GA Assigned Risk - Correct Ans-when someone cannot qualify for insurance, high
premium
Ineligible Vehicles - Correct Ans-o Vehicles owned by businesses
o Taxis
o Motorcycles
o Trucks/Vans >10,000 lbs.
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, Georgia
o Vehicles used for government purposes
o Vehicles furnished for the regular use of an insured by an employer
o Trailer - cannot propel itself when the trailer and the vehicle are connected, both are
one in the same for liability claims
Territorial Limits - Correct Ans-o United States
o Canada
o United States Territories & Possessions
Puerto Rico
Guam
United States Virgin Islands
American Samoa
o Coverage will not transfer to Mexico, can be purchased on a daily basis
Insured - Correct Ans--Named Insured
-Spouse, residing in household (automatically insured, even if not listed)
• If the spouse leaves the Named Insured and takes a listed vehicle with them and sets
up their own household, the vehicle is covered up to 90 days
Family members residing in household
Anyone driving with permission
Occupying - Correct Ans-while in, on, upon, entering onto or exiting from
"Your covered automobile" - Correct Ans-all of the vehicles that you may be driving for
the coverages in the policy and need coverage
listed on the declarations page
includes automobiles covered for newly acquired vehicles, additional and replacement
... - Correct Ans-newly acquired additional
has 14 days to add to the policy
newly acquired replacement - Correct Ans-physical damage coverage up to 14 days, all
other coverage until the end of the policy term
Coverage A - Correct Ans-Liability- paid to other person because the insured is liable
meets the financial responsibility standard in GA
there must be proof that the insured caused the accident
Mandatory in GA
Third party coverage
Negligence must apply
Intentional acts are excluded, ex: Road Rage
o Bodily Injury
o Property Damage
Payment is made only if the insured is negligent
o Supplementary Payments
Defense
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Ga Property & Casualty Insurance Study
Guide Exam 2025
Personal Automobile Policy - Correct Ans-• Accounts for 40% of all premiums
• Vehicles registered to individuals and operated primarily for personal activities
o Driving to work is a personal activity
o Policy allows use of vehicle for incidental business activities
Financial Responsibility State - Correct Ans-• Georgia is a financial responsibility state
o To legally operate an automobile in the state of Georgia, a person must show that
they are able to financially compensate the person(s) that they may injure or where they
damage the other person's property
Financial Responsibility - Correct Ans-may be show by the following:
1. Personal automobile insurance - Liability coverage
2. Motor vehicle bond
3.Cash or security deposit
Compulsory Insurance Laws - Correct Ans-25/50/25 state minimum limits (split)
$25,000 bodily injury per person
$50,000 bodily injury per occurrence
$25,000 property damage
Or
$75,000 - Combined single limits
Policy Terms - Correct Ans-either 6 months or 1 year
Personal umbrella - Correct Ans-separate policy for catastrophic liability claims, in
excess of primary coverage; must have primary coverage in force and raise the limits of
liability
Eligible Vehicles - Correct Ans-o Private passenger automobiles
o Trucks <10,000 lbs.
o Vans <10,000 lbs.
Owned or Leased
No business activities covered for trucks and vans
GA Assigned Risk - Correct Ans-when someone cannot qualify for insurance, high
premium
Ineligible Vehicles - Correct Ans-o Vehicles owned by businesses
o Taxis
o Motorcycles
o Trucks/Vans >10,000 lbs.
1|Page
, Georgia
o Vehicles used for government purposes
o Vehicles furnished for the regular use of an insured by an employer
o Trailer - cannot propel itself when the trailer and the vehicle are connected, both are
one in the same for liability claims
Territorial Limits - Correct Ans-o United States
o Canada
o United States Territories & Possessions
Puerto Rico
Guam
United States Virgin Islands
American Samoa
o Coverage will not transfer to Mexico, can be purchased on a daily basis
Insured - Correct Ans--Named Insured
-Spouse, residing in household (automatically insured, even if not listed)
• If the spouse leaves the Named Insured and takes a listed vehicle with them and sets
up their own household, the vehicle is covered up to 90 days
Family members residing in household
Anyone driving with permission
Occupying - Correct Ans-while in, on, upon, entering onto or exiting from
"Your covered automobile" - Correct Ans-all of the vehicles that you may be driving for
the coverages in the policy and need coverage
listed on the declarations page
includes automobiles covered for newly acquired vehicles, additional and replacement
... - Correct Ans-newly acquired additional
has 14 days to add to the policy
newly acquired replacement - Correct Ans-physical damage coverage up to 14 days, all
other coverage until the end of the policy term
Coverage A - Correct Ans-Liability- paid to other person because the insured is liable
meets the financial responsibility standard in GA
there must be proof that the insured caused the accident
Mandatory in GA
Third party coverage
Negligence must apply
Intentional acts are excluded, ex: Road Rage
o Bodily Injury
o Property Damage
Payment is made only if the insured is negligent
o Supplementary Payments
Defense
2|Page
