Property and Casualty Insurance Exam – Georgia correctly answered 2023 rated A+

Property and Casualty Insurance Exam – Georgia correctly answered 2023 rated A+BPP building coverage insures the building at the described location, outdoor, fixtures, furnitures, items used to service the property, permanently installed machinery and equipment, and additions under construction, including the materials, supplies, and equipment. HO limits of property at other residences the larger of $1000 or 10% Coverage C. Limit does not apply if property is moved because the residence premise is being repaired or rebuilt. When property is moved to newly acquired residence, the limit shown on declaration will apply on a proportional basis to each residence Dwellings under construction The limit of liability for a dwelling under construction is provisional, and is based on the completed value of the structure. At the time of loss, the applicable limit is a percentage of the provisional limit, based on the proportion of actual cash value of the property at the time of loss. Premium is based on an average amount of insurance during construction. Water Backup & Sump Pump Endorsement Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for an additional premium with this endorsement. Automatic Increase in Insurance Endorsement is used to provide at the annual renewal date of the policy, an automatic increase in the Coverage A and B limits of insurance to help offset inflation Other insurance A provision in an insurance policy that defines how the policy will respond if there is another valid insurance policy written on the same risk. Stock Companies Owned by the stockholders who provide the capital necessary to establish and operate the insurance company and who share in any profits or losses. Mutual companies Owned by the policyowners and issue participating policies. Policyowners are entitled to dividends, which are a return of excess premium and are nontaxable. 6 classes of insurance in Georgia 1. Life, accident, and sickness 2. Property, marine, and transportation 3. Casualty 4. Surety 5. Title 6. HMOs How often must the Insurance Commission examine domestic insurers? Once every 5 years. What are the timelines if a hearing is requested? A hearing must be made within 30 days of the receipt of the request. A notification of the hearing must be sent at least 15 days in advance. Within 30 days of the hearing, the Commissioner must release his decision. What are the penalties after a notice, hearing, and cease and desist order? A fine of up to $10,000 per violation Suspension/revocation of license Any other appropriate relief. Express authority the authority of an agent, stated in the document or agreement creating the agency Implied authority Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal. Apparent authority The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created. When does an agents license expire? Licenses are good to for 2 years and expire on the last day of the licensee's with month. What are the CE requirements for an agent? 24 CE credit hours every 2 years, including 3 credit hours of ethics. Agents with licensed for 20 years only need 20 CE credit hours, including ethics. How long must an agent keep records regarding contracts, premiums, etc.? All records must be kept for 5 years after the completion of a transaction or for the term of the contract, whichever is greater. Misrepresentation Issuing, publishing, or circulation and illustration or sales materials that is false, misleading, or deceptive as to policy benefits or terms, the payments of dividends, etc. False advertising advertising that is misleading in some important way, including the failure to reveal facts about possible results from using the advertised products Rebating Any inducement offered in the sale of insurance products that is not specified in the policy. They are illegal in Georgia. Twisting A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage. Churning Replacing insurance policies for the sole purpose of making commissions. It is illegal to replace existing life or disability policies with new policies if the producer cannot demonstrate that the replacement will benefit the insured. Coercion Unfair trade practice where an agent uses physical or mental force with the intense of inducing an applicant to purchase insurance. Defamation Defamation occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business. This also applies to statements that are maliciously critical of the financial condition of any person or a company. Controlled business Controlled business is any coverage written on a producer's own life, health or property, and/or that of the producer's immediate family or business associates. A licensee is not allowed to collect commissions on controlled business at rate higher than 25% of the agent' volume per calendar year.