GA Property & Casualty Exam questions with correct answers

Insurance policy covers what type of losses CORRECT ANSWER Direct and Indirect In order to have an indirect loss, you must have CORRECT ANSWER a direct loss What does property insurance cover? CORRECT ANSWER structures and contents Direct loss CORRECT ANSWER physical destruction of property by lightening, wind, fire, theft, etc Indirect loss CORRECT ANSWER consequences of direct losses - e.g. loss of income, additional expenses to live, loss of rental income, etc. What is the purpose of personal lines insurance? CORRECT ANSWER Coverage for personal activities of the insured for losses that might take place What is the purpose of commercial insurance? CORRECT ANSWER policies that cover NON personal activities of the insured where losses might take place Who transfers risk in insurance? CORRECT ANSWER Insurance involves transfer of YOUR risk to other people for your loss