Georgia Adjuster Exam2
Which of the following is the most precise synonym for an "authorized" insurer?
Insurers who meet the state's financial requirements and are approved to transact business in the state
are considered authorized or admitted into the state as a legal insurer. - answers✔✔Admitted
All of the following are additional causes of loss included in the broad form of a commercial property
policy EXCEPT
Broad form causes of loss adds falling objects; weight of ice, snow, or sleet; water damage; collapse; and
breakage of glass to those perils covered under the basic causes of loss. - answers✔✔Replacement cost
Three years ago, an insured moved to an unfurnished apartment. She bought new furniture that cost
$9,000. Last week, there was a fire in the apartment that destroyed the furniture. Replacement cost is
$10,500. The adjuster told the insured her furniture depreciated $2,500. If insurance is written on an
actual cash value basis, how much will it pay for the loss?
When insurance coverage is written on an actual cash value basis, losses paid are for the replacement
cost (at the time of loss), minus depreciation. - answers✔✔$8,000
When an employee benefit plan pays the premium for a fiduciary liability policy, what provision must be
included in that policy?
If the premiums are paid from the fund, the policy must allow for subrogation against the individual
trustees involved in any loss. - answers✔✔Subrogation
The failure to disclose all known facts is called
Withholding information that is material to the risk to be insured is concealment and makes a policy
voidable. - answers✔✔Concealment
, Which common policy condition prohibits the insured from changing the rights or duties as defined
under the policy to any other person or entity without the written consent of the insurance company?
Under the "transfer of rights and duties under the policy" condition, the insured cannot transfer any
rights or duties under the policy to any other person or organization without the written consent of the
insurance company. - answers✔✔Transfer of rights and duties under the policy
Pins & Alley, which is owned and operated by Bob Balls, has a commercial general liability policy.
Spencer, an employee, was injured while demonstrating the latest, marble bowling ball. Spencer
inadvertently dropped the ball on his own foot causing several bone fractures. Will the commercial
general liability policy owned by Pins & Alley cover this loss?
Employees are not covered for bodily injury or personal injury to an insured or co-employee, or a
spouse, parent or sibling of the employee under a CGL policy. - answers✔✔No, because injuries to
employees are excluded.
An advertising company has its annual holiday party for employees and customers, after which a
customer who had too much to drink is involved in an automobile accident. Occupants of the other car
involved in the accident sue the company for serving the customer too much alcohol. Will the company's
businessowners policy provide coverage?
The liquor liability exclusion applies only to insureds in the business of manufacturing, distributing,
selling, serving, or furnishing alcoholic beverages. In this case, the company's businessowners policy
most likely will have to pay. - answers✔✔Yes, none of the exclusions will apply
Bulk carriers are used to transport
Bulk carriers are used to carry coal, grain, phosphates, and other loose cargo. The ship itself is the
container for the cargo. - answers✔✔Loose cargo
All of the following are classes of inland marine risks EXCEPT
Which of the following is the most precise synonym for an "authorized" insurer?
Insurers who meet the state's financial requirements and are approved to transact business in the state
are considered authorized or admitted into the state as a legal insurer. - answers✔✔Admitted
All of the following are additional causes of loss included in the broad form of a commercial property
policy EXCEPT
Broad form causes of loss adds falling objects; weight of ice, snow, or sleet; water damage; collapse; and
breakage of glass to those perils covered under the basic causes of loss. - answers✔✔Replacement cost
Three years ago, an insured moved to an unfurnished apartment. She bought new furniture that cost
$9,000. Last week, there was a fire in the apartment that destroyed the furniture. Replacement cost is
$10,500. The adjuster told the insured her furniture depreciated $2,500. If insurance is written on an
actual cash value basis, how much will it pay for the loss?
When insurance coverage is written on an actual cash value basis, losses paid are for the replacement
cost (at the time of loss), minus depreciation. - answers✔✔$8,000
When an employee benefit plan pays the premium for a fiduciary liability policy, what provision must be
included in that policy?
If the premiums are paid from the fund, the policy must allow for subrogation against the individual
trustees involved in any loss. - answers✔✔Subrogation
The failure to disclose all known facts is called
Withholding information that is material to the risk to be insured is concealment and makes a policy
voidable. - answers✔✔Concealment
, Which common policy condition prohibits the insured from changing the rights or duties as defined
under the policy to any other person or entity without the written consent of the insurance company?
Under the "transfer of rights and duties under the policy" condition, the insured cannot transfer any
rights or duties under the policy to any other person or organization without the written consent of the
insurance company. - answers✔✔Transfer of rights and duties under the policy
Pins & Alley, which is owned and operated by Bob Balls, has a commercial general liability policy.
Spencer, an employee, was injured while demonstrating the latest, marble bowling ball. Spencer
inadvertently dropped the ball on his own foot causing several bone fractures. Will the commercial
general liability policy owned by Pins & Alley cover this loss?
Employees are not covered for bodily injury or personal injury to an insured or co-employee, or a
spouse, parent or sibling of the employee under a CGL policy. - answers✔✔No, because injuries to
employees are excluded.
An advertising company has its annual holiday party for employees and customers, after which a
customer who had too much to drink is involved in an automobile accident. Occupants of the other car
involved in the accident sue the company for serving the customer too much alcohol. Will the company's
businessowners policy provide coverage?
The liquor liability exclusion applies only to insureds in the business of manufacturing, distributing,
selling, serving, or furnishing alcoholic beverages. In this case, the company's businessowners policy
most likely will have to pay. - answers✔✔Yes, none of the exclusions will apply
Bulk carriers are used to transport
Bulk carriers are used to carry coal, grain, phosphates, and other loose cargo. The ship itself is the
container for the cargo. - answers✔✔Loose cargo
All of the following are classes of inland marine risks EXCEPT
