GA Property & casualty Insurance Exam Practice Questions with Complete Solutions (Latest 2025) Replacement cost - Correct Answers ✅the full cost to repair damage property or replace damaged property, with property of like kind and quality, at current pricing , without deduction for depreciation Market Value - Correct Answers ✅the price a willing buyer would pay for property purchased from a willing seller under fair market conditions.Stated Value - Correct Answers ✅means that the insurer bases the policy premium on the insureds statement of the property value. (However the insurers will pay the lesser the amount between the stated amount or the actual cash value) Salvage Value - Correct Answers ✅the amount for which property can be sold at the end of it's useful life Proximate Cause - Correct Answers ✅also known as primary cause of loss / the first peril that occurs /direct or most important cause of loss Deductible - Correct Answers ✅is specified amount of each loss that the insured must pay as a way to share the cost of loss with the insurance company/ must pay before insurance can give coverage 1 / 3
GA Property & casualty Insurance Exam Practice Questions with Complete Solutions (Latest 2025) Indemnity - Correct Answers ✅in the event of loss Limits of liability - Correct Answers ✅is the maximum a liability policy will pay in the event of loss, regardless of the number of insureds, claims made, lawsuits filled, or parties making or filling lawsuits Coinsurance/ insurance to value - Correct Answers ✅requires insured to carry a certain a certain percentage of the property total valuation (usually 80%) in order for losses to be paid in full / prevents losses from not being covered in full Occurence - Correct Answers ✅an accident, including continuous or repeated exposure to the same generally harmful conditions that results of loss or damage Cancellation - Correct Answers ✅is the termination of a policy before its expiration date, and coverage is not provide as of the effective date it is suppose to end Nonrenewal - Correct Answers ✅when the insurer chooses not the renew the policy, and coverage ends at the expiration of the policy term must also be provided in advance with the requirements set by law 2 / 3
GA Property & casualty Insurance Exam Practice Questions with Complete Solutions (Latest 2025) Vacancy - Correct Answers ✅property with NO personal items or occupants unoccupancy - Correct Answers ✅Property with NO occupants but does have personal items Liability - Correct Answers ✅risk arise without the involvement of negligence/ can be civil or criminal/ Civil requires compensation and criminal is NOT covered by insurance Absolute Liability - Correct Answers ✅most associated with dangerous animal ownership, storage of firearms or weapons , and possession of explosive or highly flammable material Strict Liability - Correct Answers ✅used in the context of manufacturer or seller of a product who is liable for all damages caused by a defective product Vicarious - Correct Answers ✅also know as inputed negligence/ is when someone else is legally liable for the person who has been negligent Example: Parents are liable for a child's actions
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