Georgia Property and Casualty Insurance Exam Latest Update 2024 500 Questions and Verified Correct Answers Guaranteed A+
(HO) Coverage D-Loss of Use - CORRECT ANSWER: All homeowners policies contain
the Loss of Use coverage, which is a combination of Coverage D (Fair Rental Value) and Coverage E (Additional Living Expense) in the dwelling property policy.
- elements of insurable risk - CORRECT ANSWER: 1. Financial (a monetary interest)
- Blood (a relative)
- Business (a business partner)
3 types of hazards - CORRECT ANSWER: Physical, Moral, Morale
5 coverage forms used in commercial auto insurance - CORRECT ANSWER: business
auto coverage form business auto physical damage form garage coverage form truckers coverage form motor carriers coverage form
6 classes of insurance in Georgia - CORRECT ANSWER: 1. Life, accident, and
sickness
- Property, marine, and transportation
- Casualty
- Surety
- Title
- HMOs
A DP can be purchased to insure property solely used for residential purposed under the following situations: - CORRECT ANSWER: 1. up to 5 boarders
- up to 4 residential units
- properties in the course of construction
- owner occupied, tenant occupied, or both
- Mobile homes on the basic form only, if they contain 1 apartment only, and are at the
- Seasonal dwellings unoccupied for 3 or more months out of a 12-month period.
- Not designed as farm property.
permanent location listed on policy
Abandonment - CORRECT ANSWER: The relinquishing of insured property into the
hands of another, or into the possession of no one in particular.
Absolute liability - CORRECT ANSWER: A type of liability that occurs due to extremely dangerous operations, such as the use of explosives or working at extreme heights. The injured party does not need to prove negligence. 1 / 4
Accident - CORRECT ANSWER: An unexpected happening that may result in injury,
loss, or damage.
Accounts receivable coverage form - CORRECT ANSWER: One of the most important
and popular of the inland marine coverage forms. Unlike most inland marine coverages, coverage is provided for property that is at a fixed location, rather than mobile property.The accounts receivable coverage form is a filed form that provides protection for losses of accounts due from customers that become uncollectible because of a loss to the insured's accounts receivable records.
Actual Cash Value (ACV) - CORRECT ANSWER: Cost to replace property with new
property of like kind and quality less depreciation.
Additional insured - CORRECT ANSWER: Individual or business that are not named as insured on the declaration page, but are protected by the policy, usually in regard to a specific interest. Added by an endorsement.
Additional/Supplementary Coverage - CORRECT ANSWER: A provision in an
insurance policy that provides an additional amount of coverage for specific loss expense at no additional premium.
Aggregate Limits - CORRECT ANSWER: The most the policy will pay for all losses
submitted during the policy period, regardless of other policy limits.
Agreement - CORRECT ANSWER: Offer and acceptance.
Annual transit form - CORRECT ANSWER: This policy is used by those businesses
that ship goods on a regular basis. Coverage can be written for all outgoing shipments, incoming shipments, or both that occur during the policy period.
Apparent authority - CORRECT ANSWER: The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
Appraisal - CORRECT ANSWER: If there is a disagreement between the insured and
the insurer on the value of an property loss, either party can make a written demand for an appraisal.
Arbitration - CORRECT ANSWER: A method of casualty claim settlement used in the
insurer and insured cannot agree on how to settle a claim. The arbitrator makes the decision on the settlement.
Assignment - CORRECT ANSWER: The transfer of a legal right or interest in an
insurance policy. Prior written consent of the insurer is required.
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Auto Dealers Supplemental Schedule - CORRECT ANSWER: The Auto Dealers
Supplemental Schedule contains specific information concerning the classes of vehicle operators (employees who regularly drive or are furnished vehicles), coverage for customer's liability or damage to customer's vehicles, and physical damage coverage on insured vehicles. The supplemental schedule also indicates whether coverage is written on a reporting form basis and whether liability coverage for pick-up and delivery of automobiles is insured.
Automatic Increase in Insurance Endorsement - CORRECT ANSWER: 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
automobile liability coverage - CORRECT ANSWER: pays for any damages and
liabilities that you are legally obligated to pay for, and also pays defense costs. The cost of defense is over and above the limit of liability. However, no defense is provided if the liability is not covered. When the liability is covered, the insurer has the right to investigate and settle any claims independently of the insured
B.B. BICE-GOLF - CORRECT ANSWER: Broad form coverage perils
Bursting of heating systems burglary damage breaking for water heaters ice, snow, sleet collapse of the building or parts of it electrical damage (artificial) glass breaking objects falling from outside leakage of water or steam damage freezing of plumbing
Bailee's Customers Policy - CORRECT ANSWER: Bailee's Customer coverage forms
are used to cover losses to customers' property in the care, custody or control of the insured. Includes bailee's customers, furriers block, dry cleaners, and warehouseman's.Each of these forms is unfiled.
bill of lading - CORRECT ANSWER: A bill of lading is a contract for the transport of goods between the shipper and the carrier. This document specifies the carrier's duties and responsibilities for the property. Common carriers are required to issue a uniform bill of lading to every person (shipper) that it transports goods for. When a regular bill of lading is issued, the carrier will be responsible for the invoice cost of any damaged property, and the shipper does not have to specifically declare a value. However, the carrier may issue a released bill of lading in which the shipper must specifically declare the values of the property being shipped. With the released bill of lading, the shipper is charged a lower fee because the carrier is only liable for damage up to the stated amount.
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Binder - CORRECT ANSWER: A temporary agreement issued by an agent providing
temporary coverage until a policy can be issued.
Blanket insurance - CORRECT ANSWER: A single property insurance policy that
provides coverage for multiple classes of property at one location, or provides coverage for one or more classes of property at multiple locations.
Bodily Injury - CORRECT ANSWER: Bodily harm, sickness, or disease, including death that results.
Bodily injury liability - CORRECT ANSWER: Legal liability arising from death or
physical trauma to a person as a result of a negligent or purposeful act and omissions by an insured.
bond period - CORRECT ANSWER: The fidelity bond period is the term of coverage by stating the time and date for the effective and expiration dates.
Bonds - CORRECT ANSWER: There are generally 3 parties to a bond: principal, obligee, and surety.
BOP additional coverages - CORRECT ANSWER: Debris removal - 25%/180
days/$10,000 Preservation of property - 30 days Fire department service - $2500 Collapse - covered is cause by hidden decay, insect or vermin, weight of people or property, or use of defective material during construction.Water/liquid/molten material damage - included only in the special form.Business income - actual loss sustained/12 months/ordinary payroll - 60days with 72- hour waiting period.Extended business income - 30 days Extra expense - actual loss sustained/12 months/no waiting period Pollutant cleanup - $10,000/12 months/180 day notification Civil authority - 72 hours after action and for 4 weeks Money orders/counterfeit currency - $1000 Forgeries - $2500 for forged/altered checks Increased cost of construction - $10,000 if insured on replace cost basis.Glass expense Business income from dependent properties - $5000 fire extinguisher recharge - $5000 Electronic data - $10,000 Interrupted computer operations - $10,000 Limited coverage for fungi/wet or dry rot - $15,000 if caused by specified cause of loss other than fire or lightning.
BOP coverage extensions - CORRECT ANSWER: Newly acquired property - $250k for
buildings, $100k for BPP only applies for 30 days.
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