Georgia Property and Casualty Insurance Exam Questions and Answers (Latest Update A+)
Question : BPP building coverage
CORRECT ANSWER : 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.
Question : HO limits of property at other residences
CORRECT ANSWER : 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
Question : Dwellings under construction
CORRECT ANSWER : 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.
Question : Water Backup & Sump Pump Endorsement
CORRECT ANSWER : 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.
Question : 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
Question : Other insurance
CORRECT ANSWER : 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.
Question : Stock Companies
CORRECT ANSWER : Owned by the stockholders who
provide the capital necessary to establish and operate the insurance company and who share in any profits or losses.
Question : Mutual companies
CORRECT ANSWER : Owned by the policyowners and
issue participating policies. Policyowners are entitled to dividends, which are a return of excess premium and are nontaxable.
Question : 6 classes of insurance in Georgia
CORRECT ANSWER : 1. Life, accident, and sickness
- Property, marine, and transportation
- Casualty
- Surety
- Title
- HMOs
Question : How often must the Insurance Commission
examine domestic insurers?
CORRECT ANSWER : Once every 5 years.
Question : What are the timelines if a hearing is requested?
CORRECT ANSWER : 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.
Question : What are the penalties after a notice, hearing, and
cease and desist order?
CORRECT ANSWER : A fine of up to $10,000 per violation
Suspension/revocation of license Any other appropriate relief.