Consequential also known as Indirect Loss Correct Answer: An insured's business is damaged because of a fire and he is forced to close business temporarily for repairs. As a result the insured lost income. What type of loss is this?
Combined Single Correct Answer: The insured crashes into a po...
Georgia Adjuster Exam| 137 QUESTIONS|
COMPLETE SOLUTION
Consequential also known as Indirect Loss Correct Answer: An insured's business is damaged
because of a fire and he is forced to close business temporarily for repairs. As a result the insured
lost income. What type of loss is this?
Combined Single Correct Answer: The insured crashes into a porch and the person sitting on the
porch. The person on the porch is injured. The insured's insurance policy has a limit set at
$500,000. This amount applies to the total of damages for any bodily injury and property damage
resulting from one accident. Which type of limit of liability does the insured have? This single
dollar limit of liability applying to the total of damages for bodily injury and property damage
combined resulting from one accident or occurrence
$100,000 Correct Answer: If a liability policy had split limits of 100/300/100, what is the
maximum amount that would be payable in the event of injury to a single person? The first limit
shown is the most the policy will pay for bodily injury to any one person
Absolute Correct Answer: What kind of liability would a person with a swimming pool have?
Any conduct that is inherently dangerous imposes this liability. The claimant does not have to
prove anythhing.
Only to individuals Correct Answer: An agent license can be issued
A change in the risk that substantially increases the hazard insured against Correct Answer: If a
policy has been in affect for at least 60 days or is due for renewal, a cancellation may only be
affected for this reason
Authorized Insurer Correct Answer: An insurer that holds a Certificate of Authority in the state
in which it transacts business is considered to be
15% Correct Answer: An insured must get advanced warning if the premiums will be increased
by more than
Written notice of an increase in premiums that exceed this amount of the current policy's
premium must be delivered or mailed to the insured at least 45 days before the effective date of
the change
Indemnity Correct Answer: The insurance principle that states if a policy allows for greater
compensation than the financial loss incurred, the insured may only receive benefits for the
amount lost.
Loss Correct Answer: Insurance is a contract by which one seeks to protect another from
,Pair and Set Clause Correct Answer: The loss settlement based on the reasonable and fair
portion that the lost or damaged part bears to the total value of the set
In the event of a loss to only part of a pair or set, losses will be settled either by repairing or
replacing the damaged part or by paying the difference between the actual cash value before and
after the loss.
Provides the insurer a method of settling a loss when only a part of the insured pair or set is
damaged. The insurer will pay for the loss or damage to an insured item, plus the amount that the
loss of one item detracts from the value of undamaged item(s) of the pair or set.
Insuring clause, Exclusions, Conditions Correct Answer: The essential parts of an insurance
policy
Conditions Correct Answer: Because an insurance policy is legal contract, it must conform to
the state laws governing contracts which require all the following statements except
Legal purpose, Consideration, Conditions, Offer and Acceptance
Beneficiary's consent Correct Answer: An insurance contract must contain all of the following
to be considered legally binding EXCEPT
Offer and Acceptance, Consideration, Beneficiary's Consent, Competent Parties
The essential elements of a legal contract are
Offer and Acceptance, Consideration, Competent Parties, Legal Purpose
Consideration Correct Answer: ** Something of value one party gives to another. --The
consideration on the part of the insured is the payment of premium and the representations made
in the policy.
** When an insured makes truthful statements on the application for insurance and pays the
required premium, it is known as which of the following?
-Consideration is something of value that each party gives to the other. The consideration on the
part of the insured is the payment of premium and the representations made in the application.
A specific time (usually 60 days, time may vary) Correct Answer: In the event of a loss covered
by the policy, the named insured is required to submit to the insurer a signed sworn proof of loss
within
Garagekeepers Liability Correct Answer: Physical damage coverage on customers' autos while
in care, custody and control of the garage operation.
, No coverage is provided for autos stored for more than 45 days at a location not shown in the
declarations Correct Answer: Which of the following statements is true regarding physical
damage coverage in a garage form?
Collision coverage is provided only for dealers
Autos held for sale by a dealer are listed individually in the policy
No coverage is provided for autos stored for more than 45 days at a location not shown in the
declarations
Specific causes-of loss coverage is not available for physical damage coverage
** Collision coverage is not limited to a specific risk. Autos held for sale are covered when auto
designation Symbol 31 (dealer's autos) is shown on the declaration page. The specific causes of
loss coverage is available for physical damage coverage
Uninsured Motorist Coverage (BI/PD) and UM under Part A of a Personal Auto Policy Correct
Answer: In the Personal Auto Policy, owned trailers being owned by an insured auto are
automatically covered for
Symbol 5 Correct Answer: The following symbol is available to an insured with vehicles subject
to no-fault coverage
The insured's automobile is used to carry passengers for hire Correct Answer: A personal
automobile policy MAY be cancelled by the insurer for the following reason
The insured's business income losses due to personal injury Correct Answer: With respect to
commercial auto policies, the Garage Coverage Form provides liability protection for all the
following except
The insured's business income losses due to personal injury
The insured's business premises
The insured's business products and work performed
The insured's business autos
The Georgia Automobile Insurance Plan Correct Answer: When a policy is cancelled for a
reason other than nonpayment of premium or if the policy is nonrenewed, the insurer must notify
the insured of his/her possible eligibility for insurance through
A symbol Correct Answer: Business Auto Coverage applies only to those autos which are
identified as "covered autos" in the declarations of the policy. Covered autos are identified by
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