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Property And Casualty Insurance Exam - Georgia Correct Answers Latest Version 2024
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Property And Casualty Insurance Exam - Georgia Correct Answers Latest Version 2024
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Property And Casualty Insurance Exam -Georgia Correct Answers Latest Version 2024
BPP building coverage 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.
HO limits of property at other residences 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
Dwellings under construction 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.
Water Backup & Sump Pump Endorsement 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.
Automatic Increase in Insurance Endorsement 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
Other insurance 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.
Stock Companies 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.
,Mutual companies Answer: Owned by the policyowners and issue participating policies.
Policyowners are entitled to dividends, which are a return of excess premium and are nontaxable.
6 classes of insurance in Georgia Answer: 1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic insurers? Answer: Once every 5
years.
What are the timelines if a hearing is requested? 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.
What are the penalties after a notice, hearing, and cease and desist order? Answer: A fine of up to
$10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority Answer: the authority of an agent, stated in the document or agreement creating
the agency
,Implied authority Answer: Authority that is not expressed or written into the contract, but which
the agent is assumed to have in order to transact the business of insurance for the principal.
Apparent authority 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.
When does an agents license expire? Answer: Licenses are good to for 2 years and expire on the last
day of the licensee's with month.
What are the CE requirements for an agent? Answer: 24 CE credit hours every 2 years, including 3
credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including ethics.
How long must an agent keep records regarding contracts, premiums, etc.? Answer: All records
must be kept for 5 years after the completion of a transaction or for the term of the contract, whichever
is greater.
Misrepresentation Answer: Issuing, publishing, or circulation and illustration or sales materials that
is false, misleading, or deceptive as to policy benefits or terms, the payments of dividends, etc.
False advertising Answer: advertising that is misleading in some important way, including the failure
to reveal facts about possible results from using the advertised products
Rebating Answer: Any inducement offered in the sale of insurance products that is not specified in
the policy. They are illegal in Georgia.
Twisting Answer: A form of misrepresentation in which an agent persuades an insured/owner to
cancel, lapse, or switch policies, even when it's to the insured's disadvantage.
, Churning Answer: Replacing insurance policies for the sole purpose of making commissions. It is
illegal to replace existing life or disability policies with new policies if the producer cannot demonstrate
that the replacement will benefit the insured.
Coercion Answer: Unfair trade practice where an agent uses physical or mental force with the
intense of inducing an applicant to purchase insurance.
Defamation Answer: Defamation occurs when an oral or written statement is made that is intended
to injure a person engaged in the insurance business. This also applies to statements that are maliciously
critical of the financial condition of any person or a company.
Controlled business Answer: Controlled business is any coverage written on a producer's own life,
health or property, and/or that of the producer's immediate family or business associates. A licensee is
not allowed to collect commissions on controlled business at rate higher than 25% of the agent' volume
per calendar year.
What is a binder Answer: A temporary insurance contract that goes in effect prior to the policy
issue. No binder shall be valid pass the issuance of the policy beyond 90 days of its effective date,
whichever period is shorted.
Georgia FAIR Answer: The Georgia Fair Access to Insurance Requirement provides basic property
insurance for those who cannot obtain it in the ordinary market.
Georgia Automobile Insurance Plan Answer: The Georgia Automobile Insurance Plan makes
automobile insurance available for insureds who are unable to purchase coverage in the voluntary
market. When an automobile policy is cancelled or nonrenewed for a reason other than for nonpayment
of premium, the insurer must notify the insured of their eligibility for coverage through the Georgia
Automobile Insurance Plan. The notice about the Plan must accompany the notice of cancellation or
nonrenewal.
Workman's Compensation Answer: Covers all business with 3 or more employees
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