Ga Property & Casualty Insurance Study Guide
questions with correct answers
Personal Automobile Policy CORRECT ANSWER • Accounts for 40% of all
premiums
- Vehicles registered to individuals and operated primarily for personal activities
o Driving to work is a personal activity
o Policy allows use of vehicle for incidental business activities
Financial Responsibility State CORRECT ANSWER • Georgia is a financial
responsibility state
o To legally operate an automobile in the state of Georgia, a person must show that
they are able to financially compensate the person(s) that they may injure or where
they damage the other person’s property
Financial Responsibility CORRECT ANSWER may be show by the following:
- Personal automobile insurance – Liability coverage
- Motor vehicle bond
3.Cash or security deposit
Compulsory Insurance Laws CORRECT ANSWER 25/50/25 state minimum limits
(split)
$25,000 bodily injury per person
$50,000 bodily injury per occurrence
$25,000 property damage
Or
$75,000 – Combined single limits
Policy Terms CORRECT ANSWER either 6 months or 1 year
Personal umbrella CORRECT ANSWER separate policy for catastrophic liability
claims, in excess of primary coverage; must have primary coverage in force and
raise the limits of liability
Eligible Vehicles CORRECT ANSWER o Private passenger automobiles
o Trucks <10,000 lbs. o Vans <10,000 lbs. Owned or Leased No business activities covered for trucks and vans GA Assigned Risk CORRECT ANSWER when someone cannot qualify for insurance, high premium Ineligible Vehicles CORRECT ANSWER o Vehicles owned by businesses o Taxis o Motorcycles o Trucks/Vans >10,000 lbs.
o Vehicles used for government purposes
o Vehicles furnished for the regular use of an insured by an employer
o Trailer – cannot propel itself when the trailer and the vehicle are connected, both
are one in the same for liability claims
Territorial Limits CORRECT ANSWER o United States
o Canada
o United States Territories & Possessions
Puerto Rico
Guam
United States Virgin Islands
American Samoa
o Coverage will not transfer to Mexico, can be purchased on a daily basis
Insured CORRECT ANSWER -Named Insured
-Spouse, residing in household (automatically insured, even if not listed)
- If the spouse leaves the Named Insured and takes a listed vehicle with them and
sets up their own household, the vehicle is covered up to 90 days
Family members residing in household
Anyone driving with permission
Occupying CORRECT ANSWER while in, on, upon, entering onto or exiting from
“Your covered automobile” CORRECT ANSWER all of the vehicles that you may
be driving for the coverages in the policy and need coverage
listed on the declarations page
includes automobiles covered for newly acquired vehicles, additional and
replacement
… CORRECT ANSWER newly acquired additional
has 14 days to add to the policy
newly acquired replacement CORRECT ANSWER physical damage coverage up
to 14 days, all other coverage until the end of the policy term
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