GEORGIA ADJUSTER EXAM UPDATED

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GEORGIA ADJUSTER EXAM UPDATED

ACTUAL EXAM WITH CORRECT SOLUTIONS.

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

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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 2 / 4

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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.

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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

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