GA PROPERTY CASUALTY INSURANCE STUDY GUIDE

PDF Download GA PROPERTY & CASUALTY INSURANCE STUDY GUIDE

EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -93 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: TRANSPORTATION EXPENSES

Answer:

Paid under the covered peril, theft, if car is stolen,

• pays only $20 per day

-48hrs waiting period

Question 2: Defense Against Negligence

Answer:

• Contributory - both parties share the blame; no one can file claim against other

• Comparative - one party is more responsible than the other

• Assumption of risk - assuming all risk

• Intervening cause - something happens/intervenes

• Last Clear Chance - published warning of danger where people have the opportunity to avoid the

accident but fail to do so

Question 3: Punitive

Answer:

dollar value associated with punishment due to gross negligence, ex: DUI

Question 4: PHYSICAL DAMAGE COVERAGE

Answer:

COVERAGE D

Question 5: Personal Umbrella Liability

Answer:

-separate policy that pays excess to primary coverage policy -primary polices include Home Owners and Personal Auto -if primary policy can't cover, will pay excess to satisfy claim -pays second -covers "Substantial Claims Liability"

Question 6: Miscellaneous Bonds

Answer:

-License or permit -Public officials -Motor vehicle -Worker compensation

• self-insurer

Question 7: Baliee Coverage

Answer:

-coverage that pays for damages or loss of other peoples personal property

• form of Inland Marine Coverage

i.e. coverage purchased by dry cleaners, tv repair shops, computer repair shops

Question 8: Scheduled bond

Answer:

cover more than one employee, mentions each job by name.

Question 9: DISCOVERY PERIOD

Answer:

• A period of time following termination of a fidelity bond during which a loss that occurred during the

bond period that was not established until after the bonds termination, will still be covered .

Question 10: Financial Responsibility State

Answer:

• Georgia is a financial responsibility state
• 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

Question 11: Surety Bonds Loss

Answer:

If the Principal experiences a loss, it means:

• The contract is in default
• The Guarantor will pay a penalty to the Obligee

-The Guarantor will subrogate against the Principal

Question 12: Policy Terms

Answer:

either 6 months or 1 year

Question 13: REPLACEMENT VEHICLE

Answer:

trades car in and buy another Liability coverage automatically applies until end of policy period regard less if you don't notify insurance company.

Question 14: Ineligible Vehicles

Answer:

• Vehicles owned by businesses
• Taxis
• Motorcycles
• Trucks/Vans >10,000 lbs.
• Vehicles used for government purposes
• Vehicles furnished for the regular use of an insured by an employer
• Trailer - cannot propel itself when the trailer and the vehicle are connected, both are one in the same

for liability claims

Question 15: PENALTY

Answer:

-The maximum amount of money the surety agrees to pay in case of loss due to the principal defaulting or failing to carry out its obligation

Question 16: Strict Liability

Answer:

not allowed to have defense, such as manufacturers defects; i.e.recalls due to defects (Manufacturers)

Question 17: Absolute Liability

Answer:

without defense; impacts employers involving workplace accidents; such as employer's worker's compensation coverage for workplace accidents, based on Absolute Laws. (Employers)

Question 18: Legal Liability Limits

Answer:

• Occurrence - represents the most a policy can pay during one occurrence with in the policy term
• Aggregate Limits -represents the most a policy can pay during any one policy term regardless of # of

claims.*once you have exhausted Aggregate Limit you have no coverage

Question 19: FULL COVERAGE COMPREHENSIVE

Answer:

NO DEDUCTIBLE

Question 20: Guardianship

Answer:

• to manage the affairs of people that are alive, but cannot manage themselves due to age or mental

capacity, ethical guarantee

Question 21: Fidelity Bonds

Answer:

-Bonds that are a form of insurance that protects an employer against losses sustained due to acts of dishonest employees.

-Those that benefit from this protection are:

1.Businesses 2.Non-profits 3.Churches