PROPERTY AND CASUALTY INSURANCE EXAM - GEORGIA

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PROPERTY AND CASUALTY INSURANCE EXAM - GEORGIA

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Named peril

Answer:

A specific cause of loss listed and described in an insurance policy. Also used to describe policies containing named perils.

Question 2: What are the two classes of compensatory damages?

Answer:

special and general

Question 3: Strict liability

Answer:

Strict liability is commonly applied in product liability cases. A person or business that manufactures or sells a product makes an implied warranty that the product is safe. The business is then liable for defective products, regardless of fault or negligence. If the product causes injury and the claimant can prove the defect, the defendant will be held strictly liable for the damage.

Question 4: Coercion

Answer:

Unfair trade practice where an agent uses physical or mental force with the intense of inducing an applicant to purchase insurance.

Question 5: Actual Cash Value (ACV)

Answer:

Cost to replace property with new property of like kind and quality less depreciation.

Question 6: Hazards

Answer:

Conditions or situations that increase the probability of an insured loss occurring.Question 7: What is the total liability of the Georgia Life and Health Insurance Guaranty Association for any one life?

Answer:

$300,000

Question 8: Unoccupied

Answer:

A property that has contents or furnishings in it, but is not being used or lived in.

Question 9: 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.

Question 10: Workman's Compensation Coverage

Answer:

Doctors bills hospital bills physical therapy prescriptions necessary travel expenses Treatment limited to max of 400 weeks unless injuries are catastrophic.

Question 11: Law of Larger Numbers

Answer:

The law of large numbers states that the larger the number of people with a similar exposure to loss, the more predictable actual losses will be. This law forms the basis for statistical prediction of loss upon which insurance rates are calculated.

Question 12: Company Regulations

Answer:

obtain a certificate of authority remain solvent have all policy forms and rates approved by the Dept.Avoid unfair trade practices and unfair claim settlement practices.

Question 13: 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.

Question 14: 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

Question 15: Indirect loss

Answer:

Loss that is a result or consequence of a direct loss

Question 16: How often must the Insurance Commission examine domestic insurers?

Answer:

Once every 5 years.

Question 17: Types of licenses

Answer:

Individuals - resident and nonresident Temporary license - valid for 6 months; issued to maintain the existing business

Question 18: 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.

Question 19: Robbery

Answer:

the unlawful taking of property from a person's immediate possession by force or intimidation

Question 20: Risk

Answer:

The uncertainty of loss or chance of a loss occurring.

Question 21: Accident

Answer:

An unexpected happening that may result in injury, loss, or damage.

Question 22: 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.

Question 23: What does the valued policy statute exclude?

Answer:

This valuation provision does not apply to the following situations:

The building or structure is not wholly destroyed by fire; Insurance policies are issued by more than 1 company, insuring the same structure against fire, and the existence of overinsurance is not disclosed by the insured to all insurers;

• or more policies provide insurance for the same loss;
• or more buildings or structures are insured using a blanket amount of insurance; or

The completed value of a building or structure is insured under a Builder's Risk policy.

Question 24: Vacancy

Answer:

Vacancy refers to an insured structure in which no people have been living or working, and no property has been stored for the period of time required as stated in the policy (usually 60 days).

Question 25: 3 types of hazards

Answer:

Physical, Moral, Morale