Property and Casualty Insurance Exam -
Georgia Exam LATEST Test and Exam
question and answers latest update 2026
RATED A+
BPP building coverage - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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? - CORRECT ANSWERS
Once every 5 years.
What are the timelines if a hearing is requested? - CORRECT ANSWERS 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? - CORRECT ANSWERS
A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
,Express authority - CORRECT ANSWERS the authority of an agent, stated in the document or
agreement creating the agency
Implied authority - CORRECT ANSWERS 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 - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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.? - CORRECT ANSWERS
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 - CORRECT ANSWERS 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 - CORRECT ANSWERS advertising that is misleading in some important way,
including the failure to reveal facts about possible results from using the advertised products
, Rebating - CORRECT ANSWERS Any inducement offered in the sale of insurance products that
is not specified in the policy. They are illegal in Georgia.
Twisting - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS Unfair trade practice where an agent uses physical or mental
force with the intense of inducing an applicant to purchase insurance.
Defamation - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS The Georgia Automobile Insurance
Plan makes automobile insurance available for insureds who are unable to purchase coverage in the
Georgia Exam LATEST Test and Exam
question and answers latest update 2026
RATED A+
BPP building coverage - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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? - CORRECT ANSWERS
Once every 5 years.
What are the timelines if a hearing is requested? - CORRECT ANSWERS 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? - CORRECT ANSWERS
A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
,Express authority - CORRECT ANSWERS the authority of an agent, stated in the document or
agreement creating the agency
Implied authority - CORRECT ANSWERS 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 - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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.? - CORRECT ANSWERS
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 - CORRECT ANSWERS 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 - CORRECT ANSWERS advertising that is misleading in some important way,
including the failure to reveal facts about possible results from using the advertised products
, Rebating - CORRECT ANSWERS Any inducement offered in the sale of insurance products that
is not specified in the policy. They are illegal in Georgia.
Twisting - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS Unfair trade practice where an agent uses physical or mental
force with the intense of inducing an applicant to purchase insurance.
Defamation - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS The Georgia Automobile Insurance
Plan makes automobile insurance available for insureds who are unable to purchase coverage in the
