GA Claims Adjuster Licensing EXAM
NEWEST 2026 WITH COMPLETE
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES |ALREADY GRADED
A+||BRAND NEW VERSION!!
1. What type of insurance transfers the risk of financial loss
to an insurer in exchange for a premium?
A. Investment
B. Hedging
C. Insurance
D. Gambling
Correct Answer: C
Rationale: Insurance is the contractual transfer of risk from the insured to the insurer in
exchange for premium.
2. In insurance, what does “indemnity” mean?
A. Increased profit for the insured
B. Restoring the insured to the same financial position prior to a loss
C. Providing legal defense
D. Punishing the insurer
Correct Answer: B
Rationale: Indemnity ensures the insured is made whole after a covered loss without profit.
3. Which principle states that an insured must answer
honestly on an application?
,A. Utmost Good Faith
B. Insurance to Value
C. Subrogation
D. Contribution
Correct Answer: A
Rationale: Utmost good faith requires honesty by both parties, especially by the insured on
applications.
4. What type of policy covers damage to a home from fire,
theft, and wind?
A. Auto
B. Property
C. Life
D. Health
Correct Answer: B
Rationale: Property insurance provides coverage for damage to buildings and personal property.
5. Which of the following best describes “peril”?
A. A specific cause of loss
B. Faulty craftsmanship
C. Insurance premium
D. None of the above
Correct Answer: A
Rationale: Peril is the actual event that causes loss (e.g., fire, windstorm).
6. What is “hazard” in insurance terminology?
A. The cause of loss itself
B. A condition that increases the chance of loss
C. A legal defense
D. A liability claim
, Correct Answer: B
Rationale: A hazard increases the probability of a loss occurring.
7. What is the purpose of Georgia’s State Insurance
Department?
A. Set premiums
B. Regulate insurance business and protect consumers
C. Provide warranties
D. Sell insurance
Correct Answer: B
Rationale: The Department regulates insurance practices and enforces state laws.
8. Which type of insurance pays for physical damage to a
vehicle?
A. Liability
B. Property
C. Collision
D. Life
Correct Answer: C
Rationale: Collision coverage pays for vehicle damage from impact with another object or
rollover.
9. In Claims Adjusting, what is “subrogation”?
A. The right to cancel a policy
B. The right of the insurer to pursue recovery from a negligent third party after paying a claim
C. Charging higher premiums
D. Denying coverage
Correct Answer: B
Rationale: Subrogation allows the insurer to recover from responsible parties.
NEWEST 2026 WITH COMPLETE
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES |ALREADY GRADED
A+||BRAND NEW VERSION!!
1. What type of insurance transfers the risk of financial loss
to an insurer in exchange for a premium?
A. Investment
B. Hedging
C. Insurance
D. Gambling
Correct Answer: C
Rationale: Insurance is the contractual transfer of risk from the insured to the insurer in
exchange for premium.
2. In insurance, what does “indemnity” mean?
A. Increased profit for the insured
B. Restoring the insured to the same financial position prior to a loss
C. Providing legal defense
D. Punishing the insurer
Correct Answer: B
Rationale: Indemnity ensures the insured is made whole after a covered loss without profit.
3. Which principle states that an insured must answer
honestly on an application?
,A. Utmost Good Faith
B. Insurance to Value
C. Subrogation
D. Contribution
Correct Answer: A
Rationale: Utmost good faith requires honesty by both parties, especially by the insured on
applications.
4. What type of policy covers damage to a home from fire,
theft, and wind?
A. Auto
B. Property
C. Life
D. Health
Correct Answer: B
Rationale: Property insurance provides coverage for damage to buildings and personal property.
5. Which of the following best describes “peril”?
A. A specific cause of loss
B. Faulty craftsmanship
C. Insurance premium
D. None of the above
Correct Answer: A
Rationale: Peril is the actual event that causes loss (e.g., fire, windstorm).
6. What is “hazard” in insurance terminology?
A. The cause of loss itself
B. A condition that increases the chance of loss
C. A legal defense
D. A liability claim
, Correct Answer: B
Rationale: A hazard increases the probability of a loss occurring.
7. What is the purpose of Georgia’s State Insurance
Department?
A. Set premiums
B. Regulate insurance business and protect consumers
C. Provide warranties
D. Sell insurance
Correct Answer: B
Rationale: The Department regulates insurance practices and enforces state laws.
8. Which type of insurance pays for physical damage to a
vehicle?
A. Liability
B. Property
C. Collision
D. Life
Correct Answer: C
Rationale: Collision coverage pays for vehicle damage from impact with another object or
rollover.
9. In Claims Adjusting, what is “subrogation”?
A. The right to cancel a policy
B. The right of the insurer to pursue recovery from a negligent third party after paying a claim
C. Charging higher premiums
D. Denying coverage
Correct Answer: B
Rationale: Subrogation allows the insurer to recover from responsible parties.
