GEORGIA ADJUSTER DETAILED EXAM
STUDY QUESTIONS WITH CORRECT
ANSWERS ALREADY GRADED A+
1. In GA, _____insurance cannot be written by a reciprocal type insurer. -
ANSWER life
2. Rebating - ANSWER Rebating — a portion of the premium or the
agent's/broker's commission on the premium to the insured or other
inducements to place business with a specific insurer. Rebating is illegal in
the majority of states. Insurers must use filed rate credits or have supporting
methodology.
3. Uninsured motorist coverage law in Georgia applies to bodily injury claims
sustained by an insured and caused by an uninsured motorist as defined by
the law. UMPD coverage is also included. - ANSWER
4. In Georgia, the Chief Deputy Commissioner must execute a bond in the
amount of: - ANSWER $15,000
5. Adjusters must maintain record of each investigation or adjustment
undertaken, and a statement of any fee, commission, or other compensation
received or to be received on account of the investigation or adjustment.
How long must the records be maintained for examination? - ANSWER 5
6. The limits of the Employers' Liability section of a standard workers'
compensation policy are: - ANSWER Listed on the information page
,7. An insured has purchased BAP physical damage coverage against specified
causes of loss. Protection applies to all of the following perils, EXCEPT: -
ANSWER Falling objects
8. Which of the following statements is NOT TRUE of the Builders' Risk
coverage form? - ANSWER T
9. No insurer or licensee doing business in Georgia may pay any commissions
or valuable consideration to any person for services as an agent, subagent, or
adjuster unless that person is duly licensed under the - ANSWER Code
10.Mediation is not _____ on the parties involved, but with arbitration the
decision is final and _____. - ANSWER Binding
11.Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWER
Independent Rating Services
12.What is the application fee for filing to become a self-insurer for workers
compensation in Georgia? - ANSWER $500
13.Insurance adjusters have the "power to bind". Which of the following
statements best describes what this means? - ANSWER The principal is
bound to the decisions of the adjuster.
14.The perils most frequently covered by a Difference in Conditions policy are:
- ANSWER Flood and Earthquake
15.What is the purpose of the Georgia Insurance Guaranty Association? -
ANSWER Cover claims of insolvent insurers
, 16.Twisting - ANSWER The act of inducing or attempting to induce a policy
owner to drop an existing life insurance policy and to take another policy
that is substantially the same kind by using misrepresentations or incomplete
comparisons of the advantages and disadvantages of the two policies. Most
states have enacted legislation making twisting a crime.
17.Agent Rice informs the insured that he needs to secure motor vehicle records
on all of the drivers in the household based on company requirements. This
is an example of Agent Rice's: - ANSWER Implied authority - the authority
the agent believes he has in order to do his job properly
18.Which of the following relieves the financial burden on the claimant by
making certain payments to the claimant even before the claim is
negotiated? - ANSWER Advance Payment
19.Coverage for workers compensation coverage in Georgia is optional for
which of the following? - ANSWER A partner or sole proprietor
A partner or sole proprietor is not an employee of the business unless he/she
wishes to be included as an employee in the coverage provisions and so advises
his or her insurance company.
20.A warranty is something that becomes part of the contract and is a statement
that is considered to be a guarantee of truth for the entire term of the policy.
- ANSWER
21.DIC insurance covers any cause of loss that leaves the property in a different
condition than it was prior to the loss, up to the limit specified in the policy.
This type of insurance does not cover fire or any of the extended coverage
perils. - ANSWER
STUDY QUESTIONS WITH CORRECT
ANSWERS ALREADY GRADED A+
1. In GA, _____insurance cannot be written by a reciprocal type insurer. -
ANSWER life
2. Rebating - ANSWER Rebating — a portion of the premium or the
agent's/broker's commission on the premium to the insured or other
inducements to place business with a specific insurer. Rebating is illegal in
the majority of states. Insurers must use filed rate credits or have supporting
methodology.
3. Uninsured motorist coverage law in Georgia applies to bodily injury claims
sustained by an insured and caused by an uninsured motorist as defined by
the law. UMPD coverage is also included. - ANSWER
4. In Georgia, the Chief Deputy Commissioner must execute a bond in the
amount of: - ANSWER $15,000
5. Adjusters must maintain record of each investigation or adjustment
undertaken, and a statement of any fee, commission, or other compensation
received or to be received on account of the investigation or adjustment.
How long must the records be maintained for examination? - ANSWER 5
6. The limits of the Employers' Liability section of a standard workers'
compensation policy are: - ANSWER Listed on the information page
,7. An insured has purchased BAP physical damage coverage against specified
causes of loss. Protection applies to all of the following perils, EXCEPT: -
ANSWER Falling objects
8. Which of the following statements is NOT TRUE of the Builders' Risk
coverage form? - ANSWER T
9. No insurer or licensee doing business in Georgia may pay any commissions
or valuable consideration to any person for services as an agent, subagent, or
adjuster unless that person is duly licensed under the - ANSWER Code
10.Mediation is not _____ on the parties involved, but with arbitration the
decision is final and _____. - ANSWER Binding
11.Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWER
Independent Rating Services
12.What is the application fee for filing to become a self-insurer for workers
compensation in Georgia? - ANSWER $500
13.Insurance adjusters have the "power to bind". Which of the following
statements best describes what this means? - ANSWER The principal is
bound to the decisions of the adjuster.
14.The perils most frequently covered by a Difference in Conditions policy are:
- ANSWER Flood and Earthquake
15.What is the purpose of the Georgia Insurance Guaranty Association? -
ANSWER Cover claims of insolvent insurers
, 16.Twisting - ANSWER The act of inducing or attempting to induce a policy
owner to drop an existing life insurance policy and to take another policy
that is substantially the same kind by using misrepresentations or incomplete
comparisons of the advantages and disadvantages of the two policies. Most
states have enacted legislation making twisting a crime.
17.Agent Rice informs the insured that he needs to secure motor vehicle records
on all of the drivers in the household based on company requirements. This
is an example of Agent Rice's: - ANSWER Implied authority - the authority
the agent believes he has in order to do his job properly
18.Which of the following relieves the financial burden on the claimant by
making certain payments to the claimant even before the claim is
negotiated? - ANSWER Advance Payment
19.Coverage for workers compensation coverage in Georgia is optional for
which of the following? - ANSWER A partner or sole proprietor
A partner or sole proprietor is not an employee of the business unless he/she
wishes to be included as an employee in the coverage provisions and so advises
his or her insurance company.
20.A warranty is something that becomes part of the contract and is a statement
that is considered to be a guarantee of truth for the entire term of the policy.
- ANSWER
21.DIC insurance covers any cause of loss that leaves the property in a different
condition than it was prior to the loss, up to the limit specified in the policy.
This type of insurance does not cover fire or any of the extended coverage
perils. - ANSWER
