GA Adjuster Exam Review with 100%
Correct Answers
In GA, _____insurance cannot be written by a reciprocal type insurer. - ANSWER-life
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
Mediation is not _____ on the parties involved, but with arbitration the decision is final
and _____. - ANSWER-Binding
Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWER-Independent
Rating Services
What is the application fee for filing to become a self-insurer for workers compensation
in Georgia? - ANSWER-$500
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.
The perils most frequently covered by a Difference in Conditions policy are: - ANSWER-
Flood and Earthquake
What is the purpose of the Georgia Insurance Guaranty Association? - ANSWER-Cover
claims of insolvent insurers
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.
Churning - ANSWER-Churning occurs when an insurance agent replaces a
policyholder's insurance policy for another insurance policy, usually without consulting
the policyholder and often with no changes to the coverage itself. Agents who engage in
churning do so in order to secure an additional commission for the new policy they swap
in.
, The Commissioner can hold hearings for any purpose he or she deems necessary but
must give notice of the time and place of the hearing, must provide that the hearing be
open to the public, and provide a notice of at least: - ANSWER-30 days
If the Agreed Value option of the Business Income form is selected by the insured, the
coinsurance requirement is: - ANSWER-Waived
Advertising injury coverage applies only if the offense arises from: - ANSWER-
Misappropriation of ideas or copyright infringement in the course of any advertising
All of the following would be covered under a Builders Risk Policy, EXCEPT: -
ANSWER-A prospective buyer
Which of the following is not considered to be a residual market in Georgia? -
ANSWER-Georgia Insurance Guaranty Fund.
The Commissioner in Georgia may, after a hearing, fine an insurance company which of
the following if violations of the insurance code are discovered? - ANSWER-$2,000 for
each act of misconduct and up to $5,000 for each act of willful misconduct.
If an insured intentionally conceals a material fact on an application for insurance, the
coverage may be: - ANSWER-Voided
The limit of a bond is known as its: - ANSWER-Bond penalty
Which of the following is NOT a coverage of the Truckers form? - ANSWER-Medical
Payments
The Motor Carrier Act of 1980: - ANSWER-Requires trucking operators to file proof of
liability insurance..
A typical directors and officers liability policy covers each of the following, EXCEPT: -
ANSWER-A D&O policy protects corporate officers and directors. Typically, no
coverage is provided for the entity itself, apart from its obligation to reimburse the
officers and directors for expenses and damages paid in legal proceedings that are
allowed by its bylaws.
Which of the following coverages does NOT need to be added to a Garage Coverage
form by endorsement for coverage to apply? - ANSWER-Collision
Which of the following is NOT a claim settlement option for liability claims? - ANSWER-
Excessive amounts claimed are always contested by the insurer. Liability losses are
categorized as "special damages"or "general damages." Special damages include
medical expenses and loss of wages or the costs of other known expenses. General
Correct Answers
In GA, _____insurance cannot be written by a reciprocal type insurer. - ANSWER-life
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
Mediation is not _____ on the parties involved, but with arbitration the decision is final
and _____. - ANSWER-Binding
Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWER-Independent
Rating Services
What is the application fee for filing to become a self-insurer for workers compensation
in Georgia? - ANSWER-$500
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.
The perils most frequently covered by a Difference in Conditions policy are: - ANSWER-
Flood and Earthquake
What is the purpose of the Georgia Insurance Guaranty Association? - ANSWER-Cover
claims of insolvent insurers
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.
Churning - ANSWER-Churning occurs when an insurance agent replaces a
policyholder's insurance policy for another insurance policy, usually without consulting
the policyholder and often with no changes to the coverage itself. Agents who engage in
churning do so in order to secure an additional commission for the new policy they swap
in.
, The Commissioner can hold hearings for any purpose he or she deems necessary but
must give notice of the time and place of the hearing, must provide that the hearing be
open to the public, and provide a notice of at least: - ANSWER-30 days
If the Agreed Value option of the Business Income form is selected by the insured, the
coinsurance requirement is: - ANSWER-Waived
Advertising injury coverage applies only if the offense arises from: - ANSWER-
Misappropriation of ideas or copyright infringement in the course of any advertising
All of the following would be covered under a Builders Risk Policy, EXCEPT: -
ANSWER-A prospective buyer
Which of the following is not considered to be a residual market in Georgia? -
ANSWER-Georgia Insurance Guaranty Fund.
The Commissioner in Georgia may, after a hearing, fine an insurance company which of
the following if violations of the insurance code are discovered? - ANSWER-$2,000 for
each act of misconduct and up to $5,000 for each act of willful misconduct.
If an insured intentionally conceals a material fact on an application for insurance, the
coverage may be: - ANSWER-Voided
The limit of a bond is known as its: - ANSWER-Bond penalty
Which of the following is NOT a coverage of the Truckers form? - ANSWER-Medical
Payments
The Motor Carrier Act of 1980: - ANSWER-Requires trucking operators to file proof of
liability insurance..
A typical directors and officers liability policy covers each of the following, EXCEPT: -
ANSWER-A D&O policy protects corporate officers and directors. Typically, no
coverage is provided for the entity itself, apart from its obligation to reimburse the
officers and directors for expenses and damages paid in legal proceedings that are
allowed by its bylaws.
Which of the following coverages does NOT need to be added to a Garage Coverage
form by endorsement for coverage to apply? - ANSWER-Collision
Which of the following is NOT a claim settlement option for liability claims? - ANSWER-
Excessive amounts claimed are always contested by the insurer. Liability losses are
categorized as "special damages"or "general damages." Special damages include
medical expenses and loss of wages or the costs of other known expenses. General
