Property and Casualty Insurance
Exam – Georgia Test Questions With
100% Correct Answers
What is a binder - ANSWER -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 - ANSWER -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 - ANSWER -The Georgia Automobile
Insurance Plan makes automobile insurance available for insureds who are unable
to purchase coverage in the voluntary market. When an automobile policy is
cancelled or nonrenewed for a reason other than for nonpayment of premium, the
insurer must notify the insured of their eligibility for coverage through the Georgia
Automobile Insurance Plan. The notice about the Plan must accompany the notice
of cancellation or nonrenewal.
Workman's Compensation - ANSWER -Covers all business with 3 or more
employees
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.
What are the benefit payout requirements for WC? - ANSWER -Workers can
collect WC benefits after being out of work for more than 7 days, and the first
,check will arrive with 21 days of the first missed workday. The compensation is
limited to 2/3 of the worker's average weekly pay up to $575.
Georgia Workers Compensation Assigned Risk Plan - ANSWER -The Georgia
Workers Compensation Assigned Risk Plan exists to provide required Workers
Compensation coverage for employers who do not qualify for coverage in the
voluntary market. Liability is apportioned among all insurers authorized to write
Workers Compensation and Employers Liability in the state.
How often must an insurer update their rate filings? - ANSWER -Every 2 years
All insurers must file their rates 45 days before their effective date.
When a rate increases more than 10$ or more within 12 months, the Commissioner
will order and examination.
What is the Commissioner's term of office? - ANSWER -4 years
When does an agent have to notify the Commissioner of a change of address? -
ANSWER -Within 30 days
How many days are allowed to report a criminal prosecution against a licensee? -
ANSWER -30 days
What is the total liability of the Georgia Life and Health Insurance Guaranty
Association for any one life? - ANSWER -$300,000
PAP Section II Part B: Medical Expenses Coverage - ANSWER --covers all
reasonable medical costs and funeral expenses incurred, by the insured or the
insured's family members within 3 years of an accident
-recommended coverage of $50,000
Cancellation and Nonrenewal of Policies other than PA and PP - ANSWER -For
all insurance other than that covering a personal automobile or personal property, a
notice of termination, including a notice of cancellation or nonrenewal, a notice of
,increase in premiums that exceeds 15% of the current policy's premium unless due
to a change in risk or exposure or a notice of change in any policy provision which
limits or restricts coverage must be delivered or mailed to the insured at least 45
days before the effective date of such termination or change.
Failure to comply with this requirement entitles the policyholder to purchase a
policy for an additional 30 days beyond the current expiration date (on the same
terms and conditions and with the same premium as the expiring policy). If the
policy will incur a premium increase of more than 15%, the dollar amount of that
increase must be stated in the notice.
Valuation of Loss For a 1-2 family residence - ANSWER -Georgia law contains a
valued policy statute. An insurer is required to value the property at the amount of
insurance in effect at the time of the loss, minus any depreciation. If the loss occurs
within 30 days of policy issuance, the actual loss sustain up to the LOL will be
paid.
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;
2 or more policies provide insurance for the same loss;
2 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.
Georgia Tobacco Crop Coverage - ANSWER -Any insurer who issues a crop
insurance policy, other than federal crop insurance, for tobacco crops grown in
, Georgia, will offer coverage for wind, hail, or both for a period of time extending
until the crop is harvested.
How much notice must be given if an insurer doesn't renew an auto policy? -
ANSWER -30 days
What is Georgia's Financial Responsibility Law? - ANSWER -Georgia requires
all owners and operators of motor vehicles carry auto liability insurance as
evidence of security in complying with the state's financial responsibility law.
Must be issued for a minimum of 6 months.
What are the motor vehicle liability policy limits? - ANSWER -$25K for bodily
injury to 1 person in any one accident.
$50K for BI to 2 more persons in any one accident.
$25K for property damage in any one accident.
What is uninsured motorist coverage? - ANSWER -Can be offered up to the LOL
for BI and PD, but in no event less than the financial responsibility limit. The
limits cannot be less than 25/50/25
Commissioner of Insurance - ANSWER -Elected for 4 years
Regulates the internal affairs of the Dept. of Insurance
Does not write laws
Examines all authorized insurers.
Producer regulations - ANSWER -Licenses may be issued only to individuals
Only one license of the same business type is allowed per agent.
Must be licensed in the first line of authority for the agent transacts business
Avoid unfair trade practices.
Company Regulations - ANSWER -obtain a certificate of authority
remain solvent
have all policy forms and rates approved by the Dept.
Exam – Georgia Test Questions With
100% Correct Answers
What is a binder - ANSWER -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 - ANSWER -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 - ANSWER -The Georgia Automobile
Insurance Plan makes automobile insurance available for insureds who are unable
to purchase coverage in the voluntary market. When an automobile policy is
cancelled or nonrenewed for a reason other than for nonpayment of premium, the
insurer must notify the insured of their eligibility for coverage through the Georgia
Automobile Insurance Plan. The notice about the Plan must accompany the notice
of cancellation or nonrenewal.
Workman's Compensation - ANSWER -Covers all business with 3 or more
employees
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.
What are the benefit payout requirements for WC? - ANSWER -Workers can
collect WC benefits after being out of work for more than 7 days, and the first
,check will arrive with 21 days of the first missed workday. The compensation is
limited to 2/3 of the worker's average weekly pay up to $575.
Georgia Workers Compensation Assigned Risk Plan - ANSWER -The Georgia
Workers Compensation Assigned Risk Plan exists to provide required Workers
Compensation coverage for employers who do not qualify for coverage in the
voluntary market. Liability is apportioned among all insurers authorized to write
Workers Compensation and Employers Liability in the state.
How often must an insurer update their rate filings? - ANSWER -Every 2 years
All insurers must file their rates 45 days before their effective date.
When a rate increases more than 10$ or more within 12 months, the Commissioner
will order and examination.
What is the Commissioner's term of office? - ANSWER -4 years
When does an agent have to notify the Commissioner of a change of address? -
ANSWER -Within 30 days
How many days are allowed to report a criminal prosecution against a licensee? -
ANSWER -30 days
What is the total liability of the Georgia Life and Health Insurance Guaranty
Association for any one life? - ANSWER -$300,000
PAP Section II Part B: Medical Expenses Coverage - ANSWER --covers all
reasonable medical costs and funeral expenses incurred, by the insured or the
insured's family members within 3 years of an accident
-recommended coverage of $50,000
Cancellation and Nonrenewal of Policies other than PA and PP - ANSWER -For
all insurance other than that covering a personal automobile or personal property, a
notice of termination, including a notice of cancellation or nonrenewal, a notice of
,increase in premiums that exceeds 15% of the current policy's premium unless due
to a change in risk or exposure or a notice of change in any policy provision which
limits or restricts coverage must be delivered or mailed to the insured at least 45
days before the effective date of such termination or change.
Failure to comply with this requirement entitles the policyholder to purchase a
policy for an additional 30 days beyond the current expiration date (on the same
terms and conditions and with the same premium as the expiring policy). If the
policy will incur a premium increase of more than 15%, the dollar amount of that
increase must be stated in the notice.
Valuation of Loss For a 1-2 family residence - ANSWER -Georgia law contains a
valued policy statute. An insurer is required to value the property at the amount of
insurance in effect at the time of the loss, minus any depreciation. If the loss occurs
within 30 days of policy issuance, the actual loss sustain up to the LOL will be
paid.
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;
2 or more policies provide insurance for the same loss;
2 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.
Georgia Tobacco Crop Coverage - ANSWER -Any insurer who issues a crop
insurance policy, other than federal crop insurance, for tobacco crops grown in
, Georgia, will offer coverage for wind, hail, or both for a period of time extending
until the crop is harvested.
How much notice must be given if an insurer doesn't renew an auto policy? -
ANSWER -30 days
What is Georgia's Financial Responsibility Law? - ANSWER -Georgia requires
all owners and operators of motor vehicles carry auto liability insurance as
evidence of security in complying with the state's financial responsibility law.
Must be issued for a minimum of 6 months.
What are the motor vehicle liability policy limits? - ANSWER -$25K for bodily
injury to 1 person in any one accident.
$50K for BI to 2 more persons in any one accident.
$25K for property damage in any one accident.
What is uninsured motorist coverage? - ANSWER -Can be offered up to the LOL
for BI and PD, but in no event less than the financial responsibility limit. The
limits cannot be less than 25/50/25
Commissioner of Insurance - ANSWER -Elected for 4 years
Regulates the internal affairs of the Dept. of Insurance
Does not write laws
Examines all authorized insurers.
Producer regulations - ANSWER -Licenses may be issued only to individuals
Only one license of the same business type is allowed per agent.
Must be licensed in the first line of authority for the agent transacts business
Avoid unfair trade practices.
Company Regulations - ANSWER -obtain a certificate of authority
remain solvent
have all policy forms and rates approved by the Dept.
