GEORGIA ADJUSTER ACTUAL EXAM 2026/2027 |
Complete Questions & Detailed Rationales | Pass
Guaranteed - A+ Graded
TABLE OF CONTENTS
Section 1 | Property Insurance Coverages and Claims | Q1 – Q13
Section 2 | Casualty and Liability Insurance | Q14 – Q26
Section 3 | Georgia State Laws, Regulations, and Ethics | Q27 – Q39
Section 4 | Claims Handling Process, Investigation, and Settlement | Q40 – Q50
Instructions: Choose the single best answer. Pass: 75% in 90 minutes.
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SECTION 1: PROPERTY INSURANCE COVERAGES AND CLAIMS Q1 – Q13
══════════════════════════════════════
Question 1 of 50
A 42-year-old homeowner in Savannah discovers that a fallen oak tree has crushed the
roof of his detached garage during a thunderstorm. His HO-3 policy has a $1,000
deductible and covers other structures at 10% of the dwelling coverage, which is
$350,000. The garage repair estimate is $18,500.
A. The insurer will pay $17,500 because the other structures limit is $35,000
B. The insurer will pay $17,500 after applying the deductible to the repair estimate
C. The insurer will pay $17,500 because the loss is within the other structures coverage
limit ✓ CORRECT
D. The insurer will pay $18,500 because the deductible does not apply to other
structures
Correct Answer: C
Rationale: The other structures coverage limit is $35,000 (10% of $350,000), which
exceeds the $18,500 repair cost, so the insurer pays $18,500 minus the $1,000
,deductible, or $17,500. Option D is incorrect because deductibles apply to covered
losses under other structures coverage just as they do to dwelling coverage. Adjusters
should always verify the Coverage B limit and confirm the structure qualifies as an
"other structure" before estimating payments.
Question 2 of 50
A 55-year-old commercial property owner in Atlanta leases a warehouse to a textile
distributor. A fire originating in the tenant's equipment causes $240,000 in damage to
the building. The landlord's commercial property policy includes a $5,000 deductible
and a waiver of subrogation endorsement in favor of the tenant.
A. The insurer can deny the claim because the tenant caused the fire
B. The insurer must pay the claim minus the deductible but cannot recover from the
tenant due to the waiver of subrogation ✓ CORRECT
C. The insurer must pay the full $240,000 because the waiver eliminates the deductible
D. The tenant's general liability policy must pay the claim before the property policy
responds
Correct Answer: B
Rationale: A waiver of subrogation prevents the insurer from seeking recovery from the
negligent tenant after paying the claim, but the landlord's policy still responds subject to
the deductible. Option A is incorrect because the cause of loss does not invalidate
coverage when the policy is in force and the peril is covered. Waivers of subrogation are
common in commercial leases and adjusters must verify their existence before
pursuing recovery.
Question 3 of 50
A 38-year-old condo owner in Augusta returns from vacation to find that a water heater
in the unit above hers has burst, causing damage to her kitchen cabinets, flooring, and
,personal property. Her HO-6 policy has a $500 deductible and $25,000 in personal
property coverage.
A. The upstairs neighbor's insurer is solely responsible for all damage to her unit
B. Her HO-6 policy covers her personal property and interior improvements subject to
the deductible and policy limits ✓ CORRECT
C. The condominium association's master policy covers all interior damage to individual
units
D. Her policy does not cover water damage originating from another unit
Correct Answer: B
Rationale: An HO-6 policy covers the unit owner's personal property and interior
improvements against covered perils, including water damage from above, subject to
policy terms and deductibles. Option A is incorrect because while the neighbor may be
liable, the condo owner's own policy provides first-party coverage without requiring her
to establish negligence. Adjusters must coordinate between the unit owner's policy, the
neighbor's liability coverage, and the association master policy in condo water losses.
Question 4 of 50
A 47-year-old farmer in Macon has a dwelling fire policy (DP-1) on his rural farmhouse.
A windstorm damages the roof, allowing rain to enter and ruin the interior plaster walls.
The policy covers windstorm but excludes interior water damage unless the building
first sustains wind damage.
A. Both the roof and interior water damage are covered because the wind created the
opening
B. Only the roof damage is covered because DP-1 policies never cover interior water
damage
C. Both the roof and interior damage are covered under the ensuing loss provision
because the wind damage preceded the rain entry ✓ CORRECT
D. Only interior damage is covered because the roof was already in poor condition
Correct Answer: C
, Rationale: The ensuing loss provision in the DP-1 covers interior water damage that
results from a covered peril (windstorm) creating an opening in the building envelope.
Option B is incorrect because the exclusion for interior water damage does not apply
when a covered peril first damages the structure, allowing the water to enter. Adjusters
must carefully trace the chain of causation in property losses to determine whether
ensuing loss provisions apply.
Question 5 of 50
A 51-year-old business owner in Columbus has a businessowners policy (BOP) with
$150,000 in business personal property coverage. A theft occurs overnight, and $85,000
in inventory, $12,000 in office equipment, and $8,000 in customer goods on
consignment are stolen.
A. The insurer will pay $105,000 because customer goods are excluded from BOP
coverage
B. The insurer will pay $97,000 for inventory and equipment but not the consigned
goods
C. The insurer will pay $105,000 for all stolen property because the total is within the
policy limit ✓ CORRECT
D. The insurer will pay $85,000 because equipment is covered under a separate
endorsement
Correct Answer: C
Rationale: A standard BOP covers business personal property including inventory,
equipment, and property of others in the insured's care, up to the policy limit, so the full
$105,000 is covered. Option B is incorrect because customer goods on consignment
are typically covered as property of others under the BOP personal property form.
Adjusters should verify that consignment arrangements are disclosed and that
sublimits for property of others do not apply.
Question 6 of 50
Complete Questions & Detailed Rationales | Pass
Guaranteed - A+ Graded
TABLE OF CONTENTS
Section 1 | Property Insurance Coverages and Claims | Q1 – Q13
Section 2 | Casualty and Liability Insurance | Q14 – Q26
Section 3 | Georgia State Laws, Regulations, and Ethics | Q27 – Q39
Section 4 | Claims Handling Process, Investigation, and Settlement | Q40 – Q50
Instructions: Choose the single best answer. Pass: 75% in 90 minutes.
══════════════════════════════════════
SECTION 1: PROPERTY INSURANCE COVERAGES AND CLAIMS Q1 – Q13
══════════════════════════════════════
Question 1 of 50
A 42-year-old homeowner in Savannah discovers that a fallen oak tree has crushed the
roof of his detached garage during a thunderstorm. His HO-3 policy has a $1,000
deductible and covers other structures at 10% of the dwelling coverage, which is
$350,000. The garage repair estimate is $18,500.
A. The insurer will pay $17,500 because the other structures limit is $35,000
B. The insurer will pay $17,500 after applying the deductible to the repair estimate
C. The insurer will pay $17,500 because the loss is within the other structures coverage
limit ✓ CORRECT
D. The insurer will pay $18,500 because the deductible does not apply to other
structures
Correct Answer: C
Rationale: The other structures coverage limit is $35,000 (10% of $350,000), which
exceeds the $18,500 repair cost, so the insurer pays $18,500 minus the $1,000
,deductible, or $17,500. Option D is incorrect because deductibles apply to covered
losses under other structures coverage just as they do to dwelling coverage. Adjusters
should always verify the Coverage B limit and confirm the structure qualifies as an
"other structure" before estimating payments.
Question 2 of 50
A 55-year-old commercial property owner in Atlanta leases a warehouse to a textile
distributor. A fire originating in the tenant's equipment causes $240,000 in damage to
the building. The landlord's commercial property policy includes a $5,000 deductible
and a waiver of subrogation endorsement in favor of the tenant.
A. The insurer can deny the claim because the tenant caused the fire
B. The insurer must pay the claim minus the deductible but cannot recover from the
tenant due to the waiver of subrogation ✓ CORRECT
C. The insurer must pay the full $240,000 because the waiver eliminates the deductible
D. The tenant's general liability policy must pay the claim before the property policy
responds
Correct Answer: B
Rationale: A waiver of subrogation prevents the insurer from seeking recovery from the
negligent tenant after paying the claim, but the landlord's policy still responds subject to
the deductible. Option A is incorrect because the cause of loss does not invalidate
coverage when the policy is in force and the peril is covered. Waivers of subrogation are
common in commercial leases and adjusters must verify their existence before
pursuing recovery.
Question 3 of 50
A 38-year-old condo owner in Augusta returns from vacation to find that a water heater
in the unit above hers has burst, causing damage to her kitchen cabinets, flooring, and
,personal property. Her HO-6 policy has a $500 deductible and $25,000 in personal
property coverage.
A. The upstairs neighbor's insurer is solely responsible for all damage to her unit
B. Her HO-6 policy covers her personal property and interior improvements subject to
the deductible and policy limits ✓ CORRECT
C. The condominium association's master policy covers all interior damage to individual
units
D. Her policy does not cover water damage originating from another unit
Correct Answer: B
Rationale: An HO-6 policy covers the unit owner's personal property and interior
improvements against covered perils, including water damage from above, subject to
policy terms and deductibles. Option A is incorrect because while the neighbor may be
liable, the condo owner's own policy provides first-party coverage without requiring her
to establish negligence. Adjusters must coordinate between the unit owner's policy, the
neighbor's liability coverage, and the association master policy in condo water losses.
Question 4 of 50
A 47-year-old farmer in Macon has a dwelling fire policy (DP-1) on his rural farmhouse.
A windstorm damages the roof, allowing rain to enter and ruin the interior plaster walls.
The policy covers windstorm but excludes interior water damage unless the building
first sustains wind damage.
A. Both the roof and interior water damage are covered because the wind created the
opening
B. Only the roof damage is covered because DP-1 policies never cover interior water
damage
C. Both the roof and interior damage are covered under the ensuing loss provision
because the wind damage preceded the rain entry ✓ CORRECT
D. Only interior damage is covered because the roof was already in poor condition
Correct Answer: C
, Rationale: The ensuing loss provision in the DP-1 covers interior water damage that
results from a covered peril (windstorm) creating an opening in the building envelope.
Option B is incorrect because the exclusion for interior water damage does not apply
when a covered peril first damages the structure, allowing the water to enter. Adjusters
must carefully trace the chain of causation in property losses to determine whether
ensuing loss provisions apply.
Question 5 of 50
A 51-year-old business owner in Columbus has a businessowners policy (BOP) with
$150,000 in business personal property coverage. A theft occurs overnight, and $85,000
in inventory, $12,000 in office equipment, and $8,000 in customer goods on
consignment are stolen.
A. The insurer will pay $105,000 because customer goods are excluded from BOP
coverage
B. The insurer will pay $97,000 for inventory and equipment but not the consigned
goods
C. The insurer will pay $105,000 for all stolen property because the total is within the
policy limit ✓ CORRECT
D. The insurer will pay $85,000 because equipment is covered under a separate
endorsement
Correct Answer: C
Rationale: A standard BOP covers business personal property including inventory,
equipment, and property of others in the insured's care, up to the policy limit, so the full
$105,000 is covered. Option B is incorrect because customer goods on consignment
are typically covered as property of others under the BOP personal property form.
Adjusters should verify that consignment arrangements are disclosed and that
sublimits for property of others do not apply.
Question 6 of 50
