Georgia Property & Casualty
Insurance Licensing Exam V2 (Latest
2026/2027 Update) | Questions &
Answers | 100% Correct
Q: To control the outbreak of general liability mold claims, insurers introduced endorsements
that limited coverage for mold. Which of the following is such an endorsement?
Answer
limited fungi or bacteria coverage endorsement
Q: Regarding the commercial general liability (CGL) policy, which of the following correctly
describes the primary difference between the Pollution Liability Coverage Form Designated Sites
(CG 00 39) and the Pollution Liability Limited Coverage Form Designated Sites (CG 00 40)
endorsements?
Answer
Form CG 00 39 provides coverage for pollution cleanup costs whereas form CG 00 40 provides
no coverage for cleanup costs
Q: The primary insurance regulatory activities of state insurance departments include all of the
following EXCEPT:
Answer
arresting unethical producers
,Q: With a business auto policy (BAP), what symbol needs to appear on the declarations page to
provide coverage for the rental cars used by the business?
Answer
8 -- Hired Autos Only
Q: How does the business auto policy (BAP) respond when an employee is driving the
employer's delivery truck and is involved in an accident that doesn't hurt the driver but does
injure a co-worker who is a passenger in the vehicle?
Answer
It denies coverage under the fellow employee exclusion.
Q: Which of the following statements regarding written and oral binders is correct?
Answer
Both types are legally binding, but a written binder is preferable because it reduces the likelihood
of a dispute over terms.
Q: What organization developed a standard workers compensation and employers liability
insurance policy, which is used in the majority of states?
Answer
National Council on Compensation Insurance
Q: Suzanne, an attorney, receives a binder after she pays her first premium on a professional
liability policy. The binder is dated May 1. On June 1, she receives her policy. When does the
binder expire, if ever?
, Answer
June 1
Q: George hires Hank, whom he knows is not lawfully present in the United States. Hank is
George's only employee and he purchases a workers compensation policy to comply with the
state's compulsory workers compensation laws. If Hank is injured on the job, how will George's
workers compensation insurer respond?
Answer
It will deny coverage.
Q: Which of the following penalties may the Commissioner impose if, after a hearing, he or she
determines that an agent has committed an unfair trade practice?
Answer
Terminate an agent's license
Q: An insurer can legitimately cancel an auto liability policy for which of the following
reasons?
Answer
The condition of the insured auto has changed significantly during the term of the policy.
Q: Transportation expenses cover up to:
Answer
$20 per day with a maximum of $600
Insurance Licensing Exam V2 (Latest
2026/2027 Update) | Questions &
Answers | 100% Correct
Q: To control the outbreak of general liability mold claims, insurers introduced endorsements
that limited coverage for mold. Which of the following is such an endorsement?
Answer
limited fungi or bacteria coverage endorsement
Q: Regarding the commercial general liability (CGL) policy, which of the following correctly
describes the primary difference between the Pollution Liability Coverage Form Designated Sites
(CG 00 39) and the Pollution Liability Limited Coverage Form Designated Sites (CG 00 40)
endorsements?
Answer
Form CG 00 39 provides coverage for pollution cleanup costs whereas form CG 00 40 provides
no coverage for cleanup costs
Q: The primary insurance regulatory activities of state insurance departments include all of the
following EXCEPT:
Answer
arresting unethical producers
,Q: With a business auto policy (BAP), what symbol needs to appear on the declarations page to
provide coverage for the rental cars used by the business?
Answer
8 -- Hired Autos Only
Q: How does the business auto policy (BAP) respond when an employee is driving the
employer's delivery truck and is involved in an accident that doesn't hurt the driver but does
injure a co-worker who is a passenger in the vehicle?
Answer
It denies coverage under the fellow employee exclusion.
Q: Which of the following statements regarding written and oral binders is correct?
Answer
Both types are legally binding, but a written binder is preferable because it reduces the likelihood
of a dispute over terms.
Q: What organization developed a standard workers compensation and employers liability
insurance policy, which is used in the majority of states?
Answer
National Council on Compensation Insurance
Q: Suzanne, an attorney, receives a binder after she pays her first premium on a professional
liability policy. The binder is dated May 1. On June 1, she receives her policy. When does the
binder expire, if ever?
, Answer
June 1
Q: George hires Hank, whom he knows is not lawfully present in the United States. Hank is
George's only employee and he purchases a workers compensation policy to comply with the
state's compulsory workers compensation laws. If Hank is injured on the job, how will George's
workers compensation insurer respond?
Answer
It will deny coverage.
Q: Which of the following penalties may the Commissioner impose if, after a hearing, he or she
determines that an agent has committed an unfair trade practice?
Answer
Terminate an agent's license
Q: An insurer can legitimately cancel an auto liability policy for which of the following
reasons?
Answer
The condition of the insured auto has changed significantly during the term of the policy.
Q: Transportation expenses cover up to:
Answer
$20 per day with a maximum of $600
