Georgia Property & Casualty Insurance
Licensing Actual Exam (Latest 2026/2027
Update) | Questions & Answers | 100%
Correct
Which of the following correctly describes a principal difference between a dwelling policy and
a homeowners policy?
A.) A dwelling policy only covers the dwelling, other structures, personal property, fair rental
value, and additional living expenses. It does not cover liability.
B.) Both policies are almost identical, except that the homeowners policy focuses on the more
expensive homes.
C.) A dwelling policy requires that the owner occupy the dwelling.
D.) Although any one- to four-family dwelling is eligible for a homeowners policy, only a one-
family dwelling is eligible for a dwelling policy.
A.) A dwelling policy only covers the dwelling, other structures, personal property, fair rental
value, and additional living expenses. It does not cover liability.
All of the following statements regarding the dwelling policy are correct EXCEPT:
A.) There are six dwelling policy forms.
B.) An unendorsed dwelling policy provides property coverage only; it does not include liability
coverage.
C.) The dwelling policy can cover a residence for less cost than a homeowners policy.
D.) The dwelling policy covers personal property as well as the dwelling itself.
A.) There are six dwelling policy forms.
,There are actually only three: basic, broad, and special.
What endorsement should Jeffrey's Flowers add to its commercial property policy if it wants
coverage for breakdown or contamination and power outage?
A.) Ordinance or Law
B.) Peak Season
C.) Spoilage Coverage
D.) Value Reporting Form
C.) Spoilage Coverage
Most insurance regulation is conducted by the:
A.) Federal Insurance Office
B.) U.S. Congress
C.) U.S. Department of Health, Education and Welfare
D.) State Government Agencies
D.) State Government Agencies
Which of the following is an example of adverse selection?
A.) an applicant who just bought a new car and wants to buy the least expensive auto policy
B.) a homeowner who wants to meet with her agent to discuss her current coverages following
some recent home improvements
,C.) an applicant whose business was recently burglarized deciding he had better buy some
commercial crime insurance coverage
D.) a business owner who decides to cancel his business owner's policy because he believes he
can financially handle any losses that might occur
C.) an applicant whose business was recently burglarized deciding he had better buy some
commercial crime insurance coverage
When comparing her insurance company's policies to those of Zenith Insurance, Melanie makes
a misleading statement to convince an insurance prospect to terminate a policy with Zenith and
buy one from Melanie's company. Melanie has engaged in:
A.) Twisting
B.) Rebating
C.) Unfair discrimination
D.) Defamation
A.) Twisting
Stuart receives a notice from his insurance company telling him that his policy will be terminated
at the end of the policy period. The notice provides a reason, which can be any of the following
EXCEPT:
A.) He filed a false claim.
B.) He failed to disclose information necessary to properly rate the risk.
C.) He failed to pay the premium.
D.) He was in a traffic accident caused by another driver.
D.) He was in a traffic accident caused by another driver.
, Which type of insurance company pays policy dividends to its policyowners?
A.) stock insurance company
B.) mutual insurance company
C.) captive insurance company
D.) reinsurance company
B.) mutual insurance company
Which of the following would be recognized as a residence employee under the liability section
of a homeowners policy?
A.) the insured's CPA who is meeting at the insured's home to review business tax plans
B.) the insured's gardener who lives in a small cottage on the insured's land
C.) the insured who works out of her home
D.) an independent contractor hired by the insured to construct a new addition to the insured's
home
B.) the insured's gardener who lives in a small cottage on the insured's land
What are the two types of compensatory damages?
A.) special and punitive
B.) special and general
C.) general and punitive
D.) specific and general
B.) special and general
Licensing Actual Exam (Latest 2026/2027
Update) | Questions & Answers | 100%
Correct
Which of the following correctly describes a principal difference between a dwelling policy and
a homeowners policy?
A.) A dwelling policy only covers the dwelling, other structures, personal property, fair rental
value, and additional living expenses. It does not cover liability.
B.) Both policies are almost identical, except that the homeowners policy focuses on the more
expensive homes.
C.) A dwelling policy requires that the owner occupy the dwelling.
D.) Although any one- to four-family dwelling is eligible for a homeowners policy, only a one-
family dwelling is eligible for a dwelling policy.
A.) A dwelling policy only covers the dwelling, other structures, personal property, fair rental
value, and additional living expenses. It does not cover liability.
All of the following statements regarding the dwelling policy are correct EXCEPT:
A.) There are six dwelling policy forms.
B.) An unendorsed dwelling policy provides property coverage only; it does not include liability
coverage.
C.) The dwelling policy can cover a residence for less cost than a homeowners policy.
D.) The dwelling policy covers personal property as well as the dwelling itself.
A.) There are six dwelling policy forms.
,There are actually only three: basic, broad, and special.
What endorsement should Jeffrey's Flowers add to its commercial property policy if it wants
coverage for breakdown or contamination and power outage?
A.) Ordinance or Law
B.) Peak Season
C.) Spoilage Coverage
D.) Value Reporting Form
C.) Spoilage Coverage
Most insurance regulation is conducted by the:
A.) Federal Insurance Office
B.) U.S. Congress
C.) U.S. Department of Health, Education and Welfare
D.) State Government Agencies
D.) State Government Agencies
Which of the following is an example of adverse selection?
A.) an applicant who just bought a new car and wants to buy the least expensive auto policy
B.) a homeowner who wants to meet with her agent to discuss her current coverages following
some recent home improvements
,C.) an applicant whose business was recently burglarized deciding he had better buy some
commercial crime insurance coverage
D.) a business owner who decides to cancel his business owner's policy because he believes he
can financially handle any losses that might occur
C.) an applicant whose business was recently burglarized deciding he had better buy some
commercial crime insurance coverage
When comparing her insurance company's policies to those of Zenith Insurance, Melanie makes
a misleading statement to convince an insurance prospect to terminate a policy with Zenith and
buy one from Melanie's company. Melanie has engaged in:
A.) Twisting
B.) Rebating
C.) Unfair discrimination
D.) Defamation
A.) Twisting
Stuart receives a notice from his insurance company telling him that his policy will be terminated
at the end of the policy period. The notice provides a reason, which can be any of the following
EXCEPT:
A.) He filed a false claim.
B.) He failed to disclose information necessary to properly rate the risk.
C.) He failed to pay the premium.
D.) He was in a traffic accident caused by another driver.
D.) He was in a traffic accident caused by another driver.
, Which type of insurance company pays policy dividends to its policyowners?
A.) stock insurance company
B.) mutual insurance company
C.) captive insurance company
D.) reinsurance company
B.) mutual insurance company
Which of the following would be recognized as a residence employee under the liability section
of a homeowners policy?
A.) the insured's CPA who is meeting at the insured's home to review business tax plans
B.) the insured's gardener who lives in a small cottage on the insured's land
C.) the insured who works out of her home
D.) an independent contractor hired by the insured to construct a new addition to the insured's
home
B.) the insured's gardener who lives in a small cottage on the insured's land
What are the two types of compensatory damages?
A.) special and punitive
B.) special and general
C.) general and punitive
D.) specific and general
B.) special and general
