Georgia Property & Casualty Insurance
Licensing Exam (Latest 2026/2027 Update) |
Questions & Answers | 100% Correct
Q: BPP building coverage
Answer
insures the building at the described location, outdoor, fixtures, furnitures, items used to service
the property, permanently installed machinery and equipment, and additions under construction,
including the materials, supplies, and equipment.
Q: HO limits of property at other residences
Answer
the larger of $1000 or 10% Coverage C. Limit does not apply if property is moved because the
residence premise is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown on declaration will apply
on a proportional basis to each residence
Q: Dwellings under construction
Answer
The limit of liability for a dwelling under construction is provisional, and is based on the
completed value of the structure. At the time of loss, the applicable limit is a percentage of the
provisional limit, based on the proportion of actual cash value of the property at the time of loss.
Premium is based on an average amount of insurance during construction.
,Q: Water Backup & Sump Pump Endorsement
Answer
Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for
an additional premium with this endorsement.
Q: Automatic Increase in Insurance Endorsement
Answer
is used to provide at the annual renewal date of the policy, an automatic increase in the Coverage
A and B limits of insurance to help offset inflation
Q: Other insurance
Answer
A provision in an insurance policy that defines how the policy will respond if there is another
valid insurance policy written on the same risk.
Q: Stock Companies
Answer
Owned by the stockholders who provide the capital necessary to establish and operate the
insurance company and who share in any profits or losses.
Q: Mutual companies
Answer
,Owned by the policyowners and issue participating policies. Policyowners are entitled to
dividends, which are a return of excess premium and are nontaxable.
Q: 6 classes of insurance in Georgia
Answer
1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
Q: How often must the Insurance Commission examine domestic insurers?
Answer
Once every 5 years.
Q: What are the timelines if a hearing is requested?
Answer
A hearing must be made within 30 days of the receipt of the request.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his decision.
, Q: What are the penalties after a notice, hearing, and cease and desist order?
Answer
A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Q: Express authority
Answer
the authority of an agent, stated in the document or agreement creating the agency
Q: Implied authority
Answer
Authority that is not expressed or written into the contract, but which the agent is assumed to
have in order to transact the business of insurance for the principal.
Q: Apparent authority
Answer
The appearance or the assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
Q: When does an agents license expire?
Answer
Licensing Exam (Latest 2026/2027 Update) |
Questions & Answers | 100% Correct
Q: BPP building coverage
Answer
insures the building at the described location, outdoor, fixtures, furnitures, items used to service
the property, permanently installed machinery and equipment, and additions under construction,
including the materials, supplies, and equipment.
Q: HO limits of property at other residences
Answer
the larger of $1000 or 10% Coverage C. Limit does not apply if property is moved because the
residence premise is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown on declaration will apply
on a proportional basis to each residence
Q: Dwellings under construction
Answer
The limit of liability for a dwelling under construction is provisional, and is based on the
completed value of the structure. At the time of loss, the applicable limit is a percentage of the
provisional limit, based on the proportion of actual cash value of the property at the time of loss.
Premium is based on an average amount of insurance during construction.
,Q: Water Backup & Sump Pump Endorsement
Answer
Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for
an additional premium with this endorsement.
Q: Automatic Increase in Insurance Endorsement
Answer
is used to provide at the annual renewal date of the policy, an automatic increase in the Coverage
A and B limits of insurance to help offset inflation
Q: Other insurance
Answer
A provision in an insurance policy that defines how the policy will respond if there is another
valid insurance policy written on the same risk.
Q: Stock Companies
Answer
Owned by the stockholders who provide the capital necessary to establish and operate the
insurance company and who share in any profits or losses.
Q: Mutual companies
Answer
,Owned by the policyowners and issue participating policies. Policyowners are entitled to
dividends, which are a return of excess premium and are nontaxable.
Q: 6 classes of insurance in Georgia
Answer
1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
Q: How often must the Insurance Commission examine domestic insurers?
Answer
Once every 5 years.
Q: What are the timelines if a hearing is requested?
Answer
A hearing must be made within 30 days of the receipt of the request.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his decision.
, Q: What are the penalties after a notice, hearing, and cease and desist order?
Answer
A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Q: Express authority
Answer
the authority of an agent, stated in the document or agreement creating the agency
Q: Implied authority
Answer
Authority that is not expressed or written into the contract, but which the agent is assumed to
have in order to transact the business of insurance for the principal.
Q: Apparent authority
Answer
The appearance or the assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
Q: When does an agents license expire?
Answer
