Insurance Adjuster Exam| 203 QUESTIONS| 16
PAGES| WELL ANSWERED
Which kind of losses are covered under a standard fire policy? Correct Answer: Direct
All fires are not covered by the Standard Fire policies, only those that: Correct Answer: are
hostile and have a flame or glow
At what time does a fire policy go into affect? Correct Answer: 12:01am standard time at the
location of the insured's property
A property is insured under two Standard Fire policies for $25,000 each. A fire causes $10,000
worth of damage. What is the maximum amount the insured may collect under each policy?
Correct Answer: $5,000
A fire burning in the middle of the living room would be considered: Correct Answer: a hostile
fire
An insured's house is damaged by fire caused by a neighbor's negligence. The insurance
company will attempt to recover damage from the neighbor. This is called: Correct Answer:
subrogation
Which of the following statements are true concerning requirements of the standard fire policy?
Correct Answer: The insured must separate damaged from undamaged property in the event
there is a loss AND If a loss occurs, the insured normally has 60 days to file a proof of loss with
the insurer
Which types of property are excluded from coverage under the basic fire policy? Correct
Answer: accounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? Correct Answer: the named insured and his legal
representatives
An agreement which affords temporary insurance protection until the policy is issued is called:
Correct Answer: a binder
as a general rule, a complete fire insurance policy would be made up of: Correct Answer: the
Standard Fire policy with one or more forms attached
The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment Correct Answer: over-insurance
,replacement cost minus depreciation: Correct Answer: Actual Cash Value (ACV)
The Standard Fire policy with an extended coverage endorsement attached covers which of the
following: Correct Answer: riot
A loss due to order of Civil Authority: Correct Answer: is excluded unless the loss occurs
because of an order by Civil Authorities for the purpose of controlling a fire
The term "unoccupancy" refers to the absence of : Correct Answer: persons from a building
Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies the
mortgagee the insured has not filed a proof of loss. To protect their interest, the mortgagee must
file a proof of loss within _________ days after what date? Correct Answer: 60 days after April
30th
For recovery under the Standard Fire policy, a party must: Correct Answer: be named in the
policy and show an insurable interest in the property at the time the loss occurs
What is the requirement on how much experience one must have to be elected the insurance
commissioner in Georgia? Correct Answer: None
Once elected, how long is the insurance commissioner's term? Correct Answer: 4 years
Is there a limit on the number of terms an insurance commissioner can serve? Correct Answer:
No
Who is Georgia's current insurance commissioner? Correct Answer: Ralph Hudgens
What two capacities does Georgia's insurance commissioner serve? Correct Answer: 1. Chief
Officer of Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? Correct Answer: No election;
the Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? Correct Answer: must have a
bond in the amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials must be
examined? Correct Answer: once every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner.
Which is it? Correct Answer: Superior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? Correct
Answer: Certificate of Authority
, Surplus Lines Risk Correct Answer: has been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's certificate
to authorize? Correct Answer: if they're under financial distress
What are the requirements to be a licensed producer in Georgia? Correct Answer: must be at
least 18 years old, take a 40 hour course, pass licensing exam, apply for license, pass background
check
Which of the following would be considered an "offer"? Correct Answer: the applicant submits
an application to the company with payment
All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply Correct Answer: c) the loss must not be definite and
definable
all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions Correct Answer: d) inclusions
something that increases the chance of a peril occurring is known as a(n): Correct Answer:
hazard
open peril, or "all risk", forms: Correct Answer: name the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of handling risk
has been undertaken? Correct Answer: risk retention
the insurance industry deals with those areas of risk where the chances of loss are: Correct
Answer: anywhere between 0% and 100%
which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties Correct Answer: d) incompetent parties
Actual cash value= Correct Answer: replacement cost minus depreciation
PAGES| WELL ANSWERED
Which kind of losses are covered under a standard fire policy? Correct Answer: Direct
All fires are not covered by the Standard Fire policies, only those that: Correct Answer: are
hostile and have a flame or glow
At what time does a fire policy go into affect? Correct Answer: 12:01am standard time at the
location of the insured's property
A property is insured under two Standard Fire policies for $25,000 each. A fire causes $10,000
worth of damage. What is the maximum amount the insured may collect under each policy?
Correct Answer: $5,000
A fire burning in the middle of the living room would be considered: Correct Answer: a hostile
fire
An insured's house is damaged by fire caused by a neighbor's negligence. The insurance
company will attempt to recover damage from the neighbor. This is called: Correct Answer:
subrogation
Which of the following statements are true concerning requirements of the standard fire policy?
Correct Answer: The insured must separate damaged from undamaged property in the event
there is a loss AND If a loss occurs, the insured normally has 60 days to file a proof of loss with
the insurer
Which types of property are excluded from coverage under the basic fire policy? Correct
Answer: accounts, currency, deeds, and securities
Who is insured under the Standard Fire policy? Correct Answer: the named insured and his legal
representatives
An agreement which affords temporary insurance protection until the policy is issued is called:
Correct Answer: a binder
as a general rule, a complete fire insurance policy would be made up of: Correct Answer: the
Standard Fire policy with one or more forms attached
The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment Correct Answer: over-insurance
,replacement cost minus depreciation: Correct Answer: Actual Cash Value (ACV)
The Standard Fire policy with an extended coverage endorsement attached covers which of the
following: Correct Answer: riot
A loss due to order of Civil Authority: Correct Answer: is excluded unless the loss occurs
because of an order by Civil Authorities for the purpose of controlling a fire
The term "unoccupancy" refers to the absence of : Correct Answer: persons from a building
Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies the
mortgagee the insured has not filed a proof of loss. To protect their interest, the mortgagee must
file a proof of loss within _________ days after what date? Correct Answer: 60 days after April
30th
For recovery under the Standard Fire policy, a party must: Correct Answer: be named in the
policy and show an insurable interest in the property at the time the loss occurs
What is the requirement on how much experience one must have to be elected the insurance
commissioner in Georgia? Correct Answer: None
Once elected, how long is the insurance commissioner's term? Correct Answer: 4 years
Is there a limit on the number of terms an insurance commissioner can serve? Correct Answer:
No
Who is Georgia's current insurance commissioner? Correct Answer: Ralph Hudgens
What two capacities does Georgia's insurance commissioner serve? Correct Answer: 1. Chief
Officer of Insurance Dept.
2. Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? Correct Answer: No election;
the Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? Correct Answer: must have a
bond in the amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials must be
examined? Correct Answer: once every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner.
Which is it? Correct Answer: Superior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? Correct
Answer: Certificate of Authority
, Surplus Lines Risk Correct Answer: has been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's certificate
to authorize? Correct Answer: if they're under financial distress
What are the requirements to be a licensed producer in Georgia? Correct Answer: must be at
least 18 years old, take a 40 hour course, pass licensing exam, apply for license, pass background
check
Which of the following would be considered an "offer"? Correct Answer: the applicant submits
an application to the company with payment
All of the following are true about insurable risk except:
a) the loss must not be catastrophic in nature
b) the loss must be large enough to create hardship
c) the loss must not be definite and definable
d) the law of large numbers should apply Correct Answer: c) the loss must not be definite and
definable
all of the following are parts of the insurance contract except:
a) declarations
b) insuring agreements
c) conditions
d) inclusions Correct Answer: d) inclusions
something that increases the chance of a peril occurring is known as a(n): Correct Answer:
hazard
open peril, or "all risk", forms: Correct Answer: name the exclusions and limitations
When a person decides not to buy insurance because of the cost, what method of handling risk
has been undertaken? Correct Answer: risk retention
the insurance industry deals with those areas of risk where the chances of loss are: Correct
Answer: anywhere between 0% and 100%
which of the following is not an element for the formation of a valid contract?
a) consideration
b) legal purpose
c) agreement
d) incompetent parties Correct Answer: d) incompetent parties
Actual cash value= Correct Answer: replacement cost minus depreciation
