GA Adjuster Exam Review | 94
Questions with 100% Correct Answers
In GA, _____insurance cannot be written by a reciprocal type insurer. Correct Answer: life
No insurer or licensee doing business in Georgia may pay any commissions or valuable
consideration to any person for services as an agent, subagent, or adjuster unless that person is
duly licensed under the Correct Answer: Code
Mediation is not _____ on the parties involved, but with arbitration the decision is final and
_____. Correct Answer: Binding
Standard and Poor's, A.M. Best and Moody's are examples of: Correct Answer: Independent
Rating Services
What is the application fee for filing to become a self-insurer for workers compensation in
Georgia? Correct Answer: $500
Insurance adjusters have the "power to bind". Which of the following statements best describes
what this means? Correct Answer: The principal is bound to the decisions of the adjuster.
The perils most frequently covered by a Difference in Conditions policy are: Correct Answer:
Flood and Earthquake
What is the purpose of the Georgia Insurance Guaranty Association? Correct Answer: Cover
claims of insolvent insurers
Twisting Correct Answer: The act of inducing or attempting to induce a policy owner to drop an
existing life insurance policy and to take another policy that is substantially the same kind by
using misrepresentations or incomplete comparisons of the advantages and disadvantages of the
two policies. Most states have enacted legislation making twisting a crime.
Churning Correct Answer: Churning occurs when an insurance agent replaces a policyholder's
insurance policy for another insurance policy, usually without consulting the policyholder and
often with no changes to the coverage itself. Agents who engage in churning do so in order to
secure an additional commission for the new policy they swap in.
Rebating Correct Answer: Rebating — a portion of the premium or the agent's/broker's
commission on the premium to the insured or other inducements to place business with a specific
insurer. Rebating is illegal in the majority of states. Insurers must use filed rate credits or have
supporting methodology.
, Uninsured motorist coverage law in Georgia applies to bodily injury claims sustained by an
insured and caused by an uninsured motorist as defined by the law. UMPD coverage is also
included. Correct Answer:
In Georgia, the Chief Deputy Commissioner must execute a bond in the amount of: Correct
Answer: $15,000
Adjusters must maintain record of each investigation or adjustment undertaken, and a statement
of any fee, commission, or other compensation received or to be received on account of the
investigation or adjustment. How long must the records be maintained for examination? Correct
Answer: 5
The limits of the Employers' Liability section of a standard workers' compensation policy are:
Correct Answer: Listed on the information page
An insured has purchased BAP physical damage coverage against specified causes of loss.
Protection applies to all of the following perils, EXCEPT: Correct Answer: Falling objects
Which of the following statements is NOT TRUE of the Builders' Risk coverage form? Correct
Answer: T
An insured carries a liability policy and an umbrella policy. The verdict in a personal injury
liability suit was higher than the insured's underlying liability policy's limit of insurance. In this
situation: Correct Answer: The insurance company providing the insured's umbrella liability
policy can appeal the case at its own expense even if the insured and the company providing the
underlying policy do not appeal.
What is a "notice to show cause?" Correct Answer: A notice that states the proposed action may
be taken by the Insurance Department unless the person shows cause at a hearing why the action
should not be taken.
How long can temporary total disability payments be made to an injured employee? Correct
Answer: 400 weeks
Which of the following is NOT covered by the Federal Employee's Compensation Act (FECA)?
Correct Answer: Damages awarded by a court
What is the maximum penalty per violation if a person willfully and knowingly or intentionally
makes any false or misstatement for the purpose of obtaining or denying benefits or payment of
workers compensation coverage? Correct Answer: $10,000
If an injured employee hires an attorney to represent them in a workers compensation claim
dispute, what percentage of the income benefits can the attorney charge for the representation?
Correct Answer: 25%
Questions with 100% Correct Answers
In GA, _____insurance cannot be written by a reciprocal type insurer. Correct Answer: life
No insurer or licensee doing business in Georgia may pay any commissions or valuable
consideration to any person for services as an agent, subagent, or adjuster unless that person is
duly licensed under the Correct Answer: Code
Mediation is not _____ on the parties involved, but with arbitration the decision is final and
_____. Correct Answer: Binding
Standard and Poor's, A.M. Best and Moody's are examples of: Correct Answer: Independent
Rating Services
What is the application fee for filing to become a self-insurer for workers compensation in
Georgia? Correct Answer: $500
Insurance adjusters have the "power to bind". Which of the following statements best describes
what this means? Correct Answer: The principal is bound to the decisions of the adjuster.
The perils most frequently covered by a Difference in Conditions policy are: Correct Answer:
Flood and Earthquake
What is the purpose of the Georgia Insurance Guaranty Association? Correct Answer: Cover
claims of insolvent insurers
Twisting Correct Answer: The act of inducing or attempting to induce a policy owner to drop an
existing life insurance policy and to take another policy that is substantially the same kind by
using misrepresentations or incomplete comparisons of the advantages and disadvantages of the
two policies. Most states have enacted legislation making twisting a crime.
Churning Correct Answer: Churning occurs when an insurance agent replaces a policyholder's
insurance policy for another insurance policy, usually without consulting the policyholder and
often with no changes to the coverage itself. Agents who engage in churning do so in order to
secure an additional commission for the new policy they swap in.
Rebating Correct Answer: Rebating — a portion of the premium or the agent's/broker's
commission on the premium to the insured or other inducements to place business with a specific
insurer. Rebating is illegal in the majority of states. Insurers must use filed rate credits or have
supporting methodology.
, Uninsured motorist coverage law in Georgia applies to bodily injury claims sustained by an
insured and caused by an uninsured motorist as defined by the law. UMPD coverage is also
included. Correct Answer:
In Georgia, the Chief Deputy Commissioner must execute a bond in the amount of: Correct
Answer: $15,000
Adjusters must maintain record of each investigation or adjustment undertaken, and a statement
of any fee, commission, or other compensation received or to be received on account of the
investigation or adjustment. How long must the records be maintained for examination? Correct
Answer: 5
The limits of the Employers' Liability section of a standard workers' compensation policy are:
Correct Answer: Listed on the information page
An insured has purchased BAP physical damage coverage against specified causes of loss.
Protection applies to all of the following perils, EXCEPT: Correct Answer: Falling objects
Which of the following statements is NOT TRUE of the Builders' Risk coverage form? Correct
Answer: T
An insured carries a liability policy and an umbrella policy. The verdict in a personal injury
liability suit was higher than the insured's underlying liability policy's limit of insurance. In this
situation: Correct Answer: The insurance company providing the insured's umbrella liability
policy can appeal the case at its own expense even if the insured and the company providing the
underlying policy do not appeal.
What is a "notice to show cause?" Correct Answer: A notice that states the proposed action may
be taken by the Insurance Department unless the person shows cause at a hearing why the action
should not be taken.
How long can temporary total disability payments be made to an injured employee? Correct
Answer: 400 weeks
Which of the following is NOT covered by the Federal Employee's Compensation Act (FECA)?
Correct Answer: Damages awarded by a court
What is the maximum penalty per violation if a person willfully and knowingly or intentionally
makes any false or misstatement for the purpose of obtaining or denying benefits or payment of
workers compensation coverage? Correct Answer: $10,000
If an injured employee hires an attorney to represent them in a workers compensation claim
dispute, what percentage of the income benefits can the attorney charge for the representation?
Correct Answer: 25%
