Georgia Adjuster Exam Questions and
Answers Already Passed
An insured's business is damaged because of a fire and he is forced to close business temporarily
for repairs. As a result the insured lost income. What type of loss is this? ✔✔Consequential also
known as Indirect Loss
The insured crashes into a porch and the person sitting on the porch. The person on the porch is
injured. The insured's insurance policy has a limit set at $500,000. This amount applies to the
total of damages for any bodily injury and property damage resulting from one accident. Which
type of limit of liability does the insured have? This single dollar limit of liability applying to the
total of damages for bodily injury and property damage combined resulting from one accident or
occurrence ✔✔Combined Single
If a liability policy had split limits of 100/300/100, what is the maximum amount that would be
payable in the event of injury to a single person? The first limit shown is the most the policy will
pay for bodily injury to any one person ✔✔$100,000
What kind of liability would a person with a swimming pool have?
,Any conduct that is inherently dangerous imposes this liability. The claimant does not have to
prove anythhing. ✔✔Absolute
An agent license can be issued ✔✔Only to individuals
If a policy has been in affect for at least 60 days or is due for renewal, a cancellation may only be
affected for this reason ✔✔A change in the risk that substantially increases the hazard insured
against
An insurer that holds a Certificate of Authority in the state in which it transacts business is
considered to be ✔✔Authorized Insurer
An insured must get advanced warning if the premiums will be increased by more than
Written notice of an increase in premiums that exceed this amount of the current policy's
premium must be delivered or mailed to the insured at least 45 days before the effective date of
the change ✔✔15%
,The insurance principle that states if a policy allows for greater compensation than the financial
loss incurred, the insured may only receive benefits for the amount lost. ✔✔Indemnity
Insurance is a contract by which one seeks to protect another from ✔✔Loss
The loss settlement based on the reasonable and fair portion that the lost or damaged part bears
to the total value of the set
In the event of a loss to only part of a pair or set, losses will be settled either by repairing or
replacing the damaged part or by paying the difference between the actual cash value before and
after the loss.
Provides the insurer a method of settling a loss when only a part of the insured pair or set is
damaged. The insurer will pay for the loss or damage to an insured item, plus the amount that the
loss of one item detracts from the value of undamaged item(s) of the pair or set. ✔✔Pair and Set
Clause
The essential parts of an insurance policy ✔✔Insuring clause, Exclusions, Conditions
Because an insurance policy is legal contract, it must conform to the state laws governing
contracts which require all the following statements except
, Legal purpose, Consideration, Conditions, Offer and Acceptance ✔✔Conditions
An insurance contract must contain all of the following to be considered legally binding
EXCEPT
Offer and Acceptance, Consideration, Beneficiary's Consent, Competent Parties
The essential elements of a legal contract are
Offer and Acceptance, Consideration, Competent Parties, Legal Purpose ✔✔Beneficiary's
consent
** Something of value one party gives to another. --The consideration on the part of the insured
is the payment of premium and the representations made in the policy.
** When an insured makes truthful statements on the application for insurance and pays the
required premium, it is known as which of the following?
Answers Already Passed
An insured's business is damaged because of a fire and he is forced to close business temporarily
for repairs. As a result the insured lost income. What type of loss is this? ✔✔Consequential also
known as Indirect Loss
The insured crashes into a porch and the person sitting on the porch. The person on the porch is
injured. The insured's insurance policy has a limit set at $500,000. This amount applies to the
total of damages for any bodily injury and property damage resulting from one accident. Which
type of limit of liability does the insured have? This single dollar limit of liability applying to the
total of damages for bodily injury and property damage combined resulting from one accident or
occurrence ✔✔Combined Single
If a liability policy had split limits of 100/300/100, what is the maximum amount that would be
payable in the event of injury to a single person? The first limit shown is the most the policy will
pay for bodily injury to any one person ✔✔$100,000
What kind of liability would a person with a swimming pool have?
,Any conduct that is inherently dangerous imposes this liability. The claimant does not have to
prove anythhing. ✔✔Absolute
An agent license can be issued ✔✔Only to individuals
If a policy has been in affect for at least 60 days or is due for renewal, a cancellation may only be
affected for this reason ✔✔A change in the risk that substantially increases the hazard insured
against
An insurer that holds a Certificate of Authority in the state in which it transacts business is
considered to be ✔✔Authorized Insurer
An insured must get advanced warning if the premiums will be increased by more than
Written notice of an increase in premiums that exceed this amount of the current policy's
premium must be delivered or mailed to the insured at least 45 days before the effective date of
the change ✔✔15%
,The insurance principle that states if a policy allows for greater compensation than the financial
loss incurred, the insured may only receive benefits for the amount lost. ✔✔Indemnity
Insurance is a contract by which one seeks to protect another from ✔✔Loss
The loss settlement based on the reasonable and fair portion that the lost or damaged part bears
to the total value of the set
In the event of a loss to only part of a pair or set, losses will be settled either by repairing or
replacing the damaged part or by paying the difference between the actual cash value before and
after the loss.
Provides the insurer a method of settling a loss when only a part of the insured pair or set is
damaged. The insurer will pay for the loss or damage to an insured item, plus the amount that the
loss of one item detracts from the value of undamaged item(s) of the pair or set. ✔✔Pair and Set
Clause
The essential parts of an insurance policy ✔✔Insuring clause, Exclusions, Conditions
Because an insurance policy is legal contract, it must conform to the state laws governing
contracts which require all the following statements except
, Legal purpose, Consideration, Conditions, Offer and Acceptance ✔✔Conditions
An insurance contract must contain all of the following to be considered legally binding
EXCEPT
Offer and Acceptance, Consideration, Beneficiary's Consent, Competent Parties
The essential elements of a legal contract are
Offer and Acceptance, Consideration, Competent Parties, Legal Purpose ✔✔Beneficiary's
consent
** Something of value one party gives to another. --The consideration on the part of the insured
is the payment of premium and the representations made in the policy.
** When an insured makes truthful statements on the application for insurance and pays the
required premium, it is known as which of the following?
