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?
