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?
-Consideration is something of value that each party gives to the other. The
consideration on the part of the insured is the payment of premium and the
representations made in the application.
Consideration
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?
-Consideration is something of value that each party gives to the other. The
consideration on the part of the insured is the payment of premium and the
representations made in the application.
Consideration
