GEORGIA ADJUSTER EXAM QUESTIONS WITH CORRECT
ANSWERS VERIFIED BY EXPERTS GRADED A++
Consequential also known as Indirect Loss
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?
Combined Single
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
$100,000
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
Absolute
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.
Only to individuals
An agent license can be issued
A change in the risk that substantially increases the hazard insured against
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
Authorized Insurer
,An insurer that holds a Certificate of Authority in the state in which it transacts business
is considered to be
15%
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
Indemnity
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.
Loss
Insurance is a contract by which one seeks to protect another from
Pair and Set Clause
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.
Insuring clause, Exclusions, Conditions
The essential parts of an insurance policy
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
Beneficiary's consent
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
Consideration
** 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.
A specific time (usually 60 days, time may vary)
In the event of a loss covered by the policy, the named insured is required to submit to
the insurer a signed sworn proof of loss within
Garagekeepers Liability
Physical damage coverage on customers' autos while in care, custody and control of
the garage operation.
No coverage is provided for autos stored for more than 45 days at a location not
shown in the declarations
Which of the following statements is true regarding physical damage coverage in a
garage form?
Collision coverage is provided only for dealers
ANSWERS VERIFIED BY EXPERTS GRADED A++
Consequential also known as Indirect Loss
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?
Combined Single
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
$100,000
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
Absolute
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.
Only to individuals
An agent license can be issued
A change in the risk that substantially increases the hazard insured against
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
Authorized Insurer
,An insurer that holds a Certificate of Authority in the state in which it transacts business
is considered to be
15%
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
Indemnity
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.
Loss
Insurance is a contract by which one seeks to protect another from
Pair and Set Clause
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.
Insuring clause, Exclusions, Conditions
The essential parts of an insurance policy
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
Beneficiary's consent
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
Consideration
** 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.
A specific time (usually 60 days, time may vary)
In the event of a loss covered by the policy, the named insured is required to submit to
the insurer a signed sworn proof of loss within
Garagekeepers Liability
Physical damage coverage on customers' autos while in care, custody and control of
the garage operation.
No coverage is provided for autos stored for more than 45 days at a location not
shown in the declarations
Which of the following statements is true regarding physical damage coverage in a
garage form?
Collision coverage is provided only for dealers
