GEORGIA ADJUSTER EXAM / GA ADJUSTER EXAM 2 LATEST
VERSIONS 2023 (VERSION A & B) ACTUAL EXAM
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?
- ANSWER: 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 -
ANSWER: 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 - ANSWER: $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. - ANSWER: Absolute
An agent license can be issued - ANSWER: 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 - ANSWER: 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 - ANSWER: 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 - ANSWER: 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.
- ANSWER: Indemnity
Insurance is a contract by which one seeks to protect another from - ANSWER: 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. - ANSWER: Pair and Set Clause
The essential parts of an insurance policy - ANSWER: 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 - ANSWER:
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 - ANSWER:
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. - ANSWER: Consideration
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 - ANSWER: A specific time (usually
60 days, time may vary)
Physical damage coverage on customers' autos while in care, custody and control of
the garage operation. - ANSWER: Garagekeepers Liability
, Which of the following statements is true regarding physical damage coverage in a
garage form?
Collision coverage is provided only for dealers
Autos held for sale by a dealer are listed individually in the policy
No coverage is provided for autos stored for more than 45 days at a location not
shown in the declarations
Specific causes-of loss coverage is not available for physical damage coverage
** Collision coverage is not limited to a specific risk. Autos held for sale are covered
when auto designation Symbol 31 (dealer's autos) is shown on the declaration page.
The specific causes of loss coverage is available for physical damage coverage -
ANSWER: No coverage is provided for autos stored for more than 45 days at a
location not shown in the declarations
In the Personal Auto Policy, owned trailers being owned by an insured auto are
automatically covered for - ANSWER: Uninsured Motorist Coverage (BI/PD) and UM
under Part A of a Personal Auto Policy
The following symbol is available to an insured with vehicles subject to no-fault
coverage - ANSWER: Symbol 5
A personal automobile policy MAY be cancelled by the insurer for the following
reason - ANSWER: The insured's automobile is used to carry passengers for hire
With respect to commercial auto policies, the Garage Coverage Form provides
liability protection for all the following except
The insured's business income losses due to personal injury
The insured's business premises
The insured's business products and work performed
The insured's business autos - ANSWER: The insured's business income losses due to
personal injury
When a policy is cancelled for a reason other than nonpayment of premium or if the
policy is nonrenewed, the insurer must notify the insured of his/her possible
eligibility for insurance through - ANSWER: The Georgia Automobile Insurance Plan
Business Auto Coverage applies only to those autos which are identified as "covered
autos" in the declarations of the policy. Covered autos are identified by - ANSWER: A
symbol
VERSIONS 2023 (VERSION A & B) ACTUAL EXAM
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?
- ANSWER: 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 -
ANSWER: 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 - ANSWER: $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. - ANSWER: Absolute
An agent license can be issued - ANSWER: 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 - ANSWER: 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 - ANSWER: 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 - ANSWER: 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.
- ANSWER: Indemnity
Insurance is a contract by which one seeks to protect another from - ANSWER: 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. - ANSWER: Pair and Set Clause
The essential parts of an insurance policy - ANSWER: 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 - ANSWER:
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 - ANSWER:
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. - ANSWER: Consideration
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 - ANSWER: A specific time (usually
60 days, time may vary)
Physical damage coverage on customers' autos while in care, custody and control of
the garage operation. - ANSWER: Garagekeepers Liability
, Which of the following statements is true regarding physical damage coverage in a
garage form?
Collision coverage is provided only for dealers
Autos held for sale by a dealer are listed individually in the policy
No coverage is provided for autos stored for more than 45 days at a location not
shown in the declarations
Specific causes-of loss coverage is not available for physical damage coverage
** Collision coverage is not limited to a specific risk. Autos held for sale are covered
when auto designation Symbol 31 (dealer's autos) is shown on the declaration page.
The specific causes of loss coverage is available for physical damage coverage -
ANSWER: No coverage is provided for autos stored for more than 45 days at a
location not shown in the declarations
In the Personal Auto Policy, owned trailers being owned by an insured auto are
automatically covered for - ANSWER: Uninsured Motorist Coverage (BI/PD) and UM
under Part A of a Personal Auto Policy
The following symbol is available to an insured with vehicles subject to no-fault
coverage - ANSWER: Symbol 5
A personal automobile policy MAY be cancelled by the insurer for the following
reason - ANSWER: The insured's automobile is used to carry passengers for hire
With respect to commercial auto policies, the Garage Coverage Form provides
liability protection for all the following except
The insured's business income losses due to personal injury
The insured's business premises
The insured's business products and work performed
The insured's business autos - ANSWER: The insured's business income losses due to
personal injury
When a policy is cancelled for a reason other than nonpayment of premium or if the
policy is nonrenewed, the insurer must notify the insured of his/her possible
eligibility for insurance through - ANSWER: The Georgia Automobile Insurance Plan
Business Auto Coverage applies only to those autos which are identified as "covered
autos" in the declarations of the policy. Covered autos are identified by - ANSWER: A
symbol
