GEORGIA PROPERTY & CASUALTY INSURANCE
EXAM Prep (Latest 2024/ 2025 UPDATE)
QUESTIONS AND VERIFIED ANSWERS| 100%
CORRECT| GRADE A
BPP building coverage - ANSWERinsures the building at the described location,
outdoor, fixtures, furnitures, items used to service the property, permanently
installed machinery and equipment, and additions under construction, including the
materials, supplies, and equipment.
HO limits of property at other residences - ANSWERthe larger of $1000 or 10%
Coverage C. Limit does not apply if property is moved because the residence premise
is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown on
declaration will apply on a proportional basis to each residence
Dwellings under construction - ANSWERThe limit of liability for a dwelling under
construction is provisional, and is based on the completed value of the structure. At
the time of loss, the applicable limit is a percentage of the provisional limit, based on
the proportion of actual cash value of the property at the time of loss. Premium is
based on an average amount of insurance during construction.
Water Backup & Sump Pump Endorsement - ANSWERCoverage for up to $5,000 in
loss or damage, subject to a $250 deductible, can be provided for an additional
premium with this endorsement.
Automatic Increase in Insurance Endorsement - ANSWERis used to provide at the
annual renewal date of the policy, an automatic increase in the Coverage A and B
limits of insurance to help offset inflation
Other insurance - ANSWERA provision in an insurance policy that defines how the
policy will respond if there is another valid insurance policy written on the same risk.
Stock Companies - ANSWEROwned by the stockholders who provide the capital
necessary to establish and operate the insurance company and who share in any
profits or losses.
Mutual companies - ANSWEROwned by the policyowners and issue participating
policies. Policyowners are entitled to dividends, which are a return of excess
premium and are nontaxable.
6 classes of insurance in Georgia - ANSWER1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
,4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic insurers? -
ANSWEROnce every 5 years.
What are the timelines if a hearing is requested? - ANSWERA hearing must be made
within 30 days of the receipt of the request.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his decision.
What are the penalties after a notice, hearing, and cease and desist order? -
ANSWERA fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority - ANSWERthe authority of an agent, stated in the document or
agreement creating the agency
Implied authority - ANSWERAuthority that is not expressed or written into the
contract, but which the agent is assumed to have in order to transact the business of
insurance for the principal.
Apparent authority - ANSWERThe appearance or the assumption of authority based
on the actions, words, or deeds of the principal or because of circumstances the
principal created.
When does an agents license expire? - ANSWERLicenses are good to for 2 years and
expire on the last day of the licensee's with month.
What are the CE requirements for an agent? - ANSWER24 CE credit hours every 2
years, including 3 credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including ethics.
How long must an agent keep records regarding contracts, premiums, etc.? -
ANSWERAll records must be kept for 5 years after the completion of a transaction or
for the term of the contract, whichever is greater.
Misrepresentation - ANSWERIssuing, publishing, or circulation and illustration or
sales materials that is false, misleading, or deceptive as to policy benefits or terms,
the payments of dividends, etc.
False advertising - ANSWERadvertising that is misleading in some important way,
including the failure to reveal facts about possible results from using the advertised
products
,Rebating - ANSWERAny inducement offered in the sale of insurance products that is
not specified in the policy. They are illegal in Georgia.
Twisting - ANSWERA form of misrepresentation in which an agent persuades an
insured/owner to cancel, lapse, or switch policies, even when it's to the insured's
disadvantage.
Churning - ANSWERReplacing insurance policies for the sole purpose of making
commissions. It is illegal to replace existing life or disability policies with new policies
if the producer cannot demonstrate that the replacement will benefit the insured.
Coercion - ANSWERUnfair trade practice where an agent uses physical or mental
force with the intense of inducing an applicant to purchase insurance.
Defamation - ANSWERDefamation occurs when an oral or written statement is made
that is intended to injure a person engaged in the insurance business. This also
applies to statements that are maliciously critical of the financial condition of any
person or a company.
Controlled business - ANSWERControlled business is any coverage written on a
producer's own life, health or property, and/or that of the producer's immediate
family or business associates. A licensee is not allowed to collect commissions on
controlled business at rate higher than 25% of the agent' volume per calendar year.
What is a binder - ANSWERA temporary insurance contract that goes in effect prior
to the policy issue. No binder shall be valid pass the issuance of the policy beyond 90
days of its effective date, whichever period is shorted.
Georgia FAIR - ANSWERThe Georgia Fair Access to Insurance Requirement provides
basic property insurance for those who cannot obtain it in the ordinary market.
Georgia Automobile Insurance Plan - ANSWERThe Georgia Automobile Insurance
Plan makes automobile insurance available for insureds who are unable to purchase
coverage in the voluntary market. When an automobile policy is cancelled or
nonrenewed for a reason other than for nonpayment of premium, the insurer must
notify the insured of their eligibility for coverage through the Georgia Automobile
Insurance Plan. The notice about the Plan must accompany the notice of cancellation
or nonrenewal.
Workman's Compensation - ANSWERCovers all business with 3 or more employees
Workman's Compensation Coverage - ANSWERDoctors bills
hospital bills
physical therapy
prescriptions
necessary travel expenses
, Treatment limited to max of 400 weeks unless injuries are catastrophic.
What are the benefit payout requirements for WC? - ANSWERWorkers can collect
WC benefits after being out of work for more than 7 days, and the first check will
arrive with 21 days of the first missed workday. The compensation is limited to 2/3
of the worker's average weekly pay up to $575.
Georgia Workers Compensation Assigned Risk Plan - ANSWERThe Georgia Workers
Compensation Assigned Risk Plan exists to provide required Workers Compensation
coverage for employers who do not qualify for coverage in the voluntary market.
Liability is apportioned among all insurers authorized to write Workers
Compensation and Employers Liability in the state.
How often must an insurer update their rate filings? - ANSWEREvery 2 years
All insurers must file their rates 45 days before their effective date.
When a rate increases more than 10$ or more within 12 months, the Commissioner
will order and examination.
What is the Commissioner's term of office? - ANSWER4 years
When does an agent have to notify the Commissioner of a change of address? -
ANSWERWithin 30 days
How many days are allowed to report a criminal prosecution against a licensee? -
ANSWER30 days
What is the total liability of the Georgia Life and Health Insurance Guaranty
Association for any one life? - ANSWER$300,000
PAP Section II Part B: Medical Expenses Coverage - ANSWER-covers all reasonable
medical costs and funeral expenses incurred, by the insured or the insured's family
members within 3 years of an accident
-recommended coverage of $50,000
Cancellation and Nonrenewal of Policies other than PA and PP - ANSWERFor all
insurance other than that covering a personal automobile or personal property, a
notice of termination, including a notice of cancellation or nonrenewal, a notice of
increase in premiums that exceeds 15% of the current policy's premium unless due
to a change in risk or exposure or a notice of change in any policy provision which
limits or restricts coverage must be delivered or mailed to the insured at least 45
days before the effective date of such termination or change.
Failure to comply with this requirement entitles the policyholder to purchase a policy
for an additional 30 days beyond the current expiration date (on the same terms and
conditions and with the same premium as the expiring policy). If the policy will incur
EXAM Prep (Latest 2024/ 2025 UPDATE)
QUESTIONS AND VERIFIED ANSWERS| 100%
CORRECT| GRADE A
BPP building coverage - ANSWERinsures the building at the described location,
outdoor, fixtures, furnitures, items used to service the property, permanently
installed machinery and equipment, and additions under construction, including the
materials, supplies, and equipment.
HO limits of property at other residences - ANSWERthe larger of $1000 or 10%
Coverage C. Limit does not apply if property is moved because the residence premise
is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown on
declaration will apply on a proportional basis to each residence
Dwellings under construction - ANSWERThe limit of liability for a dwelling under
construction is provisional, and is based on the completed value of the structure. At
the time of loss, the applicable limit is a percentage of the provisional limit, based on
the proportion of actual cash value of the property at the time of loss. Premium is
based on an average amount of insurance during construction.
Water Backup & Sump Pump Endorsement - ANSWERCoverage for up to $5,000 in
loss or damage, subject to a $250 deductible, can be provided for an additional
premium with this endorsement.
Automatic Increase in Insurance Endorsement - ANSWERis used to provide at the
annual renewal date of the policy, an automatic increase in the Coverage A and B
limits of insurance to help offset inflation
Other insurance - ANSWERA provision in an insurance policy that defines how the
policy will respond if there is another valid insurance policy written on the same risk.
Stock Companies - ANSWEROwned by the stockholders who provide the capital
necessary to establish and operate the insurance company and who share in any
profits or losses.
Mutual companies - ANSWEROwned by the policyowners and issue participating
policies. Policyowners are entitled to dividends, which are a return of excess
premium and are nontaxable.
6 classes of insurance in Georgia - ANSWER1. Life, accident, and sickness
2. Property, marine, and transportation
3. Casualty
,4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic insurers? -
ANSWEROnce every 5 years.
What are the timelines if a hearing is requested? - ANSWERA hearing must be made
within 30 days of the receipt of the request.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his decision.
What are the penalties after a notice, hearing, and cease and desist order? -
ANSWERA fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority - ANSWERthe authority of an agent, stated in the document or
agreement creating the agency
Implied authority - ANSWERAuthority that is not expressed or written into the
contract, but which the agent is assumed to have in order to transact the business of
insurance for the principal.
Apparent authority - ANSWERThe appearance or the assumption of authority based
on the actions, words, or deeds of the principal or because of circumstances the
principal created.
When does an agents license expire? - ANSWERLicenses are good to for 2 years and
expire on the last day of the licensee's with month.
What are the CE requirements for an agent? - ANSWER24 CE credit hours every 2
years, including 3 credit hours of ethics.
Agents with licensed for 20 years only need 20 CE credit hours, including ethics.
How long must an agent keep records regarding contracts, premiums, etc.? -
ANSWERAll records must be kept for 5 years after the completion of a transaction or
for the term of the contract, whichever is greater.
Misrepresentation - ANSWERIssuing, publishing, or circulation and illustration or
sales materials that is false, misleading, or deceptive as to policy benefits or terms,
the payments of dividends, etc.
False advertising - ANSWERadvertising that is misleading in some important way,
including the failure to reveal facts about possible results from using the advertised
products
,Rebating - ANSWERAny inducement offered in the sale of insurance products that is
not specified in the policy. They are illegal in Georgia.
Twisting - ANSWERA form of misrepresentation in which an agent persuades an
insured/owner to cancel, lapse, or switch policies, even when it's to the insured's
disadvantage.
Churning - ANSWERReplacing insurance policies for the sole purpose of making
commissions. It is illegal to replace existing life or disability policies with new policies
if the producer cannot demonstrate that the replacement will benefit the insured.
Coercion - ANSWERUnfair trade practice where an agent uses physical or mental
force with the intense of inducing an applicant to purchase insurance.
Defamation - ANSWERDefamation occurs when an oral or written statement is made
that is intended to injure a person engaged in the insurance business. This also
applies to statements that are maliciously critical of the financial condition of any
person or a company.
Controlled business - ANSWERControlled business is any coverage written on a
producer's own life, health or property, and/or that of the producer's immediate
family or business associates. A licensee is not allowed to collect commissions on
controlled business at rate higher than 25% of the agent' volume per calendar year.
What is a binder - ANSWERA temporary insurance contract that goes in effect prior
to the policy issue. No binder shall be valid pass the issuance of the policy beyond 90
days of its effective date, whichever period is shorted.
Georgia FAIR - ANSWERThe Georgia Fair Access to Insurance Requirement provides
basic property insurance for those who cannot obtain it in the ordinary market.
Georgia Automobile Insurance Plan - ANSWERThe Georgia Automobile Insurance
Plan makes automobile insurance available for insureds who are unable to purchase
coverage in the voluntary market. When an automobile policy is cancelled or
nonrenewed for a reason other than for nonpayment of premium, the insurer must
notify the insured of their eligibility for coverage through the Georgia Automobile
Insurance Plan. The notice about the Plan must accompany the notice of cancellation
or nonrenewal.
Workman's Compensation - ANSWERCovers all business with 3 or more employees
Workman's Compensation Coverage - ANSWERDoctors bills
hospital bills
physical therapy
prescriptions
necessary travel expenses
, Treatment limited to max of 400 weeks unless injuries are catastrophic.
What are the benefit payout requirements for WC? - ANSWERWorkers can collect
WC benefits after being out of work for more than 7 days, and the first check will
arrive with 21 days of the first missed workday. The compensation is limited to 2/3
of the worker's average weekly pay up to $575.
Georgia Workers Compensation Assigned Risk Plan - ANSWERThe Georgia Workers
Compensation Assigned Risk Plan exists to provide required Workers Compensation
coverage for employers who do not qualify for coverage in the voluntary market.
Liability is apportioned among all insurers authorized to write Workers
Compensation and Employers Liability in the state.
How often must an insurer update their rate filings? - ANSWEREvery 2 years
All insurers must file their rates 45 days before their effective date.
When a rate increases more than 10$ or more within 12 months, the Commissioner
will order and examination.
What is the Commissioner's term of office? - ANSWER4 years
When does an agent have to notify the Commissioner of a change of address? -
ANSWERWithin 30 days
How many days are allowed to report a criminal prosecution against a licensee? -
ANSWER30 days
What is the total liability of the Georgia Life and Health Insurance Guaranty
Association for any one life? - ANSWER$300,000
PAP Section II Part B: Medical Expenses Coverage - ANSWER-covers all reasonable
medical costs and funeral expenses incurred, by the insured or the insured's family
members within 3 years of an accident
-recommended coverage of $50,000
Cancellation and Nonrenewal of Policies other than PA and PP - ANSWERFor all
insurance other than that covering a personal automobile or personal property, a
notice of termination, including a notice of cancellation or nonrenewal, a notice of
increase in premiums that exceeds 15% of the current policy's premium unless due
to a change in risk or exposure or a notice of change in any policy provision which
limits or restricts coverage must be delivered or mailed to the insured at least 45
days before the effective date of such termination or change.
Failure to comply with this requirement entitles the policyholder to purchase a policy
for an additional 30 days beyond the current expiration date (on the same terms and
conditions and with the same premium as the expiring policy). If the policy will incur
