PROPERTYANDCASUALTYINSURANCEE
l l l l
XAM– l
GEORGIAEXAM|QUESTIONS&100%COR
l l l l l l l
RECTANSWERS(VERIFIED)|LATESTUPD
l l l l l
ATE|GRADEA+ l l l
BPPlbuildinglcoverage
CorrectlAnswer:linsureslthelbuildinglatltheldescribedllocation,loutdoor,lfixtures,lfurnit
ures,litemslusedltolservicelthelproperty,lpermanentlylinstalledlmachinerylandlequipme
nt,landladditionslunderlconstruction,lincludinglthelmaterials,lsupplies,landlequipment.
HOllimitsloflpropertylatlotherlresidences
CorrectlAnswer:l thellargerlofl$1000lorl10%lCoveragelC.lLimitldoeslnotlapplyliflpropert
ylislmovedlbecauselthelresidencelpremiselislbeinglrepairedlorlrebuilt.
Whenlpropertylislmovedltolnewlylacquiredlresidence,lthellimitlshownlonldeclarationlwilllapplylo
nlalproportionallbasisltoleachlresidence
Dwellingslunderlconstruction
CorrectlAnswer:lThellimitloflliabilitylforlaldwellinglunderlconstructionlislprovisional,landlislb
asedlonlthelcompletedlvalueloflthelstructure.lAtltheltimeloflloss,lthelapplicablellimitlislalpercen
tageloflthelprovisionalllimit,lbasedlonlthelproportionloflactuallcash
,valueloflthelpropertylatltheltimeloflloss.lPremiumlislbasedlonlanlaveragelamountloflinsurancel
duringlconstruction.
WaterlBackupl&lSumplPumplEndorsement
CorrectlAnswer: Coveragelforlupltol$5,000linllosslorldamage,lsubjectltolal$250ldeductible,lc
anlbelprovidedlforlanladditionallpremiumlwithlthislendorsement.
AutomaticlIncreaselinlInsurancelEndorsement
CorrectlAnswer: islusedltolprovidelatlthelannuallrenewalldateloflthelpolicy,lanlautomaticlin
creaselinlthelCoveragelAlandlBllimitsloflinsuranceltolhelploffsetlinflation
Otherlinsurance
CorrectlAnswer: Alprovisionlinlanlinsurancelpolicylthatldefineslhowlthelpolicylwilllrespondli
fltherelislanotherlvalidlinsurancelpolicylwrittenlonlthelsamelrisk.
StocklCompanies
CorrectlAnswer: Ownedlbylthelstockholderslwholprovidelthelcapitallnecessaryltolestablishl
andloperatelthelinsurancelcompanylandlwholsharelinlanylprofitslorllosses.
Mutuallcompanies
CorrectlAnswer: Ownedlbylthelpolicyownerslandlissuelparticipatinglpolicies.
Policyownerslarelentitledltoldividends,lwhichlarelalreturnloflexcesslpremiumlandlarelnontaxabl
e.
,6lclassesloflinsurancelinlGeorgia
CorrectlAnswer:l 1.lLife,laccident,landlsickness
2. Property,lmarine,landltransportation
3. Casualty
4. Surety
5. Title
6. HMOs
HowloftenlmustlthelInsurancelCommissionlexamineldomesticlinsurers?
CorrectlAnswer:l Onceleveryl5lyears.
Whatlareltheltimelinesliflalhearinglislrequested?
CorrectlAnswer:l Alhearinglmustlbelmadelwithinl30ldaysloflthelreceiptloflthelrequest.lAlnotifi
cationloflthelhearinglmustlbelsentlatlleastl15ldayslinladvance.
Withinl30ldaysloflthelhearing,lthelCommissionerlmustlreleaselhisldecision.
Whatlarelthelpenaltieslafterlalnotice,lhearing,landlceaselandldesistlorder?
CorrectlAnswer:l Alfineloflupltol$10,000lperlviolationlSu
spension/revocationlofllicense
Anylotherlappropriatelrelief.
Expresslauthority
, CorrectlAnswer:l thelauthorityloflanlagent,lstatedlinltheldocumentlorlagreementlcreati
nglthelagency
Impliedlauthority
CorrectlAnswer:l Authoritylthatlislnotlexpressedlorlwrittenlintolthelcontract,lbutlwhichlthelag
entlislassumedltolhavelinlorderltoltransactlthelbusinessloflinsurancelforlthelprincipal.
Apparentlauthority
CorrectlAnswer:l Thelappearancelorlthelassumptionloflauthoritylbasedlonlthelactions,lwords,
orldeedsloflthelprincipallorlbecauseloflcircumstanceslthelprincipallcreated.
l
Whenldoeslanlagentsllicenselexpire?
CorrectlAnswer:l Licenseslarelgoodltolforl2lyearslandlexpirelonlthellastldayloflthellicensee'slwi
thlmonth.
WhatlarelthelCElrequirementslforlanlagent?
CorrectlAnswer:l 24lCElcreditlhoursleveryl2lyears,lincludingl3lcreditlhoursloflethics.
Agentslwithllicensedlforl20lyearslonlylneedl20lCElcreditlhours,lincludinglethics.
Howllonglmustlanlagentlkeeplrecordslregardinglcontracts,lpremiums,letc.?
l l l l
XAM– l
GEORGIAEXAM|QUESTIONS&100%COR
l l l l l l l
RECTANSWERS(VERIFIED)|LATESTUPD
l l l l l
ATE|GRADEA+ l l l
BPPlbuildinglcoverage
CorrectlAnswer:linsureslthelbuildinglatltheldescribedllocation,loutdoor,lfixtures,lfurnit
ures,litemslusedltolservicelthelproperty,lpermanentlylinstalledlmachinerylandlequipme
nt,landladditionslunderlconstruction,lincludinglthelmaterials,lsupplies,landlequipment.
HOllimitsloflpropertylatlotherlresidences
CorrectlAnswer:l thellargerlofl$1000lorl10%lCoveragelC.lLimitldoeslnotlapplyliflpropert
ylislmovedlbecauselthelresidencelpremiselislbeinglrepairedlorlrebuilt.
Whenlpropertylislmovedltolnewlylacquiredlresidence,lthellimitlshownlonldeclarationlwilllapplylo
nlalproportionallbasisltoleachlresidence
Dwellingslunderlconstruction
CorrectlAnswer:lThellimitloflliabilitylforlaldwellinglunderlconstructionlislprovisional,landlislb
asedlonlthelcompletedlvalueloflthelstructure.lAtltheltimeloflloss,lthelapplicablellimitlislalpercen
tageloflthelprovisionalllimit,lbasedlonlthelproportionloflactuallcash
,valueloflthelpropertylatltheltimeloflloss.lPremiumlislbasedlonlanlaveragelamountloflinsurancel
duringlconstruction.
WaterlBackupl&lSumplPumplEndorsement
CorrectlAnswer: Coveragelforlupltol$5,000linllosslorldamage,lsubjectltolal$250ldeductible,lc
anlbelprovidedlforlanladditionallpremiumlwithlthislendorsement.
AutomaticlIncreaselinlInsurancelEndorsement
CorrectlAnswer: islusedltolprovidelatlthelannuallrenewalldateloflthelpolicy,lanlautomaticlin
creaselinlthelCoveragelAlandlBllimitsloflinsuranceltolhelploffsetlinflation
Otherlinsurance
CorrectlAnswer: Alprovisionlinlanlinsurancelpolicylthatldefineslhowlthelpolicylwilllrespondli
fltherelislanotherlvalidlinsurancelpolicylwrittenlonlthelsamelrisk.
StocklCompanies
CorrectlAnswer: Ownedlbylthelstockholderslwholprovidelthelcapitallnecessaryltolestablishl
andloperatelthelinsurancelcompanylandlwholsharelinlanylprofitslorllosses.
Mutuallcompanies
CorrectlAnswer: Ownedlbylthelpolicyownerslandlissuelparticipatinglpolicies.
Policyownerslarelentitledltoldividends,lwhichlarelalreturnloflexcesslpremiumlandlarelnontaxabl
e.
,6lclassesloflinsurancelinlGeorgia
CorrectlAnswer:l 1.lLife,laccident,landlsickness
2. Property,lmarine,landltransportation
3. Casualty
4. Surety
5. Title
6. HMOs
HowloftenlmustlthelInsurancelCommissionlexamineldomesticlinsurers?
CorrectlAnswer:l Onceleveryl5lyears.
Whatlareltheltimelinesliflalhearinglislrequested?
CorrectlAnswer:l Alhearinglmustlbelmadelwithinl30ldaysloflthelreceiptloflthelrequest.lAlnotifi
cationloflthelhearinglmustlbelsentlatlleastl15ldayslinladvance.
Withinl30ldaysloflthelhearing,lthelCommissionerlmustlreleaselhisldecision.
Whatlarelthelpenaltieslafterlalnotice,lhearing,landlceaselandldesistlorder?
CorrectlAnswer:l Alfineloflupltol$10,000lperlviolationlSu
spension/revocationlofllicense
Anylotherlappropriatelrelief.
Expresslauthority
, CorrectlAnswer:l thelauthorityloflanlagent,lstatedlinltheldocumentlorlagreementlcreati
nglthelagency
Impliedlauthority
CorrectlAnswer:l Authoritylthatlislnotlexpressedlorlwrittenlintolthelcontract,lbutlwhichlthelag
entlislassumedltolhavelinlorderltoltransactlthelbusinessloflinsurancelforlthelprincipal.
Apparentlauthority
CorrectlAnswer:l Thelappearancelorlthelassumptionloflauthoritylbasedlonlthelactions,lwords,
orldeedsloflthelprincipallorlbecauseloflcircumstanceslthelprincipallcreated.
l
Whenldoeslanlagentsllicenselexpire?
CorrectlAnswer:l Licenseslarelgoodltolforl2lyearslandlexpirelonlthellastldayloflthellicensee'slwi
thlmonth.
WhatlarelthelCElrequirementslforlanlagent?
CorrectlAnswer:l 24lCElcreditlhoursleveryl2lyears,lincludingl3lcreditlhoursloflethics.
Agentslwithllicensedlforl20lyearslonlylneedl20lCElcreditlhours,lincludinglethics.
Howllonglmustlanlagentlkeeplrecordslregardinglcontracts,lpremiums,letc.?
