GEORGIA ADJUSTER EXAM / GA ADJUSTER EXAM 2
LATEST VERSIONS 2024 ACTUAL EXAM AND STUDY
GUIDE 300 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY GRADED A+
Adverse selection occurs when - ANS-Applicants are accepted by the insurer with little or no attention
given to underwriting.
All of the following are duties of the insured after they cause a liability loss, EXCEPT - ANS-Notifying the
insurance company of the injured third party
Which of the following would be excluded under Part A of the Personal Auto policy? - ANS-A person
transports people from the airport to nearby hotels for a fee.
An insured has his home covered under Dwelling policies with three different insurance companies.
Company A provides 50% of the coverage, Company B provides 45% of the coverage, and Company C
provides 5% of the coverage. When settling a claim for $10,000 worth of damage to the dwelling, what
will Company C pay? - ANS-$500.
In this situation, Company C will pay $500. 5% of $10,000 is $500. You should be able to figure this in
your head by asking yourself "What is 10% of $10,000?" 10% of $10,000 is $1,000. Then, you can simply
figure that 5% is half of 10%, which would be $500.
Which of the following statements is TRUE regarding Coverage F - Medical Payments to Others on the
Homeowners policies? - ANS-Pays the medical expenses of others without regard to whether or not the
insured was negligent
Coverages A, B, C, and D of Section I of a Homeowners policy are (in order): - ANS-Dwelling; Other
Structures; Personal Property (Contents); Loss of Use.
All of the following are EXCLUDED under the Earthquake Endorsement to a Homeowners policy, EXCEPT:
- ANS-Land shock waves.
,Indemnify Insurance, Inc. was formed under the laws of California but is an admitted insurer in Oregon.
When Indemnify Insurance is accused of violating the Oregon insurance code, they will be treated as
a(n) ____________ by the Oregon Division of Financial Regulation. - ANS-Foreign insurer
Which of the following statements regarding the eligibility requirements for coverage under a Dwelling
policy is TRUE? - ANS-Dwellings owned by corporations or other business entities are eligible.
Which of the following cause of loss forms provides named peril coverage? - ANS-The basic and broad
forms only
If an insured is covered under an HO-2 policy, damage caused by wind to his/her personal property
would be covered if: - ANS-The wind created an opening in the structure, allowing the wind to damage
the personal property inside
Which of the following is NOT a "duty of the insured" after a loss? - ANS-To pay damages to any third-
party claimant while waiting to be reimbursed by the insurer for the loss.
The Georgia Insurance Commissioner has created a new regulation to carry out the provisions of the
insurance code. In this situation, which of the following statements is TRUE? - ANS-The legality of the
new regulation must be approved by the state attorney general.
Which of the following is NOT an "alternative dispute resolution" (ADR) used to deal with coverage
disputes in the claim settlement process? - ANS-Litigation.
The Georgia Commissioner has issued an cease and desist order for violations of the insurance code by
Nellie, a licensed adjuster. Nellie continues to commit the violations while the cease and desist order is
in effect. Nellie may be subject to any of the following, EXCEPT - ANS-A sentence of not more than 30
days in the county jail.
In which of the following situations should an adjuster consider obtaining a non-waiver agreement? -
ANS-In dealing with a potential coverage dispute.
The medical payments coverage of a Commercial General Liability policy excludes all of the following,
EXCEPT: - ANS-Customers slipping on the insured's wet floor.
,All insurers licensed to write _____________ insurance in Georgia are authorized to establish and
maintain a FAIR Plan. - ANS-Personal or commercial property
Wyatt is a blasting contractor who set off a blasting charge, damaging several buildings in the area and
causing severe bodily injury to several people. Which of the following types of liability apply in this
scenario? - ANS-
Robert is an adjuster for Indemnify Insurance, Inc. and he has been assigned a claim and acknowledged
receipt of the loss notice. Which of the following is the next step Robert will take to process the claim? -
ANS-Verify coverage for the claim under the policy
Claims filed with the insurance company by the insured are known as: - ANS-First-party claims.
Harvey's Hardware carries a CGL policy with a $2,000,000 "per occurrence" limit and a $4,000,000
"aggregate limit". Harvey's also carries a Commercial Umbrella policy with a $2,000,000 "aggregate
limit" and a $300,000 self-insured retention (SIR). The hardware store has 7 bodily injury claims during
the policy period, with no single occurrence totaling more than $2,000,000, but the total of the 7
occurrences is $8,000,000. How will this claim be paid? - ANS-The CGL policy will pay $4,000,000, the
Umbrella policy will pay $2,000,000, leaving $2,000,000 of the claim uninsured.
Dana lives in a state that has passed a Valued Policy Law (VPL). This means that insurers issuing property
policies in the state: - ANS-Must pay the full limit of the policy, stated on the Declarations page, in the
event of a total loss.
Farmer Ellen is covered by a Farm Property policy. During a storm, two trees located on each side of the
farmhouse front porch are blown down and cause roof damage. How much coverage does Ellen's policy
provide to remove the trees? - ANS-$1,000 for any one loss regardless of the number of trees that have
fallen but no more than $500 for the removal of any one tree.
Which of the following Business Automobile policy symbols permits the insured to purchase coverage
for both liability and physical damage? - ANS-Symbol 3.
Symbol 3 is the only BAP symbol (listed in the answer choices) that covers the automobile for both
liability and physical damage coverage.
, All of the following statements are true regarding a non-waiver agreement, EXCEPT: - ANS-It is signed
only by the insurer.
All of the following are included in the Businessowners policy coverage territory, EXCEPT: - ANS-Mexico.
The "Pollution Clean-Up and Removal" coverage under the Building and Personal Property coverage
form of a CPP: - ANS-Is an additional coverage.
"Pollution Cleanup and Removal" is an additional coverage under the Building and Personal Property
coverage form (one of several Commercial Property coverage forms that can be added to a Commercial
Package Policy).
The "concealment and fraud" provision of the 1943 New York Standard Fire policy permits the insurer to
_________ if the insured willfully conceals or misrepresents a material fact before or after a loss. - ANS-
Void the entire policy.
Which of the following is NOT one of the broad form perils? - ANS-Damage to land caused by
earthquake
Which of the following best demonstrates the meaning of "contract of adhesion"? - ANS-Since the
insurance company formulates the policy language, the courts usually will resolve any ambiguities in the
insured's favor.
A contract that is written by one party and merely accepted by the other party "as is" is known as a
"contract of adhesion".
Which of the following is most likely to be uninsurable? - ANS-The purchaser of a new home wants to
protect herself from a possible drop in housing prices.
Each of the following is considered to be an "implied warranty" in an Ocean Marine insurance policy,
EXCEPT: - ANS-General Average.
The most widely used property and casualty insurance forms used in the United States today are
published by: - ANS-The Insurance Services Office, Inc. (ISO).
LATEST VERSIONS 2024 ACTUAL EXAM AND STUDY
GUIDE 300 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY GRADED A+
Adverse selection occurs when - ANS-Applicants are accepted by the insurer with little or no attention
given to underwriting.
All of the following are duties of the insured after they cause a liability loss, EXCEPT - ANS-Notifying the
insurance company of the injured third party
Which of the following would be excluded under Part A of the Personal Auto policy? - ANS-A person
transports people from the airport to nearby hotels for a fee.
An insured has his home covered under Dwelling policies with three different insurance companies.
Company A provides 50% of the coverage, Company B provides 45% of the coverage, and Company C
provides 5% of the coverage. When settling a claim for $10,000 worth of damage to the dwelling, what
will Company C pay? - ANS-$500.
In this situation, Company C will pay $500. 5% of $10,000 is $500. You should be able to figure this in
your head by asking yourself "What is 10% of $10,000?" 10% of $10,000 is $1,000. Then, you can simply
figure that 5% is half of 10%, which would be $500.
Which of the following statements is TRUE regarding Coverage F - Medical Payments to Others on the
Homeowners policies? - ANS-Pays the medical expenses of others without regard to whether or not the
insured was negligent
Coverages A, B, C, and D of Section I of a Homeowners policy are (in order): - ANS-Dwelling; Other
Structures; Personal Property (Contents); Loss of Use.
All of the following are EXCLUDED under the Earthquake Endorsement to a Homeowners policy, EXCEPT:
- ANS-Land shock waves.
,Indemnify Insurance, Inc. was formed under the laws of California but is an admitted insurer in Oregon.
When Indemnify Insurance is accused of violating the Oregon insurance code, they will be treated as
a(n) ____________ by the Oregon Division of Financial Regulation. - ANS-Foreign insurer
Which of the following statements regarding the eligibility requirements for coverage under a Dwelling
policy is TRUE? - ANS-Dwellings owned by corporations or other business entities are eligible.
Which of the following cause of loss forms provides named peril coverage? - ANS-The basic and broad
forms only
If an insured is covered under an HO-2 policy, damage caused by wind to his/her personal property
would be covered if: - ANS-The wind created an opening in the structure, allowing the wind to damage
the personal property inside
Which of the following is NOT a "duty of the insured" after a loss? - ANS-To pay damages to any third-
party claimant while waiting to be reimbursed by the insurer for the loss.
The Georgia Insurance Commissioner has created a new regulation to carry out the provisions of the
insurance code. In this situation, which of the following statements is TRUE? - ANS-The legality of the
new regulation must be approved by the state attorney general.
Which of the following is NOT an "alternative dispute resolution" (ADR) used to deal with coverage
disputes in the claim settlement process? - ANS-Litigation.
The Georgia Commissioner has issued an cease and desist order for violations of the insurance code by
Nellie, a licensed adjuster. Nellie continues to commit the violations while the cease and desist order is
in effect. Nellie may be subject to any of the following, EXCEPT - ANS-A sentence of not more than 30
days in the county jail.
In which of the following situations should an adjuster consider obtaining a non-waiver agreement? -
ANS-In dealing with a potential coverage dispute.
The medical payments coverage of a Commercial General Liability policy excludes all of the following,
EXCEPT: - ANS-Customers slipping on the insured's wet floor.
,All insurers licensed to write _____________ insurance in Georgia are authorized to establish and
maintain a FAIR Plan. - ANS-Personal or commercial property
Wyatt is a blasting contractor who set off a blasting charge, damaging several buildings in the area and
causing severe bodily injury to several people. Which of the following types of liability apply in this
scenario? - ANS-
Robert is an adjuster for Indemnify Insurance, Inc. and he has been assigned a claim and acknowledged
receipt of the loss notice. Which of the following is the next step Robert will take to process the claim? -
ANS-Verify coverage for the claim under the policy
Claims filed with the insurance company by the insured are known as: - ANS-First-party claims.
Harvey's Hardware carries a CGL policy with a $2,000,000 "per occurrence" limit and a $4,000,000
"aggregate limit". Harvey's also carries a Commercial Umbrella policy with a $2,000,000 "aggregate
limit" and a $300,000 self-insured retention (SIR). The hardware store has 7 bodily injury claims during
the policy period, with no single occurrence totaling more than $2,000,000, but the total of the 7
occurrences is $8,000,000. How will this claim be paid? - ANS-The CGL policy will pay $4,000,000, the
Umbrella policy will pay $2,000,000, leaving $2,000,000 of the claim uninsured.
Dana lives in a state that has passed a Valued Policy Law (VPL). This means that insurers issuing property
policies in the state: - ANS-Must pay the full limit of the policy, stated on the Declarations page, in the
event of a total loss.
Farmer Ellen is covered by a Farm Property policy. During a storm, two trees located on each side of the
farmhouse front porch are blown down and cause roof damage. How much coverage does Ellen's policy
provide to remove the trees? - ANS-$1,000 for any one loss regardless of the number of trees that have
fallen but no more than $500 for the removal of any one tree.
Which of the following Business Automobile policy symbols permits the insured to purchase coverage
for both liability and physical damage? - ANS-Symbol 3.
Symbol 3 is the only BAP symbol (listed in the answer choices) that covers the automobile for both
liability and physical damage coverage.
, All of the following statements are true regarding a non-waiver agreement, EXCEPT: - ANS-It is signed
only by the insurer.
All of the following are included in the Businessowners policy coverage territory, EXCEPT: - ANS-Mexico.
The "Pollution Clean-Up and Removal" coverage under the Building and Personal Property coverage
form of a CPP: - ANS-Is an additional coverage.
"Pollution Cleanup and Removal" is an additional coverage under the Building and Personal Property
coverage form (one of several Commercial Property coverage forms that can be added to a Commercial
Package Policy).
The "concealment and fraud" provision of the 1943 New York Standard Fire policy permits the insurer to
_________ if the insured willfully conceals or misrepresents a material fact before or after a loss. - ANS-
Void the entire policy.
Which of the following is NOT one of the broad form perils? - ANS-Damage to land caused by
earthquake
Which of the following best demonstrates the meaning of "contract of adhesion"? - ANS-Since the
insurance company formulates the policy language, the courts usually will resolve any ambiguities in the
insured's favor.
A contract that is written by one party and merely accepted by the other party "as is" is known as a
"contract of adhesion".
Which of the following is most likely to be uninsurable? - ANS-The purchaser of a new home wants to
protect herself from a possible drop in housing prices.
Each of the following is considered to be an "implied warranty" in an Ocean Marine insurance policy,
EXCEPT: - ANS-General Average.
The most widely used property and casualty insurance forms used in the United States today are
published by: - ANS-The Insurance Services Office, Inc. (ISO).
