GEORGIA PROPERTY & CASUALTY
EXAM 2025 QUESTIONS AND
ANSWERS
A man is working on the roof of his house, and his neighbor is watching from the
ground. When roof shingles are thrown off the roof, they hit the neighbor in the
face, injuring his eye. Which best classifies the homeowner's legal liability? - --
Answer --Bodily injury
An insured's roof cost $4,000 when installed 5 years ago. It has been damaged by
hail and must be replaced. The new roof will cost $6,000 at today's prices. If the
roof has been depreciating at $200 per year and his policy is ACV, how much will
it pay toward the insured's new roof? - --Answer --$5,000
The insured's house is located one mile from the county's new landfill and across
from the entrance of a rock quarry. It would cost $150,000 to rebuild the house if
something happened to it, but when the insured tried to sell it, the best offer he
received was $80,000. The insurance company will insure the house for only
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,$80,000. What method of valuation is used to insure this property? - --
Answer --Market value
Losses caused by continuous or repeated exposure to conditions resulting in injury
persons or damage to property that is neither intended nor expected is the
definition of which of the following terms? - --Answer --Occurrence
With respect to the business of insurance, a hazard is - --Answer --Any
condition that increases the possibility of loss
Which of the following would be covered under personal injury liability? - --
Answer --Libel, slander, false arrest, invasion of privacy, and other acts
Which of the following definitions best defines the term "accident"? - --
Answer --A sudden, unplanned and unexpected event, not under the control
of the insured, resulting in injury or damage neither expected nor intended
The crime of forced entry into the premises of another by a person or persons
with felonious intent is defined as a - --Answer --Burglary
All of the following are considered parts of the policy structure EXCEPT - --
Answer --Provisions
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,A policy condition that stipulates the amount of damaged or lost property will be
determined if the insured and the principal do not agree on the value of a property
loss is known as - --Answer --Appraisal
All of the following conditions commonly found in the insurance policy EXCEPT
- --Answer --Insuring agreement
The Federal Fair Credit Reporting Act: - --Answer --Regulates consumer
reports
The part of the insurance contract that describes the covered perils and the nature
of coverage of the contractual agreement between the insurer and the insured is
called the - --Answer --Insuring agreement
Which of the following is a method of claim settlement used when the insured and
insurer cannot agree on how to settle a claim? - --Answer --Arbitration
What insurance policy provision defines how the policy will respond if there is
more than one insurance policy written on the same risk? - --Answer --Other
insurance
The proof of loss statement must be - --Answer --In writing
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? - --
Answer --Consideration
An agent tries to sell insurance over the phone to an applicant who appears to be
confused, but is eventually able to give enough information for the application to
be completed. After the policy was issued, the agent talked to the insured's family,
and they explained that the insured was recovering from a surgery and might have
been under the influence of medication at the time of application. Which of the
following is true? - --Answer --The policy may be voided if it can be proven
that the applicant was not capable of making a buying decision at the time of
application
In terms of parties to a contract, which of the following does NOT describe a
competent party? - --Answer --The person must have at least completed
secondary education
Perils covered under Comprehensive or OTC - --Answer --Falling objects
Fire
EQ or Explosion
Wind
Hail, water, or flood
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
EXAM 2025 QUESTIONS AND
ANSWERS
A man is working on the roof of his house, and his neighbor is watching from the
ground. When roof shingles are thrown off the roof, they hit the neighbor in the
face, injuring his eye. Which best classifies the homeowner's legal liability? - --
Answer --Bodily injury
An insured's roof cost $4,000 when installed 5 years ago. It has been damaged by
hail and must be replaced. The new roof will cost $6,000 at today's prices. If the
roof has been depreciating at $200 per year and his policy is ACV, how much will
it pay toward the insured's new roof? - --Answer --$5,000
The insured's house is located one mile from the county's new landfill and across
from the entrance of a rock quarry. It would cost $150,000 to rebuild the house if
something happened to it, but when the insured tried to sell it, the best offer he
received was $80,000. The insurance company will insure the house for only
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,$80,000. What method of valuation is used to insure this property? - --
Answer --Market value
Losses caused by continuous or repeated exposure to conditions resulting in injury
persons or damage to property that is neither intended nor expected is the
definition of which of the following terms? - --Answer --Occurrence
With respect to the business of insurance, a hazard is - --Answer --Any
condition that increases the possibility of loss
Which of the following would be covered under personal injury liability? - --
Answer --Libel, slander, false arrest, invasion of privacy, and other acts
Which of the following definitions best defines the term "accident"? - --
Answer --A sudden, unplanned and unexpected event, not under the control
of the insured, resulting in injury or damage neither expected nor intended
The crime of forced entry into the premises of another by a person or persons
with felonious intent is defined as a - --Answer --Burglary
All of the following are considered parts of the policy structure EXCEPT - --
Answer --Provisions
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,A policy condition that stipulates the amount of damaged or lost property will be
determined if the insured and the principal do not agree on the value of a property
loss is known as - --Answer --Appraisal
All of the following conditions commonly found in the insurance policy EXCEPT
- --Answer --Insuring agreement
The Federal Fair Credit Reporting Act: - --Answer --Regulates consumer
reports
The part of the insurance contract that describes the covered perils and the nature
of coverage of the contractual agreement between the insurer and the insured is
called the - --Answer --Insuring agreement
Which of the following is a method of claim settlement used when the insured and
insurer cannot agree on how to settle a claim? - --Answer --Arbitration
What insurance policy provision defines how the policy will respond if there is
more than one insurance policy written on the same risk? - --Answer --Other
insurance
The proof of loss statement must be - --Answer --In writing
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? - --
Answer --Consideration
An agent tries to sell insurance over the phone to an applicant who appears to be
confused, but is eventually able to give enough information for the application to
be completed. After the policy was issued, the agent talked to the insured's family,
and they explained that the insured was recovering from a surgery and might have
been under the influence of medication at the time of application. Which of the
following is true? - --Answer --The policy may be voided if it can be proven
that the applicant was not capable of making a buying decision at the time of
application
In terms of parties to a contract, which of the following does NOT describe a
competent party? - --Answer --The person must have at least completed
secondary education
Perils covered under Comprehensive or OTC - --Answer --Falling objects
Fire
EQ or Explosion
Wind
Hail, water, or flood
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
