GA PERSONAL LINES INSURANCE
TERMS EXAM 2025 QUESTIONS
AND ANSWERS
Abandonment - --Answer --The abdication of insured property into the
hands of another or into the possession of no one in particular
Accident - --Answer --A sudden unplanned and unexpected event not under
the control of the insured resulting in injury or damage that is neither expected or
intended
Actual Cash Value - --Answer --The replacement cost of lost or damaged
property minus depreciation
Additional coverage - --Answer --A provision in an insurance policy that
provides additional amounts of coverage for a specific loss expense at no
additional premium
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Additional Insureds - --Answer --Individuals or business that are not named
as insureds on the declaration page but are protected by the policy usually in regard
to a specific interest
Adhesion - --Answer --A contract which is offered on a take it or leave it
basis. The insured's only option is to either accept or reject the contract; he/she
has no input concerning its terms
Admitted Insurer - --Answer --An insurance company that has qualified and
received a certificate of authority from the department of insurance to transact
insurance in the state
Adverse Selection - --Answer --The insuring of risks that are of a poorer
class (more prone to losses) than the average risk
Agent - --Answer --A person who acts on the behalf of the insurer to sell,
negotiate, or effect insurance contracts; also known as a producer
Aggregate Limit - --Answer --The maximum limit of coverage available
under a liability policy during a policy year regardless of the number of claims that
may be made or the number of accidents that may occur
Agreed Value - --Answer --A property policy with a provision agreed upon
by the insurer and insured as to the amount of insurance that represents a fair
valuation for the property at the time the insurance is written
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Aleatory - --Answer --A contract in which unequal amounts or values are
exchanged. The premium paid by the insured is small in relation to the amount
that will be paid by the insurer in the event of loss
Alien Insurer - --Answer --An insurance company that is incorporated
outside the United States
Apparent Authority - --Answer --The appearance of the assumption of
authority based on the actions, words, or deed of the principal or because of
circumstances the principal created
Appraisal - --Answer --An assessment of property to determine either the
correct amount of insurance to be written or the amount of loss to be paid
Arbitration - --Answer --Method of claim settlement used when the insured
and insurer cannot agree upon the amount of the loss
Assignment - --Answer --The transfer of a legal right or interest in an
insurance policy
Authorized Insurer - --Answer --An insurance company that has qualified
and received a certificate of authority from the department of insurance to transact
insurance in the state
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
TERMS EXAM 2025 QUESTIONS
AND ANSWERS
Abandonment - --Answer --The abdication of insured property into the
hands of another or into the possession of no one in particular
Accident - --Answer --A sudden unplanned and unexpected event not under
the control of the insured resulting in injury or damage that is neither expected or
intended
Actual Cash Value - --Answer --The replacement cost of lost or damaged
property minus depreciation
Additional coverage - --Answer --A provision in an insurance policy that
provides additional amounts of coverage for a specific loss expense at no
additional premium
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Additional Insureds - --Answer --Individuals or business that are not named
as insureds on the declaration page but are protected by the policy usually in regard
to a specific interest
Adhesion - --Answer --A contract which is offered on a take it or leave it
basis. The insured's only option is to either accept or reject the contract; he/she
has no input concerning its terms
Admitted Insurer - --Answer --An insurance company that has qualified and
received a certificate of authority from the department of insurance to transact
insurance in the state
Adverse Selection - --Answer --The insuring of risks that are of a poorer
class (more prone to losses) than the average risk
Agent - --Answer --A person who acts on the behalf of the insurer to sell,
negotiate, or effect insurance contracts; also known as a producer
Aggregate Limit - --Answer --The maximum limit of coverage available
under a liability policy during a policy year regardless of the number of claims that
may be made or the number of accidents that may occur
Agreed Value - --Answer --A property policy with a provision agreed upon
by the insurer and insured as to the amount of insurance that represents a fair
valuation for the property at the time the insurance is written
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Aleatory - --Answer --A contract in which unequal amounts or values are
exchanged. The premium paid by the insured is small in relation to the amount
that will be paid by the insurer in the event of loss
Alien Insurer - --Answer --An insurance company that is incorporated
outside the United States
Apparent Authority - --Answer --The appearance of the assumption of
authority based on the actions, words, or deed of the principal or because of
circumstances the principal created
Appraisal - --Answer --An assessment of property to determine either the
correct amount of insurance to be written or the amount of loss to be paid
Arbitration - --Answer --Method of claim settlement used when the insured
and insurer cannot agree upon the amount of the loss
Assignment - --Answer --The transfer of a legal right or interest in an
insurance policy
Authorized Insurer - --Answer --An insurance company that has qualified
and received a certificate of authority from the department of insurance to transact
insurance in the state
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
