GA CLAIMS ADJUSTER LICENSING EXAM WITH
QUESTIONS AND ANSWERS REAL!!!
Difference in Conditions (DIC) Insurance ----ANSWER-----A separate insurance policy that provides open-
perils coverage to fill in the gaps left by flood coverage if a home is worth over $250K. Coverage is
produced through Excess/Surplus Lines.
What is the waiting period on NFIP coverage? ----ANSWER-----30 days after policy purchase
What is the coverage change waiting period for the NFIP? ----ANSWER-----5 days
Give examples of the flood peril ----ANSWER------ an overflow of inland or tidal waters
- unusual or rapid accumulation or runoff of surface waters
-Mudflow or Mudslide
- Collapse of land along the shore of a lake as a result of erosion
What kinds of things does flood insurance cover? ----ANSWER-----Your house and your things (dwelling
and personal property). No indirect charges.
Dwelling coverage extension for flood insurance covers what? How much is it? ----ANSWER-----
Structures not attached to dwelling (O.S. or Appurtenant structures). 10% of Dwelling limit. ***It is an
extension of coverage, NOT the $250K limit so any coverage needed here will reduce the amount able to
go to the dwelling.
Contents coverage of flood insurance is limited to what? ----ANSWER-----Personal property damaged or
destroyed by the flood itself and belongs to insured and resident spouse/relatives. The insured is liable
for content of others.
What are the coverages of flood insurance? ----ANSWER-----Dwelling, Contents, Debris Removal
,How are damaged items valued in flood coverage? ----ANSWER-----Dwelling - replacement cost
Contents - Actual Cash Value
What kind of property is not covered by flood insurance? ----ANSWER-----Basements and underground
structure (ex. septic tanks), animals, money/accounts/bills, land, anything else covered by other policies
(motor vehicles, aircraft, watercraft)
Loss Valuation on flood insurance ----ANSWER-----(amount of insurance purchased/80% Dwellings Total
replacement cost) x Loss Amount
Standard deductible on flood insurance ----ANSWER-----$1K for Dwelling and $1K for Content
What coverage does Community Eligibility apply to? ----ANSWER-----Flood insurance through FEMA
What's the difference between Emergency Program and Regular Program in the National Flood
Insurance Program? ----ANSWER-----Emergency applies to homes in communities that are a normally not
a flood hazard. Regular programs are awarded to an entire community that is eligible due to flood
hazard.
What is the flood coverage on a regular program in a 1-4 Family Dwelling? ----ANSWER-----$250,000
On what policy can you add the Flood Program endorsement? ----ANSWER-----None! It has its own policy
through the Federal Government.
Personal Inland Marine Insurance ----ANSWER-----Floaters or policies for world-wide coverage of
personal property on an open-peril basis.
Is flood excluded from Personal Inland Marine Insurance? ----ANSWER-----NOPE. It's covered!
What are the floaters available on Personal Inland Marine Insurance? ----ANSWER-----Personal Articles
Floaters, Personal Property Floaters, and Personal Effects Floaters
What perils are covered under Personal Inland Marine Insurance floaters? ----ANSWER-----all; open-peril
, Does personal inland marine insurance cover flood? ----ANSWER-----Yes. Somehow.
All of the following coverage is available under a Standard Flood Insurance Policy issued by the National
Flood Insurance Program except:
a. Loss of Use
b. Dwelling
c. Personal Property
d. Removal ----ANSWER-----A. Loss of Use
The maximum number of days that a Standard Flood Insurance Policy will cover property removed is:
a. 15 days
b. 20 days
c. 30 days
d. 45 days ----ANSWER-----d. 45 days
If the limits of insurance available under the National Flood Insurance Program are inadequate, where
can additional coverage be purchased?
a. Homeowners Flood Endorsement
b. Excess Flood Endorsement
c. Personal Umbrella Policy
d. Difference in Conditions Policy ----ANSWER-----d. Difference in Conditions Policy
Define Yacht. ----ANSWER-----"Swim Swam" - a sailboat with an auxiliary inboard motor.
Why does Yacht insurance get a Lay-Up warranty? ----ANSWER-----During months when a watercraft is
not in use - typically in winter - a discount is applied to premium.
QUESTIONS AND ANSWERS REAL!!!
Difference in Conditions (DIC) Insurance ----ANSWER-----A separate insurance policy that provides open-
perils coverage to fill in the gaps left by flood coverage if a home is worth over $250K. Coverage is
produced through Excess/Surplus Lines.
What is the waiting period on NFIP coverage? ----ANSWER-----30 days after policy purchase
What is the coverage change waiting period for the NFIP? ----ANSWER-----5 days
Give examples of the flood peril ----ANSWER------ an overflow of inland or tidal waters
- unusual or rapid accumulation or runoff of surface waters
-Mudflow or Mudslide
- Collapse of land along the shore of a lake as a result of erosion
What kinds of things does flood insurance cover? ----ANSWER-----Your house and your things (dwelling
and personal property). No indirect charges.
Dwelling coverage extension for flood insurance covers what? How much is it? ----ANSWER-----
Structures not attached to dwelling (O.S. or Appurtenant structures). 10% of Dwelling limit. ***It is an
extension of coverage, NOT the $250K limit so any coverage needed here will reduce the amount able to
go to the dwelling.
Contents coverage of flood insurance is limited to what? ----ANSWER-----Personal property damaged or
destroyed by the flood itself and belongs to insured and resident spouse/relatives. The insured is liable
for content of others.
What are the coverages of flood insurance? ----ANSWER-----Dwelling, Contents, Debris Removal
,How are damaged items valued in flood coverage? ----ANSWER-----Dwelling - replacement cost
Contents - Actual Cash Value
What kind of property is not covered by flood insurance? ----ANSWER-----Basements and underground
structure (ex. septic tanks), animals, money/accounts/bills, land, anything else covered by other policies
(motor vehicles, aircraft, watercraft)
Loss Valuation on flood insurance ----ANSWER-----(amount of insurance purchased/80% Dwellings Total
replacement cost) x Loss Amount
Standard deductible on flood insurance ----ANSWER-----$1K for Dwelling and $1K for Content
What coverage does Community Eligibility apply to? ----ANSWER-----Flood insurance through FEMA
What's the difference between Emergency Program and Regular Program in the National Flood
Insurance Program? ----ANSWER-----Emergency applies to homes in communities that are a normally not
a flood hazard. Regular programs are awarded to an entire community that is eligible due to flood
hazard.
What is the flood coverage on a regular program in a 1-4 Family Dwelling? ----ANSWER-----$250,000
On what policy can you add the Flood Program endorsement? ----ANSWER-----None! It has its own policy
through the Federal Government.
Personal Inland Marine Insurance ----ANSWER-----Floaters or policies for world-wide coverage of
personal property on an open-peril basis.
Is flood excluded from Personal Inland Marine Insurance? ----ANSWER-----NOPE. It's covered!
What are the floaters available on Personal Inland Marine Insurance? ----ANSWER-----Personal Articles
Floaters, Personal Property Floaters, and Personal Effects Floaters
What perils are covered under Personal Inland Marine Insurance floaters? ----ANSWER-----all; open-peril
, Does personal inland marine insurance cover flood? ----ANSWER-----Yes. Somehow.
All of the following coverage is available under a Standard Flood Insurance Policy issued by the National
Flood Insurance Program except:
a. Loss of Use
b. Dwelling
c. Personal Property
d. Removal ----ANSWER-----A. Loss of Use
The maximum number of days that a Standard Flood Insurance Policy will cover property removed is:
a. 15 days
b. 20 days
c. 30 days
d. 45 days ----ANSWER-----d. 45 days
If the limits of insurance available under the National Flood Insurance Program are inadequate, where
can additional coverage be purchased?
a. Homeowners Flood Endorsement
b. Excess Flood Endorsement
c. Personal Umbrella Policy
d. Difference in Conditions Policy ----ANSWER-----d. Difference in Conditions Policy
Define Yacht. ----ANSWER-----"Swim Swam" - a sailboat with an auxiliary inboard motor.
Why does Yacht insurance get a Lay-Up warranty? ----ANSWER-----During months when a watercraft is
not in use - typically in winter - a discount is applied to premium.
