PROPERTY AND CASUALTY INSURANCE EXAM – GEORGIA Q AND A

PROPERTY AND CASUALTY
INSURANCE EXAM – GEORGIA Q AND
A

BPPvybuildingvycoveragevy-vyanswer--
insuresvythevybuildingvyatvythevydescribedvylocation,vyoutdoor,vyfixtures,vyfurnitures,vyitems
vyusedvytovyservicevythevyproperty,vypermanentlyvyinstalledvymachineryvyandvyequipment,vy

andvyadditionsvyundervyconstruction,vyincludingvythevymaterials,vysupplies,vyandvyequipme
nt.

HOvylimitsvyofvypropertyvyatvyothervyresidencesvy-vyanswer--
thevylargervyofvy$1000vyorvy10%vyCoveragevyC.vyLimitvydoesvynotvyapplyvyifvypropertyvyisvym
ovedvybecausevythevyresidencevypremisevyisvybeingvyrepairedvyorvyrebuilt.
Whenvypropertyvyisvymovedvytovynewlyvyacquiredvyresidence,vythevylimitvyshownvyonvydecla
rationvywillvyapplyvyonvyavyproportionalvybasisvytovyeachvyresidence

Dwellingsvyundervyconstructionvy-vyanswer--
Thevylimitvyofvyliabilityvyforvyavydwellingvyundervyconstructionvyisvyprovisional,vyandvyisvybase
dvyonvythevycompletedvyvaluevyofvythevystructure.vyAtvythevytimevyofvyloss,vythevyapplicablevyli
mitvyisvyavypercentagevyofvythevyprovisionalvylimit,vybasedvyonvythevyproportionvyofvyactualvyc
ashvyvaluevyofvythevypropertyvyatvythevytimevyofvyloss.vyPremiumvyisvybasedvyonvyanvyaverag
evyamountvyofvyinsurancevyduringvyconstruction.

WatervyBackupvy&vySumpvyPumpvyEndorsementvy-vyanswer--
Coveragevyforvyupvytovy$5,000vyinvylossvyorvydamage,vysubjectvytovyavy$250vydeductible,vyca
nvybevyprovidedvyforvyanvyadditionalvypremiumvywithvythisvyendorsement.

AutomaticvyIncreasevyinvyInsurancevyEndorsementvy-vyanswer--
isvyusedvytovyprovidevyatvythevyannualvyrenewalvydatevyofvythevypolicy,vyanvyautomaticvyincre
asevyinvythevyCoveragevyAvyandvyBvylimitsvyofvyinsurancevytovyhelpvyoffsetvyinflation

Othervyinsurancevy-vyanswer--
Avyprovisionvyinvyanvyinsurancevypolicyvythatvydefinesvyhowvythevypolicyvywillvyrespondvyifvyth
erevyisvyanothervyvalidvyinsurancevypolicyvywrittenvyonvythevysamevyrisk.

StockvyCompaniesvy-vyanswer--
Ownedvybyvythevystockholdersvywhovyprovidevythevycapitalvynecessaryvytovyestablishvyandv
yoperatevythevyinsurancevycompanyvyandvywhovysharevyinvyanyvyprofitsvyorvylosses.



Mutualvycompaniesvy-vyanswer--
Ownedvybyvythevypolicyownersvyandvyissuevyparticipatingvypolicies.vyPolicyownersvyarevye
ntitledvytovydividends,vywhichvyarevyavyreturnvyofvyexcessvypremiumvyandvyarevynontaxable.

,6vyclassesvyofvyinsurancevyinvyGeorgiavy-vyanswer--1.vyLife,vyaccident,vyandvysicknessvy
2.vyProperty,vymarine,vyandvytransportation
3.vyCasualty
4.vySurety
5.vyTitle
6.vyHMOs

HowvyoftenvymustvythevyInsurancevyCommissionvyexaminevydomesticvyinsurers?vy-
vyanswer--Oncevyeveryvy5vyyears.



Whatvyarevythevytimelinesvyifvyavyhearingvyisvyrequested?vy-vyanswer--
Avyhearingvymustvybevymadevywithinvy30vydaysvyofvythevyreceiptvyofvythevyrequest.
Avynotificationvyofvythevyhearingvymustvybevysentvyatvyleastvy15vydaysvyinvyadvance.vy
Withinvy30vydaysvyofvythevyhearing,vythevyCommissionervymustvyreleasevyhisvydecision.

Whatvyarevythevypenaltiesvyaftervyavynotice,vyhearing,vyandvyceasevyandvydesistvyorder?vy-
vyanswer--Avyfinevyofvyupvytovy$10,000vypervyviolation

Suspension/revocationvyofvylicense
Anyvyothervyappropriatevyrelief.

Expressvyauthorityvy-vyanswer--
thevyauthorityvyofvyanvyagent,vystatedvyinvythevydocumentvyorvyagreementvycreatingvythevyag
ency

Impliedvyauthorityvy-vyanswer--
Authorityvythatvyisvynotvyexpressedvyorvywrittenvyintovythevycontract,vybutvywhichvythevyagent
vyisvyassumedvytovyhavevyinvyordervytovytransactvythevybusinessvyofvyinsurancevyforvythevyprin

cipal.

Apparentvyauthorityvy-vyanswer--
Thevyappearancevyorvythevyassumptionvyofvyauthorityvybasedvyonvythevyactions,vywords,vyor
vydeedsvyofvythevyprincipalvyorvybecausevyofvycircumstancesvythevyprincipalvycreated.



Whenvydoesvyanvyagentsvylicensevyexpire?vy-vyanswer--
Licensesvyarevygoodvytovyforvy2vyyearsvyandvyexpirevyonvythevylastvydayvyofvythevylicensee'svy
withvymonth.

WhatvyarevythevyCEvyrequirementsvyforvyanvyagent?vy-vyanswer--
24vyCEvycreditvyhoursvyeveryvy2vyyears,vyincludingvy3vycreditvyhoursvyofvyethics.

Agentsvywithvylicensedvyforvy20vyyearsvyonlyvyneedvy20vyCEvycreditvyhours,vyincludingvyethi
cs.

Howvylongvymustvyanvyagentvykeepvyrecordsvyregardingvycontracts,vypremiums,vyetc.?vy-
vyanswer--

Allvyrecordsvymustvybevykeptvyforvy5vyyearsvyaftervythevycompletionvyofvyavytransactionvyorvyfo
rvythevytermvyofvythevycontract,vywhichevervyisvygreater.

Misrepresentationvy-vyanswer--
Issuing,vypublishing,vyorvycirculationvyandvyillustrationvyorvysalesvymaterialsvythatvyisvyfalse,

, misleading,vyorvydeceptivevyasvytovypolicyvybenefitsvyorvyterms,vythevypaymentsvyofvydivide
vy

nds,vyetc.

Falsevyadvertisingvy-vyanswer--
advertisingvythatvyisvymisleadingvyinvysomevyimportantvyway,vyincludingvythevyfailurevytovyre
vealvyfactsvyaboutvypossiblevyresultsvyfromvyusingvythevyadvertisedvyproducts

Rebatingvy-vyanswer--
Anyvyinducementvyofferedvyinvythevysalevyofvyinsurancevyproductsvythatvyisvynotvyspecifiedvyi
nvythevypolicy.vyTheyvyarevyillegalvyinvyGeorgia.

Twistingvy-vyanswer--
Avyformvyofvymisrepresentationvyinvywhichvyanvyagentvypersuadesvyanvyinsured/
ownervytovycancel,vylapse,vyorvyswitchvypolicies,vyevenvywhenvyit'svytovythevyinsured'svydisad
vantage.

Churningvy-vyanswer--
Replacingvyinsurancevypoliciesvyforvythevysolevypurposevyofvymakingvycommissions.vyItvyisvy
illegalvytovyreplacevyexistingvylifevyorvydisabilityvypoliciesvywithvynewvypoliciesvyifvythevyprodu
cervycannotvydemonstratevythatvythevyreplacementvywillvybenefitvythevyinsured.

Coercionvy-vyanswer--
Unfairvytradevypracticevywherevyanvyagentvyusesvyphysicalvyorvymentalvyforcevywithvythevyint
ensevyofvyinducingvyanvyapplicantvytovypurchasevyinsurance.

Defamationvy-vyanswer--
Defamationvyoccursvywhenvyanvyoralvyorvywrittenvystatementvyisvymadevythatvyisvyintendedvy
tovyinjurevyavypersonvyengagedvyinvythevyinsurancevybusiness.vyThisvyalsovyappliesvytovystat
ementsvythatvyarevymaliciouslyvycriticalvyofvythevyfinancialvyconditionvyofvyanyvypersonvyorvya
vycompany.



Controlledvybusinessvy-vyanswer--
Controlledvybusinessvyisvyanyvycoveragevywrittenvyonvyavyproducer'svyownvylife,vyhealthvyorv
yproperty,vyand/

orvythatvyofvythevyproducer'svyimmediatevyfamilyvyorvybusinessvyassociates.vyAvylicenseevyis
vynotvyallowedvytovycollectvycommissionsvyonvycontrolledvybusinessvyatvyratevyhighervythanvy

25%vyofvythevyagent'vyvolumevypervycalendarvyyear.

Whatvyisvyavybindervy-vyanswer--
Avytemporaryvyinsurancevycontractvythatvygoesvyinvyeffectvypriorvytovythevypolicyvyissue.vyNov
ybindervyshallvybevyvalidvypassvythevyissuancevyofvythevypolicyvybeyondvy90vydaysvyofvyitsvyeff

ectivevydate,vywhichevervyperiodvyisvyshorted.

GeorgiavyFAIRvy-vyanswer--
ThevyGeorgiavyFairvyAccessvytovyInsurancevyRequirementvyprovidesvybasicvypropertyvyins
urancevyforvythosevywhovycannotvyobtainvyitvyinvythevyordinaryvymarket.

GeorgiavyAutomobilevyInsurancevyPlanvy-vyanswer--
ThevyGeorgiavyAutomobilevyInsurancevyPlanvymakesvyautomobilevyinsurancevyavailablevyf
orvyinsuredsvywhovyarevyunablevytovypurchasevycoveragevyinvythevyvoluntaryvymarket.vyWh

, envyanvyautomobilevypolicyvyisvycancelledvyorvynonrenewedvyforvyavyreasonvyothervythanvyfo
rvynonpaymentvyofvypremium,vythevyinsurervymustvynotifyvythevyinsuredvyofvytheirvyeligibilityvy
forvycoveragevythroughvythevyGeorgiavyAutomobilevyInsurancevyPlan.vyThevynoticevyaboutv
ythevyPlanvymustvyaccompanyvythevynoticevyofvycancellationvyorvynonrenewal.



Workman'svyCompensationvy-vyanswer--
Coversvyallvybusinessvywithvy3vyorvymorevyemployees

Workman'svyCompensationvyCoveragevy-vyanswer--Doctorsvybills
hospitalvybills
physicalvytherapy
prescriptions
necessaryvytravelvyexpenses

Treatmentvylimitedvytovymaxvyofvy400vyweeksvyunlessvyinjuriesvyarevycatastrophic.

WhatvyarevythevybenefitvypayoutvyrequirementsvyforvyWC?vy-vyanswer--
WorkersvycanvycollectvyWCvybenefitsvyaftervybeingvyoutvyofvyworkvyforvymorevythanvy7vydays,
vyandvythevyfirstvycheckvywillvyarrivevywithvy21vydaysvyofvythevyfirstvymissedvyworkday.vyThevyc

ompensationvyisvylimitedvytovy2/3vyofvythevyworker'svyaveragevyweeklyvypayvyupvytovy$575.

GeorgiavyWorkersvyCompensationvyAssignedvyRiskvyPlanvy-vyanswer--
ThevyGeorgiavyWorkersvyCompensationvyAssignedvyRiskvyPlanvyexistsvytovyprovidevyrequi
redvyWorkersvyCompensationvycoveragevyforvyemployersvywhovydovynotvyqualifyvyforvycove
ragevyinvythevyvoluntaryvymarket.vyLiabilityvyisvyapportionedvyamongvyallvyinsurersvyauthoriz
edvytovywritevyWorkersvyCompensationvyandvyEmployersvyLiabilityvyinvythevystate.

Howvyoftenvymustvyanvyinsurervyupdatevytheirvyratevyfilings?vy-vyanswer--Everyvy2vyyears

Allvyinsurersvymustvyfilevytheirvyratesvy45vydaysvybeforevytheirvyeffectivevydate.vy

Whenvyavyratevyincreasesvymorevythanvy10$vyorvymorevywithinvy12vymonths,vythevyCommiss
ionervywillvyordervyandvyexamination.

WhatvyisvythevyCommissioner'svytermvyofvyoffice?vy-vyanswer--4vyyears

WhenvydoesvyanvyagentvyhavevytovynotifyvythevyCommissionervyofvyavychangevyofvyaddress
?vy-vyanswer--Withinvy30vydays

Howvymanyvydaysvyarevyallowedvytovyreportvyavycriminalvyprosecutionvyagainstvyavylicensee
?vy-vyanswer--30vydays

WhatvyisvythevytotalvyliabilityvyofvythevyGeorgiavyLifevyandvyHealthvyInsurancevyGuarantyvyAs
sociationvyforvyanyvyonevylife?vy-vyanswer--$300,000

PAPvySectionvyIIvyPartvyB:vyMedicalvyExpensesvyCoveragevy-vyanswer---
coversvyallvyreasonablevymedicalvycostsvyandvyfuneralvyexpensesvyincurred,vybyvythevyinsu
redvyorvythevyinsured'svyfamilyvymembersvywithinvy3vyyearsvyofvyanvyaccident
-recommendedvycoveragevyofvy$50,000