GA ADJUSTER EXAM REVIEW
QUESTIONS & ANSWERS(RATED A+)
In GA, _____insurance cannot be written by a reciprocal type insurer. - ANSWERlife
No insurer or licensee doing business in Georgia may pay any commissions or valuable
consideration to any person for services as an agent, subagent, or adjuster unless that
person is duly licensed under the - ANSWERCode
Mediation is not _____ on the parties involved, but with arbitration the decision is final
and _____. - ANSWERBinding
Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWERIndependent
Rating Services
What is the application fee for filing to become a self-insurer for workers compensation
in Georgia? - ANSWER$500
Insurance adjusters have the "power to bind". Which of the following statements best
describes what this means? - ANSWERThe principal is bound to the decisions of the
adjuster.
The perils most frequently covered by a Difference in Conditions policy are: -
ANSWERFlood and Earthquake
What is the purpose of the Georgia Insurance Guaranty Association? - ANSWERCover
claims of insolvent insurers
Twisting - ANSWERThe act of inducing or attempting to induce a policy owner to drop
an existing life insurance policy and to take another policy that is substantially the same
kind by using misrepresentations or incomplete comparisons of the advantages and
disadvantages of the two policies. Most states have enacted legislation making twisting
a crime.
Churning - ANSWERChurning occurs when an insurance agent replaces a
policyholder's insurance policy for another insurance policy, usually without consulting
the policyholder and often with no changes to the coverage itself. Agents who engage in
churning do so in order to secure an additional commission for the new policy they swap
in.
Rebating - ANSWERRebating — a portion of the premium or the agent's/broker's
commission on the premium to the insured or other inducements to place business with
a specific insurer. Rebating is illegal in the majority of states. Insurers must use filed
rate credits or have supporting methodology.
, Uninsured motorist coverage law in Georgia applies to bodily injury claims sustained by
an insured and caused by an uninsured motorist as defined by the law. UMPD coverage
is also included. - ANSWER
In Georgia, the Chief Deputy Commissioner must execute a bond in the amount of: -
ANSWER$15,000
Adjusters must maintain record of each investigation or adjustment undertaken, and a
statement of any fee, commission, or other compensation received or to be received on
account of the investigation or adjustment. How long must the records be maintained for
examination? - ANSWER5
The limits of the Employers' Liability section of a standard workers' compensation policy
are: - ANSWERListed on the information page
What is the maximum penalty per violation if a person willfully and knowingly or
intentionally makes any false or misstatement for the purpose of obtaining or denying
benefits or payment of workers compensation coverage? - ANSWER$10,000
If an injured employee hires an attorney to represent them in a workers compensation
claim dispute, what percentage of the income benefits can the attorney charge for the
representation? - ANSWER25%
In Georgia, a premium reduction for a defensive driving course applies in which of the
following circumstances? - ANSWERFor each personal or family-type policy of private
passenger motor vehicle insurance issued or issued for delivery in this state, the insurer
must offer premium reductions of not less than 10% for motor vehicle liability, first party
medical, and collision coverages if all named drivers of each motor vehicle covered by
the policy satisfy the following requirements: 1. Have committed no traffic offenses for
the prior three years. 2. Have no claims based on fault against an insurer for the prior
three years. 3. Complete a defensive driving course which is one of the types of courses
approved by the Code.
The "period of restoration" for the Extra Expense coverage included on the Business
Income form is: - ANSWERImmediately following the direct physical damage
Agent Rice informs the insured that he needs to secure motor vehicle records on all of
the drivers in the household based on company requirements. This is an example of
Agent Rice's: - ANSWERImplied authority - the authority the agent believes he has in
order to do his job properly
Which of the following relieves the financial burden on the claimant by making certain
payments to the claimant even before the claim is negotiated? - ANSWERAdvance
Payment
QUESTIONS & ANSWERS(RATED A+)
In GA, _____insurance cannot be written by a reciprocal type insurer. - ANSWERlife
No insurer or licensee doing business in Georgia may pay any commissions or valuable
consideration to any person for services as an agent, subagent, or adjuster unless that
person is duly licensed under the - ANSWERCode
Mediation is not _____ on the parties involved, but with arbitration the decision is final
and _____. - ANSWERBinding
Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWERIndependent
Rating Services
What is the application fee for filing to become a self-insurer for workers compensation
in Georgia? - ANSWER$500
Insurance adjusters have the "power to bind". Which of the following statements best
describes what this means? - ANSWERThe principal is bound to the decisions of the
adjuster.
The perils most frequently covered by a Difference in Conditions policy are: -
ANSWERFlood and Earthquake
What is the purpose of the Georgia Insurance Guaranty Association? - ANSWERCover
claims of insolvent insurers
Twisting - ANSWERThe act of inducing or attempting to induce a policy owner to drop
an existing life insurance policy and to take another policy that is substantially the same
kind by using misrepresentations or incomplete comparisons of the advantages and
disadvantages of the two policies. Most states have enacted legislation making twisting
a crime.
Churning - ANSWERChurning occurs when an insurance agent replaces a
policyholder's insurance policy for another insurance policy, usually without consulting
the policyholder and often with no changes to the coverage itself. Agents who engage in
churning do so in order to secure an additional commission for the new policy they swap
in.
Rebating - ANSWERRebating — a portion of the premium or the agent's/broker's
commission on the premium to the insured or other inducements to place business with
a specific insurer. Rebating is illegal in the majority of states. Insurers must use filed
rate credits or have supporting methodology.
, Uninsured motorist coverage law in Georgia applies to bodily injury claims sustained by
an insured and caused by an uninsured motorist as defined by the law. UMPD coverage
is also included. - ANSWER
In Georgia, the Chief Deputy Commissioner must execute a bond in the amount of: -
ANSWER$15,000
Adjusters must maintain record of each investigation or adjustment undertaken, and a
statement of any fee, commission, or other compensation received or to be received on
account of the investigation or adjustment. How long must the records be maintained for
examination? - ANSWER5
The limits of the Employers' Liability section of a standard workers' compensation policy
are: - ANSWERListed on the information page
What is the maximum penalty per violation if a person willfully and knowingly or
intentionally makes any false or misstatement for the purpose of obtaining or denying
benefits or payment of workers compensation coverage? - ANSWER$10,000
If an injured employee hires an attorney to represent them in a workers compensation
claim dispute, what percentage of the income benefits can the attorney charge for the
representation? - ANSWER25%
In Georgia, a premium reduction for a defensive driving course applies in which of the
following circumstances? - ANSWERFor each personal or family-type policy of private
passenger motor vehicle insurance issued or issued for delivery in this state, the insurer
must offer premium reductions of not less than 10% for motor vehicle liability, first party
medical, and collision coverages if all named drivers of each motor vehicle covered by
the policy satisfy the following requirements: 1. Have committed no traffic offenses for
the prior three years. 2. Have no claims based on fault against an insurer for the prior
three years. 3. Complete a defensive driving course which is one of the types of courses
approved by the Code.
The "period of restoration" for the Extra Expense coverage included on the Business
Income form is: - ANSWERImmediately following the direct physical damage
Agent Rice informs the insured that he needs to secure motor vehicle records on all of
the drivers in the household based on company requirements. This is an example of
Agent Rice's: - ANSWERImplied authority - the authority the agent believes he has in
order to do his job properly
Which of the following relieves the financial burden on the claimant by making certain
payments to the claimant even before the claim is negotiated? - ANSWERAdvance
Payment
