PnC
$100,000 house insured on an 80% coinsurance requirement has a fire causing $40,000 in damage. Owner only has $60,000 in coverage
can only collect $30,000 (10k less than damages due to not having 80% in cvg).
Commissioner of Ins: the chief officer of the Dep of Insurance. Purpose=
carry out &/enforce provisions of the Insurance Code.
Part of policy that sets forth the rules of conduct, duties, and obligations of the parties is called
conditions.
Additional living expenses coverage- civil authority prohibits the insured from using the dwelling due to direct damage to a neighboring location from a peril covered in the insured's policy
covered for up to TWO weeks.
Notice of claim=
doc notifies the insurer of events that may lead to a possible claim.
The major portion of the premium for an Equipment Breakdown policy pays for
inspections and examinations. Finds flaws that could lead to losses and requires corrective action.
Under Professional Liability loss settlement provision
insurer must Get/Obtain the insured's consent before offering to pay a claimant to settle a claim.
All describe the concept of Strict liability EXCEPT
it is imposed on defendants engaged in hazardous activities (Applies for product liability).
Primary duty of the Commissioner of Ins.=
Enforce the provisions of the Ins code.
Coverages in Dwelling and Homeowners' policies for Indirect policies
Loss of Use.
Insured involved in an accident caused by a tire blowing out. The court held that the against auto and tires; Tire was the cause of the accident, who pays for loss?
Manufacturer of tire.
Agent's license has been suspended but continues to transact ins for existing clients. This is considered a
Misdemeanor.
The term proximate cause refers to
Negligence that leads to an injury.
Ins distributes the financial consequences of individual losses by
transferring the risk to all persons insured.
Supplementary payments under the PAP include the following EXCEPT
unlimited cost of bail bonds.
Under employee theft coverage, when a covered employee is found to have participated in a dishonest act, the cvg for that employee
will terminate Immediately.
BusOwners policy liability coverage will pay for med expenses incurred
within 1 year.
Insured lost control and drove into a hardware store damaging 3 aisles. Insured was driving the speed limit and was in good repair, store owner will likely=
Seek a claim for PD from the driver's insurer.
Insured's covered auto is in the repair shop due to collision, what vehicle would be covered under PAP
not owned by insured but furnished for use while covered auto is out of use.
Loss valuation is the process:
of determining the premium charged and the amount of insurance required on a specific property.
Property Ins policy that insures a commercial building on a replacement cost basis includes the ordinance or law cvg endorsement. This covers all expenses EXCEPT
ordinance with which the insured was required to comply prior to loss.
The Gramm-Leach-Bliley Act was passed to
protect private customer information filed with a financial institution.
Under Personal Auto Policy, liability for BI from an insured's use of a NON-owned vehicle is
provided by insured's policy on an excess basis.
Driver whose license is suspended for violating financial responsibility laws must
surrender their driver's license.
Burglary
taking of property from within premises leaving visible signs of forced entry.
Maximum fine for transacting ins without a license
$1,000.
Limit for the forgery or alteration coverage in the BO Policy
$2,500 (covers insured's check.)
How long does the Commissioner have to disapprove a private passenger auto insurance rate once filed?
100 days.
Ins agent received a request for a hearing from the Commissioner. How many days must the hearing be held?
30 days.
Maximum period for a temp license in this state:
6 months.
Business Property cvg form considered vacant if
69% is unused.
Which of the following situations would a Common Carrier be legally liable for damage to property being transported?
Property Stolen bc driver left vehicle unlocked.
Type of damages is intended as a form of punishment for negligent, willful, or outrageous intent
Punitive.
Type of damages that may be awarded by court to create disincentives that discourage behavior that is deemed highly undesirable by society
Punitive.
Insurer transacts ins in this state but registered in Canada:
Alien insurer.
True regarding members of the Georgia Fair Access to Insurance Requirements (FAIR) plan:
All authorized insurers of property ins must become members.
Insurer makes a change to broaden coverage in D-Policy while it is in effect, the changes will apply
Automatically. (Or 60 days before effective date.)
NOT a part of a policy structure (dec, def, ins agreement, add cvg, Conditions, endorsements, exclusions, & policy limits):
Benefits.
Covered by broad theft endorsement on a dwelling policy?
Camera the insured has w/ him on vacation.
Intimidation=
Coercion.
Entities with the power to issue certificates of authority-
Commissioner of Insurance.
FALSE concerning liability cvg of a business auto policy?
Company will reimburse insured for All loss of earnings. (It's limited).
Bc an insurance policy is a legal Contract; it must conform to the state laws governing contracts which require all the following elements EXCEPT
Conditions. (that's part of the Policy Structure).
Under which liability policies might an insured require the insurer to defend a claim
Professional Liability.
Additional coverages in the liability section of a Homeowners' policy would cover all the following EXCEPT
Damage to a 3rd -party property for which the insured is legally liable. (That's primary coverage).
Part of policy that clarifies terms in the policy:
Definitions.
Both the passenger and driver have PAP med payments cvg; which policy would cover?
Driver's policy would be primary.
Who is responsible for filing out a notice of claim form?
Insured
Policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called
Subrogation.
Symbol available to insured with vehicles subject to no-fault coverage
Symbol 5.
Which is NOT the consideration in a policy?
The application given to a prospective insured.
How much is the premium for the dwelling under construction endorsement under the dwelling policy?
The avg amount of insurance during construction. (Value of house and building materials.)
Customer taking a trade-in car for a test drive and crashes... yet there's no title;
There is no coverage.
Worker's compensation benefits in GA are limited to what amount of a worker's avg weekly wage?
Two-thirds; up to $575 a week.
BO policy endorsement provides coverage for direct damage caused by utility service disruption stemming from a covered peril is called
Utility Services-Direct Damage.
In a property policy, insurable interest must be proven
at the time of loss.
General liability policy liability cvgs NOT subject to the aggregate limit:
Fire legal liability.
Type of Compensatory damages that will pay for pain and suffering & disfigurement
General.
All are considered parts of the policy structure EXCEPT
Provisions.
Exact, direct, uninterrupted cause of loss is the
Proximate cause.
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair/replace damaged property is what type of Compensatory damages?
Special.
Property insurance that provides $100,000 cvg for a building & $50,000 cvg for personal property @ a single location is called
Specific coverage.
Insured's product under a CGL policy does NOT include which of the following?
Vending machine rented to others.
Willful violation of an agent's fiduciary responsibility that involved funds exceeding$1,000 will be considered
a Felony.
Insurer decides to stop issuing Auto policies in this state and is planning to cancel the existing policies. Along w/ a notice of nonrenewal, insurer must send
a Notice of eligibility for the Automobile Insurance plan to its policyholders.
W/ respect to auto insurance, the term Owned Autos includes all BUT
a pickup or van titled to and used in the named insured's Business (leased for up to 6 months is eligible though).
Defendant being released on a surety bail bond is
the Principal. (makes a promise to perform).
Due to appreciation, Ins. amount on a business is less than 80% of ACV on date of loss;
the coinsurance penalty applies.
Policy limits are:
the maximum amount an insured may collect, or for which an insured is protected under the terms of the Policy.
Conditions that must be met for a vehicle to be licensed in Georgia
the owner has furnished proof of auto liability insurance or an approved self-insurance plan.