GA Personal Lines Guarantee Exam Attempt #1

To qualify for an original certificate of authority, what minimum capital stock or surplus must an insurer have?

$1.5 million

An insured was traveling down an icy road and hit a sign, causing $1,350 damage to the car. The policy requires a $250 deductible. The insured already collected on a $1,500 claim earlier this year. How much will the insured collect on this claim?

$1,100

NFIP flood insurance policies have a term period of?

1 year

In a personal auto policy (PAP), a covered auto includes all of the following EXCEPT?

A van used in the delivery business

What part of an insurance contract describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured?

Insuring agreement

When a hearing regarding an insurance matter is requested, all parties must receive?

15 days' notice

In order to receive transportation expenses under the personal auto policy damage to you auto caused by collision, you must have?

Collision coverage

To have insurable interest in the person or property covered by a property insurance policy, which of the following potential risk must the policyowner face?

Financial loss

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows possible. Which term describes what the agent has done?

Misrepresentation

Guaranteeing future dividends is considered to be an unfair or deceptive act known as?

Misrepresentation

In reference to insurable interest, which of the following is NOT n element of insurable risk?

Personal

What does the application of contract of adhesion mean?

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured

A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by?

the golfer's homeowners liability coverage

An insured has an automobile policy with limits 100/300/50 and a deductible of $1,000. he is involved in an auto accident and crashes into another driver's auto. The other driver is awarded $125,000 for his injuries and $25,000 for the damage to his car. The insured's vehicle has damage in the amount of $1,200. the total payment made under the insured's policy is?

$125,200

A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT?

Auto collision coverage

In order to start coverage before a policy is issued, insurers can issue a?

Binder

Which of the following exclusions would specifically fall under Coverage E in homeowners insurance?

Contractual liability

Other than perils, the difference in the three DP forms is in coverage provided. Which of the following coverage options is covered by the DP-2 and DP-3, but not DP-1?

Coverage E - additional living expenses

A structure may be eligible for coverage under the national flood insurance program if it meets all of the following requirements EXCEPT?

Is entirely over water

An insured was backing his car out of the driveway and hit a fire hydrant. The automobile sustained $1,300 of damage to the bumper. The insured's auto policy has a $500 deductible. Which of the following is true?

The insured is responsible for the first $500 of any claim that he makes on his policy

Which of the following would be considered a covered auto on your personal auto policy?

Your farm wagon being towed by your pickup truck

Which of the following would NOT be covered by uninsured motorist coverage?

the insured causes a head on-collision with the car of an uninsured motorist

An insured's diner suffered a fire loss. In addition to the damage caused by fire, the floor covering had to be replaced because of the water damage. It took 4 weeks for the repairs to be completed. The insured was without income for that period of time. the insured's policy includes both direct and indirect loss coverage. What part of the loss would be paid as indirect loss?

the loss of income for the time the diner was closed

Which of the following elements of an insurance contract requires payment of a premium?

Consideration

When an insured's gardener was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray into the neighbor's yard where he damaged their flower bed. The insured was found to be legally liable for this damage. This is an example of?

Vicarious liability