Missed Practice Exam Q's
The extension of coverage under the Commercial Fine Arts Floater includes coverage for newly acquired property for a maximum of
$10,000
The pollutant cleanup and removal coverage in the businessowners policy has a limit of
$10,000 in any 12-month period
What is the expediting expense limit in an equipment breakdown policy?
$25,000
If the premium for a policy will be increased by more than 15 %, how much warning must the insured get?
45 days
Authorized insurance companies are examined by the commissioner at least once every
5 years
If a liability policy has split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?
50,000
According to the loss payments condition in HO policies, losses must be paid within how many number of days of the insurer receiving proof of loss?
60 days
What is a businessowners policy?
A self-contained prepackaged policy
What type of liability does a person who owns wild animals have?
Absolute
Insurance Policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?
Adhesion
What type of valuation works best for property whose value does not fluctuate much?
Agreed value
Which coverage form would provide coverage for all incoming and outgoing shipments?
Annual Transit
What do producers need to transact insurance on behalf of an insurer?
Appointment
Georgia requires that all owners and operators of motor vehicles in the state carry which type of auto insurance as evidence of security in complying with the state's financial responsibility law?
Auto Liability Coverage
An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
Consequential
An insured neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which insurance principle has the insurer violated?
Consideration
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as what?
Consideration
The part of a property policy that shows the amount of insurance, premium, and policy term is the
Declarations
If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?
Defamation
If a property and casualty insurer is unable to pay claims, which entity would pay benefits to policyholders?
GA Insurers Insolvency Pool
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
In insurance transactions, fiduciary responsibility means
Handling insurer funds in a trust capacity
If an insured is in an accident in another state that has higher limits of liability, how much will the insured's policy pay?
Higher limits
The part of the insurance contract that describes the covered perils and the nature of coverage on the contractual agreement between the insurer and the insured is
Insuring Agreement
What contains the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured?
Insuring Agreement
How does the mobile home endorsement affect the other coverage of law and ordinance in a homeowners policy?
It removes the coverage
Which of the following is the basis for a claim against an insurance policy?
Loss
Which coverage in dwelling and homeowners policies is for indirect loss?
Loss of use
What is the purpose of Georgia Automobile Plan?
Make automobile insurance available for insureds who are unable to purchase coverage in the voluntary market
When can a licensee repeat the same CE courses?
NOT in the same renewal period
When does loss of use coverage apply?
Only after a direct loss caused by a covered peril has occurred
What's the major differnce between a stock company and a mutual company?
Ownership
Who might receive dividends from a mutual insurer?
Policyholders
How long is a waiting period upon purchase of flood coverage through NFIP?
30 days
Burglary is defined as
taking of property from within the premises leaving visible signs of forced entry
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays
the excess of the self-insured retention
Who may a participating insurance policy pay dividends to?
the policyowner
What are the two HO Policy types that include open peril?
(3) Special, and (5) Comprehensive: (odd and Open)
What is the only Homeowner policy that isn't owner occupied?
(4) Renter (4 renters only)
What are the four classes of inland marine risks?
- Bridges, tunnels and other instrumentalities of transportation - Commercial Property Floater risks - Personal Property Floater Risks - Domestic shipments and transportation risks
The maximum penalty that may be assessed for a single nonwillful violation of insurance code is
1,000
If a policy is cancelled due to nonpayment of premium, how many days advance notice must the insurer give the policyholder before cancellation?
10 days
What is the maximum period of time a temporary license can be in force?
15 months
Insurers who are members of the GA Insurers Insolvency Pool may be assessed up to what percentage of their net direct written premiums?
2%
How many hours of continuing education are producers required to complete every licensing period?
24
The national flood insurance program would insure an eligible single-family dwelling for up to
250,000
What else is direct liability called?
Proximate cause
What is the reasonably foreseeable act of event that results in an injury or damage?
Proximate cause
A nonresident agent is allowed to conduct insurance transactions in GA because his home state allows GA residents to transact insurance business in it. This is known as?
Reciprocity agreement
What regulates consumer reports?
The federal fair credit reporting act
What is stated amount coverage?
The value of the insured property is determined when the policy is written. Amount paid regardless of coinsurance
What term refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matter arising from that contract?
Transacting insurance
When does acceptance occur when forming an insurance contract?
When the underwriter approves coverage
What is included in the declarations page?
Who, what, when, where, and how much insurance and premium are
The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured
Will not receive the insurer of its policy obligations
What is a bill of lading?
a contract for the transport of goods between the shipper and the carrier
If an insured meets the states financial requirements and is approved to transact business in the state, it is considered to be
authorized
An agent commingles $500 of insurance premiums collected with new applications with his personal funds. The agent could be found guilty of a
misdemeanor