Property and Casual License Exam

To be eligible for coverage under the National Flood Insurance Program, an insured must live in what type of community

That has met the minimum floodplain management guidelines

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

Within how many days of the notification of policy cancellation from the insurer must the agent return any unearned premium to the insured

10 working days

What is the maximum period of time a temporary license can be in force

15 months

An insured must get advance warning if the premiums will be increased by more than

15%

Insurers who are members of the Georgia Insurers Insolvency Pool may be assessed up to what percentage of their net direct written premiums

2%

Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period

5 years

An applicant whose license has lapsed during active military service will be granted a new license if an application is made within what time period after the lapse

5 years

The Employee Theft crime policy form includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days

If a policy has been in effect for at least 60 days or is due for renewal, it may be cancelled only for which reason

A change in risk that substantially increases the hazard insured against

If a policy has been in effect for at least 60 days or is due for a renewal, it may be cancelled only for which reason

A change in the risk that substantially increases the hazard insured against

An applicant for a resident surplus lines broker is NOT required to

Be license in this state for at least 10 years

An employee is injured while visiting the employer's out of state site. How will the workers compensation benefits be determined

Benefits will be provided if the state was listed on the policy information page

How is the Georgia Insurers Insolvency Pool funded

By assessment of member insurers

What is not found in a commercial package policy

Certificate of authority

What are the 2 forms of crime insurance

Discovery and loss sustained

Professional liability coverage protects against legal liability resulting from

Errors and omissions

What would be named on the declarations page of a property or liability policy

First named insured

Theft

In commercial crime insurance, this term includes both burglary and robbery

The insured was mowing the lawn in his yard with a lawnmower borrowed from his brother. The fuel line ruptured, and the lawnmower was destroyed in the fire. How will the insured's homeowners liability policy respond

It will cover the damage to property of others even if the insured is not liable

Property damage liability

Legal liability arising from physical damage to the belongings of others caused by the negligence of an insured

What is NOT a misrepresentation as it pertains to unfair trade practices

Making comparisons between different policies

A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the

Penalty

Per occurrence liability limit

Sets the amount for all claims that arise from a single incident at a certain number

According to the standard workers compensation and employer liability policy form, a state should be listed in Part 3- other states' insurance of the workers compensation and employers liability policy when

The insured expects to extend operations to that state

Who is not an insured for liability on a BAP (business auto policy)

The owner of a car the insured borrows

Which type of liability insurance may an insured reject in writing

Uninsured motorist coverage

Consideration

When an insured makes truthful statements on the application for insurance and pays the required premium

What is the sublimit for hazardous substance cleanup or repair or replacement of contaminated property

$25,000

Felony

A willful violation of an agent's fiduciary responsibility that involves funds exceeding $1,000

In a personal auto policy, the medical payments coverage is similar to

Accident insurance, because it pays medical expenses regardless of fault

A person who is not named as an insured on the declarations page of a policy but is protected by the policy is known as the what

Additional insured

What is another term for an authorized insurer who meet the state's financial requirements and are approved to transact business in the state

Admitted

What is true about members of the Georgia Fair Access to Insurance Requirements (FAIR) plan

All authorized insurers of property insurance must become members

Temporary auto coverage provision

Allows the personal auto policy to provide coverage for an insured while using any vehicle as a temporary substitute for any other vehicle described in the policy that is out of normal use because of breakdown, repair, or servicing. Coverage does not apply to vehicles not owned by the insured, but furnished for an insured's regular use

Which would be required to submit fingerprints with the license application

A new producer applying for a resident license

Statutory defense

A person is not guilty of an offense unless their liability is based on conduct which includes a voluntary act or the omission to perform an act of which he is physically capable. Example: Comparative negligence

An insured hits a deer and crashed his car into a tree. The total damages to the vehicle are $6,000. How will this loss be covered

$6,000 would be paid under the other-than-collision coverage

If a property or casualty insurer is unable to pay claims, which entity would pay benefits to policyholders

Georgia Insurers Insolvency Pool

The violation of a cease and desist order may result in a fine of

$10,000

What type of compensatory damages will pay for pain and suffering and disfigurement

General compensatory damages are for intangible elements that cannot be specifically measured in terms of dollars

The policy conditions define what

How parties to the contract must act following a loss

Which coverage in dwelling and homeowners policies is for indirect losses

Loss of use

Under the coverage of which liability policies may an insured require the insurer to defend a claim

Professional liability, because the reputation and monetary amount is at risk

A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called what

Proof of loss

Transacting insurance

Solicitation and inducement to insurance, preliminary insurance negotiations, effectuation of an insurance contract, and transactions of matters subsequent to and arising out of effectuation of an insurance contract

Insuring agreement

The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured

Loss

The reduction, decrease, or disappearance of value of the person or property insured in a policy by a peril insured against is known as this

Personal effects floater

Used to insure personal effects carried or worn by travelers anywhere in the world, but not while the property is at home

A statement that is guaranteed to be true, and if untrue, may breach an insurance contract

Warranty

Stated amount

When the amount of insurance written in a property policy is not subject to any coinsurance provision and that the amount is paid in the event of a covered loss, the coverage is said to be written as this

Coverage under a Floor Plan Merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports

Within 30 days after the end of each month

A driver whose license is suspended for violating financial responsibility laws must

Surrender their driver's license

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act

$2,500

The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period

1 year

If an insurer fails to return unearned premiums for a policy that has been cancelled within a specified number of days. the insurer must pay a penalty of

25%

An insurance agent received a request for a hearing from the Commissioner. Within how many days must the hearing be held?

30 days

Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss

30 days

If the premiums for a policy will be increased by more than 15%, how much warning must the insured get

45 days

What is covered under the Camera and Musical Instruments Dealers floater

A customer's camera left at a camera shop for repair

Who is required to participate in the Georgia Insurers Insolvency Pool

Any insurer authorized to write property or casualty insurance in Georgia

While an insured's covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy

Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair

Endorsements

Change the policy's original terms, conditions, or coverages. They can add or delete coverage, or correct items such as the insured's name/address

A liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called

Claims-made form

An insured was involved in an automobile accident for which the insured was at fault. Which coverage would pay for damage to the insured's automobile

Collision

What is the title of the chief of officer of the Department of Insurance

Commissioner

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is what

Conditional. The contract is formed on the basis that certain conditions are met

What is true about the special form dwelling policy

Coverage A is for all-risk perils, and Coverage C is for the broad form perils

Which dwelling coverage would provide coverage to a garage not attached to the primary insured dwelling

Coverage B

Inside premises- Robbery or burglary of other property

Covers taking of property, other than money or securities, when there is a visible sign of forcible entry or exit from the premises

Terrorism Risk Insurance Act (TRIA)

Created a federal program that would share the risk of loss from potential terrorist attacks with the insurance industry. Requires that all commercial insurers offer insurance coverage for acts of terrorism

Actual cash value (ACV)=

Current replacement cost - Depreciation

Deposit premium

Estimated premium paid in advance at the time the policy is issued that may be adjusted by the audit based on actual exposures

When does a producer's license expire

Every 2 years on the last day of the producers birth month

What loss would be covered by an unendorsed homeowners policy

Fire or lightning, both are included in the basic perils

When would a misrepresentation on the insurance application be considered fraud

If it is intentional and material

CGL Coverage B (Personal and Advertising Injury) will cover

Inadvertent injury to others caused in the course of advertising the insured's product

The primary purpose of a surety bond is to

Make sure obligations are fulfilled

Special damages

Tangible damages that can be specifically measured in dollar amounts such as medical expenses, loss of wages, funeral expenses, and cost to repair damaged property

Workers compensation will pay under which of the following situations

Paid without consideration of fault or negligence on the part of either employee or employer

Supplemental payments

Pay the insurance company's expenses and will not pay expenses incurred by the insured, unless incurred at the insurer's request

Directors and officers liability

Pays for those damages that the corporation or nonprofit entity would, under the law, be required to reimburse the individual director or officer for judgments arising from actions alleging wrongful acts

Which liability exposure is most likely for a small specialty clothing retail boutique

Premises liability exposure

Which is NOT true regarding continuing education requirements in this state

Producers may repeat the same courses to meet the required CE hours for a licensing period (this is NOT true)

Federal Employees Compensation Act

Provides benefits to injured civilians who are employed by the federal government

What is the deductible of a personal liability umbrella policy called

The SIR (self-insured retention)

Unilateral contract

The insured is not legally bound to do anything. The insurer must pay losses covered by the policy

What condition 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

Stated amount coverage

The value of the insured property is determined at the time the policy is written. In the event of a loss, that amount is paid without regard to any coinsurance provision

Which loss would not be covered under Coverage A in the dwelling policy

Theft of a renter's lawnmower used to service the premises

What is true regarding single dwellings that are insured to at least 80% of the replacement value

They are automatically provided with replacement cost coverage

The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. Which term best describes the nature of this type of coverage

Time element. There is a direct relation of the time a business is unable to operate to the amount of the loss

What is the purpose of the Georgia Automobile Insurance Plan

To make automobile insurance available for insureds who are unable to purchase coverage in the voluntary market

Aleatory

Unequal amounts are exchanged between payments and benefits. An insured pays $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss

If a property or casualty insurer is unable to pay claims, which entity would pay benefits to the policyholders

Georgia Insurers Insolvency Pool

Underinsured driver

Has at least the minimums required by law but not enough to cover the damages caused someone else

An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured's policy pay

Higher limits

Aggregate limit

Maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur

Under contributory negligence, when an individual is found to have contributed to their own loss in any way, another party

May not be held liable

An agent commingled $500 of insurance premiums collected with new applications with his personal funds. The agent could be found guilty of a

Misdemeanor