Property and Casualty Georgia

A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered:

A felony

In which of the following types of property VALUATION will the policy pay the full value as specified on the policy schedule, REGARDLESS of the insured property's appreciation or depreciation?

Agreed value

_______ is a type of valuation that works best for property whose value that does not fluctuate much.

Agreed value

Limited lines of insurance include:

Credit insurance, travel insurance, portable electronic insurance. But NOT accident and health insurance

What is covered under the Mall floater of a commercial Inland Marine policy ONLY if it is sent by registered mail?

Currency and unsold travelers checks

The policy conditions define:

How parties to the contract must act following a loss.

Workers comp. does NOT pay for:

In-home medical devices

CGL Coverage B (personal and advertising injury) will cover:

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

Who is responsible for filling out a notice of claim form?

Insured

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

Misdemeanor

What does proximate cause refer to?

Negligence that leads to an injury

Business income coverage form will:

Pay beyond the expiration date of a policy. It will pay until the business is restored or the units of coverage are exhausted

The Gramm-Leach-Bliley Act was passed to:

Protect private consumer information filed with a financial institution

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is

Provided by the insured's policy on an excess basis

The claims-made trigger is based on..

The date the claim is first made

A passenger in a friend's car is injured while getting into the car. Which of the following statements would apply if both the passenger and the driver had medical payments coverage under a personal auto policy?

The drivers policy would be primary

All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT:

The injury or damage must occur within 90 days after the insured's work is completed.

Describe an Unilateral contract:

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

What type of information would be found in a policy's insuring agreement?

The insuring agreement lists the parties to the contract, effective and renewal dates, the description of coverage provided, and perils (among other things).

A mobile homeowners policy will pay up to _____ to move the mobile home to protect it from a covered peril.

$500

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

1 year

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

What are common carriers required to issue to every shipper that it transports goods for?

A uniform bill of landing

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

Accident insurance, because it pays medical expenses regardless of fault.

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?

Additional coverage

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characterize does this describe?

Adhesion

Who investigates/negotiates settlements of claims?

Adjustor

Which of these is defined as the 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?

Aggregate limit

The following conditions apply to the liability coverage in addition to the common policy conditions:

Bankruptcy, duties in the event of occurrence, claim or suit, legal action against the insurer, and separation of insured.

A man is working on the roof of his house, and his neighbor is watching from the ground. When roof shingles are thrown off the roof, they hit the neighbor in the face, injuring his eye. Which best classifies the homeowner's legal liability?

Bodily Injury

Which of the following would be considered adequate proof of financial responsibility in auto liability insurance?

Certificate of Insurance

Which of the following is an additional coverage that is covered by the broad causes of loss form?

Collapse. NOT settling

What are the two major sections of commercial crime policies?

Commercial entities and government entities

Which of the following would be covered under a business liability insurance policy?

Damage to a watercraft while on shore at the insured's premises

Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?

Damage to the dwelling caused by ash or dust from a volcanic eruption

Which of the following is a mandatory part of an insurance policy that varies with each individual policy?

Declaration page

Give an example of a common carrier being legally liable for property damage:

Driver leaving the vehicle unlocked and property was stolen

Under the examination of books and records condition, the insurance company has the right to examine and audit the insured's books and records when?

During the policy period as well as 3 years after

Individuals in the business of selling construction equipment and mobile equipment should insure with a/an ;

Equipment dealers coverage form

All of the following statements describe the concept of strict liability EXCEPT:

It is imposed on defendants engaged in hazardous activities

How does the mobilehome endorsement affect the other coverage of law or 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 of the following would be covered under the Utility Services - Time Element endorsement?

Loss of business income arising from loss of utility service caused by an insured peril

Which of the following coverages in dwelling and homeowners policies is for indirect losses?

Loss of use

Under contributory negligence, when an individual is found to have contributed to his or her own loss in any way, another party...

May NOT be held liable.

____________ is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP?

Mechanical breakdown

In commercial general liability policies, which of the following has a per person limit?

Medical expenses

If an applicant submits the initial premium with an application, which action constitutes acceptance?

The underwriters approve the application

If a covered auto is involved in an auto accident in another state, what happens to the limits of policy liability in a personal auto policy?

They adjust to at least the minimum limits of the other state

Which of the following endorsements could be added to a businessowners policy to protect against loss of income due to lightning striking an electrical grid making the business unable to operate?

Utility services time element endorsement

Liability imposed on one party as a result of the actions of another person is known as:

Vicarious liability

The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information:

Within 45 days

Proof of loss statement must be in...

Writing

An aleatory contract is...

a contract in which unequal amounts or values are exchanged. The amount of premium the insured pays is much less than the potential loss assumed by the insurer.

What type of liability would a person who owns wild animals have?

absolute

Supplemental payments pay the:

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

Valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT:

prepackaged software

Stock insurers are owned by the ________ and issue nonparticipating policies.

shareholders

Under the commercial property coverage program, the basic causes of loss form insures against loss caused by:

sprinkler leakage

After vacancy for more than 60 consecutive days, __________ coverage is excluded under a dwelling policy.

vandalism and malicious mischief (VMM)

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

30 days

If an agent's residence address is changed, within how many days must the agent notify the Commissioner?

30 days

If the automatic sprinkler system is shut down due to breakage, leakage, freezing, or opening of the sprinkler heads, the Insured has ________ hours to restore the system before notifying the insurer.

48

A producer whose license is revoked or whose application for a license is denied will be ineligible to reapply for any license for at least:

5 years

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

In order for an insurer's certificate of authority to remain in effect, the insurer must maintain a surplus equal to how much of pain-in capital stock?

50%

Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is:

50% of the amount of coverage provided in A

A homeowner, at the time of loss, must be insured for at least ________ of replacement cost in order to collect the full replacement cost of a partial loss.

80%

If an individual licensed as an agent was employed by the Commissioner as a bona fide full-time employee, upon termination of employment, the individual may reinstate their license within how many days?

90 days

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as:

Contracts of adhesion

Under special form dwelling policy, compare Coverage A and Coverage C:

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

Which of the following coverages in the dwelling policy would provide protection to contents damaged by fire?

Coverage C

In dwelling policies, _________ is for fair rental value.

Coverage D

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

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%

Reciprocity agreement:

A nonresident agent may receive a nonresident's license if they reside in a state that awards nonresident agent licenses to residents of Georgia on the same basis.

In a participation plan, the insured may be eligible for what?

A partial premium refund. Dividends are never guaranteed

Give an example of what would NOT be covered by the basic Causes of Loss form under a commercial property policy:

A restaurant is damaged when flood waters rise and seep into the restaurant. Damage caused by flood, mudslide, surface water, is NOT covered.

Submitting to a medical exam is NOT a duty of:

An insured in a commercial general liability policy

Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT

Animals and birds

Which coverage form would provide coverage for all incoming and outgoing shipments?

Annual transit

Which of the following would be considered an insured under a business auto coverage form?

Anyone while using a covered auto owned by the named insured with permission

Damages arising out of damage to or loss of electronic data (are/or not) covered under business liability and medical payments coverage?

Are NOT

If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?

Auto policy

A producer who fails to separate premium monies from his own personal funds is guilty of:

Commingling

Which of the following is a statutory defense?

Comparative negligence

A plasterer has FINISHED a job. What kid of liability coverage would protect him if the plaster falls and injures someone because the job was not done correctly?

Completed operations

A bank manager has had several instances of employee dishonesty involving transfer of funds. His risk manager is researching the best coverage for this situation. Which bond rider should he recommend to the bank manager?

Computer systems rider

An insured just purchased an auto policy for his new car. He wants to understand what perils are not insured against. Which section of his policy should the insured check?

Exclusions

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

False advertising

A personal umbrella policy may act as excess EXCEPT:

For auto collision coverage

Replacement cost is...

Full replacement of property at its current cost, new and without reduction of depreciation

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

General

Explain coinsurance and the formula used:

Sharing of costs between the insured and insurer after the deductible has been paid. Insurance carried/insurance required x loss - deductible = loss payment

_______ would be covered under the Film Coverage Form.

Soundtracks

Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called:

Specific coverage

The amount an insurer will pay under Coverage D (loss of use) depends on:

The amount of coverage on the dwelling

How much is the premium for the dwelling under construction endorsement under the dwelling policy?

The average amount of insurance during construction