PROPERTY AND CASUALTY INSURANCE
EXAM WITH QUESTIONS AND CORRECT
ANSWERS [ACTUAL EXAM 100%]GRADED
A+
BPP building coverage - CORRECT ANSWER-insures
... [Show More] the building at the
described location, outdoor, fixtures, furnitures, items used to service
the property, permanently installed machinery and equipment, and
additions under construction, including the materials, supplies, and
equipment.
HO limits of property at other residences - CORRECT ANSWER-the
larger of $1000 or 10% Coverage C. Limit does not apply if property is
moved because the residence premise is being repaired or rebuilt.
When property is moved to newly acquired residence, the limit shown
on declaration will apply on a proportional basis to each residence
Dwellings under construction - CORRECT ANSWER-The limit of liability
for a dwelling under construction is provisional, and is based on the
completed value of the structure. At the time of loss, the applicable
limit is a percentage of the provisional limit, based on the proportion
of actual cash value of the property at the time of loss. Premium is
based on an average amount of insurance during construction.
Automatic Increase in Insurance Endorsement - CORRECT ANSWER-is
used to provide at the annual renewal date of the policy, an automatic
increase in the Coverage A and B limits of insurance to help offset
inflation
Other insurance - CORRECT ANSWER-A provision in an insurance
policy that defines how the policy will respond if there is another valid
insurance policy written on the same risk.
Stock Companies - CORRECT ANSWER-Owned by the stockholders
who provide the capital necessary to establish and operate the
insurance company and who share in any profits or losses.
Mutual companies - CORRECT ANSWER-Owned by the policyowners
and issue participating policies. Policyowners are entitled to
dividends, which are a return of excess premium and are nontaxable.
6 classes of insurance in Georgia - CORRECT ANSWER-1. Life,
accident, and sickness
2. Property, marine, and transportation
3. Casualty
4. Surety
5. Title
6. HMOs
How often must the Insurance Commission examine domestic
insurers? - CORRECT ANSWER-Once every 5 years.
Water Backup & Sump Pump Endorsement - CORRECT ANSWERCoverage for up to $5,000 in loss or damage, subject to a $250
deductible, can be provided for an additional premium with this
endorsement.
A notification of the hearing must be sent at least 15 days in advance.
Within 30 days of the hearing, the Commissioner must release his
decision.
What are the penalties after a notice, hearing, and cease and desist
order? - CORRECT ANSWER-A fine of up to $10,000 per violation
Suspension/revocation of license
Any other appropriate relief.
Express authority - CORRECT ANSWER-the authority of an agent,
stated in the document or agreement creating the agency
What are the timelines if a hearing is requested? - CORRECT ANSWERA hearing must be made within 30 days of the receipt of the request.
Implied authority - CORRECT ANSWER-Authority that is not expressed
or written into the contract, but which the agent is assumed to have in
order to transact the business of insurance for the principal. [Show Less]