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Georgia State Insurance Laws| Study material for the P & C licensing exam Qs & As
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Georgia State Insurance Laws| Study material for the P & C licensing exam Qs & As
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Georgia State Insurance Laws| Study material forthe P & C licensing exam Qs & As
What are the 3 ways financial responsibility can be met in the state of Ga Correct Ans-•
Motor vehicle liability policy means an owner's policy or operator's policy of liability, certified as
proof of financial responsibility and issued by an insurance carrier duly licensed to transact
business in this state.
(Evidence needed to comply with the law includes documentation such as an insurance card,
binder or declaration page of a policy.)
Single limit policy of not less than $75,000
Split-limit policy of not less than $25,000 per person for bodily injury, not less than $50,000 for
bodily injury per accident and not less than $25,000 for property damage per accident
• A deposit of cash with the commissioner in the amount of $75,000 or less if so designated by
the Department of Driver Services ; or
• Filing of a bond or real property put up as a guarantee with the Commissioner in the amount
of $75,000.
Is Georgia a mandatory auto insurance state Correct Ans-no, any one of the three ways are
acceptable
What are the consequences of failing to provide financial responsibility Correct Ans-•
Suspension of a driver's license;
• Suspension of registration for up to 6 months;
• Misdemeanor charges for a person who fails to surrender their driver's license when required
to do so or failure to comply with registration reinstatement.
,What must every automobile liability policy in the state of Ga offer Correct Ans-Uninsured
motorist coverage. The limits of uninsured motorist coverage offered shall be equal to the
bodily injury liability limits stated in the policy
What must the auto insurance companies selling auto ins policies provide Correct Ans-A
Notice Acknowledgement: it must be signed by applicant/named insured. The Notice contains
the following:
If you have chosen to accept Uninsured Motorists coverage from your automobile insurance
company, and have any questions after reading this statement regarding
Uninsured Motorists coverage or the amount of coverage you have selected, your agent or
company representative will be able to assist you. You should have chosen the amount of
Uninsured Motorist coverage you want based on this
question: If I get hit by someone with little or no liability insurance how much protection do I
need to cover the cost associated with car repair, medical bills, other expenses and lost wages?
What is the deductible for UM Property Damage coverage Correct Ans-$250, $500, or even
$1,000. A higher deductible can be written if approved by the commissioner
What does the term "insured" mean in an uninsured motorist section of the policy Correct
Ans-• the named insured or any family member;
• any other person occupying a covered auto;
• or any person who is entitled to recover because of bodily injury to which the coverage
applies.
,What is the definition of an Uninsured Motor Vehicle Correct Ans-Uninsured Motor Vehicle
means a motor vehicle or trailer of any type:
1) To which there is neither:
• cash or securities on file with the Georgia Director of Public Safety; nor
• a liability bond or policy;
2) To which a policy applies at the time of the accident but the amount paid under the policy is
less than the amount of the Uninsured Motorists coverage...this is how Georgia integrates
Underinsured Motorists with Uninsured Motorists.
3) Bodily Injury or Property Damage resulting from a hit-and-run driver.
4) Where bodily injury or property damage occurs to the insured or a passenger due to the
actions of a hit-and-run driver, but there was no actual contact between the two vehicles. In
simple terms, our insured hit a tree avoiding some idiot who was driving in the wrong lane
sending a text
message. If our guy can provide a witness, Uninsured Motorists can provide coverage for our
guy, his passengers and for his car.
5) Which a liability bond or policy applies at the time of the accident but the bonding or
insurance company either denies coverage or is or becomes insolvent.
What does an Uninsured Motor Vehicle definition NOT include Correct Ans-• Owned by, or
furnished for the regular use of, the insured or any resident spouse or resident relative in the
same household;
• Operated on rails or crawler treads;
• Designed for use mainly off public roads except while on public roads; or
, • While located for use as a premises (i.e. no coverage if you live in your car).
What does Property Damage Uninsured Motorist cover Correct Ans-• a covered auto;
• property contained in the covered auto and owned by the Named Insured; or
• property contained in the covered auto and owned by anyone else occupying the covered
auto.
What is not covered under Property Damage UM Correct Ans-• If an insured or their legal
representative settles a bodily injury or property damage claim without the insurance company
consent no payment will be paid under this coverage.
• When the named insured's covered auto is being used as a public or livery conveyance.
• Using a vehicle without a reasonable belief that you were entitled to do so.
• Property contained in or struck by any vehicle owned by the Named Insured that is not a
covered auto.
• Will not pay any insurer or self-insurer under workers comp or a disability law.
• Does not provide Uninsured Motorists Coverage for punitive damages.
What is the penalty for an insurance company failing to pay a claim Correct Ans-In an
insurance company refuses to pay an insured any loss covered within 60 days after a demand
has been made by the insured and a finding has been made that such refusal was made in bad
faith, the insurance company is responsible to
the insured in addition to appropriate recovery an amount not to exceed 25% of the recovery
and all reasonable attorney fees.
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