COMPLETE STUDY GUIDE- Property and
Casualty Insurance Exam – Georgia- EXAM
*Q&A* (100% Correct) 2025/2026
|VERIFIED|
All insurers must submit rate filings how far in advance of their effective date?
45 days before the effective date.
What action does the Commissioner take if a rate increases by 10% or more within a 12-month period?
Orders an examination.
What is the length of the Insurance Commissioner's term of office?
4 years.
How soon must an insurance agent inform the Commissioner about a change of address?
Within 30 days.
If a criminal prosecution is initiated against a licensee, how long do they have to report it?
30 days.
What is the maximum liability of the Georgia Life and Health Insurance Guaranty Association per
individual?
$300,000.
PAP Section II Part B provides coverage for medical expenses and funeral costs under what conditions?
All reasonable medical costs and funeral expenses incurred by the insured or their family
members within three years of an accident, with a recommended coverage of $50,000.
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,When must a notice of termination, cancellation, or significant change be provided for policies not
covering personal auto or personal property?
At least 45 days before the effective date of the change, allowing a policyholder to purchase a
policy for an additional 30 days under the same terms if notice is not properly given.
Georgia's valued policy statute requires what method of loss valuation for 1-2 family residences?
The amount of insurance in effect at the time of loss, minus depreciation, unless the loss occurs
within 30 days of policy issuance.
What are the exclusions to Georgia's valued policy statute?
The statute does not apply if the building is not wholly destroyed by fire, if insurance policies are
issued by multiple companies without disclosure, if more than one policy covers the same loss, if
buildings are insured under a blanket amount, or if covered by a Builder’s Risk policy.
What unique crop insurance coverage is available for tobacco grown in Georgia?
Coverage for wind and hail until the crop is harvested.
How much advance notice must be given if an auto policy is not being renewed?
30 days.
What does Georgia’s Financial Responsibility Law require for vehicle owners and operators?
Auto liability insurance must be maintained as evidence of compliance, issued for a minimum of
six months.
What are Georgia's minimum motor vehicle liability policy limits?
$25,000 for bodily injury to one person, $50,000 for bodily injury to two or more persons in one
accident, and $25,000 for property damage per accident.
BPP coverage safeguards specified buildings and includes coverage for property features like outdoor
fixtures and additions being constructed. What other elements does this coverage extend to?
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, The building's permanently installed machinery and equipment, furniture, and items servicing the
property, plus construction materials and supplies.
When it comes to HO property limits at other residences, what happens if the insured moves their
property due to repairs being made on their main residence?
The limit does not apply in such cases.
What is the applicable coverage limit for a dwelling that is still under construction?
It is provisional, based on the completed value of the structure, with limits adjusted in proportion
to the actual cash value at the time of loss.
The Water Backup & Sump Pump Endorsement allows for coverage of up to $5,000. What deductible
applies to this coverage?
A. $100
B. $500
C. $750
D. $250
What is the purpose of the Automatic Increase in Insurance Endorsement?
To automatically increase the Coverage A and B limits at the policy's annual renewal to keep pace
with inflation.
How does a policy handle coverage when other valid insurance applies to the same risk?
It contains a provision that defines how coverage will be coordinated if more than one policy
covers the same risk.
Who owns stock insurance companies?
A. Policyholders
B. Stockholders
C. Mutual members
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, D. Government
Mutual companies differ from stock companies because they are owned by whom?
Policyowners, who may receive dividends as a return of excess premiums.
In Georgia, insurance is divided into how many classes?
Six classes: Life, accident, and sickness; Property, marine, and transportation; Casualty; Surety;
Title; HMOs.
How frequently must the Insurance Commission in Georgia examine domestic insurers?
Once every 5 years.
When a hearing is requested regarding insurance, what timeline must be followed for the
Commissioner's decision?
The hearing must occur within 30 days of the request, with a notification sent 15 days in advance;
the decision must be issued within 30 days of the hearing.
What potential penalties exist following a notice, hearing, and issuance of a cease and desist order?
Fines up to $10,000 per violation, license suspension or revocation, and other appropriate relief
measures.
What is the difference between express and implied authority for agents?
Express authority is explicitly stated in the agreement, while implied authority is assumed
necessary for conducting business.
What is the lifespan of an agent's license?
Two years, expiring on the last day of the licensee's birth month.
Continuing education (CE) requirements for agents in Georgia specify what minimum hours?
24 credit hours every two years, including 3 hours of ethics.
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