Ga Property & Casualty Insurance State Certification Exam -Georgia- Question and Answers [100% Correct] 2025!!
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Module
Georgia claims adjuster
Institution
Georgia Claims Adjuster
Ga Property & Casualty Insurance State
Certification Exam -Georgia- Question
and Answers [100% Correct] 2025!!
Explain the primary difference between a peril and a hazard in insurance terms.
A peril is a specific cause of loss, while a hazard is a condition that increases the likelihood o...
Ga Property & Casualty Insurance State
Certification Exam -Georgia- Question
and Answers [100% Correct] 2025!!
Explain the primary difference between a peril and a hazard in insurance terms.
A peril is a specific cause of loss, while a hazard is a condition that increases the likelihood or
severity of a loss.
Describe the elements needed to establish a legally binding insurance contract.
Offer, acceptance, consideration, competent parties, and legal purpose.
Explain what is meant by insurable interest and when it must exist for property and casualty insurance.
Insurable interest means having a financial stake in the subject being insured and must exist at
the time of loss.
Provide the definition of an "occurrence" in a liability insurance policy.
An occurrence is an event, accident, or continuous exposure to conditions that cause injury or
damage over time.
Explain the role of an underwriter in property and casualty insurance.
An underwriter evaluates risks and determines the terms, conditions, and pricing of insurance
policies.
What is the difference between actual cash value (ACV) and replacement cost coverage?
ACV pays for replacement minus depreciation, while replacement cost pays the full cost to
replace without depreciation.
Describe subrogation and its purpose in insurance policies.
Subrogation allows an insurer to pursue a third party that caused a loss to the insured to recover
the claim amount paid.
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,Define the term "declaration page" in an insurance policy.
The declaration page summarizes key policy information, including coverage limits, premiums,
and named insureds.
Explain what a "binder" is in property and casualty insurance.
A binder is a temporary proof of coverage until a formal policy is issued.
Describe the difference between primary and excess insurance coverage.
Primary insurance pays first up to its limit; excess insurance provides coverage after the primary
coverage has been exhausted.
What is the purpose of an endorsement in a property and casualty insurance policy?
An endorsement modifies, adds, or deletes provisions of an insurance policy.
Explain what is meant by coinsurance in a property insurance policy.
Coinsurance requires the insured to carry a specified percentage of insurance relative to the
property’s value; if not met, partial claims may not be fully paid.
In property insurance, what is a "loss settlement clause"?
The loss settlement clause specifies how the value of damaged property is determined and paid.
Discuss the term "named peril" policy versus an "open peril" policy.
A named peril policy covers only specified risks, while an open peril policy covers all risks except
those explicitly excluded.
What does it mean when an insurance policy is "nonrenewed"?
It means the insurer has decided not to continue the policy beyond the current term.
Explain the purpose of liability limits in a policy.
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, Liability limits set the maximum amount an insurer will pay for covered losses.
Define punitive damages in the context of liability insurance.
Punitive damages are awarded to punish the wrongdoer and are typically not covered by liability
policies.
What does "additional insured" mean on a policy?
An additional insured is a person or entity added to a policy who receives coverage under the
insured’s policy terms.
Explain what is meant by an "aggregate limit" in a liability insurance policy.
An aggregate limit is the maximum amount an insurer will pay for all claims within a policy
period.
Describe the difference between occurrence-based and claims-made liability policies.
An occurrence-based policy covers losses that occur during the policy period regardless of when
reported, while a claims-made policy covers losses reported during the policy period.
What is the function of a deductible in a property insurance policy?
A deductible is the amount the insured pays out of pocket before the insurer pays for a covered
loss.
Explain "liability coverage" in an auto insurance policy.
Liability coverage pays for bodily injury or property damage caused by the insured to others.
Describe what a "schedule of insured items" is in an insurance policy.
It is a list of specific items covered and their respective limits of coverage.
Define "personal injury protection (PIP)" in auto insurance.
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