GEORGIA CLAIMS ADJUSTER LICENSING EXAM 2024 GA CLAIMS ADJUSTER EXAM ALL 130 QUESTIONS, Exams of Insurance Economics

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GEORGIA CLAIMS ADJUSTER LICENSING EXAM 2024 GA CLAIMS ADJUSTER EXAM ALL 130 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) | LATEST VERSION The acronym DICEED is for: -----CORRECT ANSWER-----------Parts of a contract; declarations, insuring agreements, conditions, endorsements, exclusions, definition The acronym U-HID is for: -----CORRECT ANSWER-----------uninsured motorist claim; Uninsured/Underinsured, Hit & Run, Insolvent (insurer), Denied Coverage The acronym COUP is for: -----CORRECT ANSWER-----------What is covered by collision; car, object, upset, pedestrian/pothole The acronym DDPB (Don't Drink Peanut Butter) is for: -----CORRECT ANSWER---------- -Negligent Liability; Duty to Act, Breach of Duty, Damages, Proximate Cause The acronym WWNI is for: -----CORRECT ANSWER-----------"We will never insure" or standard exclusions; wear and tear, war, nuclear, intentional loss The acronym AMStAR is for: -----CORRECT ANSWER-----------methods of valuation; agreed value, market value, Stated value, Replacement Cost, Actual Cash Value The acronym WC-SHAVER is for: -----CORRECT ANSWER-----------Extended coverage; windstorm, civil commotion, smoke, hail, aircraft, vehicle, explosion, riot The acronym WSH is for: -----CORRECT ANSWER-----------exclusions for tree/shrub/plant coverage; wind, hail, smoke The acronym FLI is for: -----CORRECT ANSWER-----------DP1 perils; fire, lightning, internal explosions The acronym is APE for: -----CORRECT ANSWER-----------Personal inland marine insurance floaters; articles, property, effects The acronym SWIMSWAM is for: -----CORRECT ANSWER-----------yacht definition; sailboat with auxiliary inboard motor The acronym SIR is for: -----CORRECT ANSWER-----------"Deductible" on an umbrella policy; self-insured retention The acronym DRTCC is for: -----CORRECT ANSWER-----------Types of unfair trade practices; rebate, coercion, twisting, defamation, commingling The acronym DOPLA is for: -----CORRECT ANSWER-----------DP coverages; Dwelling, Other Structures, Personal Property, Loss of Fair Rental Value, Additional Living Expenses What coverage does Community Eligibility apply to? -----CORRECT ANSWER----------- Flood insurance through FEMA What's the difference between Emergency Program and Regular Program in the National Flood Insurance Program? -----CORRECT ANSWER-----------Emergency applies to homes in communities that are a normally not a flood hazard. Regular programs are awarded to an entire community that is eligible due to flood hazard. What are the floaters available on Personal Inland Marine Insurance? -----CORRECT ANSWER-----------Personal Articles Floaters, Personal Property Floaters, and Personal Effects Floaters What perils are covered under Personal Inland Marine Insurance floaters? ----- CORRECT ANSWER-----------all; open-peril Which PIMI floater would be appropriate for a diamond ring? Why? -----CORRECT ANSWER-----------Personal Articles Floater - itemizes valuables such as jewelry and furs What is a Personal Effects Floater good for? What deductible does it have? ----- CORRECT ANSWER-----------world-wide open peril coverage of personal property for people who are traveling - luggage, sports equipment, clothes, and camera. NO DEDUCTIBLE. What is a Personal Property Floater good for? What kind of limit do they have? ----- CORRECT ANSWER-----------World-wide open peril coverage of personal property - usually for special occasions like weddings or exhibitions. There is a blanket limit! Does personal inland marine insurance cover flood? -----CORRECT ANSWER----------- Yes. Somehow. All of the following coverage is available under a Standard Flood Insurance Policy issued by the National Flood Insurance Program except: a. Loss of Use b. Dwelling c. Personal Property d. Removal -----CORRECT ANSWER-----------A. Loss of Use The maximum number of days that a Standard Flood Insurance Policy will cover property removed is: a. 15 days b. 20 days c. 30 days d. 45 days -----CORRECT ANSWER-----------d. 45 days If the limits of insurance available under the National Flood Insurance Program are inadequate, where can additional coverage be purchased? a. Homeowners Flood Endorsement b. Excess Flood Endorsement c. Personal Umbrella Policy d. Difference in Conditions Policy -----CORRECT ANSWER-----------d. Difference in Conditions Policy Define Yacht. -----CORRECT ANSWER-----------"Swim Swam" - a sailboat with an auxiliary inboard motor. Why does Yacht insurance get a Lay-Up warranty? -----CORRECT ANSWER----------- During months when a watercraft is not in use - typically in winter - a discount is applied to premium. What are navigational limits? -----CORRECT ANSWER-----------Limits coverage of a watercraft to a described geographical area. Wave damage and damage caused by striking an underwater object is a peril covered by what insurance? -----CORRECT ANSWER-----------Federal Longshoremen and Harbor Workers Compensation Insurance. What are the three coverages and limits under Comprehensive Personal Liability? ----- CORRECT ANSWER-----------Personal Liability - 25K per occurence Medical Payments - $500 Damage to Property of Others - $250 per occurence (for inexpensive items) The acronym PMML is for: -----CORRECT ANSWER-----------hazards "Probably Makes More Loss" or "Please Make My Lunch" physical, moral, morale, legal The acronym ARRT is for: -----CORRECT ANSWER-----------personal risk management; avoidance, retention, reduction, transfer The acronym DECAL is for: -----CORRECT ANSWER-----------insurable risk; definite and measurable, economically feasible, not catastrophic, accidental, law of large numbers The acronym FALS-ID is for: -----CORRECT ANSWER-----------personal injury; false arrest, defamation, copyright infringement, libel, slander, invasion of right of private occupancy The acronym CAL-CSI is for: -----CORRECT ANSWER-----------Defenses against negligence; comparative, contributory, Intervening Cause, Assumption of risk, Statute of Limitations, Last Clear Chance The acronym OSCAR is for: -----CORRECT ANSWER-----------Open peril aka Special/All-Risk/Comprehensive The acronym ACCL is for: -----CORRECT ANSWER-----------Parts of a contract; agreement (offer and acceptance), competent parties, consideration, legal purpose The acronym MR. LC is for: -----CORRECT ANSWER-----------Types of property that can be scheduled on a business income/extra expensive from Dependent Properties Endorsement on a Business Income Form or an Extra Expense Forms; contributing locations, recipient locations, manufacturing locations, leader/anchor locations C. Both A and B D. Neither A nor B -----CORRECT ANSWER-----------C. Both A and B Q1 The insurance contract is considered a contract of indemnity because: A. an insured may collect no more than the limit of liability stated in the declarations B. an insured may collect no more than the amount required to restore him/her to the same financial condition he/she was in prior to a loss C. the insured may collect no more than 10% more than his/her insurable interest D. in cases of total loss, an insured can collect the appraised value of the property ----- CORRECT ANSWER-----------B. an insured may collect no more than the amount required to restore him/her to the same financial condition he/she was in prior to a loss Q1 A mutual insurance company is owned by who? -----CORRECT ANSWER-----------Its policy holders Q1 All of the following statements concerning binders are false except: A. a binder is always a written agreement B. A binder guarantees that a policy will be issued C. A binder may only be issued by the insurance company D. most property and casualty agents bind coverage -----CORRECT ANSWER----------- D. most property and casualty agents bind coverage Q1 A non-exclusive agent: A. represents only direct writers B. works for a solicitor C. represents more than one insurance company D. is a "captive" agent -----CORRECT ANSWER-----------C. represents more than one insurance company Q1 The action which, in a natural and continual sequence, produces a loss is known as the: A. indemnity causation B. primal causation C. approximate cause D. proximate cause -----CORRECT ANSWER-----------D. proximate cause Required discounts to offer on GA auto policies -----CORRECT ANSWER----------- Defensive driving and good student discount; must offer at least 10% discount True or False For someone who is less than 25 years old qualify for the Defensive Driving Discount, they must have: 1 - committed no traffic offenses for the previous five (5) years or since licensure, whichever is shorter 2 - no at-fault claims against insurer in the previous three (3) years 3 - complete an approved Driver's Training course of not less than thirty (30) hours ----- CORRECT ANSWER-----------False - error in requirement 1: no traffic offenses in the previous THREE(3) years, not five. Where can you find the customized equipment endorsement? What kind of limit is used? -----CORRECT ANSWER-----------On the Personal Auto Policy; scheduled limits are used on customized equipment Additional Insured -----CORRECT ANSWER-----------An individual or organization listed as covered by a primary insurance agreement AKA the Zuckerburg endorsement. Can two people share a single coverage of a car? -----CORRECT ANSWER-----------Yes if they are co-owners. They will need the Joint Ownership Coverage Endorsement. Additional coverage limits on Dwelling Policies. -----CORRECT ANSWER----------- Additional coverages are 10% of the limit of A under Coverage E - Additional Living Expenses. This only applies to DP2 and DP3. Collapse is a peril or additional coverage? -----CORRECT ANSWER-----------Additional coverage - causes of collapse would be perils though, such as weight of ice or windstorm. Crime Coverage Forms A- B - C - D - E - F - G - H - Q - Cash only forms - Other than Cash forms - Forms that cover both - -----CORRECT ANSWER-----------Crime Coverage Forms A - employee dishonesty B - forgery and alteration C - theft, disappearance, destruction D - robbery and safe burglary (PP) E - premises burglary F - computer fraud G - extortion H - premises theft/outside robbery Q - robbery and safe burglary ($) Cash only forms - CQ Other than Cash forms - DEH Forms that cover both - FG Homeowners Policy Coverages Sect I - A - B - C - D - Add. Cov - Sect II - E - F - D. pro-rata liability -----CORRECT ANSWER-----------D. pro-rata liability Furniture, which is destroyed when a building burns down, is an example of what kind of loss? A. direct B. indirect C. consequential D. residual -----CORRECT ANSWER-----------A. direct As a name peril contract, the SFP (Standard Fire Policy) covers: A. all perils not otherwise excluded B. perils specified in the policy C. fire only D. perils are not covered under the SFP -----CORRECT ANSWER-----------B. perils specified in the policy Each of the following may be a legal defense against negligence except: A. an intervening cause B. assumption of risk C. contributory negligence D. apparent authority -----CORRECT ANSWER-----------D. apparent authority Under the doctrine of the proximate cause, which of the following would be considered fire damage? A. smoke damage B. water damage from the sprinkler system C. firefighters breaking down the door D. all of the above -----CORRECT ANSWER-----------D. all of the above If property is sold, the policy may not be assigned to the new owner "except with the written consent of the Company". This is known as a (an): A. other insurance clause B. assignment clause C. cancellation clause D. abandonment clause -----CORRECT ANSWER-----------B. assignment clause After the initial notification of a loss, the insured is required to submit a signed proof of loss within ______days for every policy except for what type of coverage which allows for 120 days? -----CORRECT ANSWER-----------60 days; Commercial Crime Coverage Usually when insurer cancels; all earned premiums are kept and unearned premium is returned to the policyholder, this is known as: A. flat cancellation B. pro-rate cancellation C. short-rate cancellation D. non-renewal cancellation -----CORRECT ANSWER-----------C. short-rate cancellation What are the differences between theft and larceny? -----CORRECT ANSWER----------- None What does burglary and robbery have in common? What's different? -----CORRECT ANSWER-----------Theft; Burglary is Breaking in/out and robbery is threatening or harmful Charlie gets insurance on his house and forgets to tell the insurer that he only owns 50% of the house. What would this be considered? -----CORRECT ANSWER-----------a misrepresentation If J's son threw a rock and hits a neighbor in the head, what liability concept would cause J to pay for injuries as a result? A. Last clear chance B. Assumption of risks C. Vicarious liability D. Gross negligence -----CORRECT ANSWER-----------C. Vicarious liability Additional coverage, supplementary payment, or endorsement? E.C. (extended coverage) perils -----CORRECT ANSWER-----------WC-SHAVER perils are endorsements for DP-1 and additional coverages for all HOs. Personal and Commercial Inland Marine Floaters are all open-peril. EC perils are covered under cause of loss forms in a Farm policy. Farm Property Coverage A - B - C - D - E - F - G - -----CORRECT ANSWER-----------A - Dwelling B - Other Private Structures (personal purpose that are unattached to dwelling) C - Household Personal Property D - Loss of Use (additional living expenses, loss of fair rental value, civil authority - this is personal, does not include business related loss) E - Scheduled Farm Personal Property (hay, grain, livestock, other animals, machinery) F - Unscheduled Farm Personal Property (blanket limit) G - Barns, Outbuildings and Other Farm Structures (silo, barn, corral, outdoor radio/television equipment) What named peril policy covers electrocution? -----CORRECT ANSWER-----------Broad Cause of Loss Form on a farm property Additional coverage, supplementary payment, or endorsement? Earthquake -----CORRECT ANSWER-----------Endorsement When does an earthquake occurrence last 72 hours? What about 168 hours? ----- CORRECT ANSWER-----------personal policies; commercial policies Why are potatoes not covered by crop insurance? -----CORRECT ANSWER----------- They grow underground. Farm Liability Coverage H -