GA Property & Casualty Exam Practice Questions with Complete Solutions (Latest 2025) Insurance policy covers what type of losses - Correct Answers ✅Direct and Indirect In order to have an indirect loss, you must have - Correct Answers ✅a direct loss What does property insurance cover? - Correct Answers ✅structures and contents Direct loss - Correct Answers ✅physical destruction of property by lightening, wind, fire, theft, etc Indirect loss - Correct Answers ✅consequences of direct losses - e.g. loss of income, additional expenses to live, loss of rental income, etc.What is the purpose of personal lines insurance? - Correct Answers ✅Coverage for personal activities of the insured for losses that might take place What is the purpose of commercial insurance? - Correct Answers ✅policies that cover NON personal activities of the insured where losses might take place 1 / 2
GA Property & Casualty Exam Practice Questions with Complete Solutions (Latest 2025) Who transfers risk in insurance? - Correct Answers ✅Insurance involves transfer of YOUR risk to other people for your losses to be covered How do insurance companies use premiums? - Correct Answers ✅Insurance companies use our premiums to cover losses of the few.Named Insured - Correct Answers ✅HIGHEST ranking insured for any policy Who is the insurance company? - Correct Answers ✅The author of the policy, issuer of the policy, and enforcer of policy Cancellation - Correct Answers ✅Stop policy mid-term before it has the chance to expire. Both insurer and insured can cancel a policy Insured cancels policy - Correct Answers ✅Request must be made in writing Risk - Correct Answers ✅uncertainty of loss. The area between 1 and 100.
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