pg. 1
GEORGIA PRO- INSURANCE ADJUSTER EXAM
2025 ACTUAL EXAM| COMPLETE 250+
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED +
The physical damage section of the personal auto policy excludes losses
arising from:
- flood
- earthquake
- animals
- mechanical breakdowns - ANSWER - d) mechanical breakdowns
Which of the following causes of loss is covered by Other-Than-Collision Coverage written under a Personal Auto Policy?
- freezing
- electrical breakdown
- vandalism damage to tires
- upset - ANSWER - vandalism damage to tires
Which of the following losses would be covered by Other-Than-Collision Coverage under an automobile policy?
- mechanical breakdown
- hail
- wear and tear 1 / 4
pg. 2
- upset - ANSWER - b) Hail
What is the principal coverage under the Personal Auto Policy coverage Part D?
- liability coverage
- physical damage coverage
- uninsured motorist coverage
- medical payments coverage - ANSWER - b) Physical Damage Coverage
How much will the Personal Auto Policy Coverage Part A pay towards an appeal bond? - ANSWER - unlimited to dollar amount
Which kind of losses are covered under a standard fire policy? - ANSWER – Direct
What is insurance? - ANSWER - protection against financial loss
what is a premium - ANSWER - a scheduled amount to be paid for an insurance policy.
What are premiums used for - ANSWER - premiums are collected into a "pool" or "reserve to pay out claimants when needed.
A property is insured under two Standard Fire policies for $25,000 each. A fire causes $10,000 worth of damage. What is the maximum amount the insured may collect under each policy? - ANSWER - $5,000
- / 4
pg. 3
A fire burning in the middle of the living room would be considered: -
ANSWER - a hostile fire
An insured's house is damaged by fire caused by a neighbor's negligence.The insurance company will attempt to recover damage from the neighbor.
This is called: - ANSWER – subrogation
how can insurance companies afford to pay for an individual’s catastrophic loss? - ANSWER - the insurer collects premiums from all policy holders and uses them to pay out the claims of a few.
What two capacities does Georgia's insurance commissioner serve? - ANSWER - 1. Chief Officer of Insurance Dept.
- Chief Fire Marshall
What happens if the Insurance Commissioner has to resign early? - ANSWER - No election; the Chief Deputy will take over
What is the requirement to serve as Chief Deputy in Georgia? - ANSWER - must have a bond in the amount of $15,000
If you are a domestic insurer in Georgia, how often does code say your financials must be examined? - ANSWER - once every 5 years
Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner. Which is it? - ANSWER - Superior Court of Fulton County
- / 4
pg. 4 What certificate is required for a company to be an authorized insurer in Georgia? - ANSWER - Certificate of Authority
Surplus Lines Risk - ANSWER - has been rejected by 3 authorized insurers
What is the primary reason the state of Georgia would revoke an insurance company's certificate to authorize? - ANSWER - if they're under financial distress
What are the requirements to be a licensed producer in Georgia? - ANSWER - must be at least 18 years old, take a 40-hour course, pass licensing exam, apply for license, pass background check
Which of the following would be considered an "offer"? - ANSWER - the applicant submits an application to the company with payment
All of the following are true about insurable risk except:
- the loss must not be catastrophic in nature
- the loss must be large enough to create hardship
- the loss must not be definite and definable
- the law of large numbers should apply - ANSWER - c) the loss must not
be definite and definable
When a person decides not to buy insurance because of the cost, what method of handling risk has been undertaken? - ANSWER - risk retention
the insurance industry deals with those areas of risk where the chances of loss are: - ANSWER - anywhere between 0% and 100%
- / 4