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Georgia Adjuster Exam Questions and Answers Already Passed
Question 1: In GA, _____insurance cannot be written by a
reciprocal type insurer.
CORRECT ANSWER: life
Question 2: No insurer or licensee doing business in Georgia
may pay any commissions or valuable consideration to any person for services as an agent, subagent, or adjuster unless that person is duly licensed under the
CORRECT ANSWER: Code
Question 3: Mediation is not _____ on the parties involved, but
with arbitration the decision is final and _____.
CORRECT ANSWER: Binding
Question 4: Standard and Poor's, A.M. Best and Moody's are
examples of:
CORRECT ANSWER: Independent Rating Services
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Question 5: What is the application fee for filing to become a
self-insurer for workers compensation in Georgia?
CORRECT ANSWER: $500
Question 6: Insurance adjusters have the "power to bind". Which
of the following statements best describes what this means?
CORRECT ANSWER: The principal is bound to the decisions
of the adjuster.
Question 7: The perils most frequently covered by a Difference
in Conditions policy are:
CORRECT ANSWER: Flood and Earthquake
Question 8: What is the purpose of the Georgia Insurance
Guaranty Association?
CORRECT ANSWER: Cover claims of insolvent insurers
Question 9: Twisting
CORRECT ANSWER: The act of inducing or attempting to
induce a policy owner to drop an existing life insurance policy and to take another policy that is substantially the same kind by
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using misrepresentations or incomplete comparisons of the advantages and disadvantages of the two policies. Most states have enacted legislation making twisting a crime.
Question 10: Churning
CORRECT ANSWER: Churning occurs when an insurance
agent replaces a policyholder's insurance policy for another insurance policy, usually without consulting the policyholder and often with no changes to the coverage itself. Agents who engage in churning do so in order to secure an additional commission for the new policy they swap in.
Question 11: Rebating
CORRECT ANSWER: Rebating — a portion of the premium
or the agent's/broker's commission on the premium to the insured or other inducements to place business with a specific insurer. Rebating is illegal in the majority of states. Insurers must use filed rate credits or have supporting methodology.
Question 12: Uninsured motorist coverage law in Georgia
applies to bodily injury claims sustained by an insured and
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caused by an uninsured motorist as defined by the law. UMPD coverage is also included.
CORRECT ANSWER:
Question 13: In Georgia, the Chief Deputy Commissioner must
execute a bond in the amount of:
CORRECT ANSWER: $15,000
Question 14: Adjusters must maintain record of each
investigation or adjustment undertaken, and a statement of any fee, commission, or other compensation received or to be received on account of the investigation or adjustment. How long must the records be maintained for examination?
CORRECT ANSWER: 5
Question 15: The limits of the Employers' Liability section of a
standard workers' compensation policy are:
CORRECT ANSWER: Listed on the information page
Question 16: An insured has purchased BAP physical damage
coverage against specified causes of loss. Protection applies to
