Georgia Insurance FREE Sample Exam — Fixed Set

A customer is injured in a fall at a store in March while an occurrence-based commercial general liability policy is in effect. The customer does not file a claim until the following year, after that policy has expired. Which event determines whether that expired policy responds?

The date the claim was first reported to any insurer

Correct Incorrect Correct answer

The date the injured person first hired an attorney

Correct Incorrect Correct answer

The date the bodily injury occurred

Correct Incorrect Correct answer

The date a lawsuit was served on the store

Correct Incorrect Correct answer

A landlord leases a building it owns to a nightclub and does not itself sell or serve any alcohol. A claim seeks to hold the landlord liable by reason of the club’s overservice. Which concept-level caution applies?

A landlord can never be affected by the liquor exclusion under any facts

Correct Incorrect Correct answer

Only the person who physically poured the drink can be an insured affected, in accordance with the policy conditions, and taking the policy's definitions and conditions as they are written in the form

Correct Incorrect Correct answer

Premises ownership converts the landlord into the alcohol manufacturer

Correct Incorrect Correct answer

The exclusion can also reach an insured that owns or leases out premises used by others for alcohol business purposes, so the landlord's non-pouring role is not automatically dispositive

Correct Incorrect Correct answer

Must a disease be an occupational disease of the claimant’s own job to count as disease within the bodily injury definition?

Yes; diseases of members of the public never qualify

Correct Incorrect Correct answer

No, but only diseases that are also sicknesses in name

Correct Incorrect Correct answer

No; the definition says disease sustained by a person without limiting it to occupational disease

Correct Incorrect Correct answer

Yes; only diseases listed as occupational qualify

Correct Incorrect Correct answer

A delivery company’s insurer pays an injured customer after its insured driver and a road contractor share fault, then seeks recovery from the contractor for the contractor’s share. This pursuit is

Subrogation against the party whose negligence contributed to the loss

Correct Incorrect Correct answer

A first-party bad faith claim

Correct Incorrect Correct answer

An IBNR reserve estimate

Correct Incorrect Correct answer

A covenant not to execute

Correct Incorrect Correct answer

An insured transfers its interest in the business to a buyer and assumes the CGL policy itself was sold with the business. Separately, a claim the insurer already paid generated recovery rights against a third party. Which statement keeps the two transfer concepts straight?

Both transfers are the same condition with the same consent rules

Correct Incorrect Correct answer

Transfer of recovery rights after payment is the insurer's subrogation right; assigning the policy itself to a new owner is a different matter that generally requires the insurer's written consent

Correct Incorrect Correct answer

Recovery rights belong to whoever buys the business automatically

Correct Incorrect Correct answer

Policy assignment and recovery transfer are both prohibited in all cases, consistent with the wording of the form edition in effect during the policy period, and as stated in the applicable policy form

Correct Incorrect Correct answer

A contents claim is filed under a broad named-perils form for an item that stopped working for unknown reasons. Which statement correctly places the burden regarding cause of loss?

The insurer must prove an exclusion applies before the insured identifies any cause at all.

Correct Incorrect Correct answer

The insured must show that the loss was caused by a peril named in the policy; an unknown cause is not enough.

Correct Incorrect Correct answer

Coverage is automatic whenever the cause cannot be determined.

Correct Incorrect Correct answer

The burden is decided by whichever party files the claim first.

Correct Incorrect Correct answer

An earthquake endorsement defines a period, often 72 hours, during which related shocks are treated in a particular way. What is that treatment?

Each aftershock is a new occurrence with a new deductible every hour

Correct Incorrect Correct answer

The period determines when the policy automatically renews after a quake

Correct Incorrect Correct answer

Aftershocks after the first shock are never covered under any circumstance, including when the underlying event involves more than one location, vehicle, or injured person

Correct Incorrect Correct answer

Shocks within the defined period are generally treated as a single occurrence, so one earthquake deductible applies to the combined loss

Correct Incorrect Correct answer

A homeowner carries less than 80% of the dwelling’s replacement cost when a covered partial loss occurs. Under the homeowners loss settlement condition, the insurer will pay the greater of which two amounts, less the deductible?

The full replacement cost of the damaged part, or the original purchase price of the home, whichever amount the insured happens to prefer at claim time

Correct Incorrect Correct answer

The mortgage balance, or the tax-assessed value of the dwelling

Correct Incorrect Correct answer

The actual cash value of the damaged part, or the proportion of the loss that the limit carried bears to 80% of the replacement cost

Correct Incorrect Correct answer

The limit of insurance, or twice the actual cash value of the damaged part

Correct Incorrect Correct answer

An 1890s commercial building has ornate handcrafted features. Reproducing them exactly would cost far more than the building contributes in use or income. Why might functional replacement cost be selected for this building?

It guarantees payment of the full cost of reproducing every ornate feature by hand

Correct Incorrect Correct answer

It converts the policy into a valued policy that pays the limit for any partial loss, as shown in the schedule of covered locations attached to the policy at inception

Correct Incorrect Correct answer

It removes the need for any limit of insurance on the building

Correct Incorrect Correct answer

It bases the value on putting back a building that serves the same function with standard modern construction, rather than reproducing the costly ornate work

Correct Incorrect Correct answer

How does an exclusion differ from a condition in the work each does inside a policy?

An exclusion defines risks the insurer has not assumed, while a condition sets a requirement that governs the parties' rights

Correct Incorrect Correct answer

An exclusion sets requirements, while a condition removes perils

Correct Incorrect Correct answer

Both provisions do the same work and differ only in placement

Correct Incorrect Correct answer

A condition removes coverage permanently, while an exclusion is temporary and lasts only until the insurer chooses to reinstate the coverage

Correct Incorrect Correct answer

A broker placed surplus lines coverage using a certificate because the policy was unavailable. The insured now asks for the actual policy. What is the broker’s duty?

Deliver the policy only at the first renewal, in accordance with the process the statute establishes for determinations of this kind

Correct Incorrect Correct answer

Explain that the certificate is legally the same as the policy and refuse, in accordance with the process the statute establishes for determinations of this kind

Correct Incorrect Correct answer

Deliver the policy within one year of the request, in accordance with the process the statute establishes for determinations of this kind

Correct Incorrect Correct answer

As soon as reasonably possible, procure and deliver the policy in replacement of the certificate

Correct Incorrect Correct answer

An insurer unreasonably delays a claim by demanding both a formal proof of loss and later verification duplicating the same information. What does Georgia say, and what remains allowed?

The insurer may duplicate demands without limit, demanding the same information over and over without any limit at all

Correct Incorrect Correct answer

Sworn statements are prohibited in all cases, so no sworn statement may be obtained even when the policy permits it

Correct Incorrect Correct answer

The duplicative demand is a listed practice, but the insurer may still obtain sworn statements if the policy permits them

Correct Incorrect Correct answer

All proof of loss demands are prohibited, so an insurer may never demand a formal proof of loss from an insured

Correct Incorrect Correct answer

Georgia Insurance FREE Sample Exam — Fixed Set

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

Programs

Company

Legal

Account