GEORGIA PROPERTY AND CASUALTY INSURANCE EXAM 2 LATEST COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS 2023-2024

GEORGIA PROPERTY AND
CASUALTY INSURANCE EXAM 2
LATEST COMPLETE QUESTIONS
AND CORRECT DETAILED
ANSWERS 2023-2024
Harold's property insurance policy is a contract of indemnity because - ANSWERS,The benefit
payable is related to the amount of loss.
If an insurance producer misrepresents the terms, benefits, or advantages of an insurance policy he
or she is selling, that producer has engaged in a(n) - ANSWERS,unfair method of competition
Ralph recently joined the Independent Order of Craftspeople, an organization for men and women
who earn a living by designing and making crafts, and which provides insurance to its members.
What type of organization is this Order? - ANSWERS,fraternal benefit society
What describes an insurance company that is not licensed to conduct insurance business in Indiana,
but is licensed in another state? - ANSWERS,Non-admitted insurance company
Brad purchased an auto insurance policy to insure his new car. An insurer might consider Brad, his
car, or both to be a(n) - ANSWERS,risk
Jason repairs a broken stair on his front porch so that it is less likely people will trip and fall down the
stairs and injure themselves. What measure has he taken to manage this risk? -
ANSWERS,prevention
If the Hampton Insurance Company is organized under the laws of the District of Columbia, what is
its classification in relation to Indiana? - ANSWERS,foreign insurer
Kent stated on his application for property insurance that the roof of the building being insured had
been recently replaced. In fact, the replacement occurred 12 years ago. Kent made a false statement
of a material fact, which is also known as a(n) - ANSWERS,misrepresentation
Which of the following is not a power granted to the Indiana Commissioner of Insurance? -
ANSWERS,Prosecuting individuals for violating the insurance laws
What do a direct writer and an exclusive agent have in common? - ANSWERS,the both only
represent one insurer
Alex sold an insurance policy before his license lapsed and earned a commission on the sale. Is he
entitled to a commission if the policy is renewed? - ANSWERS,He is entitled because he was licensed
when the policy was sold.
What type of insurer covers the risks of the parent organization that owns it? - ANSWERS,Captive
insurance company
Which of the following practices is not an unfair claims settlement practice? - ANSWERS,Failure to
make claim payment within 30 days
An insurance agent mistakenly tells policyholder Jerry that his boat is covered under a policy the
agent recently sold him. Jerry's boat is damaged in a storm and he learns his boat is not covered
when he files a claim. Will the insurer pay this claim? - ANSWERS,Yes, because the agent legally
represents the insurer.
What does an insurance company purchase if it wants to transfer some or all of the risks involved in
its insurance operation to another insurance company? - ANSWERS,Reinsurance
After insurance consulting services are completed, how long must a consultant retain the signed
agreement outlining the services he or she provided? - ANSWERS,2 years
When taking his examination for an insurance producer license, Tad used unauthorized material to
assist him. He justified this on the basis that the materials would be available to him in a real life
situation if he needed them, and he needed them now. Is this an acceptable practice? -
ANSWERS,Tad committed a prohibited act