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Questions and Answers
What is a speculated up-front deposit that can be adjusted upon review of exposure?
What is a speculated up-front deposit that can be adjusted upon review of exposure?
It refers to an initial payment that may change based on the assessment of risk exposure.
An insured's right of recovery against a negligent third party may be transferred to the insurer under the:
An insured's right of recovery against a negligent third party may be transferred to the insurer under the:
- Assignment clause
- Indemnity clause
- Consideration clause
- Subrogation clause (correct)
A wrongful act is considered to be a __________.
A wrongful act is considered to be a __________.
tort
Policies that pay full current cost for property that has been destroyed, without making any depreciation are written on what basis?
Policies that pay full current cost for property that has been destroyed, without making any depreciation are written on what basis?
OSCAR or open peril coverage forms:
OSCAR or open peril coverage forms:
What is the clause in the Standard Fire Policy that limits the liability of the insurer to a portion of the loss?
What is the clause in the Standard Fire Policy that limits the liability of the insurer to a portion of the loss?
Furniture, which is destroyed when a building burns down, is an example of what kind of loss?
Furniture, which is destroyed when a building burns down, is an example of what kind of loss?
As a name peril contract, the Standard Fire Policy covers:
As a name peril contract, the Standard Fire Policy covers:
Each of the following may be a legal defense against negligence except:
Each of the following may be a legal defense against negligence except:
Under the doctrine of proximate cause, which of the following would be considered fire damage?
Under the doctrine of proximate cause, which of the following would be considered fire damage?
If property is sold, the policy may not be assigned to the new owner 'except with the written consent of the Company'. This is known as a:
If property is sold, the policy may not be assigned to the new owner 'except with the written consent of the Company'. This is known as a:
After the initial notification of a loss, the insured is required to submit a signed proof of loss within ______ days for every policy except for what type of coverage which allows for 120 days?
After the initial notification of a loss, the insured is required to submit a signed proof of loss within ______ days for every policy except for what type of coverage which allows for 120 days?
Usually when an insurer cancels, all earned premiums are kept and unearned premium is returned to the policyholder, this is known as:
Usually when an insurer cancels, all earned premiums are kept and unearned premium is returned to the policyholder, this is known as:
What are the differences between theft and larceny?
What are the differences between theft and larceny?
What do burglary and robbery have in common, and what's different?
What do burglary and robbery have in common, and what's different?
What coverage does Community Eligibility apply to?
What coverage does Community Eligibility apply to?
What's the difference between Emergency Program and Regular Program in the National Flood Insurance Program?
What's the difference between Emergency Program and Regular Program in the National Flood Insurance Program?
What is the flood coverage on a regular program in a 1-4 Family Dwelling?
What is the flood coverage on a regular program in a 1-4 Family Dwelling?
On what policy can you add the Flood Program endorsement?
On what policy can you add the Flood Program endorsement?
What is Difference in Conditions (DIC) Insurance?
What is Difference in Conditions (DIC) Insurance?
What is the waiting period on NFIP coverage?
What is the waiting period on NFIP coverage?
What is the coverage change waiting period for the NFIP?
What is the coverage change waiting period for the NFIP?
Give examples of the flood peril.
Give examples of the flood peril.
What kinds of things does flood insurance cover?
What kinds of things does flood insurance cover?
What does dwelling coverage extension for flood insurance cover, and how much is it?
What does dwelling coverage extension for flood insurance cover, and how much is it?
Contents coverage of flood insurance is limited to what?
Contents coverage of flood insurance is limited to what?
What are the coverages of flood insurance?
What are the coverages of flood insurance?
How are damaged items valued in flood coverage?
How are damaged items valued in flood coverage?
What kind of property is not covered by flood insurance?
What kind of property is not covered by flood insurance?
What is the formula for Loss Valuation on flood insurance?
What is the formula for Loss Valuation on flood insurance?
What is the standard deductible on flood insurance?
What is the standard deductible on flood insurance?
What is Personal Inland Marine Insurance?
What is Personal Inland Marine Insurance?
Is flood excluded from Personal Inland Marine Insurance?
Is flood excluded from Personal Inland Marine Insurance?
What are the floaters available on Personal Inland Marine Insurance?
What are the floaters available on Personal Inland Marine Insurance?
What perils are covered under Personal Inland Marine Insurance floaters?
What perils are covered under Personal Inland Marine Insurance floaters?
Which PIMI floater would be appropriate for a diamond ring? Why?
Which PIMI floater would be appropriate for a diamond ring? Why?
What is a Personal Effects Floater good for, and what deductible does it have?
What is a Personal Effects Floater good for, and what deductible does it have?
What is a Personal Property Floater good for and what kind of limit do they have?
What is a Personal Property Floater good for and what kind of limit do they have?
Does personal inland marine insurance cover flood?
Does personal inland marine insurance cover flood?
All of the following coverage is available under a Standard Flood Insurance Policy issued by the National Flood Insurance Program except:
All of the following coverage is available under a Standard Flood Insurance Policy issued by the National Flood Insurance Program except:
The maximum number of days that a Standard Flood Insurance Policy will cover property removed is:
The maximum number of days that a Standard Flood Insurance Policy will cover property removed is:
If the limits of insurance available under the National Flood Insurance Program are inadequate, where can additional coverage be purchased?
If the limits of insurance available under the National Flood Insurance Program are inadequate, where can additional coverage be purchased?
Define Yacht.
Define Yacht.
Why does Yacht insurance get a Lay-Up warranty?
Why does Yacht insurance get a Lay-Up warranty?
What are navigational limits?
What are navigational limits?
Wave damage and damage caused by striking an underwater object is a peril covered by what insurance?
Wave damage and damage caused by striking an underwater object is a peril covered by what insurance?
What are the three coverages and limits under Comprehensive Personal Liability?
What are the three coverages and limits under Comprehensive Personal Liability?
The acronym PMML represents which of the following?
The acronym PMML represents which of the following?
The acronym ARRT is for?
The acronym ARRT is for?
The acronym DECAL is for?
The acronym DECAL is for?
The acronym FALS-ID is for?
The acronym FALS-ID is for?
The acronym CAL-CSI is for?
The acronym CAL-CSI is for?
The acronym OSCAR is for?
The acronym OSCAR is for?
The acronym ACCL is for?
The acronym ACCL is for?
The acronym DICEED is for?
The acronym DICEED is for?
The acronym U-HID is for?
The acronym U-HID is for?
The acronym COUP is for?
The acronym COUP is for?
The acronym DDPB (Don't Drink Peanut Butter) is for?
The acronym DDPB (Don't Drink Peanut Butter) is for?
The acronym WWNI is for?
The acronym WWNI is for?
The acronym AMStAR is for?
The acronym AMStAR is for?
The acronym WC-SHAVER is for?
The acronym WC-SHAVER is for?
The acronym WSH is for?
The acronym WSH is for?
The acronym FLI is for?
The acronym FLI is for?
The acronym APE is for?
The acronym APE is for?
The acronym SWIMSWAM is for?
The acronym SWIMSWAM is for?
The acronym SIR is for?
The acronym SIR is for?
The acronym DRTCC is for?
The acronym DRTCC is for?
The acronym DOPLA is for?
The acronym DOPLA is for?
The acronym MR.LC is for?
The acronym MR.LC is for?
The acronym CPP is for?
The acronym CPP is for?
The acronym BPP is for?
The acronym BPP is for?
What are the Coverage components in Personal Auto Policy (PAP)?
What are the Coverage components in Personal Auto Policy (PAP)?
Which of the following would be considered an 'offer'?
Which of the following would be considered an 'offer'?
When a person decides not to buy insurance because of the cost, what method of handling risk management has been undertaken?
When a person decides not to buy insurance because of the cost, what method of handling risk management has been undertaken?
Something that increases the chance of a peril occurring is known as a ___________.
Something that increases the chance of a peril occurring is known as a ___________.
Which of the following is not an element for the formation of a valid contract?
Which of the following is not an element for the formation of a valid contract?
What is a temporary contract of insurance that commits the insurer before the policy is issued called?
What is a temporary contract of insurance that commits the insurer before the policy is issued called?
A term that blocks all attempts to change conduct or reassert a right previously waived, and it usually applies after the other party has begun to rely on the conduct or waiver is known as?
A term that blocks all attempts to change conduct or reassert a right previously waived, and it usually applies after the other party has begun to rely on the conduct or waiver is known as?
Oily rags in a garage are a what kind of hazard?
Oily rags in a garage are a what kind of hazard?
Insurance is a means of ________ risk?
Insurance is a means of ________ risk?
Which of the following is an insurable risk?
Which of the following is an insurable risk?
In which of the following would you have an 'insurable interest'?
In which of the following would you have an 'insurable interest'?
The insurance contract is considered a contract of indemnity because:
The insurance contract is considered a contract of indemnity because:
Who owns a mutual insurance company?
Who owns a mutual insurance company?
All the following statements concerning binders are false except:
All the following statements concerning binders are false except:
A non-exclusive agent:
A non-exclusive agent:
The action which, in a natural and continual sequence, produces a loss is known as the:
The action which, in a natural and continual sequence, produces a loss is known as the:
What are required discounts to offer on GA auto policies?
What are required discounts to offer on GA auto policies?
For someone who is less than 25 years old to qualify for the Defensive Driving Discount, they must have committed no traffic offenses for the previous five years.
For someone who is less than 25 years old to qualify for the Defensive Driving Discount, they must have committed no traffic offenses for the previous five years.
Where can you find the customized equipment endorsement and what kind of limit is used?
Where can you find the customized equipment endorsement and what kind of limit is used?
What is an Additional Insured?
What is an Additional Insured?
Can two people share a single coverage of a car?
Can two people share a single coverage of a car?
What are additional coverage limits on Dwelling Policies?
What are additional coverage limits on Dwelling Policies?
Collapse is a peril or additional coverage?
Collapse is a peril or additional coverage?
What are the Crime Coverage Forms?
What are the Crime Coverage Forms?
What are Homeowners Policy Coverages?
What are Homeowners Policy Coverages?
What policy does Medical Payment pay to both 1st and 3rd parties?
What policy does Medical Payment pay to both 1st and 3rd parties?
In a liability loss, the person to whom the insured has caused damage is referred to as the:
In a liability loss, the person to whom the insured has caused damage is referred to as the:
All the following are required elements to prove negligent liability, except:
All the following are required elements to prove negligent liability, except:
Because the insurance company writes the policy languages and the insured has little to no control over the content, any ambiguity in the wording is resolved in favor of the insured, therefore insurance policies are said to be _____________.
Because the insurance company writes the policy languages and the insured has little to no control over the content, any ambiguity in the wording is resolved in favor of the insured, therefore insurance policies are said to be _____________.
Which of the following represent the insured's premium deposit?
Which of the following represent the insured's premium deposit?
Study Notes
Flood Insurance
- Community Eligibility applies to flood insurance through FEMA.
- The National Flood Insurance Program (NFIP) has two tiers: the Emergency Program for communities not typically flood-prone, and the Regular Program for communities meeting eligibility due to their flood hazard.
- Flood coverage for a 1-4 Family Dwelling under the Regular Program is set at $250,000.
- Flood insurance has a waiting period of 30 days after policy purchase and a 5-day waiting period for coverage changes.
- Common flood perils include overflow of inland waters, rapid water accumulation, mudflow, and erosion.
- Coverage covers dwelling, personal property, and debris removal but excludes basements, vehicles, and money.
- The standard deductible for flood insurance is $1,000 for both dwelling and contents.
Personal Inland Marine Insurance
- Covers personal property on an open-peril basis worldwide, termed as floaters.
- Personal Articles Floater is recommended for valuable items like jewelry.
- Personal Effects Floater provides coverage for items while traveling, with no deductible.
- The coverage under floaters is comprehensive and includes all perils.
Housing and Coverage Policies
- A Standard Flood Insurance Policy does not include Loss of Use coverage.
- The maximum coverage period for property removal under a Standard Flood Insurance Policy is 45 days.
- Dwelling Policies cover additional structures at 10% of the dwelling limit, applicable to DP2 and DP3 forms.
- Medical payments in Personal Auto Policies apply to both first and third parties.
Insurance Definitions and Key Concepts
- Terms like indemnity imply restoration to the financial state prior to loss without over-compensation.
- A mutual insurance company is owned by its policyholders.
- Binders are temporary insurance contracts confirming coverage before policy issuance.
- Proximate cause relates to the action directly producing a loss.
Liability and Risk Management
- Negligent liability requires proof of duty, breach, damages, and proximate cause. Intervening cause is not a necessary element.
- The insured's right of recovery against a negligent third party is governed under the subrogation clause.
- Contracts of adhesion favor the insured in the event of ambiguities in policy wording.
Coverage and Exclusions
- Policies written on a replacement cost basis pay full current costs without depreciation deductions.
- Open peril coverage lists specific exclusions rather than covering all perils.
- Coverage forms include various types such as employee dishonesty, forgery, theft, and robbery.
Common Acronyms and Their Meanings
- PMML - Physical, Moral, Morale, Legal hazards related to losses.
- ARRT - Risk management methods: Avoidance, Retention, Reduction, Transfer.
- DICEED - Components of an insurance contract: Declarations, Insuring Agreements, Conditions, Endorsements, Exclusions, Definitions.
- AMStAR - Methods of valuation: Agreed Value, Market Value, Stated Value, Replacement Cost, Actual Cash Value.
Insurance Requirements and Discounts
- Required discounts for Georgia auto policies include Defensive Driving and Good Student discounts, with a minimum discount of 10%.
- For Defensive Driving Discount qualification, applicants should have no traffic offenses in the last three years.
These notes summarize the critical aspects of flood insurance, personal inland marine coverage, liability concepts, and various insurance policies relevant for the GA Claims Adjuster Licensing Exam.### Fire Damage Under Proximate Cause
- Fire damage includes smoke damage, water damage from sprinkler systems, and damages caused by firefighters breaking down doors.
- All forms of damage resulting from a fire are covered under the doctrine of proximate cause.
Policy Assignment
- Property insurance policies cannot be assigned to new owners without the written consent of the company.
- This restriction is known as the assignment clause.
Proof of Loss Submission
- After notifying of a loss, the insured must submit a signed proof of loss within 60 days.
- Commercial Crime Coverage allows for a 120-day submission period for proof of loss.
Cancellation of Insurance
- In the event of an insurer's cancellation, all earned premiums are retained, while unearned premiums are refunded to the policyholder.
- This process is known as short-rate cancellation.
Theft vs. Larceny
- There are no significant differences between theft and larceny, as both involve unlawful taking of someone else's property.
Burglary vs. Robbery
- Both burglary and robbery involve theft; however, burglary requires breaking in or out of a property, while robbery involves threats or violence against a person.
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Description
Prepare for the GA Claims Adjuster Licensing Exam with these flashcards. This resource covers essential aspects of flood insurance and the National Flood Insurance Program. Test your knowledge with key terminology and definitions critical for success on the exam.
