Free Georgia Property & Casualty Practice Exam 2026

Georgia property and casualty insurance exam sample questions and answers

6 of the 125 practice questions, one from each topic, with the answer explained.

1. 1. An insurer files new rates for Georgia private passenger auto policies with limits above the state minimums. The rates take effect:

   • A.One year after filing
   • B.60 days after filing, no approval
   • C.Only after the Commissioner approves
   • D.On the date the insurer files

   Answer: B. Under O.C.G.A. 33-9-21(b)(2), as amended in 2023, rates for personal auto policies above the mandatory minimum limits take effect 60 days after filing without the Commissioner's approval, unless the Commissioner allows an earlier date or the insurer names a later one. Minimum-limits-only policies need approval or a 45-day review period, a route insurers may also choose for other auto filings.

2. 2. Which commercial crime insuring agreement covers loss caused by an employee's dishonest acts?

   • A.Forgery or Alteration
   • B.Computer Fraud
   • C.Inside the Premises - Robbery or Safe Burglary
   • D.Employee Theft

   Answer: D. Employee theft, formerly employee dishonesty, covers theft of money, securities and other property by employees. The other agreements respond to outsiders.

3. 3. A binder issued by a producer:

   • A.Provides temporary coverage until the policy is issued
   • B.Becomes a permanent part of the policy once issued
   • C.Is valid only after the first claim is reported
   • D.Guarantees the policy will be issued at the quoted premium

   Answer: A. A binder is temporary evidence of coverage, oral or written, that lasts until the policy is issued or coverage is declined. It does not guarantee issuance, and it is replaced by the policy.

4. 4. A policy that pays the stated face amount on a total loss regardless of the property's actual value is a:

   • A.Actual cash value policy
   • B.Blanket policy
   • C.Valued policy
   • D.Reporting form policy

   Answer: C. A valued policy pays the agreed amount on a total loss. A blanket policy covers several locations or property types under one limit but still settles on actual loss.

5. 5. FAIR plans were created to:

   • A.Provide auto liability for high-risk drivers
   • B.Insure homes against flood and earthquake
   • C.Insure property the voluntary market rejects
   • D.Regulate the rates insurers may charge

   Answer: C. Fair Access to Insurance Requirements plans are residual market associations, set up by law and funded by insurers, that provide basic property insurance to owners who cannot buy it in the voluntary market. In Georgia every insurer writing property insurance must belong to the FAIR Plan underwriting association (O.C.G.A. 33-33-3). Automobile assigned risk plans serve high-risk drivers.

6. 6. Which loss is excluded under every unendorsed homeowners form?

   • A.Flood from surface water
   • B.Theft of a bicycle from the garage
   • C.Fire caused by faulty wiring
   • D.Windstorm damage to the roof

   Answer: A. Water damage from flood, surface water and tidal water is excluded and must be insured through the NFIP or a private flood policy. Windstorm, theft and fire are covered perils.