Georgia Property & Casualty Insurance Practice Exam Free - 2026

• A. None; any gift is permitted if it is not cash
• B. Up to $25 per person per year
• C. Up to $100 in value per customer per year, and not contingent on buying or renewing a policy
• D. Gifts are always prohibited

Correct answer: C. Up to $100 in value per customer per year, and not contingent on buying or renewing a policy

Explanation: Georgia's unfair trade practices statute treats a rebate of premium or any valuable consideration not specified in the policy as an unfair practice, but it allows promotional items such as gift cards, gift certificates, event tickets or merchandise up to $100 in value per customer per year, provided the gift is not contingent on the sale or renewal of a policy. See O.C.G.A. 33-6-4.

• A. Deposit them in the agency's operating account and remit at month end
• B. Hold them in a fiduciary capacity, separate from personal funds, and promptly pay them to the insurer or other party entitled to them
• C. Keep a separate bank account for every insurer represented, without exception
• D. Hold them until the policy is delivered

Correct answer: B. Hold them in a fiduciary capacity, separate from personal funds, and promptly pay them to the insurer or other party entitled to them

Explanation: Premiums and return premiums received by a licensee are held in a fiduciary capacity, may not be commingled with the licensee's personal funds, and must be promptly accounted for and paid to the insurer, insured or agent entitled to them. Georgia does not require a separate bank deposit for each principal as long as the funds held for each are reasonably ascertainable from the licensee's books and records. See O.C.G.A. 33-23-35.

• A. 10 days
• B. 20 days
• C. 30 days
• D. 45 days

Correct answer: C. 30 days

Explanation: Georgia's cancellation statute requires that the effective date of cancellation be not less than 30 days from the date the notice is mailed or delivered in person, unless the policy is being canceled for the insured's failure to pay premium or has been in effect less than 60 days, in which case the shorter 10-day notice applies. See O.C.G.A. 33-24-44.

• A. 5 days
• B. 10 days
• C. 20 days
• D. 30 days

Correct answer: B. 10 days

Explanation: For cancellation for failure to pay premium (and for any cancellation of a policy in effect less than 60 days), Georgia requires notice at least ten days before the effective date of cancellation; all other cancellations require at least 30 days. See O.C.G.A. 33-24-44.

• A. Injuries to the insured and passengers regardless of who is at fault
• B. Damage to the insured's own vehicle from a collision
• C. Injuries to others for which the insured is legally liable
• D. Injuries to the insured caused by a driver who has no insurance

Correct answer: C. Injuries to others for which the insured is legally liable

Explanation: Bodily injury liability coverage can pay for covered injuries to others when the insured is legally responsible, subject to the policy limit and conditions.

• A. The insured's car is stolen
• B. The insured needs roadside assistance
• C. The insured wants a lower deductible
• D. The insured damages another person's vehicle in a covered accident

Correct answer: D. The insured damages another person's vehicle in a covered accident

Explanation: Property damage liability may pay for covered damage the insured legally causes to another person's property, such as another vehicle, fence, or building.

• A. Damage to the covered auto from impact with another vehicle or object
• B. Damage to another person's vehicle that the insured strikes
• C. Damage to the covered auto from hail, flood, or contact with animals
• D. Bodily injury to the insured's passengers regardless of fault

Correct answer: A. Damage to the covered auto from impact with another vehicle or object

Explanation: Collision coverage generally applies to physical damage to a covered auto caused by collision or overturn, subject to policy terms and deductible.

• A. Damage from colliding with another vehicle or a fixed object
• B. Damage from theft, fire, vandalism, or falling objects
• C. Damage from the vehicle overturning on a slippery road
• D. Damage the insured causes to another person's property

Correct answer: B. Damage from theft, fire, vandalism, or falling objects

Explanation: Comprehensive, often called other-than-collision coverage, commonly applies to covered losses such as theft, fire, vandalism, falling objects, and certain weather events.

• A. The insured's own liability limits are exhausted by a large claim
• B. An at-fault driver has liability limits lower than the insured's damages
• C. An at-fault driver has no applicable liability insurance
• D. The insured is at fault in an accident and has let coverage lapse

Correct answer: C. An at-fault driver has no applicable liability insurance

Explanation: Uninsured motorist coverage may protect insureds when they are injured by a driver who does not have applicable liability insurance, subject to policy and state requirements.

• A. The at-fault driver has no liability insurance and cannot be identified after a hit and run
• B. The insured's own liability limits are lower than the damages the insured caused another party
• C. The at-fault driver's insurer denies the claim because the policy was cancelled for nonpayment
• D. The at-fault driver has some liability insurance, but not enough to cover the insured's damages

Correct answer: D. The at-fault driver has some liability insurance, but not enough to cover the insured's damages

Explanation: Underinsured motorist coverage is designed for situations where the responsible driver has liability insurance but the limits are insufficient for the covered loss.

• A. Covered medical expenses for insured persons after an auto accident, regardless of fault
• B. The insured's legal defense costs only
• C. Lost business income after a fire
• D. Damage to the other driver's car only

Correct answer: A. Covered medical expenses for insured persons after an auto accident, regardless of fault

Explanation: Medical payments coverage generally pays covered medical expenses for insured persons after an auto accident, regardless of fault, subject to limits and policy terms.

• A. $100,000 bodily injury per accident, $300,000 bodily injury per person, $50,000 property damage
• B. $100,000 bodily injury per person, $300,000 bodily injury per accident, $50,000 property damage
• C. $100,000 property damage per accident, $300,000 bodily injury per accident, $50,000 medical payments
• D. $100,000 bodily injury per person, $300,000 property damage per accident, $50,000 aggregate per policy

Correct answer: B. $100,000 bodily injury per person, $300,000 bodily injury per accident, $50,000 property damage

Explanation: A split limit usually lists bodily injury per person, bodily injury per accident, and property damage per accident in that order.