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Free Casualty Agent Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Casualty Agent practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A visitor trips over a cord while a shop is open and sues the business for the resulting injury. Which CGL exposure best fits the accident?

    1. A. Products and completed operations
    2. B. Premises and operations
    3. C. Personal and advertising injury
    4. D. Damage to property of others

    Answer: B

    Explanation: "provides bodily injury and property damage liability coverage for accidents on your premises or arising out of your business operations." The injury arose on the operating premises; the other categories concern transferred goods, intangible injury, or property damage.

    Reference: The Georgia Business Guide to Insurance — p. 16, Premises and Operations

  2. 2A storeowner deliberately starts a fire to collect more from insurance than unsold stock would bring. Which hazard category is involved?

    1. A. Moral hazard
    2. B. Morale hazard
    3. C. Physical hazard
    4. D. Legal hazard

    Answer: A

    Explanation: "moral hazard occurs when the insured stands to gain" The prospect of profiting from an insured loss creates a moral hazard; simple carelessness or a physical condition does not describe the stated incentive.

    Reference: NAIC, A Regulator's Introduction to the Insurance Industry — Chapter 1, Hazard

  3. 3Which coverage is expressly exempt from Rule 120-2-20-.02's filing-suit limitation requirement?

    1. A. Liability coverage
    2. B. First-party real-property coverage
    3. C. First-party personal-property coverage
    4. D. First-party vehicle physical-damage coverage

    Answer: A

    Explanation: Rule 120-2-20-.02 states, "Liability coverage and workers compensation coverage are specifically exempted from the requirements of this Rule."

    Reference: GA R&R - GAC - Subject 120-2-20 UNFAIR TRADE AND CLAIMS SETTLEMENT PRACTICES — Rule 120-2-20-.02

  4. 4Who may arrange for an outside provider to deliver Georgia insurance licensing tests?

    1. A. The Commissioner
    2. B. The Secretary of State
    3. C. The State Treasurer
    4. D. The Attorney General

    Answer: A

    Explanation: Rule 120-2-3-.10 says, "The Commissioner may enter into agreements with persons for the purpose of providing licensing testing services to the Department." Thus the Commissioner has that authority.

    Reference: GA R&R - GAC - Subject 120-2-3 REGULATIONS REGARDING AGENTS, SUBAGENTS, COUNSELORS, ADJUSTERS, SURPLUS LINES BROKERS, AND AGENCIES — Rule 120-2-3-.10

  5. 5How long after receiving a cancellation notice may an insured request Commissioner review?

    1. A. 15 days
    2. B. 7 days
    3. C. 21 days
    4. D. 45 days

    Answer: A

    Explanation: Rule 120-2-53-.03(1)(b) says, "Within fifteen (15) days of receipt of this Notice of Cancellation, you may mail or deliver a written request for a review."

    Reference: GA R&R - GAC - Subject 120-2-53 CANCELLATION AND NONRENEWAL REGULATION — Rule 120-2-53-.03(1)(b)

  6. 6How are policies issued under the Georgia Automobile Insurance Plan treated as proof?

    1. A. As proof of financial responsibility
    2. B. As proof of a producer license
    3. C. As proof of workers' compensation
    4. D. As proof of insurer insolvency

    Answer: A

    Explanation: Rule 120-2-14-.02(3) says Plan policies "shall be considered as proof of financial responsibility in accordance with Title 33."

    Reference: GA R&R - GAC - Subject 120-2-14 GEORGIA AUTOMOBILE INSURANCE PLAN — Rule 120-2-14-.02(3)

  7. 7A customer is injured by a defective fixture after a contractor has installed it and left the job site. Which CGL exposure addresses the completed work?

    1. A. Premises and operations
    2. B. Personal and advertising injury
    3. C. Products and completed operations
    4. D. Medical payments

    Answer: C

    Explanation: "claims occurring away from your premises that arise out of operations that have been completed or abandoned." The work was completed and the injury occurred away from the contractor's premises.

    Reference: The Georgia Business Guide to Insurance — p. 16, Products and Completed Operations

  8. 8A restaurant owner becomes careless about preventing accidental fires because insurance would absorb the damage, although a fire would not make the owner richer. Which hazard is involved?

    1. A. Physical hazard
    2. B. Morale hazard
    3. C. Moral hazard
    4. D. Occupational hazard

    Answer: B

    Explanation: "Morale hazard arises when an insured has" The owner's reduced prevention effort without gain describes morale hazard, rather than a motive to produce a profitable loss.

    Reference: NAIC, A Regulator's Introduction to the Insurance Industry — Chapter 1, Hazard

  9. 9Besides liability coverage, what other coverage is exempt from Rule 120-2-20-.02?

    1. A. Workers' compensation coverage
    2. B. First-party dwelling coverage
    3. C. First-party contents coverage
    4. D. First-party vehicle damage coverage

    Answer: A

    Explanation: Rule 120-2-20-.02 expressly says "workers compensation coverage" is exempt.

    Reference: GA R&R - GAC - Subject 120-2-20 UNFAIR TRADE AND CLAIMS SETTLEMENT PRACTICES — Rule 120-2-20-.02

  10. 10A Georgia resident applies for an insurance-agent license. To whom must the application be made?

    1. A. Commissioner
    2. B. Governor
    3. C. County clerk
    4. D. State Board of Workers' Compensation

    Answer: A

    Explanation: Rule 120-2-3-.07(1) requires the applicant to "make proper application to the Commissioner and pay all required fees."

    Reference: GA R&R - GAC - Subject 120-2-3 REGULATIONS REGARDING AGENTS, SUBAGENTS, COUNSELORS, ADJUSTERS, SURPLUS LINES BROKERS, AND AGENCIES — Rule 120-2-3-.07(1)

Topics in this practice bank

These topics describe the available practice for Casualty Agent. Review the examination outline and its sources for scope and allocation details.

  • TYPES OF POLICIES, BONDS, AND RELATED TERMS
    • Commercial general liability
    • Commercial general liability — Exposures
    • Commercial general liability — Exposures — Premises and Operations
    • Commercial general liability — Exposures — Products and Completed Operations
    • Commercial general liability — Coverage
    • Commercial general liability — Coverage — Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • Commercial general liability — Coverage — Coverage B: Personal Injury and Advertising Injury
    • Commercial general liability — Coverage — Coverage C: Medical Payments
    • Commercial general liability — Coverage — Supplemental Payments
    • Commercial general liability — Coverage — Who is an insured
    • Commercial general liability — Coverage — First named insured
    • Commercial general liability — Coverage — Limits (Per occurrence, Annual Aggregate)
    • Commercial general liability — Coverage — Damage to Property of Others
    • Automotive: personal auto and business auto
    • Automotive: personal auto and business auto — Liability
    • Automotive: personal auto and business auto — Liability — Bodily Injury
    • Automotive: personal auto and business auto — Liability — Property Damage
    • Automotive: personal auto and business auto — Liability — Split Limits
    • Automotive: personal auto and business auto — Liability — Combined Single Limit
    • Automotive: personal auto and business auto — Medical Payments
    • Automotive: personal auto and business auto — Physical damage (collision; other than collision; specified perils)
    • Automotive: personal auto and business auto — Uninsured motorists
    • Automotive: personal auto and business auto — Underinsured motorists
    • Automotive: personal auto and business auto — Who is an insured
    • Automotive: personal auto and business auto — Types of Auto
    • Automotive: personal auto and business auto — Types of Auto — Owned
    • Automotive: personal auto and business auto — Types of Auto — Non-owned
    • Automotive: personal auto and business auto — Types of Auto — Hired
    • Automotive: personal auto and business auto — Types of Auto — Temporary Substitute
    • Automotive: personal auto and business auto — Types of Auto — Newly Acquired Autos
    • Automotive: personal auto and business auto — Types of Auto — Transportation Expense and Rental Reimbursement Expense
    • Automotive: personal auto and business auto — Auto Dealers Coverage Form, including Garagekeepers Insurance
    • Automotive: personal auto and business auto — Exclusions
    • Automotive: personal auto and business auto — Individual Insured and Drive Other Car (DOC)
    • Automotive: personal auto and business auto — Mobile equipment
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Standard policy concepts
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Standard policy concepts — Who is an employee/employer
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Standard policy concepts — Compensation
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Work-related vs. non-work-related
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Other states’ insurance
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Employers Liability
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Exclusive Remedy
    • Workers Compensation insurance, Employers Liability insurance, and Related Issues — Premium Determination
    • Crime
    • Crime — Employee Dishonesty
    • Crime — Theft
    • Crime — Robbery
    • Crime — Burglary
    • Crime — Forgery and Alteration
    • Crime — Mysterious disappearance
    • Bonds
    • Bonds — Surety
    • Bonds — Fidelity
    • Professional liability
    • Professional liability — Errors and Omissions
    • Professional liability — Medical Malpractice
    • Professional liability — Directors and Officers (D&O)
    • Professional liability — Employment Practices Liability (EPLI)
    • Professional liability — Cyber liability and data breach, funds transfer
    • Professional liability — Liquor liability
    • Umbrella/Excess liability
    • Business Owners Policy (BOP)
  • INSURANCE TERMS AND RELATED CONCEPTS
    • Hazards
    • Hazards — Moral
    • Hazards — Morale
    • Hazards — Physical
    • Indemnity
    • Insurable interest
    • Loss Valuation
    • Loss Valuation — Actual cash value
    • Loss Valuation — Replacement cost
    • Loss Valuation — Market value
    • Loss Valuation — Stated/agreed value
    • Loss Valuation — Salvage value
    • Negligence
    • Liability
    • Occurrence
    • Binders
    • Warranties
    • Representations
    • Concealment
    • Deposit Premium/Audit
    • Certificate of Insurance
    • Law of Large Numbers
    • Pure vs. Speculative Risk
    • Endorsements
    • Damages
    • Damages — Compensatory
    • Damages — Compensatory — General
    • Damages — Compensatory — Special
    • Damages — Punitive
    • Compliance with provisions of Fair Credit Reporting Act
  • POLICY PROVISIONS
    • Declarations
    • Insuring agreement
    • Conditions
    • Exclusions and Limitations
    • Definition of the insured
    • Duties of the insured after a loss
    • Cancellation and nonrenewal provisions
    • Supplementary payments
    • Proof of loss
    • Notice of claim
    • Other insurance
    • Subrogation
    • Loss settlement provisions including consent to settle a loss
    • Terrorism Risk Insurance Act (TRIA)
  • GEORGIA STATE LAWS, RULES, AND REGULATIONS PERTINENT TO ALL INSURANCE LINES
    • Insurance department and commissioner
    • Insurance department and commissioner — Broad powers and duties
    • Insurance department and commissioner — Examination of records
    • Insurance department and commissioner — Investigations/Notice of hearing
    • Insurance department and commissioner — Penalties
    • General insurance definitions
    • General insurance definitions — Domestic, foreign and alien
    • General insurance definitions — Stock and mutual
    • General insurance definitions — Authorized/unauthorized and certificate of authority
    • General insurance definitions — Insurance transaction / transacting business
    • Licensing of agents, counselors, subagents, and adjusters
    • Licensing of agents, counselors, subagents, and adjusters — Agent Responsibility
    • Licensing of agents, counselors, subagents, and adjusters — License maintenance
    • Licensing of agents, counselors, subagents, and adjusters — License revocation, suspension, denial, or refuse to renew
    • Licensing of agents, counselors, subagents, and adjusters — Temporary License
    • Licensing of agents, counselors, subagents, and adjusters — Nonresident License
    • Licensing of agents, counselors, subagents, and adjusters — Counselor License
    • Licensing of agents, counselors, subagents, and adjusters — Adjuster License
    • Licensing of agents, counselors, subagents, and adjusters — Surplus Lines Broker
    • Unfair trade practices
    • Unfair trade practices — Rebating
    • Unfair trade practices — Defamation
    • Unfair trade practices — Unfair Discrimination
    • Unfair trade practices — Misrepresentation
    • Unfair trade practices — Controlled business
    • Unfair trade practices — Advertising
    • Unfair trade practices — Coercion
    • Unfair trade practices — Commingling
    • Unfair trade practices — Fiduciary Responsibility
    • Unfair trade practices — Sharing Commissions
    • Unfair trade practices — Additional Fees
    • Unfair trade practices — Unfair claims practices
    • Unfair trade practices — Fraud
  • GEORGIA RULES AND CODES PERTINENT TO PROPERTY & CASUALTY INSURANCE
    • Cancellation and nonrenewal of policies
    • Regulation of Rates
    • Binders
    • Georgia Insurer Solvency Pool
  • GEORGIA RULES AND CODES PERTINENT TO CASUALTY INSURANCE ONLY
    • Auto
    • Auto — Defensive driving
    • Auto — Uninsured Motorists coverage
    • Auto — Financial Responsibility Law
    • Auto — Georgia Automobile Insurance Plan/Assigned Risk
    • Workers Compensation Law

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