Free GA P&C Exam Flashcards

Georgia's insurance regulator. OCI licenses producers, reviews insurer and market conduct, enforces the Georgia Insurance Code, handles complaints, and oversees safety fire responsibilities tied to the agency.

Georgia voters elect the Commissioner. For exam purposes, remember the Commissioner is not simply appointed by the Governor and has authority to enforce insurance laws and discipline licensees.

Georgia insurance statutes are primarily in Title 33 of the Official Code of Georgia Annotated. References to Title 33 usually signal a state-law licensing, policy, unfair practice, or regulatory question.

Georgia applicants select both Property and Casualty for the combined P&C agent authority. Local OCI guidance says Georgia does not issue just Property or just Casualty under the combined application path.

Current OCI/Pearson materials list an 8-hour Property course and an 8-hour Casualty course, taken within the last 12 months, unless the applicant qualifies for an exemption such as CPCU.

The combined Property & Casualty Agent exam is 12-GA-06. It has 125 scored questions plus 10 unscored pretest questions, a 2.5-hour limit, and a 70% passing score.

A failed candidate may schedule a new exam after one day, but must wait 14 days to retest after the first two failed attempts and 60 days after the third and later failed attempts.

New resident applicants must submit the notarized citizenship or lawful-presence affidavit with a copy of secure and verifiable ID. The application cannot be approved until required documents are uploaded.

New resident applicants generally complete electronic fingerprinting for a criminal background check. Fingerprinting is a licensing step separate from passing the exam.

Georgia resident producers generally complete 24 hours of continuing education every 2 years, including ethics, and renew on a birth-month cycle. The producer remains responsible for timely credit completion.

Minimum liability limits are $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage per accident.

Georgia is a tort, at-fault state. The driver who causes the accident is financially responsible, and that driver's liability coverage responds to injuries or property damage caused to others.

Uninsured motorist coverage must be offered with Georgia auto policies. If the insured rejects UM coverage, the rejection should be in writing; a verbal-only rejection is not enough for exam purposes.

UM responds when the at-fault driver has no applicable liability insurance. UIM responds when the at-fault driver has liability insurance, but the limits are not enough for the insured's covered damages.

An assigned-risk mechanism for drivers who cannot obtain auto coverage in the voluntary market. It supports availability, but coverage is usually more limited or expensive than voluntary-market coverage.

Medical Payments is optional first-party coverage for reasonable medical expenses of the insured and passengers, usually regardless of fault and without replacing liability coverage.

An employer may be liable for an employee's negligent driving when the employee acts within the course and scope of employment, such as making business deliveries.

Coverage A insures the dwelling structure. In common HO forms, it is the anchor limit used to calculate many related property limits such as other structures or personal property.

A typical HO-3 covers the dwelling on an open-perils basis and personal property on a named-perils basis, subject to exclusions, conditions, limits, and endorsements.

Standard homeowners policies generally exclude flood from rising or overflowing surface water. Flood coverage is usually purchased separately through the NFIP or a private flood insurer.

A residual market option for basic property insurance when eligible owners cannot find coverage in the voluntary market. It is not meant to be broader or cheaper than standard homeowners coverage.

A dwelling policy is commonly used for rental, seasonal, or non-owner-occupied residential property. It focuses on property coverage and does not package the same personal liability features as homeowners forms.

DP-1 is basic named-perils coverage. DP-3 generally gives broader open-perils protection on the dwelling, subject to exclusions, and is usually the broader dwelling form.

Replacement cost pays the cost to replace damaged property with comparable new property, subject to policy terms. Actual cash value subtracts depreciation from replacement cost.

Coinsurance encourages the insured to carry insurance near a required percentage of the property's value. If the insured is underinsured at loss time, a partial-loss penalty can apply.

Business income coverage replaces covered lost income and continuing expenses when a covered direct physical loss causes a necessary suspension of operations during the restoration period.

This coverage addresses extra costs caused by enforcement of current building codes after a covered loss, such as demolition of undamaged parts or code-required upgrades during repair.

Extended vacancy increases property risk and can restrict or suspend coverage for specified perils. Commercial property questions often test vacancy because it changes the loss analysis.

Builder's risk covers property under construction, including the owner's, contractor's, or lender's insurable interest while the project is being built.

Georgia generally requires workers' compensation coverage when an employer has three or more employees. Smaller employers may still buy coverage voluntarily.

The employee receives statutory benefits without needing to prove employer negligence. In exchange, most ordinary negligence suits against the employer for the same injury are limited.

Covered work injuries generally trigger medical benefits and wage-related disability benefits. Death benefits may apply for dependents when a covered injury is fatal.

Part Two of a workers' compensation policy covers certain employer liability suits connected to employee injuries that fall outside ordinary statutory benefit payments.

Commercial General Liability Coverage A addresses third-party bodily injury and property damage liability caused by an occurrence, subject to exclusions and limits.

An occurrence form is triggered by injury or damage that happens during the policy period, even if the claim is made later, subject to policy terms.

A claims-made policy generally requires the claim to be first made during the policy period, and often requires the wrongful act to fall after any retroactive date.

This CGL coverage can address specified offenses such as libel, slander, false arrest, invasion of privacy, or certain advertising injury claims, not ordinary bodily injury.

This CGL exposure involves bodily injury or property damage arising from the insured's products or completed work after the work is finished or the product is away from the premises.

An umbrella or excess policy provides additional liability limits above underlying policies. Umbrellas may also provide limited broader coverage, but only under their own terms.

Surplus lines is used for eligible risks the admitted market will not write. The producer must follow placement and disclosure rules before using a nonadmitted carrier.

An admitted insurer is licensed in Georgia and participates in the guaranty mechanism. A nonadmitted surplus lines insurer is not admitted and is not protected by GIGA.

GIGA protects covered claimants when an admitted P&C insurer becomes insolvent. Most covered claims are capped at $300,000, while workers' compensation claims follow statutory limits.

A producer should not use GIGA protection to sell a policy or imply coverage is guaranteed like a bank deposit. Guaranty protection is a backstop, not a marketing feature.

A false or misleading statement about policy terms, benefits, exclusions, insurer financial condition, or a competitor's coverage. Misrepresentation is an unfair trade practice.

Rebating means offering a premium refund, commission sharing, or other valuable inducement not stated in the policy to persuade someone to buy insurance.

Twisting occurs when a producer uses misrepresentation to induce a policyholder to replace existing coverage. The problem is the deceptive comparison, not replacement itself.

Insurers may classify risks using actuarially justified factors, but cannot unfairly discriminate between applicants or insureds of the same class and hazard.

Local Georgia study materials emphasize that insurers should acknowledge P&C claims promptly, commonly within 15 days, and investigate and settle claims in good faith.

Premiums collected by a producer are fiduciary funds. They must be kept separate from personal funds and remitted according to the producer's authority and insurer agreement.

A producer must not backdate a policy to cover a loss that already occurred. Insurance is designed for fortuitous future losses, not known losses after the fact.