Free Georgia Property & Casualty Insurance License Exam Practice Test

Sample GA P&C practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Commercial General Liability

   A commercial general liability (CGL) policy is written on a claims-made basis. The policy period is January 1, 2023, to January 1, 2024. A claim is made on March 15, 2024, for an occurrence that happened on May 10, 2023. What is the most likely outcome regarding coverage under this CGL policy, assuming no prior acts or extended reporting period endorsements are in effect?

   • A.The claim will not be covered because it was made after the policy expiration date.(Correct)
   • B.The claim will be covered because the occurrence happened during the policy period.
   • C.The claim will not be covered because the claim was made after the retroactive date.
   • D.The claim will be covered if the insured purchased an extended reporting period (ERP) endorsement.

   Explanation

   Claims-made policies cover claims made during the policy period for occurrences that happened after the retroactive date. Since the claim was made on March 15, 2024, which is after the policy expired on January 1, 2024, it is not covered, absent an ERP.

2. Question 2Commercial Property Insurance

   A business owner in Georgia has a commercial property insurance policy with a limit of $500,000 and a deductible of $5,000. The building sustains $75,000 in covered damages from a fire. In addition, business personal property valued at $100,000 is damaged, with $20,000 of that being inventory that was temporarily stored off-premises in a leased warehouse. What is the total amount the insurer will pay for this loss?

   • A.$165,000(Correct)
   • B.$172,000
   • C.$175,000
   • D.$170,000

   Explanation

   The insurer will pay for the building damage ($75,000) and the business personal property damage ($100,000), totaling $175,000. The deductible of $5,000 is then subtracted, resulting in a payout of $170,000. The location of the damaged inventory does not affect coverage as long as it's within policy terms.

3. Question 3Business Auto Policy

   A Georgia auto repair shop has a Business Auto Policy (BAP). An employee, while test-driving a customer's vehicle after repairs, negligently causes a collision, resulting in $30,000 in damage to the customer's car and $10,000 in bodily injury to the other driver. Assuming the BAP has liability limits of $100,000 per accident for property damage and $300,000/$600,000 for bodily injury, how will the insurer respond to this claim?

   • A.The insurer will deny coverage because the employee was test-driving a customer's vehicle.
   • B.The insurer will pay $30,000 for property damage and $300,000 for bodily injury.
   • C.The insurer will pay $30,000 for property damage and $10,000 for bodily injury.(Correct)
   • D.The insurer will pay $30,000 for property damage and up to $300,000 for bodily injury.

   Explanation

   A BAP typically covers liability arising from the use of owned, leased, or hired autos, and autos owned by employees in the business. The employee's negligence while test-driving a customer's vehicle would fall under the shop's liability coverage. The insurer will pay the actual damages up to the policy limits: $30,000 for property damage and $10,000 for bodily injury.

Want the full exam? Start the free practice test →

Frequently asked questions

Related practice tests

• Series 7
• SIE
• Series 63
• Series 65