Georgia Property Law

Question 1

Which of the following is true regarding a premium refund when an insured requests cancellation of their policy prior to their normal expiration date?
A. The refund is calculated on a pro-rata basis
B. The refund is calculated on a short rate basis
C. No refund is due since it was the insured who requested the cancellation
D. The eared premium must be refunded.

Answer 1

Answer: B. Short-rate refund

Question 2

A Homeowners insurance policy may be cancelled by an insurer by mailing \_\_\_ days advance notice to the named insured:
A. 30
B. 10
C. 15
D. 45

Answer 2

Answer: A. 30

Question 3

Crop policies sold in the State of Georgia must cover which of the following until said crop is harvested?
A. Wind and hail
B. Hail
C. Lightning
D. Wind

Answer 3

Answer: A. Wind and hail

Question 4

All of the following are true regarding cancellation EXCEPT:
A. The insurer must notify all named insureds
B. The insurer must notify any premium finance company
C. The notice of cancellation must be sent via first class mail
D. The insurer must keep proof that the proper notice of cancellation was sent

Answer 4

Answer: A. The insurer must only notify the first named insured via first class mail.

Question 5

When canceling a property insurance policy, the insurer must do all EXCEPT:
A. Notify any premium finance company
B. Notify any mortgagee
C. Keep proof that they mailed the proper notice
D. Notify all insured persons

Answer 5

D. Notify all insured persons