Georgia Personal Lines Insurance License Exam — All Questions

How does Georgia generally handle liability for auto accidents?

• a.It is a pure no-fault state; each driver's own insurer pays regardless of fault
• b.It bars all lawsuits between drivers and routes claims through a state fund
• c.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and damage✓
• d.It requires mandatory PIP on every policy in place of liability coverage

Georgia is a traditional at-fault (tort) state: the driver who causes a crash is responsible for the other party's injuries and property damage, which is why liability limits matter. Georgia does not use a no-fault/PIP system. Confirm current rules with the Georgia Office of Insurance and Safety Fire Commissioner (https://oci.georgia.gov/).

What must a Georgia personal auto policy carry to satisfy the state's financial-responsibility law?

• a.Only comprehensive and collision coverage
• b.At least the minimum bodily injury and property damage liability limits set by Georgia law✓
• c.Nothing — Georgia does not require auto insurance
• d.Only personal injury protection (PIP)

Georgia requires drivers to carry at least the minimum bodily injury and property damage liability limits set by state law. Because required limits can change, do not memorize a single figure — verify the current Georgia minimum limits with the Office of Insurance and Safety Fire Commissioner (https://oci.georgia.gov/) before advising a client.

With respect to uninsured/underinsured motorist (UM/UIM) coverage on a Georgia personal auto policy, which is generally true?

• a.UM/UIM is prohibited in Georgia
• b.UM/UIM automatically replaces liability coverage
• c.Insurers must make UM/UIM coverage available; the insured may typically accept, reject, or adjust it in writing✓
• d.UM/UIM is available only to commercial fleets

Georgia auto law generally requires insurers to offer uninsured/underinsured motorist coverage; the applicant may accept it or reject/adjust it, often with a signed election. UM/UIM protects the insured when the at-fault driver has no or insufficient coverage — important in an at-fault state like Georgia. Confirm current UM/UIM rules with the Georgia Office of Insurance and Safety Fire Commissioner.

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Georgia?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Office of Insurance and Safety Fire Commissioner✓

Georgia restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Georgia notice periods with the Office of Insurance and Safety Fire Commissioner.

Which best describes the body that writes and enforces Georgia's insurance regulations affecting personal lines policies?

• a.The Office of the Commissioner of Insurance and Safety Fire, a state agency led by an elected Commissioner✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county probate court where the policy is issued

Insurance in Georgia is regulated at the state level by the Office of the Commissioner of Insurance and Safety Fire. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Georgia Office of Insurance and Safety Fire Commissioner (https://oci.georgia.gov/).