Free Georgia Claims Adjuster Practice Exam Online

Correct answer: D. 3 business days

Correct — 3 business days is the statutory rescission period.

• A: 10 business days overstates the actual rescission window.
• B: 24 hours understates the window; it's measured in business days, not hours.
• C: 30 calendar days is far longer than the statutory window.

Correct answer: B. Business income claims require covered property damage causing suspension and measured income loss under policy terms

• A: This states the rule for extra expense: Extra expense covers necessary expenses to reduce suspension after covered property damage, subject to policy terms. The question instead asks about business income loss, which has a different trigger or coverage function.
• C: This states the rule for debris removal: Debris removal coverage can pay removal of covered damaged property after a covered loss, subject to limits. The question instead asks about business income loss, which has a different trigger or coverage function.
• D: This states the rule for cause and origin: Cause-and-origin investigation determines what caused the loss and whether exclusions or coverage conditions apply. The question instead asks about business income loss, which has a different trigger or coverage function.

Correct answer: C. Extra expense covers necessary expenses to reduce suspension after covered property damage, subject to policy terms

• A: This states the rule for ordinance or law: Ordinance or law issues involve increased costs due to code enforcement after covered damage when coverage applies. The question instead asks about extra expense, which has a different trigger or coverage function.
• B: This states the rule for mold limitation: Mold or fungi losses are often limited or excluded unless caused by a covered water loss and policy terms allow coverage. The question instead asks about extra expense, which has a different trigger or coverage function.
• D: This states the rule for standard fire policy: Standard fire policy concepts include fire coverage foundations, policy conditions, and insured duties after loss. The question instead asks about extra expense, which has a different trigger or coverage function.

Correct answer: A. Ordinance or law issues involve increased costs due to code enforcement after covered damage when coverage applies

• B: This states the rule for debris removal: Debris removal coverage can pay removal of covered damaged property after a covered loss, subject to limits. The question instead asks about ordinance or law, which has a different trigger or coverage function.
• C: This states the rule for commercial property valuation: Commercial property valuation may use ACV, replacement cost, agreed value, or functional replacement cost depending on form. The question instead asks about ordinance or law, which has a different trigger or coverage function.
• D: This states the rule for direct physical loss: Property coverage generally requires covered direct physical loss or damage to covered property. The question instead asks about ordinance or law, which has a different trigger or coverage function.

Correct answer: C. Debris removal coverage can pay removal of covered damaged property after a covered loss, subject to limits

• A: This states the rule for mold limitation: Mold or fungi losses are often limited or excluded unless caused by a covered water loss and policy terms allow coverage. The question instead asks about debris removal, which has a different trigger or coverage function.
• B: This states the rule for homeowners personal property: Homeowners personal property claims require ownership, covered peril, valuation, special limits, and documentation review. The question instead asks about debris removal, which has a different trigger or coverage function.
• D: This states the rule for covered property: Covered property must fall within the policy's described property categories and location terms. The question instead asks about debris removal, which has a different trigger or coverage function.