Georgia Adjuster Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Georgia Adjuster Test with flashcards and multiple choice questions, each question provided with hints and explanations. Prepare to pass your exam with confidence!

Practice this question and more.

What is a key duty of corporate directors and officers regarding liability?

To operate with complete immunity
To ensure no losses occur
To protect the interests of the company
To manage personal liability within policy limits

The correct answer is: To protect the interests of the company

A key duty of corporate directors and officers is to protect the interests of the company. This responsibility encompasses the obligation to act in good faith, with care, and in a way that is in the best interests of the corporation and its shareholders. Directors and officers must make decisions that are intended to enhance the company’s profitability and sustainability, which involves strategic planning, risk management, and ensuring compliance with laws and regulations. This duty is often referred to as the fiduciary duty, which means they must prioritize the company's interests over their personal interests and avoid conflicts of interest. Properly fulfilling this duty helps to safeguard the company from potential legal issues and financial losses while also fostering stakeholder trust and corporate reputation.