Ch 11: State Laws, Rules, and Regulations

If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement?

"Paid endorsement"

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

How soon from the reinstatement of a health insurance policy would a loss be covered?

10 days

Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?

4

If an insured's cognitive impairment results in the lapse of a long-term care policy, how long from the policy lapse may the insured request reinstatement?

5 months

Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?

5 years

Once an individual is licensed as an insurance producer for life or accident and health insurance, how many hours of training must the producer complete initially to sell long-term care insurance partnership policy?

8 hours

Insurers or agents soliciting partnership policies must provide each prospective applicant with all of the following EXCEPT

A statement that the insured does not automatically qualify for Medicare Part A.

Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?

Nonforfeiture values

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums.

If policyowners repeatedly replace policies from the same agent, this is most likely evidence that

The agent knew that the replacement was intended in connection with the sale and intentionally violated the replacement regulation.

What is the maximum period of time a temporary license can be in force?

15 months

When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy until the conclusion of the next regular examination by the Insurance Department or for

3 years.

An insurance agent has received a request for a hearing from the Commissioner. Within how many days must the hearing be held?

30 days

How long is the free-look period for long-term care policies issued in Georgia?

30 days

All accident and health insurance policies issued in this state must include a grace period of at least

30 days.

All of the following are examples of violations of replacement EXCEPT

Advising an applicant to answer questions correctly.

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice.

Which of the following would be considered a violation of the life insurance advertising regulations?

Calling a variable insurance policy an investment plan

The term "conservation effort" deals with

Discouraging policyholders from dropping existing policies.

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer.

Insurers must screen all marketing plans to ensure that an advertisement does NOT use as the name of any kind of an annuity contract any phrase that

Does not include the word "annuity" unless accompanied by other clear language indicating it is an annuity.

How is the Commissioner of Insurance selected to be the chief officer of the Department of Insurance?

Elected to office

A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it. This is known as a/n

Reciprocity agreement.

Who elects the Commissioner of Insurance to office?

Registred voters

When a policy is being replaced, the replacing company notifies the

Replacement company.

Who is responsible for the contents of life insurance advertising?

The insurer

All of the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in settling the claim.

Whenever agents submit applications to insurers, they must also submit statements, signed by the application and agent, disclosing the involvement or lack of involvement of

Replacement.

A producer who fails to segregate premium monies from his own personal funds is guilty of

Comingling.

The act of trying to discourage a policyholder from dropping his/her existing policy is called

Conservation effort.

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

Foreign

Which of the following entities is responsible for determining whether an advertisement might mislead or deceive a person of average education and intelligence?

The Commissioner

What is the function of a certificate of authority?

It allows an insurer to transact insurance in Georgia.

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid.

Qualifications for soliciting, selling, or negotiating a long-term care partnership policy include all of the following EXCEPT

Obtaining a partnership policy license from the Commissioner.

The duties of an agent where replacement is involved include all of the following EXCEPT

Splitting the commission with the agent who originally sold the policy being replaced.

If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?

The policy will not lapse since payment to the agent is the same as a payment to the insurer.

Which provision stipulates that misstatements made in a health insurance application may not be used to deny a claim after the policy has been in force for 2 years?

Time limit on certain defenses

Which of the following terms will be permissible in describing a life insurance policy in company advertisements?

Variable plan

Medicare supplements specifically exclude all of the following EXCEPT

Surgical expenses of persons eligible for Medicare.

If the Commissioner is not able to serve due to disability, resignation, or death, which of the following will happen?

The Chief Deputy Commissioner will serve as the Commissioner until the next election.

The entire contract is made up of all of the following EXCEPT

The buyer's guide.

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurer's financial condition

In replacement, an existing insurer must provide policyowners with a policy summary for existing life insurance within how many days of receiving the written communication and replacement?

10

Once an agent has met the requirements to sell long-term care insurance partnership policies, how often must the agent complete the 4 hours of ongoing training courses?

Every 24 months

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary responsibility.

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity.