Chapter Exam: Georgia Laws and Rules

How often must an insurance agent license be renewed in Georgia? a. Every 6 months b. Every year c. Every 2 years d. Every 3 years

Every 2 years

Nonprofit life insurance providers that covered by a special section in the Georgia insurance code are called a. Fraternal life insurance organizations b. Domestic life insurance organizations c. Unauthorized insurers d. Mutual life insurers

Fraternal life insurance organizations

The Life and Health Insurance Guaranty Association is a. An entity that assists in underwriting large insurance policies b. Funded by admitted insurance companies through assessments c. Funded by the state government d. Administered by the Federal government

Funded by admitted insurance companies through assessments

Prior to a hearing that could potentially revoke an agent's license, what is required by the commissioner? a. Giving oral notice to the agent b. Giving written notice to the agent c. Giving both oral and written notice to the appointing insurer d. Giving oral notice to the appointing insurer

Giving written notice to the agent

A foreign insurance company doing business in Georgia a. Is not subject to Georgia insurance laws b. Is a company that was formed under the laws of another state c. Is a company that was formed under the laws of another country d. Is only authorized to write business outside the United States

Is a company that was formed under the laws of another state

Defamation occurs when an agent makes a false statement intended to a. Malign another insurer b. Replace an existing insurance policy with another c. Restrict fair trade d. Misrepresent the provisions of an insurance policy

Malign another insurer

Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? a. Twisting b. Intimidation c. Misrepresentation d. Sliding

Misrepresentation

An insurance agent is in violation of the Rules Governing Advertisement of Life Insurance and Annuities if the agent takes which of the following actions during a sales presentation? a. Asks prospects for referrals b. Analyzes another insurance company's policy c. Refers to guaranteed policy dividends d. Compares the costs of two similar policies

Refers to guaranteed policy dividends

When the Commissioner examines an insurer's records, who pays for the costs associated with the examination? a. The State of Georgia b. The insurance company being examined c. The Commissioner d. The National Association of Insurance Commissioners (NAIC)

The insurance company being examined

When advertising, an insurer is required to use its a. Logo b. True corporate name c. Trademark d. Trade name

True corporate name

An insurance agent is guilty of _______ if the agent misrepresents a policy to induce a policyowner to surrender an existing policy. a. Coercion b. Twisting c. Sliding d. Misrepresentation

Twisting

In Georgia, an accident and sickness policy that is paid on a quarterly basis requires a grace period of a. 7 days b. 10 days c. 31 days d. 45 days

31 days

After initially issued, a temporary license is valid for a. 3 months b. 4 months c. 5 months d. 6 months

6 months

Which document MUST accompany an application that initiates the replacement of an existing life insurance policy? a. A signed statement by the applicant regarding the replacement b. A signed replacement statement from the insurance company being replaced c. A detailed comparison of existing coverage and the proposed coverage d. A signed replacement statement from the replacing insurance company

A signed statement by the applicant regarding the replacement

1. The coordination of benefits (COB) provision exists in order to a. Avoid duplication of benefit payments b. Avoid excessive hospitalization c. Lower insurance premiums d. Maximize patient care

Avoid duplication of benefit payments

What is the requirement for a nonresident agent license applicant? a. Meeting a minimum sales quota in agent's home state b. Residing in home state for 10 years c. Being a licensed agent in the agent's home state d. Passing a nonresident examination

Being a licensed agent in the agent's home state

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? a. Coercion b. Defamation c. Rebating d. Misrepresentation

Coercion

J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? a. Twisting b. Defamation c. Coercion d. Rebating

Coercion

In Georgia, monthly-premium accident and sickness insurance policies must provide a grace period of at least a. 7 days b. 10 days c. 14 days d. 31 days

10 days

In Georgia, long-term care policies are required to provide benefits for at least a. 6 months b. 12 months c. 18 months d. 24 months

12 months

What is one of the roles of the Commissioner? a. Establishing insurance rates b. Making insurance laws c. Administering insurance laws d. Endorsing insurers

Administering insurance laws

Someone who is appointed by an insurer to engage in insurance transactions is called a(n) a. Salesperson b. Agent c. Adjuster d. An attorney-in-fact employee

Agent

In Georgia, which of the following statements is CORRECT about life insurance advertisements? a. An insurance agency is responsible for advertisements placed by its insurance agents b. The commissioner of insurance must approve advertisements before they are used c. Third-party testimonials may not be used d. The dividend may be represented as guaranteed

An insurance agency is responsible for advertisements placed by its insurance agents

Which organization was established to provide funds to protect an insured in the event of insurer's insolvency? a. National Association of Insurance Commissioners (NAIC) b. Georgia Life and Health Insurance Guaranty Association c. Department of Insurance d. Office of Insurance Regulation

Georgia Life and Health Insurance Guaranty Association

Which of the following is NOT an unfair claim settlement practice? a. Failing to acknowledge and act promptly with respect to an insurance claim b. Compelling an insured to initiate a lawsuit by offering less on an insurance claim c. Failing to accept or deny a claim within reasonable time after proof of loss is submitted d. Needing written documentation of claim details

Needing written documentation of claim details

Which of the following correctly describes a certificate of authority? a. Gives an agent authority to represent a specific insurance company b. Permits an agent to solicit insurance in Georgia c. Permits a deceased agent's relative to act as an agent for a limited period of time d. Permits an insurance company to transact business in Georgia

Permits an insurance company to transact business in Georgia

Which of the following is NOT considered rebating? a. Sharing commissions with an agent licensed in the same line of business b. Returning premium to a client as an inducement for purchasing a policy c. Giving something of value to an insured in exchange for their business d. Offering special dividends

Sharing commissions with an agent licensed in the same line of business

J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? a. Coercion b. Sliding c. Twisting d. Rebating

Twisting

All agents licensed less than 20 years are required to complete ____ continuing education hours every two years. a. 12 b. 16 c. 24 d. 30

24

Which of these is NOT a requirement to obtain an insurance agent license in Georgia? a. Submit the application with fees b. Be of good character c. Be at least 18 years if age d. Graduate High school

Graduate High school

An example of unfair discrimination would be a. Declining an insurance application because of involvement in a hazardous occupation b. Offering the same terms of overage to different policyowners in the same risk classification c. offering different terms of coverage for different policyowners having the same risk classification d. issuing a policy at a substandard rate because of poor health

offering different terms of coverage for different policyowners having the same risk classification

A producer must notify the commissioner within ____ days of an address change. a. 15 b. 30 c. 45 d. 60

30

Which of the following items are regulated by the Rules Governing Advertisement of Life Insurance and Annuities? a. Communication between marketing department and underwriting department b. Rate increase announced by insurance company via mass mailing c. Prepared sales presentations used by insurance agents d. Correspondence regarding policy loan interest rate payment

Prepared sales presentations used by insurance agents

Who is a mutual insurance company owned by? a. Its board of directors b. Its policyholders c. The State of Florida d. Its employees

Its policyholders

S takes out an accident and sickness insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this? a. Legal Actions b. Insurance with other insurers c. Entire Contract d. Reinstatement

Entire Contract

1. In Georgia, an example of an alien insurer would be one that is incorporated in a. Georgia b. Florida c. Puerto Rico d. France

France

What is an organization that solicits insurance only to its members? a. Nonadmitted company b. Mixed company c. Captive society d. Fraternal benefit society

Fraternal benefit society

Which of the following documents must an agent submit to the replacement of an existing life insurance policy? a. Notice to existing and replacing insurers of intention to replace b. A list of all policies the agent has replaced in the last 3 years c. A statement made by the agent that NAIC guidelines have been met during the replacement process d. A copy of the agent's insurance license

Notice to existing and replacing insurers of intention to replace

In Georgia, an insurer licensed to conduct business in Georgia, but domiciled in New Jersey, is called a(n): a. Non-admitted company b. Foreign company c. Domestic company d. Alien company

Foreign company

An agent's license can be suspended or revoked by a. Writing primarily controlled business b. Not meeting annual sales quota c. Replacing an existing insurance policy with a new one d. Issuing a binding receipt

Writing primarily controlled business