ExamFX Quiz Questions: Chapter 10
How soon from the reinstatement of a health insurance policy would a loss be covered?
10 days
Whenever agents submit applications to insurers, they must also submit statements disclosing whether or not replacement is involved. Who must sign these statements?
the Applicant and the Agent
An insured recently discovered that the interest rate on his policy loan once again increased. What is the shortest amount of time that could have passed since the last change in the insured's interest rate?
3 months
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 on a Medicare Supplement policy?
30 days
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60
When transacting business in this state an insurer formed under the laws of another country is known as a/an
Alien Insurer
A producer who fails to separate premium monies from his own personal funds is guilty of
Commingling
Which entity has the power to issue certificates of authority?
Commissioner of Insurance
What is the major difference between a stock company and a mutual company?
Ownership
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
illegal under any circumstances
An agent license can be issued...
only to individuals
How often must the Commissioner of Insurance examine health maintenance organizations (HMOs) authorized to do business in this state?
Every 3 years
Which term describes the benefits of a life insurance policy that the policy owner does not automatically relinquish even if the policy lapses?
Nonforfeiture Values
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
The term 'conservation effect" deals with
Discouraging policyholders from dropping existing policies
What best describes an insurance company that has been formed under the laws of this state?
Domestic
Group accident and sickness policies in Georgia have a grace period of
31 days
What is the maximum period of time a temporary license can be in force?
15 months
Producers in Georgia will be deemed to be using their license primarily to write controlled business, if during any calendar year,
Controlled business accounts for more than 25% of the agent's busniess
If the policy owner repeatedly replace policies from the same agent, this is most likely evidence that
The agent knew that replacement was intended in connection with the sale and intentionally violated the replacement regulation