Georgia Pre-Licensing Insurance Study

The most common losses that can be covered under various types of insurance policies are: (hint 4)

(1) life, (2) health, (3) property, and (4) casualty (also known as ) liability) insurance.

Insurers are also known as:

(Insurance Companies or Carriers)

Insurance companies, also called carriers, are structured in a number of different ways, depending on: (hint 3)

1. The type of insurance they provide 2. the type of regulations they are subject to 3. the way they distribute profits (if any).

Which of the following is the correct number of days in the grace period for echpremium mode? A. 7 Day for weekly, 10 days for monthly, 31 for all others B. 10 days for weekly, 15 days for monthly, 31 for all others

A. According to the Grace Period Provision ( a Mandatory Uniform Provision), this is correct (Individual Policy Provisions)

To avoid having to submit electronic fingerprints to the Commissioner, within how many months must a producer submit a late renewal reinstatement? A. 6 B. 2 C. 8

A. If a late renewal reinstatment is received MORE THAN 6 Months after the expiration date, the licensee will be required to submit eletronic fingerprints. (State Laws)

Proof of loss is required within ______ days of loss. A. 90 B. 60 C. 45

A. The Proof of Loss Provision (a Mandtory Uniform Provision) stipulates that the insured must generally provide proof of the loss withing 90 days of the loss, or within the shortest time possible, but not exceeding 1 year unless the insured suffer legal incapacity. (Individual Policy Provisions)

Which of the following statments accurately describes the requirements for insurance advertising established by the Georgia insurance code? A. An advertisement may not promote policies with an initial premium which is lower than the usual premium B. Advertisement mus disclose the source of any staatistical information used

B. 40 days is the maximum not minimum time between an initial advertisment which states the enrollment deadline and the deadline itself. (State Laws)

Which of the following is not a Mandatory Uniform Provision? A. Payment of Claims B. Conformity with State Statutes C. Reinstatement

B. Conformity with State Statutes is an Optional Uniform Provision. (Individual Policy Provisions)

Which of the following statment regarding the Continuing Educaation (CE) requirements for Georgia licensees is accurate? A. Every 2 years, resident counselors must complet 18 hours of CE B. Every 2 years, resident agents licensed less than 20 years mus complete up to 24 hours of CE, and resident agents licensed at least 20 year must complete up to 20 hours of CE

B. Every 2 years, resident agents licensed less than 20 years must complet up to 24 hours of CE. (State Laws)

which one of the following is not a factor when an insurer underwrites a policy? A. Tobacco B. Marital Status C. Age D. Gender

B. Marital Status

Which provision is an Optional Uniform Provision? A. Claim Forms B. Ralation to Earnings to Insurance C. Payment of Claims D. Physical Examination

B. Relation of Earning to Insurance is an Optional Uniform Provision. The other choices are Mandatory Uniform Provisions. (Individual Policy Provisions)

The Guaranteed Renewable Provision states that the policy is: A. Renewable with no increase in premium B. Renewable with premiums that may be increased for the entire classes of insureds C. Renewable only at the option of the insurer

B. The Guaranteed Renewable Provision allows the insurer to adjust premiums upon renewal, but by classification only, not for particular individuals. (Individual Policy Provisions)

The stockholders elect a

Board of Directors to manage the company,

How many hour of CE would an agent who had been licensed for 10 years need to complet during each biennium? A. 20 B. 10 C. 24

C. In orderfor an insurance lincense to be renewed, each licensee must complete continuing education (CE) instruction during each biennial nenewal period of 24 hours, 3 of which must be in ethics. Licensees who have continuously maintained their license for 20 years or more need only complete 20 hours of CE, 3 of which must be in ethics. (State Laws)

Which type of insurance license may be granted by the Commissioner for a period of 3 to 12 months? A. Provisional B. Temporary C. Probationary

C. Probationary The Commissioner may issue a license for 3 to 12 months, subject to revocation for cause without a hearing. (State Laws)

The Time Limit on Certain Defenses (Incontestable) period is _____ years under individual health and disability contracts. A.5 B. 3 C. 2

C. The Time Limit on Certain Defenses (Incontestable) period is 2 years (Individual Policy Provisions)

The insurance industry consists of__________, __________,__________, and __________that provide support and services to the general public and, more specifically, the consumers who buy insurance.

Companies, agencies, producers, and organizations

Insurance Agencies

Independent sales organizations that provide service and distribute insurance policies to consumers

The Insurers (Insurance Companies or Carriers) provide insurance coverage by:

Issuing particular insurance policies or contracts

Insurance Agents or Producers

Licensed individuals representing an insurance company when transacting insurance business

Determine if 100% of Inpatient Hospitlization for the first 60 days in a benefit period after the deductible is met is under: Medicare Part A Medicare Part B Medicare Supplement Plan A

Medicare Part A

Determine if 100% skilled nursing care for the first 20 days are covered under: Medicare Part A, Medicar Part B or Medicare Supplement Plan A

Medicare Part A

Determine if Durable medical equipment is cover under: Medicare Part A, Medicar Part B or Medicare Supplement Plan A

Medicare Part A

Determine if Hospice is cover under: Medicare Part A, Medicar Part B or Medicare Supplement Plan A

Medicare Part A

Determine if Inpatient mental health care is covered under: Medicare Part A, Medicar Part B or Medicare Supplement Plan A

Medicare Part A

Determine if Operating room charges are cover under: Medicare Part A, Medicar Part B or Medicare Supplement Plan A

Medicare Part A

What is the regulatory support organization created and governed by the chief insurance regulators and commissioners from the 50 states, D.C., and five U.S. territories.

N A I C - National Association of Insurance Commissioners

What organization provides resources, research, legislative and regulatory recommendations and interpretations for state insurance regulators

National Association of Insurance Commissioners

The person or entity that has insurance protection under a policy for a covered loss is known as

The Insured

N A I C

The National Association of Insurance Commissioners

(True or False) Insurance allows us to transfer the risk of a potential loss to the insurance company

True

True or False: The NAIC has no legal authority to enact or enforce insurance laws. The primary goal of the association is to promote state uniformity.

True

Insurance is designed to provide protection, usually in the form of payment, in case there is:

an unforeseen event that causes a covered loss

Stockholder Board of Directors elect office to

handle the day-to-day activities.

Stock Insurance Company

is owned by its stockholders

The judicial branch

is responsible for interpreting and determining the constitutionality of the statutes.

The executive branch

is to enforce the existing statutes that have been put in place.

The insurance industry is regulated primarily at the state level through the ________, ________, and ________branches

legislative, judicial, and executive branches

The Commissioner, Director, or Superintendent of Insurance represents:

the executive branch and has the power to issue rules and regulations to help enforce these statutes.

The legislative branch

writes and passes state insurance laws, or statutes, designed to protect the insuring public.