Georgia State Insurance Test Practice

Commissions for Suspended License

A person with a suspended license may still receive previously earned commissions and renewal commissions.

Domestic Insurer

An insurer formed under the laws of Georgia

Alien Insurer

An insurer formed under the laws of another country

Foreign Insurer

An insurer formed under the laws of another state

Mutual Insurer

An insurer is an insurer without stock or shares but which is owned and governed by its policyholders

Qualification to obtain Certificate of Authority

An insurer must have $1.5 million in capital to obtain this

Stock Insurer

An insurer with stock or shares and which is governed by its shareholders

Appeal of Insurance Commissioner's Action

Any action of the Insurance Commissioner may be appealed within 30 days to the Superior Court of Fulton County.

At any time, the Commissioner may examine the records of

Any insurer authorized to do business in Georgia Any licensed insurance agent, broker, counselor, or adjuster, and any person transacting the business of insurance

Violation of Cease and Desist Order

Any person who violates this order by the Insurance Commissioner is subject to a monetary penalty of up to $10,000 for each violation.

The Commissioner must examine

Domestic Insurers at least once every 3 years and rating organizations at least once each 5 years

A license may be refused,suspended, or revoked by the Insurance Commissioner due to

Fraudulent or dishonest practices Holding a license for the purpose of securing rebates or commissions (controlled business) Lack of trustworthiness or competence Knowingly over-insuring a risk Failure to report to the Insurance Commissioner any criminal activity within 30 days of the date of arrest Failure to report to the Insurance Commissioner any license suspension or revocation in another jurisdiction within 60 days Failure to pay ordered child support

Detailed Annual Report

Insurers in Georgia must file this annually with the Insurance Commissioner

The Insurance Commissioner has the authority to

Make rules and regulations after giving notice to the public Organize the Department of Insurance and assign duties to staff members Issue orders (cease and desist orders) to agents or Insurers Regulate anything involving "transacting insurance"

A Requested Hearing

Must be held within 30 days of request May be held at any place designated by the Insurance Commissioner Must be open to the public Requires that at least 10 days advance notice be given to all affected persons Must allow the affected persons to testify, present evidence and witnesses, be represented by counsel, and to subpoena witnesses and other evidence.

Any cease and desist order from the Insurance Commissioner

Must be written and signed State it's effective date and purpose Be delivered to the person to be ordered by mailing it to the person's principle place of business or last address of record in the Commissioner's office

Transacting Insurance

Solicitation and Inducement (getting applications, having people buying our policies) Preliminary negotiations Effectuation of a contract of insurance Transaction of matters subsequent to effectuation of the contract and arising out of it

Subpoenas served by the Insurance Commissioner

Subpoenas must be served in the same manner as if issued by a superior court. If any individual fails to obey the a subpoena, the Commissioner may request that the superior court of the county in which the proceeding is pending issue an order requiring such individual to comply with the subpoena.

Insurance Commissioner Term

The Commissioner is elected for a 4 year term

Legal Action of the Insurance Commissioner

The Insurance Commissioner may bring legal action in the appropriate superior court to enforce any order of the Insurance Commissioner.

Hearings

The Insurance Commissioner may hold these for any purpose deemed necessary.

Violation of Insurance Laws by Insurer, agent, broker, adjuster, or counselor

The Insurance Commissioner may place a person on probation for up to 1 year for each violation Suspend or revoke the person's license Issue a monetary penalty up to $1,000 for each unintentional violation Issue a monetary penalty up to $5,000 for each intentional (knew or should have known) violation

With respect to an examination, investigation, or hearing, the Insurance Commissioner

The Insurance Commissioner may take dispositions, subpoena witnesses, administer oaths or affirmations, examine any individual under oath, and compel the production of records, books, papers, and other documents.

Hearing requested by any aggrieved person

The Insurance Commissioner must hold any a hearing upon the written demand of any person aggrieved by the Commissioner's act, threatened act, or failure to act.

Violation of Insurance Laws

The Insurance Commissioner must inform the prosecuting attorney in whose circuit or jurisdiction any criminal violation of the insurance laws may have occurred.

Deposit to State General Fund

The Insurance Commissioner must pay all taxes, fees, charges, and penalties and interest collected to the Office of Treasury and Fiscal Services to be deposited to the State.

At the direction of the Insurance Commissioner

The Insurer or person so examined must pay all the actual expenses of the examination beyond the cost of regular Department employees

Certificate of Authority

This must be obtained by an Insurer to be admitted to transact insurance in Georgia