Insurace 0

When do certification records expire? And how many days do they have to correct?

Every 5 years they must renew; Every person being examined must make their records freely accessible. If the Commissioner finds these records inadequate, the person will be given 60 days to correct them. If the individual fails to do so, experts may be employed to correct them at the expense of the person being examined.

Insurance gurantee association

insolvent insurers All admitted insurers must be members of the Association Unfair trade practice: stating that the insurer's policies are guaranteed by the existence of the Association

binder

Other than wirh lifeand healthvibders can be written orally and verabally, must contain the same contract info in the beginning , No binder shall be valid beyond the issuance of the policy for which the binder was given, or beyond 90 days from its effective date, whichever period is shorter. If a policy has not been issued, a binder may be extended or renewed beyond 90 days with the written approval of the Commissioner.

Non resident producer

A nonresident producer is an individual who is domiciled and licensed as a resident producer in another state. A nonresident producer is subject to the same limitations and supervision as a resident producer.

misdemeanor or felony

Anyone effectuating an insurance contract must report to the insurer the premium paid for that contract. Willful violations of this requirement will be considered a misdemeanor. Any willful violation will be considered a misdemeanor unless the amount involved exceeds $1,000; in which case, the violation will be considered a felony.

Sharing Commissions

Cannot give commission unless you are a licensed agent. Can not receive commission unless you hace a licenced

Comisioner of insurance

Elected for 4 years Regulates the internal affairs of the Department of Insurance Does not write laws Examines all authorized insurers

What are the three agent autheity types?

Express, implied, apparent

Financial strength classification of insurance companies

Financial stregth - stock companies : taxable, no dividends, non participating - Mutual companies: participating, non taxable dividends ; dividends not guaranteed

How much additional trust capital must an insurance company provide

Furthermore, the insurer must deposit a trust with the state in the following amount: $100,000 for one class of insurance; and $25,000 for each additional class of insurance. No more than $200,000 total is required for any combination of classes. If a deposit is made by an alien insurer, the amount must be the larger of the greatest deposit required of a domestic insurer or $300,000

How can insurance companies be classified

Insurance companies can be classified in a variety of ways based on ownership, authority to transact business, location of incorporation (domicile), marketing and distribution systems, or rating (financial strength).

coercion

It is illegal to be involved in any activity of coercion which is intended to restrict fair trade or to create a monopoly. Coercion is an unfair trade practice in which an agent uses physical or mental force with the intent of inducing an applicant to purchase insurance.

Producer regulation

Licensees may be issued only to individuals Only one license of the same type is allowed per agent, but may hold more than one license (for different lines of authority) Must be licensed in the line of authority for which the agent transacts insurance Avoid unfair trade practices

Licensing Process

Meet age and residency requirements (18 years old; reside in the state at least 6 months a year) Pass examination Submit application and fees Be of good character

What is the certification fee for a non resident? And when will certification expire?

The annual registration fee for a certificate of authority to transact insurance in this manner is $25. This certificate will expire on December 31st in the year after it is issued.

Reciprocity

a mutual interchange of rights and privileges

Deformation

occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business. This also applies to statements that are maliciously critical of the financial condition of any person or a company.

Lloyd's Associations

operate an insurance mechanism, in which members are liable only for their portion of risk (not an insurance company)

promulgate

to make public, to put into action (e.g. laws, court decrees, and similar)

When can an non resident act as an agent?

A nonresident agent cannot act as the agent of an insurer unless he or she is appointed by that insurer as follows: The insurer must file a notice of appointment within 15 days; The Commissioner will then verify that appointment within 30 days. If the agent is deemed ineligible, the insurer will be notified within 5 days of the determination; and The insurer must pay an appointment fee.

What are the location classification of insurance companies

Location - Domestic - Foreign - Alienstock and mutual

What is the purpose of certification and authorization?

The purpose of licensing is to ensure that a producer meets educational and ethical standards required to fulfill producer's responsibilities to the insurer and to the public. Licensing regulations set out the requirements, procedures, and fees relating to the qualification, licensure, and appointment of insurance producers.

Twisting

is a misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, lapse, switch policies, or take out a policy with another insurer. Twisting is prohibited.

Agent Authority

A relationship in which one person is authorized to represent and act for another person or company is established through the law of agency. The agency contract details the authority an agent has within his/her company. Contractually, only those actions that the agent is authorized to perform can bind the principal (insurer).

Inactice status

An agent's license will be placed on inactive status if the agent does not have on file with the Commissioner a certificate of authority to represent at least one insurer licensed to do business in the state.

Finacial resposibility law fine

Any person whose driver's license has been suspended for violation of any provisions of the financial responsibility law must immediately return the license to the Department. Any person who willfully fails to return the suspended license will be found guilty of a misdemeanor, and upon conviction, will be punished by a fine up to $500 or by imprisonment for up to 30 days, or both.

Before insures can transact business in the United states they must apply for a

Certificate of authority

Rebating

Defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of a rebate are illegal. Rebates may include, but are not limited to, the following: Rebates of premiums payable on the policy; Special favors or services; Advantages in the dividends or other benefits; and Stocks, bonds, securities, and their dividends or profits.

Implied authority

Implied authority is authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal. Implied authority is incidental to and derives from express authority since not every single detail of an agent's authority can be spelled out in the written contract. Example: If the agency contract does not specifically authorize the agent to collect premiums and remit them to the insurer, but the agent routinely does so in the process of solicitation and delivery of policies, the agent has the implied authority to collect and remit premiums.

Miscellaneous Georgia Insurance Laws car insurance mortor vechile

No owner of a motor vehicle required to be registered in the state of Georgia (or any insured other than a self-insurer) is permitted to operate or authorize any other person to operate motor vehicles unless the owner has a motor vehicle liability insurance policy (equivalent to that required as evidence of security for bodily injury and property damage liability under the Motor Vehicle Safety Responsibility Act).

What are the capita requirements for an insurance agency

In order to qualify for an original certificate of authority, an insurer must have a minimum of $1.5 million in capital stock or surplus.

Fines and jail time for insurance fraud

Violations of this law are felonies punishable by imprisonment for a term of at least 2 years, but no more than 10 years, a fine of up to $10,000, or both.

What penalties are charged for violation of fair trade under COA

After notice, hearing, and a cease and desist order of the Commissioner, anyone who violates the order may be subject to the following penalties: A fine of up to $10,000 for each violation; Suspension or revocation of such a person's license; and Any other appropriate relief.

Cancellation and renewal

Cancellation for nonpayment of premium: 10 days' notice Cancellation for other reasons: 30 days' notice After policy has been in effect at least 60 days, cancellation may only be for: - Nonpayment of premium - Fraud, concealment, or material misrepresentation - Substantial change in the risk - Violation of any material policy terms or conditions

What happens if the commissioner suspects a violation in unfair trade practices

Commissioner may issue a statement of charges and hold a hearing for any purpose deemed necessary (within the scope of the Insurance Code). If the Commissioner finds that the request for a hearing is made in good faith and that that the applicant could be aggrieved, a hearing will be held within 30 days after receipt of the request. A notice of the time and place of the hearing must be given at least 15 days in advance. Within 30 days of the hearing, the Commissioner must issue an order related to his or her decision.

Controlled Business

any coverage written on a producer's own life, health or property, and/or that of the producer's immediate family or business associates. A licensee is not allowed to collect commissions on controlled business above the state-specified limit. Most states will not issue a license to a person if it is determined that the primary purpose of the license is to write controlled business. In the state of Georgia, a license will not be issued to a person if it is determined that the primary purpose of the license is to write controlled business. No more than 25% of the agent's volume of insurance per calendar year can be issued on controlled business.

Unfair Discrimination

in rates, premiums, or policy benefits for persons within the same class or with the same life expectancy is illegal. No discrimination may be made on the basis of an individual's marital status, race, national origin, gender identity, sexual orientation, creed, or ancestry unless the distinction is made for a business purpose or required by law.

Who is the commissioner and how is he elected

The Commissioner of Insurance is the chief officer of the Department of Insurance. The Commissioner is elected to office for a term of 4 years (in federal midterm election years). The purpose and function of the Department and the duties and powers of the Commissioner are to carry out and enforce the provisions of the Insurance Code. If the Commissioner cannot serve due to death, disability or resignation, the Chief Deputy Commissioner serves until the next election. The Chief Deputy, however, must have a $15,000 bond approved by the Commissioner (conditioned upon the performance of the Chief Deputy Commissioner's duties).

Applied authrity

Apparent authority (also known as perceived authority) is the appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created. For example, if an agent uses insurer's stationery when soliciting coverage, an applicant may believe that the agent is authorized to transact insurance on behalf of the insurer.

Express Authority

authority is the authority a principal intends to grant to an agent by means of the agent's contract. It is the authority that is written in the contract.

Moral turpitude

- conduct that is contrary to community standards of justice, honesty or good morals

Types of Lichens

Individuals - resident and nonresident Temporary license - valid for 6 months; issued to maintain the existing business

Finacial responsibility Law

Required limits: 25/50/25 Proof of financial responsibility: maintain for 1 year Uninsured/underinsured motorists: same limits of liability as personal auto liability; deductible of $250, $500, or $1,000

company regulations

Obtain a certificate of authority Remain solvent Have all policy forms and rates approved by the Department Avoid unfair trade and unfair claim settlement practices

Required linits for automobile

Required Limits All motor vehicle liability policies issued in this state must have at least the following coverage amounts: $25,000 for bodily injury to or death of 1 person in any one accident; $50,000 for bodily injury to or death of 2 or more person in any one accident; and $25,000 for property damage in any one accident. Insurers may offer deductibles of $250, $500 or $1,000 for bodily injury, death or property damage. Deductibles above $1,000 may be offered subject to the Commissioner's approval. Note that the insured may choose uninsured motorist coverage limits in an amount less than the limits of liability.

What aeas of business does the commissioner have the right to fine

The Commissioner has the power to suspend, revoke, or refuse to issue or renew a producer license, as well as levy a fine as established by state law for violations in any of the following areas of producer activities: Laws, rules, or regulations of the Insurance Code; Licensing laws; Producer's fiduciary responsibility; and Unfair trade practices.

Tabcco crop covrage

Tobacco Crop Coverage Any insurer who issues a crop insurance policy, other than federal crop insurance, for tobacco crops grown in Georgia, will offer coverage for wind, hail, or both for a period of time extending until the crop is harvested.

Un authorized- non admited

Those insurers who have not been approved to do business in the state are considered unauthorized or nonadmitted. Most states have laws that prohibit unauthorized insurers from conducting business in the state, except through licensed excess and surplus lines brokers.

Valuation of loss

Valuation of Loss In the event of a total loss by fire to a 1 or 2 family residential building or structure, Georgia law contains a valued policy statute. An insurer is required to value the property at the amount of insurance in effect at the time of the loss, less any depreciation that may have occurred between the time the policy was issued and the time of the loss. If the loss occurs within 30 days of the effective date of the policy, the insured will be entitled to the actual loss sustained (up to the amount of insurance). This provision does not prohibit an insurer from using a coinsurance clause in a policy, nor does it prevent the insurer from repairing or replacing the damaged property at its own expense without contribution from the insured. This valuation provision does not apply to the following situations: The building or structure is not wholly destroyed by fire; Insurance policies are issued by more than 1 company, insuring the same structure against fire, and the existence of overinsurance is not disclosed by the insured to all insurers; 2 or more policies provide insurance for the same loss; 2 or more buildings or structures are insured using a blanket amount of insurance; or The completed value of a building or structure is insured under a Builder's Risk policy.

In Georgia, any of the following acts is considered transacting insurance?

Solicitation and inducement; Preliminary insurance negotiations; Effectuation (execution) of insurance contracts; and Transactions of matters arising out of the effectuation of insurance contracts.

Maintenance and Duration

Must be renewed every 2 years Continuing education - must be completed every reporting period License is not required if a person does not receive commissions Disciplinary actions: Denial, suspension, revocation or refusal to renew a license Cease and desist order Monetary fines

When does an application for certification expires

After an insurer files an application for a certificate of authority, the Commissioner will have 90 days to approve the application. The Commissioner may extend this time period an additional 90 days, but the applicant must be notified. All certificates of authority expire at midnight on June 30 of the year following issuance. For renewal, insurers must file a copy of their annual statement for the preceding year on March 1. For good cause, the Commissioner may extend this deadline an additional 60 days.

Workers compusation Georgia

In Georgia, all businesses employing 3 or more employees must comply with the Georgia Workers Compensation laws. Coverage may be provided by a private insurer or arranged by an employer who is self-insured or a self-insurance group. Domestic workers may not be covered and coverage for farm workers is on a voluntary basis. Coverage In Georgia, workers compensation coverage must pay the following authorized costs if an injury or illness is caused by an accident on the job: Doctor bills; Hospital bills; Physical therapy; Prescriptions; and Necessary travel expenses. Treatment is limited to a maximum of 400 weeks from the date of the accident; however, for catastrophic injuries, such as vision loss, amputations, or loss of use of limbs, workers may be entitled to lifetime medical benefits.

Standard fire insurance policy Georgia

Standard Fire Insurance Policy Georgia law requires that every policy of fire insurance covering property located in the state conform to the provisions of the Standard Fire Policy as approved by the Commissioner. Multiple lines policies that include fire insurance must contain provisions at least as favorable as those provided under the Standard Fire Policy, but need not contain the form itself. This provision does not apply to casualty insurance, marine or transportation insurance, or insurance on growing crops.

Surplus lines

insurance not available from authorized insurers; placed with nonadmitted insurers who specialize in offering insurance to the high-risk market. - Any type of insurance not offered by an insurer licensed to do business within the state; must be given to a nonadmitted insurer

Unfair Claims Practices

Unfair Claims Practices The following are unfair claims settlement practices if committed openly and in conscious disregard of rules and regulations, or if committed with such frequency as to indicate a general business practice: Misrepresenting pertinent facts or insurance policy provisions relating to coverages; Failing to acknowledge and act reasonably promptly upon communications with respect to claims; Failing to adopt and implement reasonable standards for the prompt investigation of claims; Refusing to pay claims without conducting a reasonable investigation based upon all available information; Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed; Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear; Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds; Attempting to settle a claim for less than the amount to which a reasonable person would have believed that such person was entitled by reference to written or printed advertising material accompanying or made part of an application; Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of the insured; Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made; Making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration; Delaying the investigation or payment of claims by requiring an insured, claimant or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information; Failing to promptly settle claims, where liability has become reasonably clear under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage; or Failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.

Return of premiums paid

Return of Premiums Paid In the event of a total loss to property, if the insurer pays an amount less than the amount insured under the policy, the insurer must refund to the insured the difference between the amount of premium actually paid and the premium that would have been charged for a policy with an amount of insurance equal to the amount paid by the insurer for the loss

Who is exempted from licensing

A director or employee of an insurer whose activities are limited to executive, administrative, managerial, or clerical; The director or employee of a special agent assisting insurance producers by providing technical advice and assistance to licensed insurance producers; A person who secures and furnishes information for group insurance or performs administrative services related to mass-marketed property and casualty insurance; An employer or association engaged in the administration or operation of a program of employee benefits for the employer's or association's own https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 8/26 4/11/2021 The Exam Simulator for the Web employees; Employees of insurers or organizations engaging in the inspection, rating or classification of risks, or in the supervision of the training of insurance producers and who are not individually engaged in the sale of insurance; A person whose activities are limited to advertising without the intent to solicit insurance; A nonresident who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract; or A salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or subsidiaries.

What are the requirements to qualify for certification

Before approving an application for a producer license, the Commission must find that the applicant meets the following requirements: Is at least 18 years of age; Is a resident of the state, and is present for at least 6 months out of every year (or has a principal place of business within the state); Is of good character; Has passed a written examination unless: Previously licensed for the same line of authority in another state - if the application is received within 90 days of the cancellation of the application's previous license; or Licensed as an agent in another state who moves to this state and makes an application within 90 days of establishing legal residence. If applying for an agent's license, be appointed by an authorized insurer; If applying for a counselor's license, show evidence of 5 years of experience in insurance; and If applying for an agent's license, limited subagent's license, or adjuster's license, must complete classroom education courses. If an applicant was employed by the Commissioner, he or she will be permitted to reinstate a license upon termination of employment (if a written request is made within 90 days of the date of termination). Active licensees who apply for additional licenses, and individuals who apply for the reinstatement of a license 6 months before the license expiration date, will not be required to submit fingerprints. An applicant whose license has lapsed during active military service will be granted a new license if an application is made within 5 years of the lapse, and the applicant's service was not terminated more than 1 year prior to the application for a new license.

Authorized or Admitted

Insurers who meet the state's financial requirements and are approved to transact business in the state

Violations and penalties process

Step 1: A violation occurs. An agent is suspected of commiting a violation and the comission is notified. And may issue statement of charges. Step 2: hearing - request a hearing - notice of hearing - chance to be heard in court Step 3: cease and disorder - issued by hearing or comissioner Step 4: other penalties - established by state law - based on court outcome - Monetary fines - licence suspension

Non resident producer license requirements

A nonresident person may receive a nonresident agent's license if that person: Is currently licensed as a resident, and is in good standing in his or her home state; Has submitted the proper request for licensure; Has paid the required fees; Has submitted an application for licensure to the Commissioner; and Resides in a state that awards nonresident agent licenses to residents of Georgia on the same basis. This is known as a reciprocity agreement. A nonresident agent who moves from one state to another - or a resident agent who moves from this state to another - must file a change of address form, and provide certification to the new state within 30 days. In these cases, no fee or application is required. A person licensed as a surplus lines broker or a limited lines agent may be licensed following similar procedures.

Benefits

Benefits Workers are able to receive benefits after being unable to work for more than 7 days, and the first benefits check should be mailed within 21 days of the first day the worker missed work. Workers who miss more than 21 consecutive days will be paid for the first 7 days. https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 18/26 4/11/2021 The Exam Simulator for the Web Workers compensation benefits in Georgia are limited to two-thirds of a worker's average weekly wage up to $575 a week. If a worker dies as a result of an on-the-job accident, dependents (a spouse, children, or dependent stepchildren) will receive two-thirds of the worker's average weekly wage up to $575 a week and burial expenses up to $7,500. A widowed spouse without children is limited to a total of $230,000. In this case, benefits continue until the surviving spouse remarries or openly cohabits with a person of the opposite sex.

When can the commissioner refuse certificate for any of the following reasons

The Commissioner may refuse to issue a certificate of authority for any of the following reasons: Violating or knowingly failing to comply with any applicable Insurance Code provisions Violating the claims settlements regulations Being unsound Refusing to be examined Failing to pay any judgment within 30 days; or Being affiliated with another insurer that transacts direct insurance without a certificate of authority (excluding surplus lines).

What services can consulears provide?

Counselors can also provide the following ancillary services: Risk identification; Loss measurement; Gathering and analysis of loss information; Verification of workers compensation experience modifiers; Setting of risk retention levels; Development of retention financing plans; Development of insurance specifications; https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 11/26 4/11/2021 The Exam Simulator for the Web Negotiation with insurers regarding coverages, costs, and payment options; Implementation of retained and transferred risk programs; Monitoring of annual program; and Insurance audit services. When receiving a fee, commi

Licence communication with commissioner and records

Each licensee must keep the Commissioner informed regarding: The licensee's business and residence address; The name and address of each insurer that the licensee represents; The name and address of each agency of which the licensee is proprietor, partner, office, director or employee of which the licensee represents; Every trade name of such an agency; and The names of all partners and members of any firm or association and the corporate name of any corporation owning or operating the agency. The Commissioner must be notified of any change to this information within 30 days of the change. Every licensed agesubagent, counselor, and adjuster must maintain a place of business that is accessible to the public. Agents, subagents, and counselors must keep records regarding each contract, the amount of premium, and a statement regarding the subject. Agents must keep records regarding each investigation or adjustment, and any related fee. All records must be kept for 5 years after the completion of a transaction or for the term of the contract - whichever is greater.

Regulation Rate deadlines

Every insurer must maintain copies of their rates, plans, systems, underwriting rules it uses. These rate fillings must be updated by the insurer at least once every 2 years. Rates must be filed with the Commissioner. If the rate has been on file with the Commissioner for 45 days - and has not been disapproved - it may be implemented. However, the Commissioner may extend this time period for up to 55 days. If a filing is disapproved, notice will be given within 100 days of its receipt. Insurers aggrieved by disapprovals can request hearings within 10 days. All insurers must file their rates 45 days before their effective date. When a rate increases 10% or more within 12 months, the Commissioner will order an examination.

Fair plan

FAIR Plan The Georgia Fair Access to Insurance Requirements (FAIR) provides basic property insurance for those who cannot obtain it in the ordinary market. Every authorized insurer writing property insurance in Georgia is required to be a member of the Georgia FAIR Plan and the Plan's underwriting association. Each member must comply with the FAIR Plan's requirements as a condition of its authority to transact property insurance business. Members must participate in the writings, expenses, profits, and losses of the underwriting association in 2 ways: for habitational risks, in the same proportion the member's habitational premiums written bear to the aggregate habitational premiums written by all insurers, and for commercial risks, in the same proportion as the member's commercial premiums written bear to the aggregate commercial premiums written by all insurers.

Compusation risk plan $

For policies with an annual premium of $7,500 or less, a credit of 4 times that annual premium; For policies between $7,501 and $15,000, a credit of 3 times that premium; For policies between $15,001 and $25,000, a credit of 2 times that premium; For policies between $25,001 and $200,000 a credit of 1 1⁄2 times that premium; and For policies of $200,001 or greater, a credit equal to the premium. Furthermore, a merit rating plan will be implemented by the Plan administrator and the Commissioner to establish credits for policyholders who have had no lost- time claims. A policyholder who is not experience rated, whose annual premium is less than $5,000, and is subject to a merit rating plan of credits and debits will be qualified for these credits. The merit rating plan will be based on the number of lost-time claims of the policyholder during the most recent 1 year period. The insurer must obtain the claims information from the policyholder and must notify the policyholder of the credit or debit premium adjustment (and the reason) in writing within 90 days of the effective date.

Finnacial responsibility law auotmobile

Georgia requires that all owners and operators of motor vehicles in the state carry auto liability insurance as evidence of security in complying with the state's financial responsibility law. This provision does not apply to motor vehicles owned by the United States, the state of Georgia or any political subdivision thereof, or any motor carrier required by any other law to file evidence of insurance or other surety. Auto liability policies must be issued for a minimum term of 6 months

What is the fine for selling insurance non licensed

In Georgia, it is illegal to transact insurance without a license for that line of authority. Any person who willfully violates this statute will be considered guilty of a misdemeanor. In this state, every crime declared a misdemeanor will be punished by a fine not to exceed $1,000, or by confinement in a jail or correctional institution for up to 12 months, or both. Furthermore, commissions for the sale of insurance cannot be paid unless the recipient is licensed.

Things to remember review

In order to perform your best on the state regulations portion of the exam, make sure you memorize these numbers and their definitions. Department of Insurance Regulations: 4 yearsCommissioner's term of office 5 yearsExamine domestic insurers and rating organizations 15 daysCommissioner will give a notice of time and place for a hearing 30 daysHearing must be held 30 daysOrder of the hearing must be issued and given to the parties involved Licensee Requirements: 18Minimum age to apply for a producer license 6 monthsRequired length of state residency per year for a resident producer license 6 monthsInitial license period for a temporary license 15 months Maximum period for a temporary license 25%Maximum amount of commissions from controlled business 5 yearsMaintain records of insurance transactions 24 hoursCE requirement every 2 years 3 hoursCE requirement for ethics education https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 20/26 4/11/2021 The Exam Simulator for the Web 30 daysNotify the Commissioner of a change in business address 30 daysTo report criminal prosecution against a licensee Important Dollar Amounts: $300,000Total liability of the Georgia Life and Health Insurance Guaranty Association for any 1 life $10,000Fine for violation of cease and desist order

insurance fraud

Insurance Fraud In Georgia, it is considered committing insurance fraud if a person knowingly or willfully does any of the following: Makes or helps make false or fraudulent statement or representation of any material fact or thing in: Any written statement or certificate; The filing of a claim; The making of an application for a policy of insurance; The receiving of such an application for a policy of insurance; or The receiving of money for such application for a policy of insurance for the purpose of procuring or attempting to procure the payment of any false or fraudulent claim or other benefit by an insurer; Receives money for the purpose of purchasing insurance and converts it to his or her own benefit; Issues fake or counterfeit insurance policies, certificates of insurance, insurance identification cards, or insurance binders; or Makes any false or fraudulent representation as to the death or disability of a policyholder or certificate holder in any written statement or certificate for the purpose of fraudulently obtaining money or benefit from an insurer. In addition, any individual who knowingly and willfully engages in the following activities for an insurer not authorized to transact insurance in this state commits the crime of insurance fraud: Soliciting, negotiating, procuring, or effectuating insurance or annuity contracts or renewals; Soliciting, negotiating, procuring, or effectuating any contract relating to benefits or services; Disseminating information regarding coverage or rates; Forwarding applications; Delivering policies or contracts; Inspecting or assessing risk; Fixing rates; Investigating or adjusting claims or losses; Collecting or forwarding premiums; or In any other manner representing an insurer in the transaction of insurance with respect to subjects of insurance resident, located, or to be performed in this state.

Misrepresentation

It is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, the payment of dividends, etc. This also refers to oral statements. Committing this illegal act is called misrepresentation.

false advertising

It is prohibited to advertise or circulate any materials that are untrue, deceptive, or misleading. False or deceptive advertising specifically includes misrepresenting any of the following: Terms, benefits, conditions, or advantages of any insurance policy; Any dividends to be received from the policy, or previously paid out; Financial condition of any person or the insurance company; or The true purpose of an assignment or loan against a policy. Representing an insurance policy as a share of stock, or using names or titles that may misrepresent the true nature of a policy also will be considered false advertising. In addition, a person or an entity cannot use a name that deceptively suggests it is an insurer.

Temp license

Last 6 months renewable for 3 months Temporary License In the event of an agent's death, disability, or service in the United States armed forces, the Commissioner may issue a temporary insurance license for a period of 6 months, renewable from time to time for periods of 3 months for a maximum of 15 months from the date of the first issuance of the temporary license. Temporary license may be issued without requirements for residence, examination, and education to an employee of the agency, to a member of the agent's family, or to executor or administrator for the servicing of an insurance business.

What are the lisence requirements for agents and producers

License Maintenance Producer/agent licenses expire every 2 years, on the last day of the licensee's birth month. Agents may renew their license by filing with the Commissioner the appropriate fees and evidence that the continuing education (CE) requirements have been completed. The standard requirement is 24 CE credit hours every 2 years, including 3 credit hours in ethics education. https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 9/26 4/11/2021 The Exam Simulator for the Web Agents who have been licensed for at least 20 years are required to complete 20 credit hour of CE, including 3 hours of ethics. Agents may carry forward excess continuing education credit hours into the next licensing period as long as the number of hours carried forward does not exceed 50% of the continuing education requirement. The licensees, however, may not repeat the same CE course in the same renewal period. Limited subagent licensees are required to complete 5 hours of continuing education every biennium (2 years). The ethics requirement is also waived for limited subagents.

The commissioner may Revocation or suspend license

License Revocation or Suspension The Commissioner may suspend, revoke or refuse to issue or renew any license, for any of the following causes: Violating any insurance provisions; Being found untrustworthy or incompetent; Misrepresenting material facts in any form filed with the Commissioner; Attempting to obtain a license through misrepresentation, concealment or fraud; Failing to pay, misappropriating or illegally withholding money; Misrepresenting the terms of an insurance policy; Failing to pass a licensing examination; Cheating on a licensing examination; Failing to comply with an order from the Commissioner; Obtaining a license for the purpose of securing rebates, commissions or controlled business; Knowingly writing substantial overinsurance on a property insurance risk; Failing to provide records; Not being in compliance with an order for child support; Defaulting on other financial obligations; Having a conviction of a felony or a crime of moral turpitude, and/or failing to notify the Commissioner of the event within 60 days; Failing to report to the Commissioner any criminal prosecution an agent is involved in, and/or failing to file a report within 30 days of the date of arrest; Having a license to practice another profession refused, revoked or suspended, or failing to notify the Commissioner of the event within 60 days; and Failing to report to the Department within 60 days any previously mentioned action, refusal, revocation, suspension, limitation or restriction. No licensee whose application has been refused or revoked will be entitled to file a new application for 5 years following that action

Regulation rates

Regulation of Rates The following standards apply to the making and use of rates for all classes of insurance: Rates cannot be excessive or inadequate; No rate may be deemed excessive unless it is unreasonably high for the insurance provided and a reasonable degree of competition does not exists in that area; No rate will be considered inadequate unless it is unreasonably low for the insurance provided and the continued use would endanger the solvency of the insurer; Consideration will be given to loss experience related to conflagration and catastrophe hazards. In the case of fire insurance rates, consideration may be https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 19/26 4/11/2021 The Exam Simulator for the Web given to the experience of the fire insurance business during the most recent 5 year period; Consideration may also be given to the making of rates, dividends, savings or unabsorbed premium deposits; The system of expense provisions may differ from those of others (to reflect operation methods); Risks may be grouped by classifications for the establishment of rates and minimum premiums; No insurer may base any standard or rating plan on vehicle insurance - based on race, creed or ethnic extraction; and No insurer may base any standard rating plan for vehicle insurance on physical disability - unless it impairs the ability to drive a motor vehicle. Please note that motor vehicle liability, first-party medical, and collision coverage rates may be reduced for drivers that are Under 25 years of age; Unmarried; Full-time students; Honor students; and Contentious drivers.

What are the responsibilities of the commissioner

The general powers, duties, and responsibilities of the Commissioner include, but are not limited to the following: Set up any necessary divisions or sections of the Department; Appoint assistants, examiners, actuaries, clerks, and other employees; Maintain official records; Adopt and promulgate rules and regulations (must be approved by the Attorney General and be on file as a public record for 10 days); Examine the accounts, records and transactions of any insurance licensed person, insurer, rating organization, or any other organization authorized to https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 4/26 4/11/2021 The Exam Simulator for the Web transact insurance in this state; Issue a cease and desist order if any person is believed to have violated any provisions of the Code; Complete annual reports; On July 1st each year, compile a supplementary report regarding property and casualty insurance; and During the first week of each quarter, file a report to the chairperson of the House Committee on Insurance and the chairperson of the Senate Committee on Insurance and Labor. The Commissioner must also pay any collected taxes, fees, dues, charges, and penalties to the Office of Treasury and Fiscal Services. However, funds that have been illegally or erroneously paid may be refunded. No refunds will be allowed unless a written request is filed with the Commissioner within 7 years of the payment.

Methods for giving proof

Whenever proof of financial responsibility is required, such proof may be provided by filing with the Department a written certificate of any insurance carrier certifying that there is in effect a liability policy or a self-insurance plan. The proof must be maintained for 1 year. When an insurer provides certification to the Department to satisfy the proof of financial responsibility regulation, the insurer may not cancel the certification for 12 months unless the insured's driver's license is suspended for a subsequent violation conviction. The insurer must notify the Department at least 20 days in advance of the cancellation. Whenever a person is convicted of any offense that required suspension of the person's driver's license, the Department will not restore the license until permitted under the motor vehicle laws of this state, and not until the convicted person obtains and maintains proof of financial responsibility for the future. If https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 24/26 4/11/2021 The Exam Simulator for the Web such proof does not exist at any time during the 1-year period after the date of license restoration, the Department will immediately revoke the license.

Georgia Automobile Insurance Plan

aggrieved by a ruling or decision of the committee operation such a plan may file a petition to the county's superior court - within 10 days of the ruling or decision. Anyone that has committed no traffic offenses in the previous 3 years, and has no claims based on fault against an insurer in the previous 3 years will not be eligible for such a policy - unless that person's application discloses reasons for which this person is unable to procure a policy through ordinary methods

fiduciary responsibility.

fiduciary responsibility. A fiduciary is someone in a position of trust. More specifically, it is illegal for insurance producers to commingle premiums collected from the applicants with their own personal funds.

churning

is defined as replacing insurance policies for the sole purpose of making commissions. It is illegal to replace existing life or disability policies with new policies if the producer cannot demonstrate that the replacement will benefit the insured.

Georgia cancellation

reasons: 1. The named insured fails to discharge when due any obligations in connection with the payment of premium for the policy including any installment due under a premium finance agreement; 2. The insurance was obtained through a material misrepresentation; 3. The insured violates any of the terms and conditions of the policy; 4. The insured failed to disclose fully a record of motor vehicle accents and moving traffic violations for the preceding 36 months; 5. The insured failed to disclose in the application for insurance or in response to inquiry by the insurer or its agent information necessary for the acceptance or proper rating of the risk; 6. The named insured made a false or fraudulent claim or knowingly aided or abetted another person in the presentation of such a claim; 7. The named insured or any other operator, either residing in the household or who customarily operates the automobile: Has his or her driver's license suspended or revoked (within 36 months prior to the notice of cancellation); Is or becomes subject to epilepsy or heart attacks and such person cannot produce a certificate from a physician attesting to his/her ability to safely operate a vehicle; Has within a 3-year period prior to the notice of cancellation been addicted to the use of narcotics or other drugs Is or has been convicted during the last 36 months of Any felony; Criminal negligence resulting in death, homicide, or assault arising out of the operation of a motor vehicle; Operating a motor vehicle while in an intoxicated condition or while under the influence of drugs; Leaving the scene of an accident without stopping to report; Theft or unlawful taking of a motor vehicle; or Making false statements in an application for a driver's license. Has been convicted of 3 or more speeding within the 36 months prior to the notice of cancellation; or 8. The insured automobile: Might endanger public safety because of its mechanical condition; Is used in the transportation of flammables or explosives; Is used in carrying passengers for hire or compensation; Is an authorized emergency vehicle; or Has changed in shape or condition during the policy period so as to increase substantially the risk. Any insurance company that nonrenews an automobile policy must provide at least 30 days written notice to the named insured at his or her last known address. https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=##

Georgia rukes and regulations property canecel requirements

the insured must be notified in writing no less than 30 days prior to the effective date of cancellation. The notice must be delivered in person or via first class mail to the last known address of the insured. The notice must contain the reason for cancellation. Return premium in excess of amounts owed to the agent must be returned to the insured within 10 working days. If a policy is cancelled due to nonpayment of premium, the insurer must give the insured 10 days advance notice of cancellation. No insurer may refuse to renew a policy unless written notice of nonrenewal is delivered or mailed to the insured no fewer than 30 days before the date of such nonrenewal. The notification must contain the reason(s) for nonrenewal. When a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be effected for the following reasons: Nonpayment of premium; Fraud, concealment of a material fact, or material misrepresentation made by or with the knowledge of the insured in obtaining the policy, continuing the policy, or presenting a claim under the policy; A change in the risk that substantially increases the hazard insured against; or Violation of any material terms or conditions of the contract by the insured. When a policy is cancelled for other than nonpayment of premium or if the insurer nonrenews a policy, the insured must be notified of his or her possible eligibility for coverage under the Georgia Fair Access to Insurance Requirements (FAIR) Plan. Nonrenewal of a policy is prohibited if based on any of the following: Lack of supporting business with the insurer; Change in the insurer's underwriting guidelines that is not approved by the Commissioner; or Two or fewer claims against the policy in the preceding 36 months if the claims are not attributable to the negligent or intentional acts of the insured or other resident of the household. For all insurance other than that covering a personal automobile or personal property, a notice of termination, including a notice of cancellation or nonrenewal, a notice of increase in premiums that exceeds 15% of the current policy's premium unless due to a change in risk or exposure or a notice of change in any policy provision which limits or restricts coverage must be delivered or mailed to https://eswa.examfx.com/ExamFX/sbt/Print.aspx?lang=## 21/26 4/11/2021 The Exam Simulator for the Web the insured at least 45 days before the effective date of such termination or change. Failure to comply with this requirement entitles the policyholder to purchase a policy for an additional 30 days beyond the current expiration date (on the same terms and conditions and with the same premium as the expiring policy). If the policy will incur a premium increase of more than 15%, the dollar amount of that