Lesson 1: Agent Requirements: Getting Started

has authority to issue an oral binder

insurance agent

Misappropriation of funds

intentional, illegal use of the funds of another person for one's own use or other unauthorized purposes.

Insurance Producers

licensed salesperson working for an insurance agency

Churning

occurs when an insurance agent replaces a policyholder's insurance policy for another insurance policy. This is usually done without consulting the policyholder and often with no changes to the coverage itself. Agents who engage in churning do so to secure an additional commission for the new policy swapped.

Field adjusters

work in the field, visiting damaged property. They do a thorough job getting background information on the damage.

Licensing exemptions apply to each of the following:

- Administrative employees of an insurance carrier - Attorneys who are advising their clients on insurance matter - A person applying for a temporary agents license

Basic requirements for obtaining insurance license

18 years or older HS Diploma/ GED English language proficiency GA resident 6 months (for resident claims adjuster/agent) Pass the State Exam Complete a 40- hour pre-licensing course Felony Free/Fingerprints A $5000 bond for a GA Claims Adjuster is required.

If an agent has his license revoked because he has committed a fraudulent act in regard to the insurance business, must he wait 5 years after the revocation to file for another license?

TRUE

If for any reason, an agent violates the insurance code, he or she can lose their license. Example: If the candidate does not pass the state exam, he or she cannot hold a license.

TRUE

However, a binder can only be extended up to 90 days without permission from the Insurance Commission. T or F

True

controlled business

a license is permitted to transact in any calendar year can only be up to 25% of your book of business

The main goal of the insurance producer is to

acquire new customers and cross-sell new policies to existing customers of the agency

Material misrepresentation

act of intentional hiding or the fabrication of a material fact which, if known to the other party, could have terminated or significantly altered the basis of a contract, deal, or transaction.

insurance producer works at an

agency but represents the insurer.

The Insurance Commissioner

chief officer of department of insurance and elected to a four year term. the Commissioner shall appoint a Chief Deputy of Insurance who will assist in the performance of duties and take over in the absence of the Commissioner. He shall execute a $15,000 bond.

Insurance twisting

convince the policy owner to replace a current policy with one from another company that's worse. Twisting hurts the policy owner financially, but it is beneficial to the insurer.

sub-agent

holds a license, typically manages daily office activities and serves as coordinator for the agents and adjusters. They typically provide customer service, operating as the first line of contact for the customer. Sub-agents can also provide insurance quotes if needed.

claims adjuster

person other than a private investigator who, for any consideration whatsoever, engages in the business of making an investigation for the purpose of obtaining information in the course of adjusting or participating in the disposal of any claim in connection with a policy of insurance. Adjusters also engage in soliciting insurance adjustment business

insurance agent

person who sells and services insurance policies, including 24-hour care coverage. collects, binds coverages, maintains records and starts the contractual process.

Controlled business

provides insurance to a select group of people. Example: Only individuals from a certain company can purchase an insurance policy with that company.

Rebating

selling an unauthorized inducement to the buyer for the purpose of gaining business. Example: Offering a new car every year.