State Laws, Rules, and Regulations

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

Qualifications for soliciting, selling or negotiating a partnership policy include all of the following EXCEPT...

Obtaining a partnership policy license from the Commissioner

An agent license can be issued...

Only to individuals

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

All of the following are examples of transacting insurance in Georgia EXCEPT...

Placing advertisements for an insurer

Who might receive dividends from a mutual insurer?

Policyholders

If an insurance premium is paid by the policy owner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?

The policy will not lapse since payment to the agent is the same as a payment to the insurer.

Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract?

Transacting insurance

Slightly misleading statements in an advertisement are excusable..

Under no circumstances

If an agent changes his residence address, within how many days must the agent notify the commissioner of the change?

30 days

A child is born to a mother whose insurance covers health-related losses of family members. How long with the newborn be automatically covered under the mother's plan?

31 days

Insurers must keep files of all advertisements used in Georgia for how many years?

4 years

Authorized insurance companies are examined by the Commissioner at least once every...

5 years

All the following are examples of violations of replacement EXCEPT...

Advising an applicant to answer questions correctly

Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT...

An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him.

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Defamation

Medicare supplements specifically exclude all of the following EXCEPT...

Surgical expenses of persons eligible for Medicare.

Which of the following is true regarding statistics used in an advertisement?

The source must be identified

All of the following actions can be described as twisting EXCEPT...

Explaining to client the advantages of permanent insurance over term and suggesting changing policies.

Existing insurers must provide policy owners with a policy summary for the existing life insurance within how many days of receiving the written communication and replacement?

10 days

When a policy is being replaced, the replacing company notifies the...

Replacement company

If the Commissioner is not able to serve due to disability, resignation, or death, which of the following will happen?

The Chief Deputy Commissioner will serve as the Commissioner until the next election.

In replacement, an existing insurer must provide policy owners with a policy summary for existing life insurance within how many days or receiving the written communication and replacement?

10 Days

If policy owners 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

Which of the following are the authorities that an agent can hold?

Express and Implied

The authority granted to an agent through the agent's contract is referred to as...

Express authority

If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of...

Churning

The authority responsible for determining whether an advertisement might mislead or deceive a person of average education and intelligence is the...

Commissioner

What is the title of the chief officer of the Department of Insurance?

Commissioner

Which of the following is responsible for determining whether an advertisement might mislead or deceive a person of average education and intelligence?

Commissioner

The act of trying to discourage a policyholder from dropping his/her existing policy is called...

Conservation effort

The requirement that agents not commingle insurance monies with their own funds is known as...

Fiduciary responsibility

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

False Advertising

Individual and group accident and sickness policies that cover what kinds of losses must also provide for newborns, from the moment of birth, with all health insurance benefits applicable to children?

Losses that happen to family members

A claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. The action must be brought...

Within 3 years

Whenever agents submit applications to insurers, they must also submit statements disclosing whether or not replacement is involved. Who must sign these statements?

Applicant and Agent

Coverage for adopted children must be effective at what point?

At the date of the final decree of adoption

What term is used for replacing insurance policies for the sole purpose of making commissions?

Churning

An 18-year-old dependent child of the insured was in a car accident and sustained a permanent physical handicap of her legs that requires her to use a wheelchair. The child is covered under her parents' health policy. What will happen to coverage on her 19th birthday?

She will continue to receive full coverage

Mike works for a company that offers a family health benefit plan. His daughter turns 18. Which of the following is true?

She will still be covered under the plan

Which of the following is required of an insurer in order to legally transact insurance in Georgia?

Certificate of authority

All of the following statements regarding continuing education requirements in this state are true EXCEPT...

Producers may repeat the same courses to meet the required CE hours for licensing period.

An insurance agent has received a request for a hearing from the Commissioner. Within how many days must the hearing be held?

30 days

A producer who fails to segregate premium monies from his own personal funds is guilty of...

Commingling

Whenever agents submit applications to insurers, they must also submit statements, signed by the applicant and agent, disclosing the involvement or lack of involvement of...

Replacement

Long-term care insurance does NOT provide coverage for...

Services provided in an acute care unit of a hospital

Which of the following is an example of apparent authority of an agent appointed by an insurer?

The agent accepts a premium payment after the end of the grace period.

What is the dependent child age limit in Georgia?

19

When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy for...

3 years

Which types of policies must provide for newborns, from the moment of birth, with all health insurance benefits applicable to children until 31 days?

Both individual and group accident and sickness

The term "conservation effort" deal with...

Discouraging policyholders from dropping existing policies.

Which of the following will NOT be considered unfair discrimination by insurers?

Discriminating in benefits and coverages based on the insured's habits and lifestyle

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT...

Dividend from a mutual insurer

Health benefits will extend past the normal dependent child age limit because he/she is chiefly dependent on the policyholder for support and maintenance, along with what other qualification?

Either Mental retardation or Physical handicap

Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as...

Rebating

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