Georgia Laws and Rules
A person who is required to be a licensed agent would be a
person who places insurance on behalf of anyone seeking insurance
the commissioner must give___ days notice prior to holding a hearing regarding an agent's unfair or deceptive practice.
10
In Georgia, how long is the "free look" period?
10 days
When is a group accident and health policy required to provide coverage for a newborn child?
At the moment of birth
what's the requirement for a nonresident agent license applicant
Being a licensed agent in the agent's home state
Using an existing life insurance policy's cash value to purchase another policy with with same insurer for the sole purpose of earning additional commissions is called
Churning
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?
Coercion
In Georgia, which of the following is considered an Unfair Trade Practice
Coercion
J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of?
Coercion
S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this?
Entire Contract
The act of an insurance company publishing misleading information about its policy's provisions is called
False advertising
what is an organization that solicits insurance only to its members
Fraternal benefit society
Who makes the legally enforceable promises
Insurance company
Which of the following is NOT an unfair claim settlement practice
Needing written documentation of claim details
Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy?
Notice to existing and replacing insurers of intention to replace
In Georgia, an insurance company must do which of the following to terminate an agent's appointment?
Notify the Commissioner within 30 days
When the Commission examines an insurer's records, who pays for the costs associated with the examination?
The insurance company being examined
When the Commissioner examines an insurer's records who pays for the costs associated with the examination?
The insurance company being examined
who would be eligible for a temporary license issued in georgia
The personal representative of a deceased agent to provide service to existing policy owners
Why would the commissioner examine an insurer's records?
To determine the solvency of the company
J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
Twisting
Someone who is appointed by an insurer to engage in insurance transactions is called a
agent
T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as
fiduciary responsibility
In Georgia, an insurer licensed to conduct business in Georgia, but domiciled in New Jersey, is called a
foreign company
Cash surrendering an existing whole life policy and purchasing a new whole life policy is referred to as a
replacement
All agents licensed less than 20 Years are required to complete ___ continuing education hours every two years,
24
Defamation occurs when an agent makes a false statement intended to
malign another insurer
During the application process, the agent's primary responsibility is to
the insurance company
Life insurance replacement regulation protects the interests of
the policyowner
In Georgia, monthly-premium accident and sickness insurance policies must provide a grace period of at least
10 days
In Georgia, long-term care policies are required to provide benefits for at least
12 Months
Which of the following is the MINIMUM age at which an individual can sign a life insurance application?
15
Insurance agent licenses normally must be renewed every ___ years in Georgia
2
In Georgia, most life insurance policies have a contestability period of
2 years
All agents licensed less than 20 years are required to complete___ continuing education hours every two years
24
An agent must have ___ hours of ethics per continuing education reporting period
3
In Georgia, an insurance company must notify the Commissioner within___days to terminate an agent's appointment.
30
An example of false advertising would be
An insurer exaggerating its dividends in a magazine advertisement
Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency?
Georgia Life and Health Insurance Guaranty Association
Which of these is NOT a requirement to obtain an insurance agent license in Georgia
Graduate High School
The act of insurance company publishing misleading information about its policy's provisions is called
false advertising
An agent would be guilty of rebating by
returning a portion of a premium as incentive to purchase insurance
When advertising, an insurer is required to use its
true corporate name
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
Before an insurance company can pay commissions to an agent, the agent must be
licensed and appointed
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
misrepresentation
which type of insurance company allows their policyowners to elect a governing body?
mutual
What is the purpose of the Life and Health Insurance Guaranty Association
Protects policyowners against insolvent insurance companies
What is one of the roles of the Commissioner?
Administering insurance laws
A foreign insurance company doing business in Georgia
is a company that was formed under the laws of another state
which of the following items are regulated by the Rules Governing Advertisement of Life Insurance and Annuities?
Prepared sales presentations used by insurance agents
what is the reason for the establishment of rules governing life insurance and annuity replacements
Lessen the chance for misrepresentation and incomplete disclosure
Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? *Twisting *Intimidation *Misrepresentation *Sliding
Misrepresentation
Which of the following correctly describes a certificate of authority?
Permits an insurance company to transact business in Georgia
A domestic insurance company in Georgia is considered a company that
is incorporated and formed in Georgia
All accident and sickness plans MUST provide coverage on newborn children for ___ days
31
What is NOT a requirement for becoming a licensed agent in Georgia
High School Graduate
which of the following is not considered rebating
Sharing commission with an agent licensed in the same line of business
The ___ must provide an insured with proper disclosure concerning the replacement of an insurance policy
agent
Prior to a hearing that could potentially revoke an agent's license, what is required by the commissioner?
Giving written notice to the agent
In georgia, an accident and sickness policy that is paid on a quarterly basis requires a grace period of
31 days
a domestic insurance company must be examined by the commissioner every
5 years
after initially issued,a temporary license is valid for
6 Months
Which of the following is considered to be misrepresentation?
An agent guaranteeing a policy's dividends
In Georgia, an example of an alien insurer would be one that is incorporated in
France Alien insurance company is a company that is charted and organized in any country other than the United States. Therefore, a company chartered in France would be an alien company in Georgia.
nonprofit life insurance providers that are covered by a special section in the Georgia Insurance code are called
Fraternal life insurance organizations
What is NOT a requirement for becoming a licensed agent in Georgia?
High School graduate
What would be an accurate definition of "controlled business"?
Insurance business that is written on the agent's own life, property, or interests
Who is a mutual insurance company owned by?
Its policyholders
a mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?
Stock company is owned by its shareholders. Mutual company is owned by its policyholders
Insurance companies that are organized in countries outside the United States are referred to as
alien
Insurance agents do NOT have a fiduciary responsibility to
another agent
The purpose of the Rules Governing Advertisement of Life Insurance and Annuities is to
assure full disclosure to the public of all material and relevant information
The coordination of benefits (COB) provision exists in order to
avoid duplication of benefits payments
Using an existing life insurance policy's cash value to purchase another policy with the same insurer for the sole purpose of earning additional commissions is called:
churning
In the state of Georgia, every policyowner must be offered which of the following
free-look period
The Life and Health Insurance Guaranty Association is
funded by admitted insurance companies through assessments
Who owns a stock company?
its stockholders
An example of unfair discrimination would be
offering different terms of coverage for different policyowners having the same risk classification
Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent
only if the child is incapable of employment and chiefly dependent on the policyowner
Which document MUST accompany an application that initiates the replacement of an existing life insurance policy
A signed statement by the applicant regarding the replacement
how often must an insurance agent license be renewed in georgia
every 2 years
which of the following situations does not apply to the georgia replacement rule
An existing policyholder purchases an additional policy from the same insurer
An example of an unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim
in georgia, which of the following statements is correct about life insurance advertisements?
An insurance agency is responsible for advertisement placed by its insurance agents
An insurance agent is in violation of the Rules Governing Advertisement of Life Insurance and Annuities if the agent takes which of the following actions during a sales presentation?
Refers to guaranteed policy dividends
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
An insurance agent is guilty of___ if the agent misrepresents a policy to induce a policyowner to surrender an existing policy.
twisting
A producer must notify the Commissioner within___ days of an address change
30
Under which circumstance may the Commissioner of Insurance suspend, revoke, or refuse to renew the license of an agent
Agent is found guilty of misrepresentation in obtaining the license
In Georgia, which of the following statements is CORRECT about life insurance advertisements?
An insurance agency is responsible for advertisements placed by its insurance agents
an insurance company which engages in boycott, coercion, and intimidation that results in the unreasonable restraint of trade is committing a prohibited act under Georgia insurance laws covering
unfair trade practices
An agent's license can be suspended or revoked by
writing primarily controlled business
With whom may an agent legally share commissions?
Another agent who is licensed in the same line of insurance