State Law , Rules, and Regulations

Continuing education requirements

24 CE credit hours every two years including three credit hours of ethics education

Twisting

A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage.

Statue

A formal written law enacted by legislature; insurance statues can be found in the state insurance code

3 years

A lapse policy may be reinstated after how many years once the policy owner pays all back premiums outstanding loans and interest of no more than 6% per annum?

Reciprocity

A mutual Interchange of rights and privileges

15 days

A notice of time and place of a hearing must be given at least how many days in advance.

Insurer not the insured

An agent/producer will always be deemed to represent?

Inactive Status

An agents license will be placed on what status if the agent does not have on file with the commissioner a certificate of authority to represent at least one insurer license to do business in the state

foreign

An insurance company that is incorporated in another state or territory

domestic

An insurance company that is incorporated in this state

Inducement

An offered their attempts to influence the other party

Rebating

Any inducement offered in the sale of insurance products that is not specified in the policy.

Once a year for 5 years

Any insurer authorized to transact business in Georgia that changes domicile from Georgia to another state may be examined?

Misdemeanor

Any person who willfully violates the statue will be considered guilty of a what?

replacement

Any transaction in which new life insurance or a new annuity is to be purchased as a result an existing policy has been or will be lapsed, forfeited, surrendered or terminated; Re-issued with any reduction in cash value; convert it to reduce pay up insurance continue extended term insurance reduced in value by the use of nonforfeiture benefits; amending effect either reduction in benefits which coverage would otherwise remain in force which the benefits will be paid

A fine up to $10,000; Suspension Or revocation of such a persons license; and any other appropriate relief

Anyone who violates the order from the commissioner may be subject to?

Before approving an application for a producer/agent license the commission must find that the applicant meets the following requirements:

At least 18 years old; is a residence in the state and is present for at least 6 months out of the year; pass a written examination; be appointed by an authorized insurer; must complete classroom education courses

Implied Authority

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.

Certificate Authority

Before insurers may transact business in a specific state they must apply for and be granted a what from the department of insurance and meet any financial requirements set by the state.

licensed

Commissions for the sale of insurance cannot be paid unless the recipient is?

Agents maybe renew their license by

Filing with the commissioner the appropriate fees and evidence that the continuing education requirements have been completed

90 days

How many additional days may the commissioner extend the time period.

90 days

How many days does the commissioner have to approve the certificate of authority application

Apparent Authority

If an agent uses insurer's stationary when soliciting coverage, an the applicant may believe the agent is authorized to transact insurance on behalf of the insurer is an example of what authority?

Implied Authority

If the agency contract doesn't specifically authorize the agent to collect premiums and remit them to the insurer, the agent routinely does so in the process of solicitation and delivering the policies are examples of what authority?

The company is fully responsible

If the agent is working within the conditions of his or her contract, Who is responsible?

Chief Deputy Commissioner

If the commissioner cannot serve due to death, disability, or resignation; who will serve in his position?

Not to exceed $1000 or by confinement in a jail or correctional institution for up to 12 months are both.

In Georgia every crime declared a misdemeanor will be punished by a fine?

6 months

In the event of an agents death, disability, service in the United States Armed Forces the commissioner may issue a temporary insurance license for a period of what?

alien

Insurance company that is incorporated outside of the United States

Surplus Lines

Insurance not available from authorize insurance place with nonadmitted insurers who specialize in offering insurance to the high- risk market.

Authorized insurer

Insurer who has received a certification of authority from the Department of insurance to transact insurance in the state

Home office

Insurer's headquarters, principal place of business

Unauthorized or Nonadmitted

Insurers who have not been approved to do business in the state.

Authorized or Admitted

Insurers who meet the states financial requirements and are approved to transact business in the state are considered what

True

It is illegal to transact insurance without a license for the line of authority

25%

Maximum amount of commissions from controlled business

15 months

Maximum period for a temporary license

Defamation

Occurs when an oral or written statement is me that is intended to injure a person engage in insurance business

Lloyd's Association

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

Mutual Companies

Owned by the policy owners and issue participating policies.

Stock Companies

Owned by the stockholders who provide the capital necessary to establish and operate the insurance company and who share in any profits or losses.

Commission

Payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

2 years, on the last day of the licensees birth month.

Producer/agent license expires every?

Churning

Replacing insurance policies for the sole purpose of making commission.

Limited Subagent Licensees

Requested to complete 5 hours of continuing education every 2 years. The ethnics requirement is also waived.

6 months

Required length of state residency per year for a resident producer license

Temporary license may be issued without the following requirements?

Residence, examination, and education to an employee of the agency, to a member of the agents family, or to executor or administrator for the service of any insurance business.

Agent/Producer

Responsible to the insurer when completing application for insurance, submitting the application to the insurer for underwriting and when issue delivering the policy to the policy owner and explaining the contract

Disclosure

Revealed information to help someone makes an intelligent and educated decision

Any of the following acts is considered transacting insurance

Solicitation and inducement ; preliminary insurance negotiation; Effectuation (execution) of insurance contracts ; transactions of matters arising out of effectuation of insurance contracts

Fiduciary

Someone in a position of trust

If policy owners repeatedly replace policies from the same agent this is most likely evidence that?

The agent knew the replacement was intended in connection with the sale and intentionally violated the replacement regulation

5 years

The agent must keep all records for how many years after the completion of transaction for the term of the contract which ever is greater

Apparent authority (also known as perceived authority)

The appearance or the assumption of authority based on the actions word or deed of the principle are because of circumstances the principal created

Express Authority

The authority a principal intends to grant to an agent by means of the agents contract it is the authority that is written in the contract

30 days

The commissioner has how many days to hold a hearing?

4 years

The commissioner is elected to office for how many years?

3 years

The commissioner may examine each authorized HMO which stands for (health maintenance organization) as necessary at least once how many years?

30 days

The commissioner must be notified of any changes to information within how many days of change?

5 years

The commissioner must examine all domestic insurers at least once every?

30 days

The commissioner must issue an order related to his or her decision within how many days?

Insurer

The company or organization that issues a policy of insurance

Carry out and enforce the laws and provisions of the insurance code

The duties and powers of the commissioner or to?

Commissioner

The head of the state department of insurance

Replacing Insurer

The insurance company that issues or proposes to issue a new policy or contract that is a replacement of existing life insurance or annuity

Existing Insurer

The insurance company whose policy is being replaced

submitting a payment to the insurer

The insured submits payment to the agent is the same as?

promulgate

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

Cease and desist

To stop or discontinue

$300,000

Total liability of the Georgia life and health insurance Guaranty Association for 1 life

Insolvent

Unable to meet financial obligations

15 years old

What is the minimum age for purchasing a life insurance policy in Georgia?

3 years

When a policy is replaced replacing insurer must maintain a replacement registry regarding the policy until the conclusion of the next regular examination by the insurance department for?

Replacement

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

Insurance Commissioner

Who is the chief officer of the department of insurance

Insurance Commissioner

Who issues certificate of authority

applicant (Insurers)

Who must be notified of the extension?

Conservation Effort

any attempt by an existing insurer or its producer to dissuade or discourage a policyholder from replacing or dropping their existing life insurance policy or annuity

moral turpitude

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

3 types of agent authority

express, implied, apparent