state laws 2

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

5 years.

A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?

60 days

What is the maximum allowed rate of interest on policy loans from life insurance?

8%

Which of the following persons is required to hold a producer license?

A person who negotiates insurance contracts

Which of the following would NOT be a violation of state insurance regulations?

Agent C uses her license to write only business other than controlled.

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

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

Commingling.

Which of the following would be considered an illegal inducement to purchase insurance?

Confirming future dividends in a life insurance proposal

The term "conservation effort" deals with

Discouraging policyholders from dropping existing policies.

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

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

State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT

Inviting prospective clients to the grand opening of the company's new office.

What is the function of a certificate of authority?

It allows an insurer to transact insurance in Georgia.

An agent license can be issued.

Only to individuals.

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.

If an insurance premium is paid by the policyowner 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 type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

Twisting

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Twisting.

Which of the following positions is responsible solely for offering advice on insurance policies (for a fee)?

Counselor

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating.