Ch. 14 - GA Life & Health State Laws

The Commissioner may impose a fine of up to $____________ on any person who violates a cease and desist order following a hearing.

$10,000

The Commissioner may impose which of the following penalties on any person who violates a cease and desist order following a hearing? A) A fine of up to $5,000 per violation B) A fine of up to $10,000 per violation C) Suspension but not revocation of one's license D) A sentence of one year in jail or on probation, under Georgia's Penal Code

B) A fine of up to $10,000 per violation

All of the following are considered by definition to be examples of transacting insurance in the state of Georgia, except: A) Effecting an insurance contract B) Adjusting a claim in Georgia C) Entering into preliminary negotiations regarding coverage D) Solicitation

B) Adjusting a claim in Georgia

An LTC insurer must provide notice of an upcoming premium rate schedule increase to all policyholders at least ___ days prior to the implementation of the increase.

45

Georgia Long-Term Care Partnership (LTCP) policies: A) Must provide inflation protection to all applicants B) May only be sold by agents who have completed 8 hours of initial LTC training C) Cover only those insureds who file claims while residing in Georgia D) Automatically qualify policy owners for Medicaid in Georgia

B) May only be sold by agents who have completed 8 hours of initial LTC training\ Agents must complete 8 hours of initial long-term care training before being allowed to sell LTCP policies. They must also complete four CE hours per license renewal. LTCP policies must provide some form of inflation protection only to those insureds age 75 and younger. As for Medicaid, the policy disclosure specifically states automatic eligibility does not occur. Finally, the LTCP applies to all those who were Georgia residents at the time coverage became effective, not when a claim was made.

All of the following statements regarding producer appointments are true, except: A) An agent is responsible for securing Certificates of Authority for his or her subagents B) An appointing insurer must notify the Commissioner within 30 days of terminating an agent's appointment C) Certificates of Authority for subagents must be renewed biennially D) An insurance producer may not act as an agent unless he or she has at least one Certificate of Authority

C) Certificates of Authority for subagents must be renewed biennially * renewed annually

Which of the following statements regarding the suspension of Harry's insurance agent license accurately describes a reason for his suspension? A) He was a accused of committing a misdemeanor B) He was subpoenaed to appear before the insurance commissioner of another state C) He defaulted on a debt D) He reported his arrest to the Commissioner within 30 days

C) He defaulted on a debt

The purpose of the Georgia Life and Health Guaranty Association is to: A) Permit policies to be issued by nonprofit hospital or medical corporations B) Offer insurance protection to individuals with preexisting conditions C) Protect insureds from the insolvency of an insurance company D) Provide unlimited life and health benefits for insureds who cannot afford to pay premiums

C) Protect insureds from the insolvency of an insurance company

If it is in the public's best interest to prohibit a person from continuing to engage in a prohibited act, practice, or transaction, the Commissioner may issue a:

Cease and desist order

Which of the following individuals is required to hold an insurance license? A) An attorney who advises clients on incidental insurance matters in the course of acting as their legal representative B) Representatives of ocean marine insurers C) Representatives of farmers' mutual fire insurance companies D) A public adjuster

D) A public adjuster

Which of the following statements regarding certificates of authority is correct? A) An insurer affiliated with an authorized insurer in Georgia does not need a separate certificate of authority B) If an insurance company refuses to be examined by the Commissioner, its certificate of authority may be suspended or revoked C) In order to qualify for a certificate of authority and insurer must have at least $1 million in capital stock, or in surplus D) Investigating and adjusting claims in Georgia are in themselves deemed to constitute the transacting of insurance, which requires a certificate of authority

B) If an insurance company refuses to be examined by the Commissioner, its certificate of authority may be suspended or revoked An insurer must agree to be examined and regulated by the Commissioner in order to maintain its ability to do business. If an insurer shares ownership with an un-authorized entity, it is liable to have its own certificate of authority revoked; it does not vicariously provide authorization for its unauthorized affiliate. Investigating and adjusting claims do not in themselves constitute transacting insurance business. As for the minimum capital requirement, it is $1.5 million.

Alice's license was revoked because she: A) Was accused of a felony or crime of moral turpitude B) Wrote an insurance policy to cover her spouse C) Notified the Commissioner 6 days after her request for a license in Alabama was denied D) Mishandled money belonging to another party

D) Mishandled money belonging to another party

Which of the following statements regarding the ability of the Insurance Commissioner to examine insurers and other persons is true? A) The Commissioner may not examine insurer records more often than once every 5 years B) The Commissioner must provide an insurance company with a copy of the final report of any examination within 20 days after it is published C) The Commissioner's ability to examine insurers is limited to domestic carriers D) The Commissioner may examine the records of any licensee as often as the Commissioner deems advisable

D) The Commissioner may examine the records of any licensee as often as the Commissioner deems advisable Not option B) because... "As for the Commissioner's final report after examining an insurer, such a report may only be published after the insurance company has received a copy of the draft. The insurer also has the ability to request a hearing about the report before it is finalized"