Ch. 8 Georgia State Laws
If a producer moves from Georgia to another state, how many days does the producer have to report the change of address to the Georgia Commissioner to be granted nonresident status? A. 30 B. 60 C. 90 D. 20
A. 30
Which of the following actions is not considered to be misrepresentation under law? A. Making a false or maliciously critical statement regarding the financial condition of a competitor B. Describing a mutual life insurance policy dividend as equivalent to a stock dividend C. Making a false presentation about an insurance company's financial condition D. Misstating the benefits offered by an insurance policy
A. Making a false or maliciously critical statement regarding the financial condition of a competitor
Which of the following is a requirement that all licenses must meet? A. Notify the Commissioner within 30 days of any change in business and residence address B. Complete a prelicensing course and pass an examination C. Fulfill continuing education requirements within 2 years after the expiration date D. Maintain a personal residence in the state of Georgia
A. Notify the Commissioner within 30 days of any change in business and residence address
If a regulatory action is appropriate as a result of an examination of an insurer in Georgia, the Commissioner has the authority to do all of the following regarding a hearing except: A. Prosecute a person for violating a criminal act B. Subpoena witness C. Administer oaths D. Take depositions
A. Prosecute a person for violating a criminal act
Orders and notices from the Commissioner are effective only when ________________ A. They are in writing and signed by the Commissioner's authority. B. Sending it by electronic mail. C. Delivered in person D. None of the above
A. They are in writing and signed by the Commissioner's authority
What is the maximum duration a temporary license may be valid for? A. 3 months B. 12 months C. 6 months D. 15 months
D. 15 months
__________ will be served in the same manner as if issued by a superior court.
Subpoenas
Who is chief officer of Georgia Dept of Insurance, elected for a 4 yr term, and promotes efficiency in operation service to the public?
Insurance Department and Commissioner
If the examinee fails to make the corrections, the Commissioner may employ experts to ______________ A. rewrite, post, or balance such records at the expense of such examinee B. copy and pate C. cancel the account D. immediately inform the person of mistake
A. rewrite, post, or balance such records at the expense of such examinee.
A licensed insurance counselor: A. Is another name for an insurance producer B. Advises consumers about their insurance needs for compensation C. Sells, solicits, and negotiates insurance contracts D. Administers a group plan for an employer
B. Advises consumers about their insurance needs for compensation
If after a hearing it has been determined that a person has engaged in an unfair or deceptive act, the Commissioner may order any of the following except: A. Up to one year imprisonment B. A penalty not to exceed $1,000 per each unknown violation C. Cease and Desist order D. Suspension or revocation of the person's license
A. Up to one year imprisonment
Alice's license was revoked because she: A. Notified the Commissioner 6 days after her request for a license in Alabama was denied B. Mishandled money belonging to another party C. Was accused of a felony or crime or moral turpitude D. Wrote an insurance policy to cover her spouse
B. Mishandled money belonging to another party
The Commissioner may impose which of the following penalties on any person who violates a cease and desist order following a hearing? A. A sentence of one year in jail or on probation, under Georgia's Penal Code B. a fine up to $10,000 per violation C. Suspension but not revocation of one's license D. A fine up to $5,000 per violation
B. a fine up to $10,000 per violation
What is the difference between a probationary license, a temporary insurance license, and a limited insurance license? A. A probationary license is only in effect while one is preparing to take a licensing exam B. A limited license only allows one to sell one type of life insurance, health insurance, property insurance, or casualty insurance C. A temporary license does not grant the licensee the power to sell new policies D. A temporary license is granted for a period of between three months and 12 months
C. A temporary license does not grant the licensee the power to sell new policies
All of the following are considered by definition to be examples of transacting insurance in the state of Georgia except: A. Solicitation B. Effecting an insurance contract C. Entering into preliminary negotiations regarding coverage D. Adjusting a claim in Georgia
D. Adjusting a claim in Georgia
According to the insurance statues of the state of Georgia, the definition of long-term care insurance includes: A. Policies which offer at least six months of aggregate coverage per insured B. Policies which offer comprehensive disability coverage C. Only those products offered as standalone long-term care insurance policies D. Only those insurance products which offer 12 months of coverage for chronic care
D. Only those insurance products which offer 12 months of coverage for chronic care
Which of the following statements regarding the ability of the Insurance Commissioner to examine insurers and other persons is true? A.The Commissioner must provide an insurance company with a copy of the final report of any examination within 20 days after it is published. B. The commissioner may not examine insurer records more often than once every five years. C. The Commissioner's ability to examine insurers is limited to domestic carriers. D. The Commissioner may examine the records of any license as often as the Commissioner deems advisable.
D. The Commissioner may examine the records of any license as often as the Commissioner deems advisable.
All resident licenses are renewed: A. Annually B. Biennially C. Automatically D. December 31st every year
B. Biennially
How many hours of CE would an agent who had been licensed for 10 years need to complete during each biennium? A. 30 B. 12 C. 24 D. 20
C. 24
Any demand of hearing must be held when? A. 10 days prior such demand B. 25 days after receipt of such demand C. within 30 days after receipt of such demand D. 60 days before the written demand
C. within 30 days after receipt of such demand
Entering into an agreement that results in restraint of, or monopoly in, insurance business is an example of what type of unfair trade practice? A. Misrepresentation B. Rebating C. Unfair Discrimination D. Boycott, Coercion, or Intimidation
D. Boycott, Coercion, or Intimidation
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: A. Subpoena B. Certificate of Authority C. Report of examination D. Cease and Desist order
D. Cease and Desist order
Which of the following statements regarding the temporary insurance license is not correct? A. A temporary license is only granted upon the death of an agent B. Temporary licenses are granted for an initial term of 6 months C. A temporary license does not allow the license to sell, solicit or negotiate new contracts D. Temporary licensees undergo a criminal background check
A. A temporary license is only granted upon the death of an agent
At minimum, transaction records must: A. Be kept for 5 years after the date the transaction or the contract term is completed B. Be kept for 5 years from the date the records was created, or the next department exam, whichever is sooner C. Include a list of participants and the policies purchased D. Be kept at least until the next department examination
A. Be kept for 5 years after the date the transaction or the contract term is completed
Which of the following statements regarding the suspension of Harry's insurance agent license accurately describes a reason for his suspension? A. He defaulted on a debt B. He was subpoenaed to appear before the insurance commissioner of another state C. He was accused of committing a misdemeanor D. He reported his arrest to the Commissioner within 30 days
A. He defaulted on a debt
If the Commissioner finds accounts and records to be inadequate or incorrectly kept or posted, the person being examined will have how many days upon notification to correct the accounting? A. 20 B. 12 C. 60 D. 31
C. 60
The Commissioner may impose which of the following penalties on any person who violate cease and desist order following a hearing? A. A sentence of one year in jail or on probation, under Georgia's Penal Code B. A fine up to $5,000 per violation C. A fine up to $10,000 per violation D. Suspension but not revocation of one's license
C. A fine up to $10,000 per violation
Reciprocal agreements, as defined in the Georgia Insurance Code, refers to: A. An agency partnership B. Commission sharing agreements between licenses C. Agreements authorizing insurers to mechanically or electronically reproduce an agent's signature on insurance contract documents D. A agreement between the insurance Commissioner and regulators of other states in order to facilitate licensing of nonresident adjusters in Georgia and other states
D. A agreement between the insurance Commissioner and regulators of other states in order to facilitate licensing of nonresident adjusters in Georgia and other states
Which of the following individuals is required to hold an insurance license? A. A person in the business of selling, soliciting, or negotiating insurance contracts for a commision B. A person whose activities are limited to advertising without the intent to solicit insurance C. An employee of an insurer only engaged in the inspecting, rating, or classification of risks D. An attorney who advises clients on incidental insurance matters in the course of acting as their legal representative
A. A person in the business of selling, soliciting, or negotiating insurance contracts for commission
All of the following statements regarding licensing are true except: A. An unlicensed person my never receive any compensation for the sale of an insurance policy B. Each office of an agency must obtain, and annually renew, an agency license C. A person is generally not required to have license if he or she is not transacting insurance or being compensated by an insurer D. Each violation of the licensing requirements is a misdemeanor
A. An unlicensed person my never receive any compensation for the sale of an insurance policy
The maximum liability assumed by the Life and Health Insurance Guaranty Association with regard to an individual insured is no more than: A. The aggregate face value of the life insurance policies owned by the insured up to $300,000 per insured B. The value of each policy owned by the insured up to $300,000 per policy C. $300,000 of life insurance cash value per insured D. $300,000 of major medical insurance benefits
A. The aggregate face value of the life insurance policies owned by the insured up to $300,000 per insured
Which types of insurance license may be granted by the Commissioner for a period of 3 to 12 months A. Provisional B. Limited C. Probationary D. Temporary
C. Probationary
Under Examination Expenses, who will pay all costs of the examination, including travel and living expenses? A. the insurer B. the insured C. the insurer or other person examined
C. the insurer or other person examined
The qualifications for becoming an insurance producer include which of the following? A. Everyone who applies to be licensed must be fingerprinted without exception B. The candidate must be at least 21 years of age C. Applicants for a resident license must reside in Georgia at least half the year or have a business domiciled in the state D. applicants for licenses may not have worked for the Commissioner within the 90 day period preceding their application
C. Applicants for a resident license must reside in Georgia at least half the year or have a business domiciled in the state
The qualifications for becoming an insurance producer includes which of the following? A. Applicants for licenses may not have worked for the insurance Commissioner within 90 day period preceding their application B. The candidate must be at least 21 years of age C. Everyone who applies to be licensed must be fingerprinted without exception D. Applicants for a resident license must reside in Georgia at least half the year or have a business domiciled in the state
D. Applicants for a resident license must reside in Georgia at least half the year or have a business domiciled in the state
Which of the following statements regarding certificates of authority is correct? A. Investigating and adjusting claims in Georgia are in themselves deemed to constitute the transacting of insurance, which requires a certificate of authority B. An insurer is affiliated with an authorized insurer in Georgia, does not need a separate certificate of authority 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. If an insurance company refuses to be examined by the Commissioner, its certificate of authority may be suspended or revoked
D. If an insurance company refuses to be examined by the Commissioner, its certificate of authority may be suspended or revoked
Georgia Long-Term Care Partnership (LTCP) policies: A. Cover only those individual who file claims while residing in Georgia B. Automatically qualify policy owners for Medicaid in Georgia C. May only be sold by agents who have completed 8 hours of initial LTC training D. Must provide inflation protection to all applicants
C. May only be sold by agents who have completed 8 hours of initial LTC training
The purpose of the Georgia Life and Health Guaranty Association is to: A. Offer insurance protection to individuals with pre-existing conditions B. Permit policies to be issued by non-profit hospital or medical corporations C.Protect insureds from the insolvency of an insurance company D. Provide unlimited life and health benefits foe insureds who cannot afford to pay premiums
C.Protect insureds from the insolvency of an insurance company
In order to act as an insurance agent, a licensee must: A. Be at least 21 years of age B. Maintain one's years-round residence in Georgia C. Be appointed by at least one authorized insurer or another agent D. Have 5 years experience as an insurance counselor
C. Be appointed by at least one authorized insurer or another agent
What does the Commissioner of Insurance do?
enforce insurance codes, make regulations to enforce codes, and examine and investigate insurance procedures
All of the following are considered to be methods of unfair competition except: A. Misrepresentation B. Rebating C. Unfair Discrimination D. Replacement
D. Replacement
All of the following statements regarding producer appointments are true EXCEPT: A. Certificates of authority for subagents must be renewed biennially B. An appointing insurer must notify the Commissioner within 30 days of terminating an agent's appointment C. An insurance producer may not act as an agent unless he or she has at least one Certificate of Authority .D. An agent is responsible for securing Certificates of Authority for his or her subagents
A. Certificates of authority for subagents must be renewed biennially
Which of the following statements regarding the Continuing Education (CE) requirements for Georgia licenses is accurate? A. Every 2 years, resident agents licensed less than 20 years must complete up to 24 hours of CE, and resident agents licensed at least 20 years must complete up to 20 hours of CE B. Every 2 years, resident agents licensed less than 30 years must complete up to 30 hours of CE, and resident agents licensed at least 30 years must complete up to 20 hours of CE C. Every 2 years, residents counselors must complete 18 hours of CE D. Every 2 years, resident agents must complete up to 30 hours of CE, and nonresident agents must complete up to 29 hours of CE
A. Every 2 years, resident agents licensed less than 20 years must complete up to 24 hours of CE, and resident agents licensed at least 20 years must complete up to 20 hours of CE