Chapter 6: Georgia Rules and Codes Pertinent to Life Insurance Only

As defined by the Georgia Insurance Code, all of the following entities may have an insurable interest in the insured EXCEPT A. Trustee. B. Charitable institution. C. A corporation in which the insured holds a large percentage of shares. D. Insurer.

D. Insurer.

An insured recently discovered that the interest rate on his policy loan once again increased. Which of the following is the shortest amount of time that could have passed since the last change in the insured's interest rate? A. 1 month B. 3 months C. 6 months D. 12 months

B. 3 months

What is the purpose of Life Insurance Solicitation regulation? A. To provide information regarding replacement of policies B. To identify the required and prohibited actions for insurance advertising C. To help producers understand different insurance policies D. To help consumers compare life insurance products in regard to their relative cost

D. To help consumers compare life insurance products in regard to their relative cost

Existing insurers must provide policyowners with a policy summary for the existing life insurance within how many days of receiving the written communication and replacement? A. 20 B. 31 C. 5 D. 10

D. 10

If policyowners repeatedly replace policies from the same agent, this is most likely evidence that A. The agent is reputable and generally trusted by policyholders; the more replacements, the better. B. The agent made a commendable effort to offer the best possible policy for his or her clients. C. The agent needs more training on the suitability of policies for clients. D. The agent knew that replacement was intended in connection with the sale and intentionally violated the replacement regulation.

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

The duties of an agent where replacement is involved include all of the following EXCEPT A. Splitting the commission with the agent who originally sold the policy being replaced. B. Leaving a copy or original of all solicitation material used for presentation to the applicant. C. Submitting to the replacing insurer a copy of all soliciting material. D. Submitting to the replacing insurer a statement signed by the applicant as to whether or not he has existing life insurance.

A. Splitting the commission with the agent who originally sold the policy being replaced.

Which of the following terms will be permissible in describing a life insurance policy in company advertisements? A. Investment plan B. Retirement plan C. Variable plan D. Risk-free plan

C. Variable plan

A legally acceptable attempt by an existing insurer to dissuade a current policyowner from the replacement of existing life insurance is called A. Negotiation. B. Conservation. C. Solicitation. D. Retention.

B. Conservation.

The term "conservation effort" refers to A. Discouraging policyholders from replacing existing policies. B. Writing the smallest amount of insurance. C. Charging the lowest possible premium for the highest possible benefit. D. Discouraging agents from terminating their appointments.

A. Discouraging policyholders from replacing existing policies.

For how long are insurers required to maintain records pertaining to life insurance solicitation? A. 2 years B. 3 years C. 4 years D. 5 years

B. 3 years

The entire contract is made up of all of the following EXCEPT A. The insurance policy. B. The policy application. C. The buyer's guide. D. Riders and endorsements.

C. The buyer's guide.

Which of the following would be considered a violation of life insurance advertising regulations? A. Informing the applicant that the sole subject of the sale is insurance B. Not guaranteeing dividends C. Making oral sales presentations D. Calling a variable insurance policy an investment plan

D. Calling a variable insurance policy an investment plan

All of the following would be excluded from the regulation on life insurance solicitation EXCEPT A. A group life policy B. An annuity C. A term life policy D. A credit life policy

C. A term life policy

Whenever agents submit applications to insurers, they must also submit statements disclosing whether or not replacement is involved. Who must sign these statements? A. Applicant only B. Agent only C. Applicant and agent D. Applicant, agent, and executive officer of the insurance company

C. Applicant and agent

When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy for A. 5 years. B. 8 years. C. 10 years. D. 3 years.

D. 3 years.