Chapter Quiz: State Laws, Rules, and Regulations

Workers compensation benefits in Georgia are limited to

$575 a week Workers compensation benefits in Georgia are limited to two-thirds of a worker's average weekly wage up to $575 a week

What are acts considered to constitute an act of "transacting insurance" in Georgia?

-Solicitation and inducement to insurance -Preliminary Insurance negotiations -Effectuation of an Insurance Contract -Transactions of matters subsequent to and arising out of effectuation of an insurance contract

If a policy is cancelled due to nonpayment of premium, how many days' advance notice must the insurer give the policyholder before cancellation?

10 days If a policy is cancelled due to nonpayment of premium, the insurer must give 10 days' notice before cancellation

What is the maximum period of time a temporary license can be enforced?

15 months A temporary license is good for 6 months and can be renewed at 3 month intervals for a maximum of 15 months

In this state no automobile insurance policy issued as proof of financial responsibility will be issued with bodily injury and property damage limits less than

25/50/25

How many days before a policy is nonrenewed must an insurer deliver or mail written notice to the insured?

30 days

If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?

30 days

How long is the Commissioner's term of office?

4 years

Under workers compensation laws, injured workers are entitled to how many weeks of treatment from the date of the accident?

400 weeks Medical treatment for injuries due to an on-the-job accident is limited to a maximum of 400 weeks of coverage from the date of the accident

If the premium for a policy will be increased by more than 15 percent, how much warning must the insured get?

45 days

When does a producer's license expire?

Every 2 years on the last day of the producer's birth month Same for an agent

If a property or casualty insurer is unable to pay claims, which entity would pay benefits to policyholders?

Georgia Insurers Insolvency Pool Georgia Insurers Insolvency Pool covers claims under property and casualty insurance policies when the insurer has become insolvent

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

A worker received a concussion after getting hit on the head at work and missed work for 5 days. At what point will the worker receive workers compensation benefits for the missed work?

Never; benefits start once a worker has been unable to work for more than 7 days

Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?

Promptly forwarding premiums to the insurance company Fiduciary refers to a position of trust. When an agent is handling premiums that belong to an insurance company, they are acting in a fiduciary capacity.

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

Sexual Orientation No discrimination may be made on the basis of an individual's marital status, race, national origin, gender identity, sexual orientation, creed, or ancestry

Which of the following is an example of a producer being involved in an unfair trade practice of rebating?

Telling a client that his first premium will be waived if he purchases the insurance policy today Rebating is defined as offering any inducement in the sale of insurance products that is not specified in the policy, including money, reductions in commissions, promises, and personal services. Both the offer and acceptance of a rebate is illegal.

If the Commissioner is not able to serve due to disability, resignation, or death, which of the following will happen?

The Chief Deputy Commissioner will serve as the Commissioner until the next election

The Commissioner of Insurance is

The chief officer of the Department of Insurance A Department of Insurance has been established in Georgia, and the Commissioner of Insurance is the chief officer of the Department. The Commissioner is elected to office for a term of four years. The purpose and function of the Department and the duties and powers of the Commissioner are to carry out and enforce the provisions of the Insurance Code.

Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract?

Transacting Insurance

The violation of a cease and desist order may result in a fine of

$10,000

An insured must get advanced warning if the premiums will be increased by more than

15%

Insurers must update copies of its rates, plans, systems, and underwriting rules every

2 YEARS

Rates for private passenger motor vehicle insurance on file with the Commissioner are considered approved after

45 days Rates for private passenger motor vehicle insurance providing only the mandatory minimum limits must be filled with the Commissioner. If the rate has been on file with the Commissioner for 45 days - and has not been disapproved - it may be considered approved

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

5 years

A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered

A felony Any willful violation will be considered a misdemeanor unless the amount involved exceeds $1,000, in which case the violation will be considered a felony

Who is required to participate in the Georgia Insurers Insolvency Pool?

Any insurer authorized to write property or casualty insurance in Georgia

To legally transact insurance in this state, an insurer must obtain which of the following?

Certificate of Authority

An agent's license authorizes the licensee to represent the insurer, not the

Client

What is the title of the chief officer of the Department of Insurance?

Commissioner

Which of the following entities has the power to issue certificates of authority?

Commissioner of Insurance

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

Counselor

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False Advertising This is considered to be false, deceptive or misleading advertising

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary Responsibility

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstances This is defamation

In which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status

A worker who suffered catastrophic injuries on the job is entitled to

Lifetime medical benefits

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