Georgia Insurance Laws
Any authorized insurer writing insurance other than personal private passenger motor vehicle insurance must file any rate, rating plan, rating system, or underwriting rule and fees with the Commissioner at least ____ days prior to the indicated effective date.
45 days
All records for any transaction must be kept for at least _____ years after the transaction or contract term is completed.
5 years
The Commissioner, or a person authorized by the Commissioner, may conduct an examination of any insurer authorized to do business in this state as often as necessary, but domestic insurers must be examined at least once every ______ years.
5 years
____ years of insurance experience is required to become an insurance counselor.
5 years
The credit for two or more lost-time claims for the most recent year, is a ______% debit under the merit plan
5%
. If a late renewal reinstatement is received MORE THAN __ months after the expiration date, the licensee will be required to submit electronic fingerprints.
6 months
A temporary license is valid for ___ months from the original issue date
6 months
One must maintain a residence in Georgia at least ____ months out of the year, not year-round to get their license.
6 months
If cancellation is due to nonpayment of premium or when a policy that has been in effect for less than _____ days is cancelled for any reason, written notice must be delivered to the named insured at least ____ days prior to the effective date of cancellation.
60 days, 10 days
A notice of cancellation or nonrenewal of a policy for workers' compensation must be delivered to the insured either in person or sent by certified mail or statutory overnight delivery with a return receipt requested to the insured's last known address on record at least ____ days prior to the termination of the policy.
75 days
A binder is valid for the earlier of ______ days from its effective date or until the policy is issued.
90 days
If a policy has not been issued, a binder may be renewed or extended beyond the _____ days with written approval of the Commissioner or in accordance with the applicable rules and regulations.
90 days
The Commissioner has ____ days to approve or disapprove an application. (certificate of authority)
90 days
Deductibles in excess of $_______ must be approved by the Commissioner
$1,000
In addition to issuing a cease and desist order, the Commissioner may order any one or more of the following: -Assess a penalty of up to $______ for each act or violation, or up to $_______ per violation if the person knew or reasonably should have known he/she was in violation -Suspension or revocation of the person's license if the person knew or reasonably should have known he/she was in violation -Such other relief as is reasonable and appropriate
$1,000, $5,000
To qualify for an original certificate of authority to transact one or more classes of insurance, a domestic insurer must possess and maintain a minimum of $____ million in capital stock or in surplus.
$1.5 million
The penalties for a violation of a cease and desist order are: -A fine of up to $________ per violation -Suspension or revocation of the person's license if the person knew he/she was in violation -Such other relief as is reasonable and appropriate
$10,000
Conducting promotion programs which offer prizes, goods, wares, store gift cards, gift certificates, sporting event tickets, or merchandise to current or prospective customers as long as the value does not exceed $____ per customer per year and giving away such items is not contingent upon the sale or renewal of a policy
$100
Deductibles may be $250, $500 or $1,000, but cannot be less than $__________
$250
Failure to file for late renewal reinstatement prior to ____ year from the license expiration date will require the licensee to reapply for the license and satisfy the prelicensing and examination requirements.
1 year
Proof of financial responsibility must be maintained for a ____-year period.
1 year
In general, the Commissioner must give at least ___ days' advance notice of the time and place of a hearing stating the matters to be considered
10 days
The request for a certificate of authority must be submitted within ___ days of the agent's contract or first insurance application is submitted.
15 days
What is the maximum duration a temporary license may be valid for?
15 months MAX
__________ is the act of illegally misrepresenting an existing policy to induce a policyholder to unnecessarily replace that policy with a new policy from the same insurer for the purpose of earning additional or higher commissions.
Churning
The ______________ plan is an underwriting association authorized to issue property insurance policies, to reinsure any such policies, and to cede any such reinsurance. The _________Plan is a residual market program providing "last resort" coverage to property owners who are unable to qualify for coverage in the voluntary market.
FAIR plan
An insurer for a commercial casualty policy must give an insured at least 45 days' written notice before:
Increasing a premium
Is adjusting claims considered part of transacting insurance?
No
If it appears that a person has engaged in, is engaging in, or is about to engage in a prohibited act, the Commissioner may issue a____________________ if it is in the public's best interest to prohibit that person from continuing such act, practice, or transaction.
cease and desist order
A temporary license allows a licensee to serve _______ clients, but does not allow the licensee to sell, solicit or negotiate new contracts.
existing
The __________ rating plan is based upon the number of lost-time claims the policyholder has during the most recent one-year period
merit
The credit for a one lost-time claim for the most recent year, under the merit plan is: _______credit or debit
no
After coverage under the policy has been in effect for more than ____ days, notice of cancellation may only be issued for (personal lines policies): -Nonpayment of premium -Fraud, concealment of material fact, or material misrepresentation made by the insured with the intent to obtain, continue, or file a claim under the policy -A change in risk resulting in an increase in hazard -Violation by the insured of any material terms or conditions of the contract
60
If the Commissioner finds accounts and records to be inadequate or incorrectly kept or posted, the person being examined will have _____ days upon notification to correct the accounting.
60 days
The credit for No lost-time claims for the most recent year, under the merit plan is a _________% credit
12.5% credit
The Commissioner has the power to examine and investigate every person engaged in the insurance business to determine if unfair methods of competition or unfair, deceptive, or prohibited acts have occurred. If after the investigation, it is determined to be in the best interest of the public, the Commissioner will issue and serve a statement of charges and a notice of a hearing to be held at a fixed time and place not less than ___ days after service of the notice.
15 days
The Commissioner must provide a copy of the proposed examination report to the insurer examined at least ____ days before the report is filed.
20 days
Resident licensees continually licensed for 20 years or longer must complete a minimum of _____ continuing education hours, of which ____ hours must be in Ethics
20, 3
In order for an insurance license to be renewed, each licensee must complete a minimum of _____continuing education hours, ___ of which must be completed in Ethics.
24, 3
It is a prohibited practice to write what percentage of insurance, measured by volume of premium, as controlled business in a single year?
25%
Is a background check conducted for temporary licenses?
yes
-The drivers have committed no traffic offenses for the prior 3 years or since the date of licensure, whichever is shorter -The driver has had no at-fault accident claims for the prior 3 years -The driver completes one of the following types of driving courses -A approved defensive driving course of at least 6 hours; or -An emergency vehicles operations course at the Georgia Public Safety Training Center
Insurers must offer to reduce premiums by at least 10% if the all named drivers on the policy over age 25 meet the following conditions:
________ includes knowingly permitting an agreement other than as expressed in the contract and offering anything of value as an inducement to insurance if not specified in the contract, except a rebate approved by the Commissioner.
rebating
Binders, which may be oral or written, are considered ___________ insurance contracts
temporary
The Commissioner enforces and executes the duties imposed by the __________________.
Insurance Code.
In addition to issuing a cease and desist order, the Commissioner has the authority to: -Place the violator on probation for up to __ year for each act in violation Assess a penalty of up to $________ for each act or violation, or up to $_________ per violation if the person knew or reasonably should have known he/she was in violation
1 year, $2,000, and $5,000
The Commissioner must have rules or regulations approved by the Attorney General and on public file for at least ________ days before a rule/regulation becomes effective.
10 days
In order to get your licenses how old do you have to be?
18 years old
A licensee may not effect controlled business that amounts to ______ or more of the total volume of premium written in any 1 year.
25%
An auto liability policy must have a term of at least 6 months and must provide minimum coverage of at least _____/______/____
25/50/25
The Commissioner may issue a probationary license for ____ to ____ months, subject to revocation for cause without a hearing.
3 to 12 months
Certificates of Authority for subagents must be renewed no more than once every ____ years.
3 years
Certificates of authority for subagents must be renewed no more than once every _____ years.
3 years
A temporary licenses is renewable for ___ months at a time for a maximum of ____ months from the original issue date.
3, 15
All resident and nonresident licensees must promptly notify the Commissioner in writing within __ days of any change in the licensee's business address, residence address, and name and address of each insurer or agency the licensee represents.
30 days
An insurer that terminates an agent's appointment must notify the Commissioner within ____ days of the termination if the reason for the termination may result in suspension or revocation of a license
30 days
Any demand for a hearing must be held within ____ days after receipt of such demand.
30 days
Nonresident agents who move to another state, or resident agents who move to another state from Georgia, must notify the Commissioner within ___ days of change of legal address to maintain a nonresident license.
30 days
The Commissioner may revoke the Certificate of Authority, or licenses of any person who fails to comply with a Cease and Desist Order, within ______ days after receipt.
30 days
The Commissioner must issue a final order within _____days after a hearing is concluded.
30 days
Unless otherwise specified, cancellation of a policy by the insurer may be accomplished by providing at least _______ days' notice of the effective date of the cancellation.
30 days
The insurance commissioner is elected to office for how long?
4 years
After coverage has been in effect for at least 60 days, each insurer licensed to transact commercial insurance in this state must provide notification in writing to an insured, at least ____ days prior to: -Termination, including cancellation or non-renewal, of a policy -An increase in premium, other than premiums due to a change in risk or exposure, which exceeds 15% of the current policy's premium and the notice must include the dollar amount of such increase -A change in any provision that limits or restricts coverage
45 days
The chief officer of Georgia's Department of Insurance is the ___________________
Insurance Commissioner
-The driver has committed no traffic offenses for the prior 3 years or since the date of licensure, whichever is shorter -The driver has had no at-fault accident claims for the prior 3 years; and -The driver has completed an approved preparatory course of at least 30 classroom hours and at least 6 hours of practical training -Honor student - The driver is unmarried and a full time student with any of the following academic honors: -The student is in the upper 20% academically -The student has a 3.0 or better grade point average; or -The student is on the "Dean's List" or "Honor Roll"
Insurers must offer to reduce premiums for drivers under age 25 under the following conditions:
_____ is the act of making a misrepresentation to any policyholder or insured for the purpose of inducing a policyholder to lapse, forfeit, or surrender insurance to purchase a policy with another insurer
Twisiting
Charging different rates, for individuals of the same class and risk defines the unfair trade practice known as:
Unfair discrimination