Georgia insurance laws
Unless a nonrenewal or cancellation involves a nonpayment of premium, Georgia requires Insurers to provide how many days written notice to the client?
30
Licensees must keep copies of all records for:
5 years
Any action of the Commissioner may be appealed within 30 days to:
Superior Court of Fulton County.
A Georgia Insurer may ignore its filed rates and charge either higher or lower premium rates by simply filing a Rate Deviation with the Commissioner in advance. However, the Insurer may immediately bind coverage and then wait up to 20 days to file the Rate Deviation with the Commissioner if the premium exceeds:
$1,000
The Commissioner may issue a fine for each unintentional violation of the law up to:
$1,000
The Guaranty Fund provides coverage for the cash value under a life insurance policy up to:
$100,000
An auto policy must provide at least how much bodily injury liability coverage per person?
$25,000
Which of the following correctly states the amount of required auto property damage liability coverage under Georgia's Financial Responsibility Requirements?
$25,000
Every auto liability policy owner in Georgia must also be offered at least how much Uninsured Motorist Coverage?
$25,000/$50,000/$25,000
A property or casualty policy claim is covered under Georgia's Property and Casualty Guaranty Fund up to how much?
$300,000
The Guaranty Fund provides coverage for unpaid health insurance claims up to:
$300,000
A client may pay a fee to an insurance agent in Georgia as long as the fee has a maximum de minimis value of:
$45
The Commissioner may issue a fine for each intentional violation of the law up to:
$5,000
Under Georgia insurance law, all of the follow are true about subagents
- They do not need to be licensed - They are not required to pass the licensing exam. - They cannot issue binders
Each of the following may receive an agency licence
- a limited liability company - a partnership - a corporation
Each of the following business entities may obtain an agent's license
- a limited liability partnership - corporation - partnership
Each of the following will satisfy the Commissioner's requirement for a place of business:
- an office in a shopping mall - an office in another business, such as a real estate office -a home office
A homeowner policy non renewal notice must state each of the following
- at least 30 days advance notice - the insured may be eligible for coverage under the Georgia FAIR Plan - the actual reasons for the cancelation.
Each of the following is a method of satisfying the Georgia Motor Vehicle Reparations Act
- auto liability insurance - a certificate of self-insurance - surety bond
An auto policy may be cancelled due to each of the following involving an Insured within the prior 36 months:
- criminal negligence resulting in an accident that kills someone - drug addiction -drunk driving
The Commissioner may suspend or revoke an Agent's license for all of the following:
- having been convicted of a felony - failing to comply with a commissioner order - using fraudulent information while conducting insurance business
The Commissioner has the authority to do the following
- interpret insurance laws - subpoena documents in any investigation related to the insurance industry - examine insurers to determine solvency
The Georgia insurance commissioner can do each of the following;
- organize the Department of Insurance - examine the records of an insurer - create regulations
Under Georgia law, an Insurer has how many days to return a refund of unearned premium?
10
Under Georgia insurance law, a notice of cancellation or nonrenewal must state that the client may appeal the cancellation or nonrenewal to the Insurance Commissioner within how many days?
15
A person with both Property/Casualty and a Life/Health licenses must complete how many hours of continuing education?
15 hours per year
A Georgia property Insurer must give at least 45 days notice of nonrenewal if the Insurer plans to impose a rate increase of at least?
15%
An agent cannot hold a license for the purpose of buying insurance at a discount for the agent or associates. Such insurance is referred to as "controlled business" if it constitutes more than what percentage of the agent's total volume of business per year?
15%
If a Georgia Insurer fails to return a refund of unearned premium within 10 days, in addition to a 25% penalty, the Insurer will be responsible for paying interest at the annual rate of:
18%
An agent must pay a renewal fee every:
2 years
Every agent must complete Continuing Education Courses every:
2 years
A retail store must have work comp if it has a minimum of how many workers?
3
Work comp is NOT required for employers with fewer than how many employees?
3
The Commissioner must conduct an examination of domestic Insurers how frequently?
3 years
The Commissioner must inspect the records of a domestic property or life insurance company every:
3 years
A Georgia property Insurer is going to cancel an Insured policy. The notice of cancellation must provide how many days' advance notice that the property may be eligible for coverage under the FAIR Plan?
30
After appointing an agent, the appointment must be registered in the Insurer's register of appointed agent's within:
30 days
An agent must inform the Commissioner of a change of business address within:
30 days
If an Insured wishes to appeal a nonrenewal or cancellation to the Insurance Commissioner, the Insured must tender how many days pro rata premium to the Insurer to maintain interim coverage?
30 days
If an Insurer terminates an agent's appointment, the Insurer must notify the Commissioner and explain the termination within:
30 days
If an agent is subject to criminal arrest, the Commissioner must be notified within:
30 days
The Commissioner has acted in such a way that a person is aggrieved. The aggrieved person may request a hearing which must be held by the Commissioner within:
30 days
The Commissioner must hold a hearing within how many days of written demand by an aggrieved person?
30 days
Under Georgia law, an Insurer must provide how many days' notice prior to nonrenewal or cancellation of a property or casualty policy covering an industrial manufacturing plant?
30 days
The Georgia Work Comp Assigned Risk Plan will assign a Work Comp policy to a private insurer if the business has been rejected by at least how many private Work Comp insurers?
4
If a Georgia property insurer is imposing a rate of 15% or more, or new policy terms that will, in effect, nonrenew the old policy, the property insurer must give how many days notice of nonrenewal?
45
An insurer does not need a reason for terminating a property or casualty policy that has been less than?
60 days
The maximum length of time a written or oral binder will be effective under Georgia law is:
90 days.
A property agent may split a commission with:
Another property agent
Defamation involves making false statements about the financial condition of:
Any Insurer.
Under Georgia law, uninsured motorist covers:
Bodily Injury and Property Damage
Which of the following may subpoena witnesses and documents at a hearing?
Both the Commissioner and the affected party.
Work Comp insurance is considered to be:
Casualty Insurance
An Insurer must obtain the following from the Commissioner before transacting insurance business:
Certificate of Authority
A Georgia Certificate of auto Self-insurance may be obtained from the:
Commissioner of insurance
A temporary agent may:
Continue existing business but not sell new policies.
Premium rates that are so low that they tend to destroy competition by creating a monopoly are referred to under Georgia insurance laws as:
Inadequate
Premium rates that are unreasonably low are referred to as:
Inadequate
Georgia insurance rates are regulated by?
Insurance commissioner
Under Georgia insurance laws, the agent is presumed to represent the:
Insurer
Every auto liability policy in Georgia is required to include:
Liability only
A Georgia property insurance company is considering membership in the FAIR Plan. Which is true?
Membership is required
Under Georgia's Guaranty Fund system, if a work comp Insurer is insolvent, claims will be covered up to a maximum of:
No limit
A Georgia Insurer may charge rates either higher or lower than the rates filed with the Commissioner if it notifies the Commissioner in advance by filing a:
Rate Deviation
Which public employees are concerned that motor vehicle accidents occurring while they are driving government vehicles may be used as a basis for auto insurers to increase the rates under the individuals:
State employees driving highway maintenance vehicles
A temporary license can be issued to the following:
Surviving spouse
Terry is a Georgia insurance agent. She has received an application for coverage on a single-family home. Her client has submitted an application with a premium. Which of the following is correct?
Terry may issue a binder to provide temporary coverage for up to 90 days.
Who issues a probationary license?
The commissioner
Medical malpractice Insurers must notify which of following of claim payments within 30 days?
The composite state board of medical examiners
Which of the following Georgia Insurers cannot engage in limited "price fixing" by using the rates filed by a rating association?
Work Comp Insurers
Workers Compensation will cover which of the following?
an accidental injury that occurs at work
When the Guaranty (Insolvency) Fund pays claims, the Fund is replenished by:
an assessment against the remaining Insurers' premiums
Defamation involves making false statements about:
an insurer
An agent may receive a commission from:
another licensed agent having the same type of license.
An agent may split commissions with:
any agent licensed with the same line of insurance.
GAIP:
apportions applicants among existing insurers.
FAIR Plan policies:
are issued by the Plan rather than by private insurers.
An Insurer may pay commissions directly to the agency rather than to the agents only if:
each person who sells insurance is a licensed agent.
A Texas insurance company selling policies in Georgia is referred to in Georgia as:
foreign
An agent pays an unlicensed person for each referral leading to the sale of insurance. Such a relationship is:
illegal
An agent's appointment letter may be revoked by the:
insurer
The Georgia FAIR Plan has authority to:
issue assessments against property insurance companies for Plan expenses.
A temporary license:
may be renewed a maximum of three times
Uninsured motorist
may be waived by the insured
A resident Georgia Producer will lose her resident Producer license if she:
moves to a nearby state
To show eligibility under the Defensive Driver Law, one must have had during the prior 3 years:
no at fault accidents and traffic violations
A Georgia Insurer may offer food and refreshments to prospective clients during sales presentations only if:
no insurance policies are offered during the presentation.
A Surplus Lines Agent MUST:
post a $50,000 bond.
Under the Georgia Automobile Insurance Plan (GAIP), the actual insurance policies are issued by:
private insurance companies
The Guaranty Association:
protects Insured's if an insurance company is insolvent.
The purpose of the Georgia FAIR Plan is to:
provide property insurance to persons unable to obtain insurance.
Which of the following can never be an underwriting factor in Georgia?
race
Paying a person an inducement to purchase insurance is called:
rebating
Which of the following are required to be covered by work comp?
restaurant employees
Workers compensation insurance premium rates are:
set by the individual insurance Work Comp insurance companies.
Under Georgia insurance laws, a person who sells insurance for a licensed agent is known as a/an?
subagent
The Commissioner may give an agent notice of an order by delivering the notice to:
the agent's place of business on record in the commissioner's office
An auto policy may be nonrenewed or cancelled for:
three traffic convictions within the last 36 months
The Commissioner may issue cease and desist orders:
when any insurance company or agent violates insurance laws.
In the area of auto insurance, the residual market is intended to provide insurance for the:
worst drivers
