Chapter 5 QUIZ
In this state, what is the maximum fine for transacting insurance without a license?
$1,000
An insurance agent has received a request for a hearing from the commissioner. Within how many days must the hearing be held?
30 days
Which of the following is another term for an authorized insurer?
Admitted
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
Controlled
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility
In insurance transactions, fiduciary responsibility means
Handing insurer funds in a trust capacity
State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT
Inviting prospective clients to the grand opening of the company's new office
What is the function of a Certificate of Authority?
It allows an insurer to transact insurance in Georgia
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
Which of the following may NOT be included in an insurance company's advertisement?
That its policies are covered by a state Guaranty Association
A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered
felony
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describes this act
illegal
Which of the following best describes a misrepresentation?
issuing sales material with exaggerated statements about policy benefits