Chapter Exam: Georgia Laws and Rules
How often must an insurance agent license be renewed in Georgia? a. Every 6 months b. Every year c. Every 2 years d. Every 3 years
Every 2 years
Nonprofit life insurance providers that covered by a special section in the Georgia insurance code are called a. Fraternal life insurance organizations b. Domestic life insurance organizations c. Unauthorized insurers d. Mutual life insurers
Fraternal life insurance organizations
The Life and Health Insurance Guaranty Association is a. An entity that assists in underwriting large insurance policies b. Funded by admitted insurance companies through assessments c. Funded by the state government d. Administered by the Federal government
Funded by admitted insurance companies through assessments
Prior to a hearing that could potentially revoke an agent's license, what is required by the commissioner? a. Giving oral notice to the agent b. Giving written notice to the agent c. Giving both oral and written notice to the appointing insurer d. Giving oral notice to the appointing insurer
Giving written notice to the agent
A foreign insurance company doing business in Georgia a. Is not subject to Georgia insurance laws b. Is a company that was formed under the laws of another state c. Is a company that was formed under the laws of another country d. Is only authorized to write business outside the United States
Is a company that was formed under the laws of another state
Defamation occurs when an agent makes a false statement intended to a. Malign another insurer b. Replace an existing insurance policy with another c. Restrict fair trade d. Misrepresent the provisions of an insurance policy
Malign another insurer
Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? a. Twisting b. Intimidation c. Misrepresentation d. Sliding
Misrepresentation
An insurance agent is in violation of the Rules Governing Advertisement of Life Insurance and Annuities if the agent takes which of the following actions during a sales presentation? a. Asks prospects for referrals b. Analyzes another insurance company's policy c. Refers to guaranteed policy dividends d. Compares the costs of two similar policies
Refers to guaranteed policy dividends
When the Commissioner examines an insurer's records, who pays for the costs associated with the examination? a. The State of Georgia b. The insurance company being examined c. The Commissioner d. The National Association of Insurance Commissioners (NAIC)
The insurance company being examined
When advertising, an insurer is required to use its a. Logo b. True corporate name c. Trademark d. Trade name
True corporate name
An insurance agent is guilty of _______ if the agent misrepresents a policy to induce a policyowner to surrender an existing policy. a. Coercion b. Twisting c. Sliding d. Misrepresentation
Twisting
In Georgia, an accident and sickness policy that is paid on a quarterly basis requires a grace period of a. 7 days b. 10 days c. 31 days d. 45 days
31 days
After initially issued, a temporary license is valid for a. 3 months b. 4 months c. 5 months d. 6 months
6 months
Which document MUST accompany an application that initiates the replacement of an existing life insurance policy? a. A signed statement by the applicant regarding the replacement b. A signed replacement statement from the insurance company being replaced c. A detailed comparison of existing coverage and the proposed coverage d. A signed replacement statement from the replacing insurance company
A signed statement by the applicant regarding the replacement
What is the requirement for a nonresident agent license applicant? a. Meeting a minimum sales quota in agent's home state b. Residing in home state for 10 years c. Being a licensed agent in the agent's home state d. Passing a nonresident examination
Being a licensed agent in the agent's home state
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? a. Coercion b. Defamation c. Rebating d. Misrepresentation
Coercion
J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? a. Twisting b. Defamation c. Coercion d. Rebating
Coercion
In Georgia, monthly-premium accident and sickness insurance policies must provide a grace period of at least a. 7 days b. 10 days c. 14 days d. 31 days
10 days
In Georgia, long-term care policies are required to provide benefits for at least a. 6 months b. 12 months c. 18 months d. 24 months
12 months
What is one of the roles of the Commissioner? a. Establishing insurance rates b. Making insurance laws c. Administering insurance laws d. Endorsing insurers
Administering insurance laws
Someone who is appointed by an insurer to engage in insurance transactions is called a(n) a. Salesperson b. Agent c. Adjuster d. An attorney-in-fact employee
Agent
In Georgia, which of the following statements is CORRECT about life insurance advertisements? a. An insurance agency is responsible for advertisements placed by its insurance agents b. The commissioner of insurance must approve advertisements before they are used c. Third-party testimonials may not be used d. The dividend may be represented as guaranteed
An insurance agency is responsible for advertisements placed by its insurance agents
Which organization was established to provide funds to protect an insured in the event of insurer's insolvency? a. National Association of Insurance Commissioners (NAIC) b. Georgia Life and Health Insurance Guaranty Association c. Department of Insurance d. Office of Insurance Regulation
Georgia Life and Health Insurance Guaranty Association
Which of the following is NOT an unfair claim settlement practice? a. Failing to acknowledge and act promptly with respect to an insurance claim b. Compelling an insured to initiate a lawsuit by offering less on an insurance claim c. Failing to accept or deny a claim within reasonable time after proof of loss is submitted d. Needing written documentation of claim details
Needing written documentation of claim details
Which of the following correctly describes a certificate of authority? a. Gives an agent authority to represent a specific insurance company b. Permits an agent to solicit insurance in Georgia c. Permits a deceased agent's relative to act as an agent for a limited period of time d. Permits an insurance company to transact business in Georgia
Permits an insurance company to transact business in Georgia
Which of the following is NOT considered rebating? a. Sharing commissions with an agent licensed in the same line of business b. Returning premium to a client as an inducement for purchasing a policy c. Giving something of value to an insured in exchange for their business d. Offering special dividends
Sharing commissions with an agent licensed in the same line of business
J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? a. Coercion b. Sliding c. Twisting d. Rebating
Twisting
All agents licensed less than 20 years are required to complete ____ continuing education hours every two years. a. 12 b. 16 c. 24 d. 30
24
Which of these is NOT a requirement to obtain an insurance agent license in Georgia? a. Submit the application with fees b. Be of good character c. Be at least 18 years if age d. Graduate High school
Graduate High school
An example of unfair discrimination would be a. Declining an insurance application because of involvement in a hazardous occupation b. Offering the same terms of overage to different policyowners in the same risk classification c. offering different terms of coverage for different policyowners having the same risk classification d. issuing a policy at a substandard rate because of poor health
offering different terms of coverage for different policyowners having the same risk classification
A producer must notify the commissioner within ____ days of an address change. a. 15 b. 30 c. 45 d. 60
30
1. The coordination of benefits (COB) provision exists in order to a. Avoid duplication of benefit payments b. Avoid excessive hospitalization c. Lower insurance premiums d. Maximize patient care
Avoid duplication of benefit payments
Which of the following items are regulated by the Rules Governing Advertisement of Life Insurance and Annuities? a. Communication between marketing department and underwriting department b. Rate increase announced by insurance company via mass mailing c. Prepared sales presentations used by insurance agents d. Correspondence regarding policy loan interest rate payment
Prepared sales presentations used by insurance agents
Who is a mutual insurance company owned by? a. Its board of directors b. Its policyholders c. The State of Florida d. Its employees
Its policyholders
S takes out an accident and sickness insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this? a. Legal Actions b. Insurance with other insurers c. Entire Contract d. Reinstatement
Entire Contract
1. In Georgia, an example of an alien insurer would be one that is incorporated in a. Georgia b. Florida c. Puerto Rico d. France
France
What is an organization that solicits insurance only to its members? a. Nonadmitted company b. Mixed company c. Captive society d. Fraternal benefit society
Fraternal benefit society
Which of the following documents must an agent submit to the replacement of an existing life insurance policy? a. Notice to existing and replacing insurers of intention to replace b. A list of all policies the agent has replaced in the last 3 years c. A statement made by the agent that NAIC guidelines have been met during the replacement process d. A copy of the agent's insurance license
Notice to existing and replacing insurers of intention to replace
In Georgia, an insurer licensed to conduct business in Georgia, but domiciled in New Jersey, is called a(n): a. Non-admitted company b. Foreign company c. Domestic company d. Alien company
Foreign company
An agent's license can be suspended or revoked by a. Writing primarily controlled business b. Not meeting annual sales quota c. Replacing an existing insurance policy with a new one d. Issuing a binding receipt
Writing primarily controlled business