GEORGIA LAWS AND RULES
Who owns a a stock company?
its stockholders
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
The Commissioner must give ___ days notice prior to holding a hearing regarding an agent's unfair or deceptive practice.
10
In Georgia, long-term care policies are required to provide benefits for at least
12 months
Which of the following is the MINIMUM age at which an individual can sign a life insurance application?
15
All agents licensed less than 20 years are required to complete ___ continuing education hours every two years.
24
An agent must have ___ hours of ethics per continuing education reporting period.
3
All accident and sickness plans MUST provide coverage on newborn children for ___ days.
31
In Georgia, an accident and sickness policy that is paid on quarterly basis requires a grace period of
31 days
Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called
A fraternal life insurance organization is a nonprofit provider of life insurance that is covered by a special section of the Georgia insurance code
Which document MUST accompany an application that initiates the replacement of an existing life insurance policy?
A signed statement by the applicant regarding the replacement
What is one of the roles of the Commissioner?
Administering insurance laws
With whom may an agent legally share commissions?
Another agent who is licensed in the same line of insurance
What's the requirement for a nonresident agent license applicant?
Being a licensed agent in the agent's home state
Using an existing life insurance policy's cash value to purchase another policy with the same insurer for the sole purpose of earning additional commissions is called...
Churning: is an illegal practice where insurance agents unnecessarily replace existing life insurance for the purpose of earning additional (higher) first year commissions
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?
Coercion
In Georgia, which of the following is considered an Unfair Trade Practice?
Coercion
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?
Entire Contract
The act of an insurance company publishing misleading information about its policy's provisions is called
False advertising
In Georgia, an example of an alien insurer would be one that is incorporated in
France
What is an organization that solicits insurance only to its members?
Fraternal benefit society
Prior to a hearing that could potentially revoke an agent's license, what is required by the Commissioner?
Giving written notice to the agent
Which of these is NOT a requirement to obtain an insurance agent license in Georgia?
Graduate high school
Which type of insurance company allows their policyowners to elect governing body?
Mutual
Which of the following is NOT an unfair claim settlement practice?
Needing written documentation of claim details
Which of the following documents must an agent submit to the replacement of an existing life insurance policy?
Notice to existing and replacing insurers of intention to replace
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?
Refers to guaranteed policy dividends
Cash surrendering an existing whole life policy and purchasing a new whole life policy is referred to as a(n)
Replacement
A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?
Stock company is owned by its shareholders. Mutual company is owned by its policyholders
A person who is required to be a licensed agent would be a(n)
a person who places insurnace on behalf
Someone who is appointed by an insurer to engage in insurance transactions is called a(n)
agent
The ___ must provide an insured with proper disclosure concerning the replacement of an insurance policy.
agent
Insurance companies that are organized in countries outside the United States are referred to as
alien
An example of false advertising would be
an insurer exaggerating its dividends in a magazine advertisement
Insurance agents do NOT have a fiduciary responsibility to
another agent
The purpose of the Rules Governing Advertisement of Life Insurance and Annuities is to
assure full disclosure to the public of all material and relevant information
When is a group accident and health policy required to provide coverage for a newborn child?
at the moment of birth
The coordination of benefits (COB) provision exists in order to
avoid duplication of benefit payments
How often must an insurance agent license be renewed in Georgia?
every 2 years
An example of unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim
T is an agent and when hired, is reminded that he has a responsibility to handle client's funds in an honest and ethical manner. This responsibility is referred to as
fiduciary responsibility
The Life and Health Insurance Guaranty Association is
funded by admitted insurance companies through assessments
What is NOT a requirement for becoming a licensed agent in Georgia?
high school graduate
A domestic insurance company in Georgia is considered a company that
is incorporated and formed in Georgia
Who owns a stock company?
its stockholders
Before an insurance company can pay commissions to an agent, the agent must be
licensed and appointed
Defamation occurs when an agent makes a false statement intended to
malign another insurer
An example of unfair discrimination would be
offering different terms of coverage for different policyowners having the same risk classification
During the application process, the agent's responsibility is to
the insurance company
Life insurance replacement regulation protects the interest of
the policyowner
When advertising, an insurer is required to use its ___
true corporate name
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
An insurance company which engages in boycott, coercion, and intimidation that results in the unreasonable restraint of trade is committing a prohibited act under Georgia insurance laws covering
unfair trade practices
An agent's license can be suspended or revoked by
writing primarily controlled business
In Georgia, an insurance company must notify the Commissioner within ____ days to terminate an agent's appointment.
30
Under which circumstance may the Commissioner of Insurance suspend, revoke, or , refuse to renew the license of an agent?
Agent is found guilty of misrepresentation in obtaining the license
Which of the following situations does NOT apply to the Georgia Replacement Rule?
An existing policyholder purchases an additional policy from the same insurer
An example of unfair discrimination would be
offering different terms of coverage for different policyowners in the same risk classification
What is the purpose of the Life and Health Insurance Guaranty Association?
protects policyowners against insolvent insurance companies
An agent would be guilty of rebating by
returning a portion of a premium as incentive to purchase insurance