Georgia Laws Life insurance
which of the following correctly describes certificate of authority
permits an insurance company to transact business in Georgia
what is the purpose of the Life and Health Insurance Guaranty Association?
protect policyowners against its insolvent insurance companies
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
The commissioner must give ___ days notice prior to holding a hearing regarding an agents unfair or deceptive practice
10
In Georgia, how long is the "free look" period?
10 days
In Georgia, monthly premium accident and sickness insurance policies must provide a grace period of at least
10 days
In Georgia, Long-term care policies are required to provide benefits for at least
12 months
the Life and Health Insurance Guaranty Association is
funded by admitted insurance companies through assessments
All agents licensed less than 20 Years are required to complete ___ continuing education hours every two years,
24
insurance agents do not have fiduciary responsibility to
another agent
which of the following is the minimum age at which an individual can sign a life insurance policy
15
In Georgia, most life insurance policies have a contest ability period of
2 years
In Georgia, most life insurance policies have a contestability period of
2 years
what is one of the roles of the Commissioner
administering insurance laws
an agent must have __ hours of ethics per continuing education reporting period.
3
In Georgia, an insurance company must notify the Commissioner within __ days to terminate an agents appointment
30
a producer must notify the commissioner within __ days of an address change
30
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 a quarterly basis requires a grace period of
31 days
after initially issued, a temporary license is valid for
6 months
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 Advertisement
T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as
Fiduciary responsibility
which of these is not a requirement to obtain an insurance agent license in the state of Georgia
Graduate High school
Who is a mutual insurance company owned by?
Its policyholders
Defamation occurs when an agent makes a false statement intended to
Malign another insurer
which of the following is not considered rebating
Sharing commission with an agent licensed in the same line of business
in Georgia, which of the following statements is CORRECT about life insurance advertisements
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 an insurer's insolvency?
The Georgia Life and Health Insurance Guaranty Association
During the application process, the agent's primary responsibility is to
The insurance company
who would be eligible for a temporary license issued in Georgia
The personal representative of a deceased agent to provide service to existing policyowners
J is an agent who has induced through misrepresentation to surrender an existing insurance policy. What is J guilty of?
Twisting
a person who is required to be a licensed agent would be a(n)
a person who places insurance on behalf of anyone seeking insurance
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
the ___ must provide an insured with proper disclosure concerning the replacement of an insurance policy
agent
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
insurance companies that are organized in countries outside the United States are referred to as
alien
Which of the following situations does NOT apply to the Georgia replacement rule
an existing policyholder purchases an additional policy from the same insurer
which of the following does not apply to the Georgia Replacement Rule?
an existing policyholder purchases an additional policy from the same insurer
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
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
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?
coercion
how often must an insurance agent license be renewed in Georgia
every 2 years
In Georgia, an insurer licensed to conduct business in Georgia, but domiciled in New Jersey, is called a(n)
foreign company
what is an organization that solicits insurance only to its members?
fraternal benefit society
Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called
fraternal life insurance organizations
In the state of Georgia, every policyowner must be offered which of the following
free-look period
Prior to a hearing that could potentially revoke an agent's license, what is required by the Commissioner?
giving written notice to the agent
what would be an accurate definition of "controlled business"
insurance business that is written on the agents own life, property, or interests
a foreign insurance company doing business in Georgia
is a company that was formed under the laws of another state
a domestic insurance company in Georgia is considered a company that
is incorporated and formed in Georgia
life insurance replacement regulation protects the interests of
its policyowner
who owns a stock company
its stockholders
who owns a stock company?
its stockholders
what is the reason for establishment of Rules Governing Life Insurance and Annuity replacements?
lessen the chance for misrepresentation and incomplete disclosure
before an insurance company can pay commissions to an agent, the agent must be
licensed and appointed
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
misrepresentation
Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? *Twisting *Intimidation *Misrepresentation *Sliding
misrepresentation
which type of insurance company allows their policy owners to select a governing body
mutual
which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy?
notice to existing and replacing insurers on intention to replace
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
An example of unfair discrimination would be
offering different terms of coverage for different policyowners having the same risk classification
Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent
only if the child is incapable of employment and chiefly dependent on the policy owner
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 representation
refers to guaranteed policy dividend
Cash surrendering an existing whole life policy and purchasing a new whole life policy is referred to as a(n)
replacement
which of the following is considered misrepresentation
replacing an existing policy with a new one
an agent would be guilty of rebating by
returning a portion of a premium as incentive to purchase insurance
a mutual insurance company and a stock insurance company have one main difference between them. what is the major contrast?
stock company is owned by its shareholders. mutual company is owned by its policyowners
when the commissioner examines an insurer's records, who pays the cost associated with the examination.
the insurance company being examined
Why would the commissioner examine the records of an insurance company?
to determine the solvency of the insurer
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 agent is guilty of __ if an agent misrepresents a policy to induce a policy owner to surrender an existing policy
twisting
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 insurance agents license can be suspended or revoked by
writing primarily controlled business
