Insurance License: Georgia Laws, Rules, and Regulations Common to All Lines
The maximum penalty that may be assessed for a single unwilful violation of the Insurance Code is
$1,000
Violation of a cease and desist order
$10,000
What is the maximum period of time a temporary license can be in force?
15 months
Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?
5 years
An agent must be a resident of the state and be present in the state for at least how many months each year?
6
A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered
A felony
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
Which of the following is another term for an authorized insurer?
Admitted
An agent is acting ethically in all the of following situations EXCEPT
Always representing the insured
All of the following would be considered rebating EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies
What is a foreign insurer?
An insurer with a home office in another state
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer
What is the title of the chief officer of the Department of Insurance?
Commissioner
In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the
Company
Which of the following positions is responsible solely for offering advice on insurance policies (For a fee)?
Counselor
When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of
Defamation
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
False advertising
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
Foreign
Surplus Lines
Insurance not available from authorized insurers placed with nonadmitted insurers who specialize in offering insurance to the high risk market
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
Mutual
All of the following are examples of transacting insurance in Georgia EXCEPT
Placing advertisements for an insurer
Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?
Promptly forwarding premiums to the insurance company
All of the following are true regarding rebates EXCEPT
Rebates are only allowed if it is in the best interest of the client
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact business in it. This is known as a/n
Reciprocity agreement
Which of the following types of insurance is owned by stockholders?
Stock
All of the following are unfair claims settlement practices EXCEPT
Suggesting negotiations in settling the claim
If the Commissioner is not able to serve due to disability, resignation, or death, which of the following will happen?
The Chief Deputy Commissioner will serve as the Commissioner until the next election
Commissioner
The head of the state department of insurance.
Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective and dealing with matters arising from that contract?
Transacting Insurance
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
Twisting
Statute
a formal written law enacted by legislature; insurance statutes can be found in the state Insurance Code
Reciprocity
a mutual interchange of rights and privileges
Inducement
an offer that attempts to influence the other party
Moral Turpitude
conduct that is contrary to community standards of justice, honesty or good morals
Authorized insurer
insurer who has received a Certificate of Authority from the department of insurance to transact insurance in this state
Home office
insurer's headquarters, principal place of business
Lloyd's Associations
operate an insurance mechanism, in which members are liable only for their portion of risk (not an insurance company)
Commission
payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium
Disclosure
revealed information to help someone make an intelligent and educated decision
Promulgate
to make public, to put into actions (e.g. laws or court decrees)
Cease and desist
to stop or discontinue
Insolvent
unable to meet financial obligations
