Test chapter

In Georgia, how long is the "free look" period? 10 days 15 days 20 days 30 days

10 days

Insurance agent licenses normally must be renewed every _ years in Georgia. 2 3 4 5

2

In Georgia, most life insurance policies have a contestability period of 1 year 2 years 3 years 5 years

2 years

All agents licensed less than 20 years are required to complete continuing education hours every two years. 12 16 24 30

24

A producer must notify the Commissioner within _ days of an address change. 15 30 45 60

30

domestic insurance company MUST be examined by the Commissioner every _ years. 5 4 3 2

5

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 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

The must provide an insured with proper disclosure concerning the replacement of an insurance policy. agent applicant underwriter Commissioner

Agent

The must provide an insured with proper disclosure concerning the replacement of an insurance policy. agent applicant underwriter Commissioner

Agent

Under which circumstance may the Commissioner of Insurance suspend, revoke, or refuse to renew the license of an agent? A)Agent is convicted of a misdemeanor B)Agent is found guilty of misrepresentation in obtaining the license C)Agent files for bankruptcy D)Agent fails to write any business for six consecutive months

Agent is found guilty of misrepresentation in obtaining the license

Which of the following is considered to be misrepresentation? A)Replacing an existing policy with a new one B)An agent guaranteeing a policy's dividends C)Sharing commissions with other D)licensed agents Representing a foreign insurer

An agent guaranteeing a policy's dividends

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

With whom may an agent legally share commissions? A)An unlicensed employee working for the same insurance agency B)Another agent who is licensed in the same line of insurance C)A real estate agent D)An insured

Another agent who is licensed in the same line of insurance

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 Rebating Twisting Misrepresentation Churning

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? A)Coercion B)Defamation C)Rebating D)Misrepresentation

Coercion

What is an organization that solicits insurance only to its members? Nonadmitted company Mixed company Captive society Fraternal benefit society

Fraternal benefit society

Nonprofit life insurance providers that are 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

Which of these is NOT a requirement to obtain an insurance agent license in Georgia? Submit the application with fees Be of good character Be at least 18 years if age Graduate High school

Graduation high school

What would be an accurate definition of "controlled business"? A)Insurance business that is written on the agent's own life, property, or interests B)Insurance business obtained by an agent through coercion, intimidation, or boycotting C)Insurance business that is obtained through false advertising D)Insurance business that is obtained by replacing an existing policy through misrepresentation

Insurance business that is written on the agent's own life, property, or interests

What is the reason for the establishment of Rules Governing Life Insurance and Annuity Replacements? A)Lessen the chance for misrepresentation and incomplete disclosure B)Regulate insurance rates C)Protect the interests of the insurer D)Protect the interests of the beneficiary

Lessen the chance for misrepresentation and incomplete disclosure

Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? Twisting Intimidation Misrepresentation Sliding

Misrepresentation

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 documents must an agent submit to the replacing insurance company during 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

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 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

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? The State of Georgia The insurance company being examined The Commissioner • The National Association of Insurance Commissioners (NAIC)

The insurance company being examined

Why would the Commissioner examine an insurer's records? A)To determine the solvency of the insurer B)To determine claims rate of the insurer C)To approve a rate increase by the insurer D)To determine the AM Best rating of the insurer

To determine the solvency of the insurer

J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? Coercion Sliding Twisting Rebating

Twisting

Insurance companies that are organized in countries outside the United States are referred to as domestic alien international foreign

alien

Insurance agents do NOT have a fiduciary responsibility to A)insurance companies B)insureds C)applicants D)another agent

another agent

The purpose of the Rules Governing Advertisement of Life Insurance and Annuities is to A)set advertisement rates for insurers B)assure full disclosure to the public of all material and relevant information C)help drive sales quotas for insurers D)provide a potential client with all consumer ratings for the insurer

assure full disclosure to the public of all material and relevant information

A foreign insurance company doing business in Georgia is not subject to Georgia insurance laws is a company that was formed under the laws of another state is a company that was formed under the laws of another country is only authorized to write business outside the United States

is a company that was formed under the laws of another state

A domestic insurance company in Georgia is considered a company That A)only sells to Georgia residents B)exclusively does business in Georgia C)is incorporated and formed in Georgia D)Is licensed to issue direct mail-order coverage

is incorporated and formed in Georgia

Convincing a prospective insured to buy an insurance policy based on exaggerations is called rebating intimidation twisting misrepresentation

misrepresentation

Cash surrendering an existing whole life policy and purchasing a new whole life policy is referred to as a(n) conversion illegal transaction cancellation replacement

replacement

Life insurance replacement regulation protects the interests of A)the policyowner B)the agent C)the insurer D)the NAIC

the policyowner

An insurance agent is guilty of . if the agent misrepresents a policy to induce a policyowner to surrender an existing policy. coercion twisting sliding misrepresentation

twisting

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

Someone who is appointed by an insurer to engage in insurance transactions is called a(n) salesperson agent adjuster an attorney-in-fact employee

• agent