Chapter Exam - Georgia Laws and Rules

An agent must have ____ hours of ethics per continuing education reporting period

0 1 2 3

In GA, an insurance company must notify the Commissioner within ____ days to terminate an agent's appointment

30 days 45 days 60 days 90 days

In GA, long-term care policies are required to provide benefits for at least

6 months 12 months 18 months 24 months

In Ga, monthly premium accident and sickness insurance policies must provide a grace period of

7 days 10 days 14 days 31 days

In GA, an accident and sickness policy that is laid in a quarterly basis requires a grace period of

7 days 10 days 31 days 45 days

The ____ must provide an insured with proper disclosure concerning the replacement of an insurance policy

Agent Applicant Underwriter Commissioner

Under which circumstances may the Commissioner of Insurance suspend, revoke, or refuse to renew the license of an agent?

Agent is convicted of a misdemeanor Agent is found guilty of misrepresentation in obtaining the license Agent files for bankruptcy Agent fails to write and business for 6 consecutive months

With whom may an agent legally share commissions?

An unlicensed employee working for the same insurance company Another agent who is licensed in the same line of insurance A real estate agent An insured

An insurance agent is in violation of the Rules Governing Advertisement of Life Insurance and Annuities of the agent takes which of the following actions during a sales presentation?

Asks prospects for referrals Analyzes another insurance company's policies Refers to guarantees policy dividends Compared the cost of 2 similar policies

Who is a mutual insurance company owned by?

It's board of directors It's policyholders The state of Florida It's employees

Who owns a stock company?

It's policyowners It's stockholders It's board of directors It's CEO

What is the reason for the established Rules of Governing Life Insurance and Annuity Replacements?

Lessen the chance for misrepresentation and incomplete disclosure Regulate insurance rates Protect the interests of the insurer Protect the interests of the beneficiary

When advertising, an insurer is required to use its

Logo True corporate name Trademark Trade name

What's the requirement for a nonresident agent license application

Meeting a minimum sales quota in agent's home state Residing in home state for 10 years Being a licensed agent in agent's home state Passing a nonresident examination

In GA, an insurer licensed to conduct business in GA but domiciled in NJ, is called a(n)

Non-admitted company Foreign company Domestic company Alien company

A domestics insurance company in Georgia is considered a company that

Only sells to Georgia residents Exclusively does business in Georgia Is incorporated and formed in Georgia Is licensed to issue direct mail-order coverage

An agent would be guilty of rebating by

Returning a portion of a premium as incentive to purchase insurance Canceling a client's insurance policy without cause Selling direct marketing products Offering temporary insurance coverage

The purpose of the Rules Governing Advertisement of Life Insurance and Annuities is to

Set advertising rates to insurers Assure full disclosure to the public of all material and relevant information Help drive sales quotas for insurers Provide a potential client with all consumer ratings for the insurer

An insurance company which engages in boycott, coercion, and intimidation that results in the h reasonable restraint of trade is committing a prohibited act under GA insurance laws covering

Sliding Twisting Discrimination Unfair trade practices

A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?

Stock company is regulated by the state where its incorporated. Mutual company is regulated by its policyholders Stock company is considered an authorized insurer. Mutual company is considered an unauthorized insurer Stock company is owned by its policyholders. Mutual company is owned by its shareholders Stock company is owned by its shareholders. Mutual company is owned by its policyholders

When the Commissioner examines an insured's records, who pays for the costs associated with the examination?

The state of GA The insurance company being examined The commissioner The National Association of Insurance Commissioners (NAIC)

Why would the Commissioner examine an insurer's records?

To determine the solvency of the insurer To determine claims rate of the insurer To approve a rate increase by the insurer To determine the AM Best rating of the insurer

A person who is required to be a licensed agent would be a(n):

Underwriter Officer who makes decissions on the financial direction of the insurer Person who places insurance on behalf of anyone seeking insurance Administrator working in the marketing department who does no selling

An example of false advertising would be

Written testimony from a celebrity spokesperson An insurer exaggerating its dividends in a magazine advertisement An agent giving a gift as an inducement for their business An insurer advertising in an insurance trade journal

The Commissioner must give ____ days notice prior to holding a hearing regarding an agent's unfair or deceptive practice

10 15 20 30

In GA, how long is the free-look period?

10 days 15 days 20 days 30 days

All agents licensed less than 20 yrs are required to complete ____ continuing education hours every 2 years

12 16 24 30

Which of the following is the MINIMUM age at which an individual can sign a life insurance application?

15 18 19 21

After initially issued, a temporary license is valid for

3 months 4 months 5 months 6 months

Who would be eligible for a temporary license issued in GA?

An agent visiting Georgia to write a policy An agent to sell a policy from a company with which the agent is not appointed The personal representative of a deceased agent to provide service to existing policy owners A minor servicing a parent's existing policyowners

The coordination of benefits (COB) provision exists in order to

Avoid duplication of benefit payments Avoid excessive hospitalization Lower insurance premiums Maximize patient care

Before an insurance company can pay commissions to an agent, the agent must be

Bonded Licensed and appointed I ended only Bonded and insured

An insurance agent is guilty of ____ of the agent misrepresents a policy to induce a policyowner to surrender an existing policy

Coercion Twisting Sliding 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

An example of unfair discrimination would be

Declining an insurance application because of involvement in a hazardous occupation Offering the same terms of coverage to different policyowners in the same risk classification Offering different terms of coverage for different policyowners in the same risk classification Issuing a policy at a substandard rate because of poor health

What is the purpose of the Life and Health Guaranty Association?

Enforces GA's insurance regulations Underwrites high-risk insurance applicants Protects policyowners against insolvent insurance companies Establishes underwriting guidelines for admitted insurers

What is one of the roles of the Commissioner?

Establishing insurance rates Making insurance laws Administering insurance law Endorsing insurers

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 Reasonable trust Ethical behavior Legal competence

Nonprofit life insurance providers that are covered by a special section in the GA insurance code are called

Fraternal life insurance organizations Domestic life insurance organizations Unauthorized insurers Mutual life insurers

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 policyowner For up to an additional 10 years only Only if physically disabled Only if mentally disabled