GA LAW SUPPLEMENT

$100.00 Explanation: A deductible, if requested by the insured, may be included for uninsured motorists coverage, but may not be reduced below $250.

Uninsured Motorists coverage may include a deductible in any of the following amounts EXCEPT: A) $500.00 B) $100.00 C) $250.00 D) $1,000.00

valued policy law. Explanation: When a state law or statute requires that an insurer pay the full amount of a policy at the time of a total loss to property, it is referred to as a valued policy law. It pertains only to loss due to fire.

A law that requires an insurer to pay the face amount of a policy in the event of a total loss to property is referred to as a: A) replacement cost law. B) market value law. C) valued policy law. D) total property law.

State Board of Workers Compensation. Explanation: The administration of workers compensation laws in Georgia rests with the State Board of Workers Compensation. The Department of Insurance regulates all other lines of insurance.

Administration of Georgia's workers compensation laws rests with the: A) State Board of Workers Compensation. B) Department of Insurance. C) Industrial Relations Department. D) Department of Labor.

Epilepsy or a heart condition. Explanation: An insurer may cancel a policy only when an insured or any resident of the household has a condition that makes operation of a vehicle a danger to the public, or when the insured has epilepsy or heart attacks and fails to provide a physician statement attesting to the unqualified ability to operate a vehicle safely.

An insurance company may cancel a personal automobile policy if an insured or a resident of the household has which of the following conditions? A) Cancer. B) Epilepsy or a heart condition. C) Poor eyesight. D) Any medical condition.

5 years. Explanation: Domestic insurers must be examined when applying for authority to do business and at least once every 5 years

Domestic insurers in Georgia must submit to examination by the Commissioner at least once every: A) 5 years. B) 3 years. C) 2 years. D) 4 years.

5 years. Explanation: Domestic insurers must be examined when applying for authority to do business and at least once every 5 years.

Domestic insurers in Georgia must submit to examination by the Commissioner at least once every: A) 5 years. B) 3 years. C) 2 years. D) 4 years.

failure of the insured to install safety devices in an automobile. Explanation: The insured is not required to install safety devices in an automobile as long as the vehicle complies with all motor vehicle laws for safe operation in the state.

Each of the following is a valid reason for cancellation of personal automobile insurance EXCEPT: A) failure of the insured to pay premiums when due. B) obtaining a policy through material misrepresentation. C) making a false or fraudulent claim. D) failure of the insured to install safety devices in an automobile.

30 Explanation: An insurer must provide at least 30 days notice of nonrenewal of a homeowners policy.

Homeowners insurance may be cancelled by an insurer by mailing or delivering how many days' advance notice of cancellation? A) 30 B) 15 C) 10 D) 20

30 Explanation: Insurers are required to collect at least 30 days advance premium for automobile policies issued in the state.

Insurance companies are required to collect premiums for automobile policies sufficient to provide coverage for at least how many days? A) 10 B) 60 C) 45 D) 30

defamation. Explanation: Making any oral or written statement that is false, or maliciously critical of or derogatory to the financial condition of any person engaged in the insurance business, and that is calculated to injure any person engaged in the insurance business, is an illegal practice known as defamation.

Making false or maliciously critical or derogatory statements about an insurance company with the intent of causing injury is an unfair trade practice known as: A) illegal inducement. B) defamation. C) unfair claim settlement. D) unfair discrimination.

an insurer's market share of similar business. Explanation: The method used to determine the amount of risk shared in an underwriting association is to apportion business based on the insurer's share of the voluntary market for that type of insurance.

Risks submitted to the Georgia FAIR Plan are shared based on: A) an insurer's appetite for high-risk business. B) an insurer's market share of similar business. C) an insurer's operating profit in the prior year. D) an insurer's complaint ratio with the department.

Ten working days. Explanation: Unearned premiums that are refunded to an agent of the insured must be sent by the agent to the policyholder within ten working days of receipt.

Unearned premiums created when an insurer cancels a policy before its normal expiration date are required to be returned to the insured within what number of days? A) Ten calendar days. B) Ten working days. C) Five working days. D) Five calendar days.

Limited subagent licensees have no CE requirement. Explanation: Individuals holding limited subagent licenses are required to complete five credit hours per year

Which of the following statements concerning Georgia's continuing education law is NOT correct? A) Limited subagent licensees have no CE requirement. B) The standard requirement is 15 CE hours every year. C) Licensees with 20 years or more of experience are required to complete only 10 CE hours yearly. D) Three of the 15 hours must be devoted to ethics.

A construction firm with 5 employees. Explanation: All employers with three or more employees are required to carry workers compensation insurance. Domestic workers may not be covered and coverage for farmworkers is on a voluntary basis.

Which one of the following must carry workers compensation insurance in Georgia? A) A firm employing 2 part-time workers. B) A homeowner who has a live-in housekeeper. C) A farm owner with 15 employees. D) A construction firm with 5 employees.

Commissioner of Insurance. Explanation: The head of the Georgia Department of Insurance is the Commissioner. The Commissioner's duties include enforcing all laws pertaining to insurance in the state of Georgia.

Who enforces all laws that relate to insurance in Georgia? A) Georgia legislature. B) Insurance agents. C) Federal Insurance Association. D) Commissioner of Insurance

that the insured may be eligible for coverage from the Georgia FAIR Plan. Explanation: When homeowners insurance is cancelled, the insurer must notify the insured of his possible eligibility for coverage under the Georgia Fair Access to Insurance Requirements (FAIR) Plan.

If an insurer cancels a homeowners policy, it must notify the insured: A) that coverage may be obtained from another insurer of the insured's choice. B) that the insured may be eligible for coverage from the Georgia FAIR Plan. C) of the phone number for the Georgia Department of Insurance. D) that a hearing may be obtained from the Insurance Commissioner

Jail persons for failing to comply with subpoenas. Explanation: The Commissioner may take depositions, subpoena witnesses, administer oaths, examine individuals under oath, and compel the production of records. She may not jail parties for failing to comply with subpoenas. Only a judge may issue such an order.

When conducting examinations, the Commissioner of Insurance can do all of the following EXCEPT: A) jail persons for failing to comply with subpoenas. B) administer oaths. C) require the production of records, books, papers, and any other relevant documents. D) subpoena witnesses.

the insured fails to make installment payments. Explanation: A premium finance company may only request cancellation of an insurance policy when the insured has failed to make any installments that are due.

A premium finance company may only cancel a policy when: A) the insured fails to make installment payments. B) the insured has failed to enact reasonable loss control measures. C) requested to do so by the insurance company. D) the agent no longer represents the insurance company.

an agent who charges a service fee. Explanation: An insurance company, bank, savings and loan, credit union, or lending institution is not bound by the provisions of the premium finance company laws and regulations. Agents, however, are only exempt if they do not impose a service or finance charge.

Each of the following may finance insurance premiums without having to comply with the provisions of the Insurance Code applicable to premium finance companies EXCEPT: A) an insurance company. B) an agent who charges a service fee. C) a lending institution. D) a trust company.

$1,000.00 Explanation: Failure to obtain the necessary license to operate as a premium finance company may result in a fine of up to $1,000.

Failure to obtain the necessary documentation to operate as a premium finance company may result in a fine of up to: A) $500.00 B) $1,000.00 C) $25,000.00 D) $10,000.00

180 days. Explanation: A temporary license is valid for 180 days (6 months) and may be renewed at the Commission's discretion for up to 15 months.

A temporary insurance license is valid for: A) 90 days. B) 30 days. C) 60 days. D) 180 days.

issuing checks in full settlement of a claim that contain language releasing the insurer from liability. Explanation: It is a common business practice to require an insured or third-party claimant to sign a release when accepting payment in settlement of a claim.

All of the following are considered to be unfair and deceptive trade practices EXCEPT: A) circulating a statement claiming that another insurer is in danger of going bankrupt. B) rebating premiums. C) inflating the dividend amount when discussing the policies advantages with potential policyholders. D) issuing checks in full settlement of a claim that contain language releasing the insurer from liability.

15 Explanation: Insurers must provide forms necessary to file claims within 15 calendar days of a request.

If requested by an insured, an insurer must provide the forms necessary to file claims within how many days after the request? A) 30 B) 10 C) 20 D) 15

has completed the prelicensing education requirements. Explanation: Certain individuals are exempt from the examination requirements for an agent's license. This includes applicants for a temporary license, those who were licensed in the state in the past year, and those who hold a Ph.D. degree in insurance.

An applicant for an agent's license is required to take a written examination if he: A) has completed the prelicensing education requirements. B) has a license that was suspended in Georgia within the past year. C) is applying for a temporary license. D) holds a Ph.D. in insurance.

issue a cease and desist order. Explanation: The Commissioner issues a cease and desist order to prohibit the person continuing in that practice.

If the Commissioner holds a hearing and finds that a person has engaged in an unfair or deceptive practice, the Commissioner will: A) arrest that person. B) issue a cease and desist order. C) prosecute that person in a criminal court of law. D) refer the matter to the state attorney general.

30 Explanation: Written notice of nonrenewal of automobile insurance must be provided 30 days in advance.

Personal automobile insurance must be renewed by an insurer unless it has notified the insured of its intention not to renew within how many days of the policy expiration? A) 20 B) 30 C) 10 D) 5

an association of insurance companies. Explanation: The Georgia FAIR Plan is an underwriting association comprised of licensed insurers who share risks on a fair and equitable basis.

The Georgia FAIR Plan is: A) a voluntary insurance market. B) a public entity. C) operated by the Insurance Commissioner. D) an association of insurance companies.

$25,000/$50,000/$25,000. Explanation: The minimum limits to meet the state's financial responsibility law are $25,000 BI per person, $50,000 BI per accident, and $25,000 PD.

To meet Georgia's financial responsibility law, personal auto policies must be written with minimum limits of: A) $5,000/$10,000/$5,000. B) $20,000/$40,000/$15,000. C) $10,000/$20,000/$5,000. D) $25,000/$50,000/$25,000.

$25,000/$50,000/$25,000. Explanation: The minimum financial responsibility limits for Georgia are $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property damage. Before that date the limits were $15,000/$30,000/$10,000.

What are the minimum financial responsibility limits in Georgia? A) $25,000/$50,000/$25,000. B) $15,000/$30,000/$10,000. C) $15,000/$30,000/$5,000. D) $25,000/$50,000/$10,000.

90 Explanation: A spouse may request an insurer to continue coverage for 90 days from the death of a spouse or termination of the marital relationship.

When a husband and wife are insured under an automobile policy and the wife dies, the husband may request continuation of coverage for how many days following the death? A) 30 B) 90 C) 60 D) 45

At least once every 5 years. Explanation: The Commissioner is required by law to make a financial examination of all domestic insurers every five years.

How often must the Commissioner examine domestic insurers? A) At least once every 2 years. B) At least once every 5 years. C) Only when a violation is suspected. D) Annually.

twisting. Explanation: Convincing a policyowner to lapse, forfeit, surrender, retain, exchange, or convert any insurance policy by means of false or misleading statements is twisting and is illegal.

Making a written or oral statement misrepresenting conditions or benefits of a policy for the purpose of inducing the policyowner to convert an insurance policy is: A) twisting. B) rebating. C) coercion. D) unfair discrimination.

Three. Explanation: Premium finance companies are required to maintain records of transactions for three years.

Premium finance companies are required to maintain records of transactions for how many years? A) Two. B) Seven. C) Three. D) Five.

Rehabilitation benefits. Explanation: Although included in many states, Georgia does not require that an employer provide rehabilitation benefits to injured workers.

Which of the following is NOT a benefit provided under workers compensation in Georgia? A) Rehabilitation benefits. B) Disfigurement. C) Temporary total disability.

conviction of any misdemeanor. Explanation: Conviction of a felony and violating state insurance laws are grounds for a license application to be denied. Not all misdemeanor convictions are grounds for license denial.

All of the following are grounds for a license application to be denied EXCEPT: A) obtaining a license to write controlled business. B) conviction of any misdemeanor. C) intentionally making a material misstatement on the application. D) misappropriation of money belonging to an insured.

Property damage liability. Explanation: No policy may be issued in the state unless it contains coverage for bodily injury liability, property damage liability, and uninsured motorists coverage. Other coverages may be included but are considered optional.

Automobile policies issued in Georgia must contain which of the following coverages? A) Comprehensive. B) Towing and labor. C) Medical payments. D) Property damage liability.

Twisting. Explanation: Convincing a policy owner to lapse, forfeit, surrender, retain, exchange, or convert any insurance policy by means of false or misleading statements is twisting and is illegal.

Making a written or oral statement misrepresenting conditions or benefits of a policy for the purpose of inducing the policyowner to convert an insurance policy is: A) unfair discrimination. B) twisting. C) coercion. D) rebating.

Georgia Insurers Insolvency Fund. Explanation: The Georgia Insurers Insolvency Fund was created in order to provide a remedy for covered claims under property and casualty policies when the insurer is unable to meet its contractual obligations.

What nonprofit association in Georgia protects owners of property and casualty policies issued by insurers that become insolvent? A) Georgia Board of Inquiry. B) Georgia Life, Accident, and Sickness Insurance Pool. C) Georgia Insurers Insolvency Fund. D) Department of Insurance.

10 Explanation: Cancellation of a policy for nonpayment of premium requires a ten days' advance notice of cancellation.

When cancelling a policy for nonpayment of premium, an insurer must provide how many days advance notice? A) 20 B) 45 C) 10 D) 30

It must be included but may be rejected by the insured. Explanation: Uninsured motorists coverage must be included in any policy that contains liability coverage, but the coverage may be rejected by the insured.

Which one of the following statements regarding uninsured motorists coverage in Georgia is CORRECT? A) It must be issued at the same limit as the bodily injury liability. B) It is required and may not be rejected by the insured. C) It is optional and an insurer may or may not provide it. D) It must be included but may be rejected by the insured.

License. Explanation: A license is required in order to operate as a premium finance company in the state of Georgia.

In order to operate as a premium finance company in Georgia, an individual must obtain which of the following? A) License. B) Authorization. C) Certificate of authority. D) Approval.

failing to pay claims when due. Explanation: Failing to pay claims when due, which is a violation of the Unfair Claims Settlement Practices Act, would require a hearing in order to suspend or revoke an insurer's certificate of authority.

The Commissioner may, without a hearing, immediately suspend the certificate of authority of an insurer for each of the following reasons EXCEPT: A) having authority to do business revoked in any state. B) failing to pay claims when due. C) exceeding powers granted under its certificate of authority. D) conducting business in a fraudulent manner.

the company was compelled by a court order to pay a final judgment rendered against it. Explanation: Insurance companies, like all other firms or organizations, may be compelled to pay judgments arising out of their business activities. This does not involve the suspension or revocation of the company's certificate of authority unless it involves a violation of the law.

The Commissioner of Insurance may suspend or revoke a certificate of authority for all of the following reasons EXCEPT that: A) the company is under the same ownership as another insurer that transacts direct insurance in Georgia without a certificate of authority. B) the company is in an unsound condition. C) the company refuses to be examined. D) the company was compelled by a court order to pay a final judgment rendered against it.

provision of guard dogs. Explanation: Although reasonable loss control measures may be required, guard dogs are not considered desirable for many insurers.

When a public entity requests temporary coverage from the Georgia Fair Plan, they may be asked to enact any of the following loss control measures EXCEPT: A) restriction of access to the premises. B) provision of security guards. C) disconnection of utilities. D) provision of guard dogs.

45 Explanation: When a renewal policy will provide coverage on a more limited or restricted basis than the current policy, the insurer is required to notify the insured at least 45 days in advance.

When the renewal of a commercial policy will contain coverage restrictions not in the current policy, the insurer must notify the insured of this fact how many days before renewal? A) 60 B) 20 C) 45 D) 30

Workers' compensation and auto insurance. Explanation: The Georgia Insurers Insolvency Pool consists of 3 accounts: workers' compensation, auto insurance, and other insurance.

Which 2 lines of insurance have specific accounts in the Georgia Insurers Insolvency Pool? A) Workers' compensation and auto insurance. B) Auto insurance and homeowners. C) Homeowners and businessowners. D) Workers' compensation and commercial general liability.

Offering any special advantage regarding the dividends or other policy benefits that are not specified in the contract to the customer. Explanation: Offering a special advantage regarding the dividends or other policy benefits that are not specified in the contract to the customer is an example of a rebate. The other answers are specifically listed in the law as not being rebates.

Which of the following actions is considered by law to be a rebate? A) Making payments or premium reductions to policyowners out of accumulated surplus on nonparticipating policies. B) Returning to industrial insurance policyowners the savings realized by the company when they make their payments directly to the company. C) Offering any special advantage regarding the dividends or other policy benefits that are not specified in the contract to the customer. D) Readjusting group policy rates retroactively for the previous policy year.

Writing Georgia insurance laws. The Commissioner is an administrator who carries out the laws as enacted by the Georgia legislature. The Commissioner may develop rules and regulations to carry out the law, conduct hearings, and license agents. However, writing insurance law is a function of the state legislature.

Which of the following is NOT a duty of the Commissioner of Insurance? A) Granting licenses to agents. B) Writing Georgia insurance laws. C) Conducting hearings. D) Making rules and regulations to help interpret the state insurance laws.

Failure of the insured to provide required underwriting information. Explanation: Non-renewal of automobile insurance is prohibited based on failure of the insured to write other business with the insurer, filing an uninsured motorists claim, or filing a comprehensive claim (such as windshield damage).

Which one of the following reasons may be the basis for nonrenewal of a personal automobile policy? A) Filing an uninsured motorists claim. B) Failure of the insured to place homeowners coverage with the insurer. C) Failure of the insured to provide required underwriting information. D) Filing a claim for damage to a vehicle's windshield

Adjuster. Explanation: An adjuster is a person who investigates, settles, and provides reports involving insurance policy claims. An agent, subagent, and counselor are all involved in the initial transaction of insurance.

Who investigates, settles, and provides reports involving claims arising under insurance contracts? A) Counselor. B) Subagent. C) Adjuster. D) Agent.

75 Explanation: Because workers compensation insurance is compulsory, a policyholder must be notified 75 days in advance if the coverage is being cancelled or nonrenewed by the insurer.

Workers compensation insurance may only be nonrenewed by giving the insured how many days' advance notice? A) 45 B) 30 C) 75 D) 60

45 days. Explanation: The insurer must provide 45 days' notice if it cancels a commercial liability policy for any reason other than nonpayment of premium.

In Georgia, how many days' notice must an insurer provide when a commercial liability policy is canceled for a reason other than nonpayment of premium? A) 60 days. B) 15 days. C) 45 days. D) 30 days.

a claim for a fire intentionally started by the insured's tenant. Explanation: When a claim is caused intentionally or by the negligence of the insured or any resident of the household, the insurer may refuse to renew the policy.

Nonrenewal of a homeowners policy is prohibited based on any of the following reasons EXCEPT: A) change in the insurer's underwriting guidelines if not approved by the Commissioner. B) lack of supporting automobile insurance with the insurer. C) 2 claims in the past 3 years for windstorm damage. D) a claim for a fire intentionally started by the insured's tenant.

withhold incriminating evidence. Explanation: Parties to a hearing are required to disclose pertinent information to the Commissioner. They may also present evidence, request a rehearing, and inspect evidence.

Parties to a public hearing held by the Commissioner of Insurance have the right to do all of the following EXCEPT: A) withhold incriminating evidence. B) inspect documentary evidence. C) present evidence supporting their interests. D) request a rehearing after an order.

Deputy Commissioner of Insurance. Explanation: In order to help her carry out the duties of office, the Commissioner appoints a Deputy Commissioner of Insurance who serves in her absence

Parties to a public hearing held by the Commissioner of Insurance have the right to do all of the following EXCEPT: A) withhold incriminating evidence. B) request a rehearing after an order. C) present evidence supporting their interests. D) inspect documentary evidence.

Defamation. Explanation: Making any oral or written statement that is false, or maliciously critical of or derogatory to the financial condition of any person engaged in the insurance business, and that is calculated to injure any person engaged in the insurance business, is an illegal practice known as defamation.

Question 10 - #197483 Making false or maliciously critical or derogatory statements about an insurance company with the intent of causing injury is an unfair trade practice known as: A) defamation. B) illegal inducement. C) unfair claim settlement. D) unfair discrimination.

Writing Georgia insurance laws. Explanation: The Commissioner is an administrator who carries out the laws as enacted by the Georgia legislature. The Commissioner may develop rules and regulations to carry out the law, conduct hearings, and license agents. However, writing insurance law is a function of the state legislature.

Which of the following is NOT a duty of the Commissioner of Insurance? A) Making rules and regulations to help interpret the state insurance laws. B) Granting licenses to agents. C) Conducting hearings. D) Writing Georgia insurance laws.

Defamation. Explanation: It is considered defamation of an insurer to knowingly make or circulate any statement that is false or maliciously critical regarding an insurer's financial condition.

Which of the following is the act of knowingly circulating a false statement about an insurer's financial condition? A) Defamation. B) Replacement. C) Rebating. D) Conversion.

Deputy Commissioner of Insurance. Explanation: In order to help her carry out the duties of office, the Commissioner appoints a Deputy Commissioner of Insurance who serves in her absence.

Who performs the Commissioner's duties in her absence? A) Deputy Commissioner of Insurance. B) Chairman of the Board of the Department of Insurance. C) Governor. D) Director of the Advisory Board.

applying for an agent's license. Explanation: Transaction insurance involves soliciting insurance, making preliminary insurance negotiations, making insurance contracts, and transacting matters arising out of insurance contracts. It does not involve agent licensing.

All of the following constitute the transaction of insurance EXCEPT: A) making preliminary insurance negotiations. B) offer and acceptance of insurance contracts. C) solicitation of insurance. D) applying for an agent's license.

is used as an emergency vehicle. Explanation: Insurance may be cancelled when the insured automobile is so mechanically defective that its operation might endanger the public, when it is used to carry passengers for hire, when it is used to transport explosives or flammables, when it is an authorized emergency vehicle, or when its condition has changed so as to substantially increase the risk insured.

An insurance company is legally entitled to cancel an automobile policy when the insured vehicle: A) has outstanding parking violations. B) is used as an emergency vehicle. C) reaches 20 years of age or older. D) is used to carry passengers other than resident relatives.

when the loss is to a 2-family structure. Explanation: The valued policy law applies to 1- and 2-family residential buildings or structures.

An insurer may pay less than the face amount of a policy when any of the following conditions exist EXCEPT: A) when the loss is to a 2-family structure. B) when there are 2 policies covering the loss. C) when the loss is partial. D) when there are two or more buildings insured under a blanket amount of insurance.

15 Explanation: When commercial insurance premiums will increase by more than 15% for reasons that are due to a change in risk or exposure, the insurer must provide written notice to the insured at least 45 days in advance.

An insurer must notify a commercial insured when the renewal premium for the policy is going to increase by more than what percent? A) 10 B) 20 C) 25 D) 15

The phone number of the insurance company. Explanation: A premium finance agreement must contain the name and place of business of the insurance company, but does not require a phone number.

Premium finance agreements must contain all of the following information EXCEPT: A) the phone number of the insurance company. B) the number and amount of payments. C) the name and address of the agent. D) the amount of premium being financed.

Georgia Workers Compensation Assigned Risk Plan. Explanation: When an employer cannot obtain required coverage in the voluntary market, the Georgia Workers Compensation Assigned Risk Plan provides the required coverage.

When an employer cannot secure required insurance from the voluntary market, he or she may secure coverage from the: A) Georgia Uninsured Workers Pool. B) Georgia Joint Industry Association. C) Georgia Workers Compensation Assigned Risk Plan. D) Second Injury Fund.

Epilepsy or a heart condition. Explanation: An insurer may cancel a policy only when an insured or any resident of the household has a condition that makes operation of a vehicle a danger to the public, or when the insured has epilepsy or heart attacks and fails to provide a physician statement attesting to the unqualified ability to operate a vehicle safely.

An insurance company may cancel a personal automobile policy if an insured or a resident of the household has which of the following conditions? A) Epilepsy or a heart condition. B) Poor eyesight. C) Cancer. D) Any medical condition.

When the loss is to a 2-family structure. Explanation: The valued policy law applies to 1- and 2-family residential buildings or structures.

An insurer may pay less than the face amount of a policy when any of the following conditions exist EXCEPT: A) when the loss is to a 2-family structure. B) when the loss is partial. C) when there are two or more buildings insured under a blanket amount of insurance. D) when there are 2 policies covering the loss.

certificate of authority. Explanation: Insurers are granted a certificate of authority to transact business in Georgia.

An insurer's license to do business in Georgia is called a: A) license to solicit registration. B) notice of risk assignment. C) mutual benefit card. D) certificate of authority.

required by law. Explanation: Automobile insurance is compulsory in Georgia and is required, not requested, in order to provide proof of financial responsibility.

Automobile insurance in the state of Georgia is: A) optional based on a person's driving record. B) required by law. C) requested as proof of financial responsibility. D) difficult to obtain.

keep only the amount of any outstanding balance on the insured's account. Explanation: When a return premium is sent to an insured's agent, the agent may apply the return to any balance outstanding on any policy. The excess, however, must be refunded to the insured within ten working days.

If an insurer makes a refund to an agent, the agent may: A) hold the money in trust pending receipt of a written request from the insured. B) keep any amount of refund and carry a credit balance for the insured. C) not keep any amount of the refund, but send it immediately to the insured. D) keep only the amount of any outstanding balance on the insured's account.

Cease and desist order. Explanation: In order to prevent someone from continuing to violate the insurance laws of the state, the Commissioner issues a cease and desist order, requiring that the person stop the inappropriate inaction now and in the future.

If an insurer violates any section of the insurance code, what can the Commissioner issue to stop the insurer from committing the violation? A) Notice of violation. B) Suspension order. C) Notice of a hearing. D) Cease and desist order.

45 days. Explanation: The insurer must provide 45 days' notice if it cancels a commercial liability policy for any reason other than nonpayment of premium.

In Georgia, how many days' notice must an insurer provide when a commercial liability policy is canceled for a reason other than nonpayment of premium? A) 60 days. B) 30 days. C) 15 days. D) 45 days.

state fund. Explanation: A state fund is not available for workers compensation insurance in Georgia.

In Georgia, workers compensation coverage may be provided by any of the following EXCEPT: A) state fund. B) self-insurance trust or group. C) private insurer. D) self-insurer.

has been previously authorized in another state. Explanation: A person does not need prior experience operating a premium finance company to become licensed. He must, however, demonstrate that he is competent, trustworthy, intends to act in good faith, has the necessary experience, training, or education to qualify him for the position, has a good business reputation, and will contribute to the convenience of the insurance-buying public.

In order to operate as a premium finance company, and individual must demonstrate to the Commissioner that he is all of the following EXCEPT: A) intends to act in good faith. B) has been previously authorized in another state. C) has experience or training in the field. D) competent.

$25,000.00 Explanation: A surety bond in the amount of $25,000 payable to the Commissioner is required for a premium finance company.

Premium finance companies are required to maintain a surety bond in favor of the Commissioner in an amount of: A) $20,000.00 B) $25,000.00 C) $10,000.00 D) $15,000.00

failure to install smoke detectors. Explanation: Smoke detectors, while important, are not required for homeowners insurance since their absence does not increase the hazards insured against (they are for protection of the occupants, not the property).

When a homeowners policy has been in effect for at least 60 days, it may be cancelled for each of the following reasons EXCEPT: A) nonpayment of premium. B) failure to install smoke detectors. C) concealment of a material fact. D) presenting a fraudulent claim.

He may be eligible for coverage under the Automobile Insurance Plan. Explanation: When cancelling automobile insurance, an insurer is required to notify the insured of her possible eligibility for coverage under the Georgia Automobile Insurance Plan.

When an insurer cancels a personal automobile policy for a permitted reason other than nonpayment of premium, it must notify the insured that: A) coverage is available in another insurer of her choice. B) he may be eligible for coverage under the Automobile Insurance Plan. C) coverage may be obtained from the insurer at a later point in time. D) she may be eligible for workers compensation benefits.

Pro rata. Explanation: Return premiums for policies cancelled at the insurer's request are computed on a pro rata basis. When the insured cancels, the company is entitled to a short rate cancellation. Flat cancellation means that the policy was never in effect.

When an insurer cancels a policy of insurance, the return premium is computed on what kind of basis? A) Average. B) Flat. C) Pro rata. D) Short rate.

30 Explanation: Cancellation of an insurance policy for a reason other than nonpayment requires 30 days' advance notice.

When cancelling a policy for a reason other than nonpayment of premium, how many days notice of cancellation must be given to the insured? A) 10 B) 30 C) 45 D) 20

Ten working days. Explanation: A finance company must make a refund of excess premiums to an insured or his agent within 10 working days.

When the cancellation of a policy by a premium finance company results in a refund of premiums in excess of the insured's outstanding balance, the finance company must return the premiums to the insured or her agent within how many days? A) Ten calendar days. B) Ten working days. C) Five working days. D) Five calendar days.

Limited sub-agent licensees have no CE requirement. Explanation: Individuals holding limited sub-agent licenses are required to complete five credit hours per year.

Which of the following statements concerning Georgia's continuing education law is NOT correct? A) Limited subagent licensees have no CE requirement. B) The standard requirement is 15 CE hours every year. C) Licensees with 20 years or more of experience are required to complete only 10 CE hours yearly. D) Three of the 15 hours must be devoted to ethics.

Failure of the insured to provide required underwriting information. Explanation: Nonrenewal of automobile insurance is prohibited based on failure of the insured to write other business with the insurer, filing an uninsured motorists claim, or filing a comprehensive claim (such as windshield damage).

Which one of the following reasons may be the basis for nonrenewal of a personal automobile policy? A) Filing an uninsured motorists claim. B) Failure of the insured to place homeowners coverage with the insurer. C) Failure of the insured to provide required underwriting information. D) Filing a claim for damage to a vehicle's windshield.

Alien. Explanation: A insurer incorporated under the laws of country other than the U.S. is an alien insurer. The term "international" is not a recognized category of insurer. An insurer organized under the laws of another state is foreign. One organized under Georgia law is a domestic insurer.

Which type of insurer is incorporated or organized under the laws of a country other than the United States? A) Alien. B) International. C) Domestic. D) Foreign.