Georgia Laws, Rules, and Regulations Common to All Lines
What is the function of a Certificate of Authority?
It allows an insurer to transact insurance in Georgia
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
Not taxable since the IRS treats them as a return of a portion of the premium paid
What is the difference between a stock company and a mutual company?
Ownership
Who might receive dividends from a mutual insurer?
Policyholders
The maximum penalty that may be assessed for a single nonwillful violation of the Insurance Code is
$1,000
What is the maximum period of a time a temporary license can be in force?
15 months
How often does an agent's insurance license expire?
Every 2 years
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants
How soon from moving from one state to another must a nonresident producer file a change of address form with the Commissioner of Georgia?
30 days
If an agent's residence address is changed, within how many days must the agent notify the Commissioner?
30 days
Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?
5 years
In order for an insurer's certificate of authority to remain in effect, the insurer must maintain a surplus equal to how much of paid-in capital stock?
50%
Which of the following types of licensees is solely responsible for offering advice on insurance policies for a fee?
Counselor
What is the maximum period of time a temporary license can be in force?
15 months
Insurers who are members of the Georgia Insurers Insolvency Pool may be assessed up to what percentage of their net direct written premiums?
2%
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer
