LAS 2

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

An insured purchased a disability income policy with a 10-year benefit period. The policy stated a 20 day probationary period for illness. If the insured is hospitalized with an illness 2 weeks after the policy was issued, how much will the policy pay?

Nothing; illness is not covered during the first 20 days of the contract.

An agent license can be issued

Only to individuals.

All of the following are examples of transacting insurance in Georgia EXCEPT

Placing advertisements for an insurer.

Which of the following factors determines the amount of each installment paid in a Life Income Option arrangement?

Recipient's life expectancy and amount of principal

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

Which of the following special policies covers unusual risks that are NOT normally included under Accidental Death and Dismemberment coverage?

Special Risk Policy

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

Who bears all of the investment risk in a fixed annuity?

The insurance company

How can a new physician be added to the PPO's approved list?

Agree to follow the PPO standards and charge the appropriate fees.

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Interest only option

Disability income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. In this case, total disability is defined as

Any occupation - more restrictive than other definitions.

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the

Consideration Clause.