Life Insurance: State Laws, Rules, and Regulations
The maximum penalty that may be assessed for a single nonwillful violation of the Insurance Code is
$1,000
Existing insurers must provide policyowners with a policy summary for the existing life insurance within how many days of receiving the written communication and replacement?
10 days
The violation of a cease and desist order may result in a fine of
10,000
When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy for
3 years
An agent must be a resident of the state and be present in the state for at least how many months each year?
6 months
What is the maximum allowed rate of interest on policy loans from life insurance?
8%
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
Which of the following would be considered a violation of life insurance advertising regulations?
Calling a variable insurance policy an investment plan
What is the title of the chief officer of the Department of Insurance?
Commissioner
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages basaed on the insured's habits and lifestyle
When does a producer's license expire?
Every 2 years on the last day of the producer's birth month
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility
Which required provision allows an insured to pay overdue premiums within 30 days for a life insurance policy to remain in effect?
Grace period
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
An insurance agent's responsibilities include all of the following EXCEPT
Represent the client
The duties of an agent where replacement is involved include all of the following EXCEPT
Splitting the commission with the agent who originally sold the policy being replaced
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchases the insurance policy today
Any references to policy dividends must include a statement of what?
That the dividends are not guaranteed
When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy until the conclusion of the next regular examination by the Insurance Department or for
3 years
All accident and health insurance policies issued in this state must include a grace period of at least
30 days
Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts
All of the following would be considered rebating EXCEPT
An agent misrepresent policy benefits to convince a policy owner to replace policies
If an insurer meets that state's financial requirements and is approved to transact business in the state, it is considered to be
Authorized
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered an
Authorized insurer
In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the
Company
Which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic
How is the Commissioner of Insurance selected to be the chief officer of the Department of Insurance?
Elected to office
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants
In which of the following situations is it legal to limit coverage based on marital status?
It is never legal to limit coverage based on marital status
Transacting insurance without a license in this state is considered a
Misdemeanor
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
Mutual
Which of the following groups would most likely be covered under a blanket accident policy?
Students at a public school
If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?
The policy will not lapse since payment to the agent is the same as a payment to the insurer