State

15%

A Georgia property Insurer must give at least 45 days notice of nonrenewal if the Insurer plans to impose a rate increase of at least? A. 10% B. 15% C. 25% D. 30%

post a $50,000 bond

A Surplus Lines Agent MUST: A. post a $50,000 bond. B. hold an appointment letter from an Insurer.

. the Insurer is required to recommend at least 2 other insurers willing to provide the coverage.

A homeowner policy nonrenewal notice must state each of the following EXCEPT: A. the Insurer is required to recommend at least 2 other insurers willing to provide the coverage. B. the Insured may be eligible for coverage under the Georgia FAIR Plan. C. at least 30 days advance notice. D. the actual reasons for the cancellation.

15 hours per year

A person with both Property/Casualty and a Life/Health licenses must complete how many hours of continuing education? A. 15 hours every two years. B. 15 hours per year.

Another property agent

A property agent may split a commission with: A. Another property agent. B. A Life agent.

$300,000

A property or casualty policy claim is covered under Georgia's Property and Casualty Guaranty Fund up to how much? A. $300,000 B. $50,000 C. $100,000 D. $150,000

3

A retail store must have work comp if it has a minimum of how many workers? A. 1 B. 2 C. 3 D. 4

claims filed

After an auto policy has been in effect for 60 days, it may be cancelled for each of the following reasons EXCEPT? A. epilepsy or heart condition B. suspension of the insured's driver's license C. claims filed D. misrepresentation on the application

30 days

After appointing an agent, the appointment must be registered in the Insurer's register of appointed agent's within: A. 10 days. B. 20 days. C. 30 days. D. 90 days.

60 days

An Insurer does not need a reason for terminating a property or casualty policy that has been in effect less than? A. 60 days B. 90 days C. 120 days D. 1 year

25%

An agent cannot hold a license for the purpose of buying insurance at a discount for the agent or associates. Such insurance is referred to as "controlled business" if it constitutes more than what percentage of the agent's total volume of business per year? A. 5% B. 10% C. 15% D. 25%

18% per year

An agent may collect how much interest from a client on a premium which is past due 30 days or more? A. None. B. 10% per year. C. 12% per year. D. 18% per year.

another licensed agent having the same type of license

An agent may receive a commission from: A. another licensed agent having the same type of license. B. an unlicensed person.

2 years Updated Information! Now that Agent licenses are good for 2 years, renewal fees will also be paid every 2 years.

An agent must pay a renewal fee every: A. 1 year. B. 2 years. C. 3 years. D. 4 years.

illegal

An agent pays an unlicensed person for each referral leading to the sale of insurance. Such a relationship is: A. legal as long as the payment does not exceed the de minimus value of $45. B. illegal. C. legal if reported in advance to the Insurer and the Commissioner. D. legal if reported in advance to the Insurer.

Insurer

An agent's appointment letter may be revoked by the: A. Insurer. B. Commissioner.

2 years Updated information! An Agent's license is now good for 2 years, not 1

An agent's license lasts for: A. 1 year. B. 2 years. C. 5 years. D. 10 years.

three traffic convictions within the last 36 months See Page GA-4C, Paragraph 2. Age, location, and marital status cannot be reasons to nonrenew an auto policy. However, on Page 4D, Paragraph 2, three traffic convictions within the last 36 months is sufficient reason to cancel an auto policy.

An auto policy may be nonrenewed or cancelled for: A. age B. three traffic convictions within the last 36 months C. moving to a new residence within the state D. getting married

underwriting.

An insurance agent's license is required for each of the following EXCEPT: A. advise a prospective purchaser on the terms of existing coverage. B. sign an application or an order for insurance on behalf of an applicant. C. disseminate information regarding insurance rates. D. underwriting.

Superior Court of Fulton County

Any action of the Commissioner may be appealed within 30 days to: A. The Governor. B. Superior Court of Fulton County. C. Georgia Attorney General. D. Georgia Supreme Court.

5

Before becoming a licensed counselor, an applicant must have had how many years of insurance experience? A. 1 B. 3 C. 4 D. 5

Any Insurer

Defamation involves making false statements about the financial condition of: A. Any Insurer. B. Any client. C. The Commissioner and the Department of Insurance. D. Any Insured.

apportions applicants among existing Insurers

GAIP: A. provides insurance directly. B. apportions applicants among existing Insurers.

Insurance Commissioner

Georgia insurance rates are regulated by? A. Insurance Commissioner B. NAIC C. Division of Consumer Protection D. FAIR Plan

18%

If a Georgia Insurer fails to return a refund of unearned premium within 10 days, in addition to a 25% penalty, the Insurer will be responsible for paying interest at the annual rate of: A. 18% B. 10% C. 25% D. 50%

30 days

If an Insured wishes to appeal a nonrenewal or cancellation to the Insurance Commissioner, the Insured must tender how many days pro rata premium to the Insurer to maintain interim coverage? A. 15 days B. 30 days C. 45 days D. 60 days

30 days

If an Insurer terminates an agent's appointment, the Insurer must notify the Commissioner and explain the termination within: A. 15 days. B. 30 days. C. 45 days. D. 60 days.

worst drivers

In the area of auto insurance, the residual market is intended to provide insurance for the: A. worst drivers B. best drivers

5 years

Licensees must keep copies of all records for: A. 2 years. B. 3 years. C. 4 years. D. 5 years.

Defamation

Making false statements about the financial condition of an insurer is called: A. boycotting. B. defamation.

The composite State Board of Medical Examiners

Medical malpractice Insurers must notify which of following of claim payments within 30 days? A. The Insurance Commissioner B. The Georgia Board of Hospital Examiners C. The Georgia Board of Physicians and Medical Professionals D. The composite State Board of Medical Examiners

counselor

One who is licensed to, for a fee, provide advice regarding insurance policies is a/an: A. advisor B. agent C. counselor D. producer

regulate insurance profits

The Commissioner has the authority to do the following EXCEPT: A. interpret insurance laws. B. examine insurers to determine solvency. C. regulate insurance profits. D. subpoena documents in any investigation related to the insurance industry.

the agent's place of business on record in the Commissioner's office

The Commissioner may give an agent notice of an order by delivering the notice to: A. the agent's place of business on record in the Commissioner's office. B. the Insurer appointing the agent.

elected

The Georgia Commissioner of Insurance is: A. appointed by the Governor. B. elected.

issue assessments against property insurance companies for Plan expenses

The Georgia FAIR Plan has authority to: A. suspend a agent's license. B. issue assessments against property insurance companies for Plan expenses.

protects Insured's if an insurance company is insolvent

The Guaranty Association: A. protects Insured's if an insurance company is insolvent. B. protects Agent's if an Insured is unable to pay premiums.

$100,000

The Guaranty Fund provides coverage for the cash value under a life insurance policy up to: A. $100,000 B. $200,000 C. $300,000 D. $400,000

at least 6 months per year

To be eligible for a resident agent license, an applicant must be present in Georgia: A. at least 6 months per year. B. more or less 9 months per year. C. at least 3 months per year. D. at least once every year.

no at fault accidents and no traffic violations

To show eligibility under the Defensive Driver Law, one must have had during the prior 3 years: A. no auto accidents B. no at fault accidents and no traffic violations C. no still or moving violations

30 days See Page GA-4A, Paragraph 2. Under Georgia law, 30 days' notice is required to cancel or nonrenew any property or casualty policy - it doesn't matter whether the policy covers a dwelling or an industrial property.

Under Georgia law, an Insurer must provide how many days' notice prior to nonrenewal or cancellation of a property or casualty policy covering an industrial manufacturing plant? A. 30 days B. 60 days C. 90 days D. at least 1 year

Bodily Injury and Property Damage

Under Georgia law, uninsured motorist covers: A. Bodily Injury and Property Damage B. Neither Property Damage nor Bodily Injury C. Bodily Injury but not Property Damage D. Property Damage but not Bodily Injury

No Limit

Under Georgia's Guaranty Fund system, if a work comp Insurer is insolvent, claims will be covered up to a maximum of: A. $100,000 B. $250,000 C. $300,000 D. No Limit

Unfair Discrimination

Using different rates for persons of approximately the same rate and hazard classification is: A. Rebating. B. Inducement. C. Coercion. D. Unfair Discrimination.

Commissioner of Insurance

A Georgia Certificate of auto Self-insurance may be obtained from the: A. Department of Motor Vehicles B. Governor C. Commissioner of Insurance D. Director of Revenue

$1,000

A Georgia Insurer may ignore its filed rates and charge either higher or lower premium rates by simply filing a Rate Deviation with the Commissioner in advance. However, the Insurer may immediately bind coverage and then wait up to 20 days to file the Rate Deviation with the Commissioner if the premium exceeds: A. $1,000 B. $2,500 C. $5,000 D. $10,000

no insurance policies are offered during the presentation.

A Georgia Insurer may offer food and refreshments to prospective clients during sales presentations only if: A. no insurance policies are offered during the presentation. B. a representative of the Commissioner C. any premium checks are post-dated for at least 7 days. D. each policy contains a 10-day right of rescission.

$45

A client may pay a fee to an insurance agent in Georgia as long as the fee has a maximum de minimis value of: A. $10 B. $25 C. $45 D. $75

10 hours

A person who has held an insurance license in Georgia for 20 years or more must complete how many hours of continuing education per year? A. None. B. 5 hours. C. 10 hours. D. 15 hours.

Certificate of Authority

An Insurer must obtain the following from the Commissioner before transacting insurance business: A. Agent license. B. Certificate of Authority.

any agent licensed with the same line of insurance

An agent may split commissions with: A. any Insurance Agent in Georgia. B. any agent licensed with the same line of insurance.

30 days

An agent must inform the Commissioner of a change of business address within: A. 10 days. B. 20 days. C. 30 days. D. 60 days

$25,000

An auto policy must provide at least how much bodily injury liability coverage per person? A. $10,000 B. $25,000 C. $50,000 D. $75,000

an unlicensed corporate officer

Each of the following business entities may obtain an agent's license EXCEPT: A. an unlicensed corporate officer. B. partnership. C. limited liability partnership. D. corporation.

a letter from a certified public accountant attesting to the individual

Each of the following is a method of satisfying the Georgia Motor Vehicle Reparations Act EXCEPT: A. a letter from a certified public accountant attesting to the individual B. a surety bond C. auto liability insurance D. a certificate of self-insurance

an unlicensed corporate officer

Each of the following may receive an agency licence EXCEPT: A. an unlicensed corporate officer B. a partnership C. a limited liability company D. a corporation

a post office box

Each of the following will satisfy the Commissioner's requirement for a place of business EXCEPT: A. an office in another business, such as a real estate office B. an office in a shopping mall C. a post office box D. a home office

Inadequate

Premium rates that are so low that they tend to destroy competition by creating a monopoly are referred to under Georgia insurance laws as: A. Discriminatory B. Predatory C. Excessive D. Inadequate

accepting a $45 fee from a client

The Commissioner may suspend or revoke an Agent's license for all of the following EXCEPT: A. accepting a $45 fee from a client. B. failing to comply with a Commissioner order. C. using fraudulent information while conducting insurance business. D. having been convicted of a felony.

3 years

The Commissioner must conduct an examination of domestic Insurers how frequently? A. 2 years B. 3 years C. 5 years D. 7 years

30 days

The Commissioner must hold a hearing within how many days of written demand by an aggrieved person? A. 10 days B. 30 days C. 45 days D. 90 days

provide property insurance to persons unable to obtain insurance

The purpose of the Georgia FAIR Plan is to: A. prevent insurance rate discrimination based on race or color. B. provide a source of life insurance for all applicants. C. guarantee that insurance advertising fairly represents the actual policies to be sold. D. provide property insurance to persons unable to obtain insurance.

Work Comp Insurers

Which of the following Georgia Insurers cannot engage in limited "price fixing" by using the rates filed by a rating association? A. Casualty Insurers B. Auto Insurers C. Property Insurers D. Work Comp Insurers

30

A Georgia property Insurer is going to cancel an Insured policy. The notice of cancellation must provide how many days' advance notice that the property may be eligible for coverage under the FAIR Plan? A. 5 B. 10 C. 20 D. 30

Membership is required

A Georgia property insurance company is considering membership in the FAIR Plan. Which is true? A. Membership is optional. B. Membership is required. C. Membership is available only to insurers that have been in business for 5 or more years. D. Membership is available only for domestic insurers.

each person who sells insurance is a licensed agent

An Insurer may pay commissions directly to the agency rather than to the agents only if: A. each person who sells insurance is a licensed agent. B. the commissions don't exceed the statutory amount. C. the Commissioner consents on a case-by-case basis. D. the Insurer requests a rule waiver.

Prohibited

An Insurer receives a 5% rebate from a local auto glass/repair shop in return for referrals. Such a payment is specifically: A. Prohibited. B. Permitted under Georgia insurance laws.

25%

If a Georgia Insurer fails to return a refund of unearned premium within 10 days, the Insurer will be assessed a penalty of: A. 25% B. 50% C. 75% D. 100%

45

If a Georgia property insurer is imposing a rate of 15% or more, or new policy terms that will, in effect, nonrenew the old policy, the property insurer must give how many days notice of nonrenewal? A. 10 B. 20 C. 30 D. 45

30 days

If an agent is subject to criminal arrest, the Commissioner must be notified within: A. 5 days. B. 10 days. C. 20 days. D. 30 days.

Inadequate

Premium rates that are unreasonably low are referred to as: A. Discriminatory B. Insufficient C. Predatory D. Inadequate

State employees driving highway maintenance vehicles

Public employees are concerned that motor vehicle accidents occurring while they are driving government vehicles may be used as a basis for auto insurers to increase the rates under the individuals: A. Firefighters B. Law enforcement officers responding to emergency situations C. State employees driving highway maintenance vehicles D. Emergency medical technicians

15

Under Georgia insurance law, a notice of cancellation or nonrenewal must state that the client may appeal the cancellation or nonrenewal to the Insurance Commissioner within how many days? A. 10 B. 15 C. 20 D. 30

They are legal representatives of the insurance company.

Under Georgia insurance law, all of the follow are true about subagents EXCEPT? A. They are legal representatives of the insurance company. B. They are not required to pass the licensing exam. C. They do not need to be licensed. D. They cannot issue binders.

10

Under Georgia law, an Insurer has how many days to return a refund of unearned premium? A. 10 B. 20 C. 30 D. 60

private insurance companies

Under the Georgia Automobile Insurance Plan (GAIP), the actual insurance policies are issued by: A. the Department of Insurance B. GAIP C. the Department of Motor Vehicles D. private insurance companies

30

Unless a nonrenewal or cancellation involves a nonpayment of premium, Georgia requires Insurers to provide how many days written notice to the client? A. 10 B. 20 C. 30 D. 45

restaurant employees

Which of the following are required to be covered by work comp? A. restaurant employees B. real estate agents C. domestic servants D. farm workers

race

Which of the following can never be an underwriting factor in Georgia? A. applicant's gender B. race C. age of the applicant D. geographical location of the risk

Insurer

Under Georgia insurance laws, the agent is presumed to represent the: A. Insurer B. Insured

$300,000

The Guaranty Fund provides coverage for unpaid health insurance claims up to: A. $45,000 B. $100,000 C. $250,000 D. $300,000

Subagent

Under Georgia insurance laws, a person who sells insurance for a licensed agent is known as a/an? A. subagent B. customer service representative (CSR) C. limited agent D. producer

$25,000

Which of the following correctly states the amount of required auto property damage liability coverage under Georgia's Financial Responsibility Requirements? A. $20,000 B. $10,000 C. $50,000 D. $25,000 Previous Next

Both the Commissioner and the affected party The Commissioner is the only person who can subpoena witnesses for the Commissioner's office as well as the affected party.

Which of the following may subpoena witnesses and documents at a hearing? A. Both the Commissioner and the affected party. B. The Commissioner only. C. The affected party only. D. Neither the Commissioner nor the affected party.

3 See Page GA-4J, line 8. Workers' Compensation is not required if an employer has fewer than 3 employees.

Work comp is NOT required for employers with fewer than how many employees? A. 2 B. 3 C. 5 D. 7

an accidental injury that occurs at work

Workers Compensation will cover which of the following? A. an auto accident while driving to work in a worker-owned vehicle B. a worker who dies of a heart attack while on the job C. an auto accident while driving to work in a company-owned vehicle D. an accidental injury that occurs at work

set by the individual insurance Work Comp insurance companies

Workers compensation insurance premium rates are: A. set by the individual insurance Work Comp insurance companies. B. set by the Georgia State Fund which is the only source of Work Comp insurance in Georgia because Georgia is one of the few monopolistic states. C. set by the Commissioner to provide uniform and fair rates that are the same for each Insurer. D. set by a rating service which files a standard set of rates to be used by all Work Comp Insurers in Georgia

Continue existing business but not sell new policies

A temporary agent may: A. Operate independently without supervision of a regularly licensed agent. B. Continue existing business but not sell new policies.

Surviving spouse

A temporary license can be issued to the following: A. Anyone in the state of Georgia. B. Surviving spouse.

3 in the last 3 years Georgia law requires at least 3 "no fault" claims over the last 3 years to nonrenew a residential policy.

Acme Insurance has received one or more claims for a particular residential client. The claims have involved Acts of God (such as wind damage or fire damage) which didn't involve negligence or intentional acts by the client. Acme may nonrenew the policy if it has received how many of these claims? A. 2 in the last 2 years B. 2 in the last 3 years C. 2 in the last year D. 3 in the last 3 years

ordinary negligence resulting in an accident that kills someone See Page GA-4D, Paragraph 2. Ordinary negligence cannot be a reason for cancelling an auto policy, even if the negligence results in death. However, criminal negligence (extreme negligence) that results in death, homicide, or assault involving the use of a motor vehicle may be grounds for cancelling an auto policy.

An auto policy may be cancelled due to each of the following involving an Insured within the prior 36 months EXCEPT: A. criminal negligence resulting in an accident that kills someone B. drug addiction C. drunk driving D. ordinary negligence resulting in an accident that kills someone

Liability only

Every auto liability policy in Georgia is required to include: A. Liability only B. Both Liability and Uninsured Motorist C. Both Liability and Underinsured Motorist D. Liability, Uninsured Motorist, and Underinsured Motorist

$25,000/$50,000/$25,000

Every auto liability policy owner in Georgia must also be offered at least how much Uninsured Motorist Coverage? A. None B. $25,000/$50,000 C. $25,000/$50,000/$25,000 D. $75,000

are issued by the Plan rather than by private insurers

FAIR Plan policies: A. are issued by the Plan rather than by private insurers. B. cover commercial property only. C. cover habitational property only. D. may be denied in particular neighborhoods.

Terry may issue a binder to provide temporary coverage for up to 90 days

Terry is a Georgia insurance agent. She has received an application for coverage on a single-family home. Her client has submitted an application with a premium. Which of the following is correct? A. Terry may issue a binder to provide temporary coverage for up to 90 days. B. The property is automatically covered while the application is being processed.

$5,000

The Commissioner may issue a fine for each intentional violation of the law up to: A. $1,000. B. $2,500. C. $5,000. D. $7,500.

$1,000

The Commissioner may issue a fine for each unintentional violation of the law up to: A. $250. B. $500. C. $750. D. $1,000.

when any insurance company or agent violates insurance laws

The Commissioner may issue cease and desist orders: A. only given approval by judicial order. B. when any insurance company or agent violates insurance laws.

6 months renewable for up to a total of 15 months

The Commissioner may issue temporary licenses for: A. 6 months, nonrenewable. B. 6 months renewable for up to a total of 12 months. C. 6 months renewable for up to a total of 15 months. D. 6 months renewable for up to a total of 18 months.

modify state statutes See Page GA-1B. The Georgia legislature creates statutes - statutes may only be changed by the legislature. The Commissioner may create regulations to implement the legislature's statutes, but the Commissioner cannot change the legislature's statutes

The Georgia Insurance Commissioner can do each of the following EXCEPT: A. examine the records of an Insurer B. organize the Department of Insurance C. modify state statutes D. create regulations