State laws, Rules and Regulations
the maximum penalty that may be assessed for a single willful violation of the Insurance Code, where a person knew or reasonably should have known they were in violation is
$5000
what is the maximum period of time a temporary license can be in force?
15 months, it is good for 6 months and can be renewed at 3 month intervals for a max of 15 months
what is the maximum first-year commission that a producer may receive for the sale of a Medicare supplement policy in the state of Georgia?
200% of the commission paid for the servicing of the policy in the second year
an insured recently discovered that the interest rate on his policy loan once again increased. which of the following is the shortest amount of time that could have passed since the last change in the insured's interest rate?
3 months, the max rate for each policy must be determined at regular intervals at least once a yea, but not more frequently than once every 3 months
how long is the free-look period on a Medicare supplement policy?
30 days
group accident and sickness policies in Georgia have a grace period of
31 days
insurers must keep files of all advertisements used in Georgia for the minimum of how many years?
4
if an insured's cognitive impairment results in the lapse of a long-term care policy, how long from the policy lapse may the insured request reinstatement?
5 months
agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?
5 years
the inflation protection feature in long-term care policies issued in this state must provide protection for inflation at what percent annually?
5%
what is the maximum allowed rate of interest on policy loans from life insurance?
8%
how long is the waiting period for benefits to be paid in a long-term care policy or rider?
90 days
a willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered
a felony, anything below $1,000 is a misdemeanor
which of the following is another term for an authorized user?
admitted
which of the following would be considered an unfair claims settlement practice
advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered
which of the following would NOT be a violation of state insurance regulations?
agent C uses her license to write only business other than controlled
When transacting business in this state an insurer formed under the laws of another country is known as a/an
alien insurer
an agent is acting ethically in all of the following situations EXCEPT
always representing the insured (they represent the insurer)
which of the following is TRUE regarding coverage for mammography in accident and sickness policies in this state?
an annual mammogram for women over age 50 must be included
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
an unfair trade practice
which of the following would be considered a violation of life insurance advertising regulations?
calling a variable insurance policy an investment plan
what term is used for replacing insurance policies for the sole purpose of making commissions?
churning
A producer who fails to segregate premium monies from his own personal funds is guilty of
commingling
which of the following entities has the power to issue certificates of authority?
commissioner of insurance
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
The act of trying to discourage a policyholder from dropping his/her existing policy is called
conservation effort
the term "conservation effort" deals with
discouraging policyholders from dropping existing policies
which of the following would NOT be considered an unfair discrimination by insurers?
discriminating in benefits and coverages based on the insured's habits and lifestyle
how often does an agent's insurance license expire?
every 2 years
how often must the Commissioner of Insurance examine health maintenance organizations (HMOs) authorized to do business in this state?
every 3 years
what is the function of a certificate of authority?
it allows an insurer to transact insurance in georgia
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
which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
making comparisons between different policies
An agent commingled $500 of insurance premiums collected with new applications with his personal funds. The agent could be found guilty of a
misdemeanor
transacting insurance without a license in this state is considered a(n)
misdemeanor
which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?
nonforfeiture values
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 the premium paid
all of the following statements regarding continuing education requirements in this state are true EXCEPT
producers may repeat the same courses to meet the required CE hours for a licensing period
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
rebating
who elects the commissioner of insurance to office?
registered voters
when a policy is being replaced, the replacing company notifies the
replacement company
which of the following groups would most likely be covered under a blanket policy?
students at a public school (members are constantly changing)
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
the HR director of an insurance company loves the policy they have with the company. they are personable, and the company wants to use them in a new advertisement
the HR director can appear in the advertisement under the condition that the connection to the company is disclosed
the commissioner of insurance is
the chief officer of the department of insurance
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 payment to the insurer
an insured buys a medicare supplement insurance policy from a new insurer; this policy will replace one provided to her by another insurer. which of the following must provide her with a notice of replacement?
the replacing insurer
which of the following terms will be permissible in describing a life insurance policy in company advertisements?
variable plan
the violation of a cease and desist order may result in a fine of
$10,000
in this state, what is the maximum fine for transacting insurance without a license?
$1000
the maximum penalty that may be assessed for a single nonwillful violation of the Insurance Code is
$1000
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?
misrepresentation
An outline of coverage must be given to the applicant for a long-term care policy no later than
the time of initial solicitation
for how long are insurers required to maintain records pertaining to life insurance solicitation
3 years
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
which of the following would be considered an illegal inducement to purchase insurance?
confirming future dividends in a life insurance proposal
an insurance producer just sold an insurance policy to is sister. what kind of business is this?
controlled
Producers in Georgia will be deemed to be using their license primarily to write controlled business if, during any calendar year,
controlled business accounts for more than 25% of the agent's business
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
a participating insurance policy may do which of the following?
pay dividends to the policy owner
which of the following is true regarding Medicare Supplement policies?
these policies may not contain limitations of coverage except for those permitted by the pre-existing condition clause
which provision stipulates that misstatements made in a health insurance application may not be used to deny a claim after the policy has been in force for 2 years?
time limit on certain defenses
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
twisting