chap 24
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? Select one: a.10% b.15% c.25% d.30%
B
A property agent may split a commission with: Select one: a.A Life agent. b.Another property agent.
B
An agent's license lasts for: Select one: a.1 year. b.2 years. c.5 years. d.10 years.
B
To be eligible for a resident agent license, an applicant must be present in Georgia: Select one: a.at least 3 months per year. b.at least 6 months per year. c.more or less 9 months per year. d.at least once every year.
B
Under Georgia insurance laws, the agent is presumed to represent the: Select one: a.Insured b.Insurer
B
The Commissioner may issue temporary licenses for: Select one: 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
C
To show eligibility under the Defensive Driver Law, one must have had during the prior 3 years: Select one: a.no auto accidents b.no still or moving violations c.no at fault accidents and no traffic violations
C
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? Select one: a.5 b.10 c.20 d.30
D
A Texas insurance company selling policies in Georgia is referred to in Georgia as: Select one: a.alien b.domestic c.captive d.foreign
D
A homeowner policy nonrenewal notice must state each of the following EXCEPT: Select one: a.the Insured may be eligible for coverage under the Georgia FAIR Plan. b.the actual reasons for the cancellation. c.at least 30 days advance notice. d.the Insurer is required to recommend at least 2 other insurers willing to provide the coverage.
D
A property or casualty policy claim is covered under Georgia's Property and Casualty Guaranty Fund up to how much? Select one: a.$150,000 b.$100,000 c.$50,000 d.$300,000
D
A retail store must have work comp if it has a minimum of how many workers? Select one: a.1 b.2 c.3 d.4
D
An agent may collect how much interest from a client on a premium which is past due 30 days or more? Select one: a.None. b.10% per year. c.12% per year. d.18% per year.
D
A Georgia Insurer may charge rates either higher or lower than the rates filed with the Commissioner if it notifies the Commissioner in advance by filing a: Select one: a.Rate Deviation b.Rate Divergence c.Rate Exception d.Rate Exclusion
A
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: Select one: a.$1,000 b.$2,500 c.$5,000 d.$10,000
A
A Georgia Insurer may offer food and refreshments to prospective clients during sales presentations only if: Select one: a.no insurance policies are offered during the presentation. b.each policy contains a 10-day right of rescission. c.a representative of the Commissioner d.any premium checks are post-dated for at least 7 days
A
A Producer may share a commission with: Select one: a.a resident Producer b.an adjuster c.the Commissioner d.a person who referred the applicant to the Producer
A
A Surplus Lines Agent MUST: Select one: a.post a $50,000 bond. b.hold an appointment letter from an Insurer.
A
A person with both Property/Casualty and a Life/Health licenses must complete how many hours of continuing education? Select one: a.15 hours per year. b.15 hours every two years.
A
A resident Georgia Producer will lose her resident Producer license if she: Select one: a.moves to a nearby state b.has an appointment from more than one Insurer
A
A temporary license can be issued to the following: Select one: a.Surviving spouse. b.Anyone in the state of Georgia.
A
An Insurer does not need a reason for terminating a property or casualty policy that has been in effect less than? Select one: a.60 days b.90 days c.120 days d.1 year
A
An agent may receive a commission from: Select one: a.another licensed agent having the same type of license. b.an unlicensed person.
A
An agent may split commissions with: Select one: a.any agent licensed with the same line of insurance. b.any Insurance Agent in Georgia.
A
An auto policy may be cancelled due to each of the following involving an Insured within the prior 36 months EXCEPT: Select one: a.ordinary negligence resulting in an accident that kills someone b.drug addiction c.drunk driving d.criminal negligence resulting in an accident that kills someone
A
An auto policy may be nonrenewed or cancelled for: Select one: a.three traffic convictions within the last 36 months b.moving to a new residence within the state c.getting married d.age
A
Every auto liability policy in Georgia is required to include: Select one: a.Liability only b.Liability, Uninsured Motorist, and Underinsured Motorist c.Both Liability and Uninsured Motorist d.Both Liability and Underinsured Motorist
A
In the area of auto insurance, the residual market is intended to provide insurance for the: Select one: a.worst drivers b.best drivers
A
One who is licensed to, for a fee, provide advice regarding insurance policies is a/an: Select one: a.counselor b.producer c.agent d.advisor
A
Paying a person an inducement to purchase insurance is called: Select one: a.rebating. b.coercion.
A
The Commissioner has acted in such a way that a person is aggrieved. The aggrieved person may request a hearing which must be held by the Commissioner within: Select one: a.30 days b.60 days c.90 days d.120 days
A
The Commissioner may: Select one: a.fine a Producer $10,000 for violating a Cease and Desist order b.imprison a Producer in a local jail c.modify a state statute d.revoke a Producer's appointment
A
The Georgia Commissioner of Insurance is: Select one: a.elected. b.appointed by the Governor.
A
The Georgia FAIR Plan has authority to: Select one: a.issue assessments against property insurance companies for Plan expenses. b.suspend a agent's license.
A
The Georgia Insurance Commissioner can do each of the following EXCEPT: Select one: a.modify state statutes b.create regulations c.organize the Department of Insurance d.examine the records of an Insurer
A
The Guaranty Fund provides coverage for the cash value under a life insurance policy up to: Select one: a.$100,000 b.$200,000 c.$300,000 d.$400,000
A
Under Georgia law, an Insurer has how many days to return a refund of unearned premium? Select one: a.10 b.20 c.30 d.60
A
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? Select one: a.30 days b.60 days c.90 days d.at least 1 year
A
Which of the following are required to be covered by work comp? Select one: a.restaurant employees b.farm workers c.domestic servants d.real estate agents
A
Which 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: Select one: a.State employees driving highway maintenance vehicles b.Firefighters c.Law enforcement officers responding to emergency situations d.Emergency medical technicians
A
Who issues a probationary license? Select one: a.The Commissioner b.The local insurance agency c.The Department of Insurance d.The Insurer
A
Work Comp insurance is considered to be: Select one: a.Casualty Insurance b.Life Insurance c.Health Insurance d.Property Insurance
A
Workers compensation insurance premium rates are: Select one: a.set by the individual insurance Work Comp insurance companies. b.set by a rating service which files a standard set of rates to be used by all Work Comp Insurers in Georgia. c.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. d.set by the Commissioner to provide uniform and fair rates that are the same for each Insurer.
A
A Temporary License: Select one: a.may be renewed a maximum of five times b.may be renewed a maximum of three times c.may be renewed only once d.may not be renewed
B
A temporary agent may: Select one: a.Operate independently without supervision of a regularly licensed agent. b.Continue existing business but not sell new policies.
B
After an auto policy has been in effect for 60 days, it may be cancelled for each of the following reasons EXCEPT? Select one: a.epilepsy or heart condition b.claims filed c.suspension of the insured's driver's license d.misrepresentation on the application
B
An Insurer must obtain the following from the Commissioner before transacting insurance business: Select one: a.Agent license. b.Certificate of Authority.
B
An agent must pay a renewal fee every: Select one: a.1 year. b.2 years. c.3 years. d.4 years.
B
An agent pays an unlicensed person for each referral leading to the sale of insurance. Such a relationship is: Select one: a.legal if reported in advance to the Insurer. b.illegal. c.legal as long as the payment does not exceed the de minimus value of $45. d.legal if reported in advance to the Insurer and the Commissioner.
B
An auto policy may be cancelled due to each of the following acts by an Insured EXCEPT: Select one: a.theft of a motor vehicle 27 months ago b.three traffic convictions 40 months ago c.a single felony conviction within the last 36 months d.leaving the scene of an accident without stopping to report within the prior 11 months
B
Defamation involves making false statements about the financial condition of: Select one: a.Any client. b.Any Insurer. c.Any Insured. d.The Commissioner and the Department of Insurance.
B
FAIR Plan policies: Select one: a.cover habitational property only. b.are issued by the Plan rather than by private insurers. c.may be denied in particular neighborhoods. d.cover commercial property only.
B
GAIP: Select one: a.provides insurance directly. b.apportions applicants among existing Insurers.
B
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: Select one: a.10% b.18% c.25% d.50%
B
If an Insurer terminates an agent's appointment, the Insurer must notify the Commissioner and explain the termination within: Select one: a.15 days. b.30 days. c.45 days. d.60 days.
B
The Commissioner has the authority to do the following EXCEPT: Select one: a.subpoena documents in any investigation related to the insurance industry. b.regulate insurance profits. c.examine insurers to determine solvency. d.interpret insurance laws.
B
The Commissioner may give an agent notice of an order by delivering the notice to: Select one: a.the Insurer appointing the agent. b.the agent's place of business on record in the Commissioner's office.
B
The Commissioner may issue cease and desist orders: Select one: a.only given approval by judicial order. b.when any insurance company or agent violates insurance laws.
B
The Commissioner must conduct an examination of domestic Insurers how frequently? Select one: a.2 years b.3 years c.5 years d.7 years
B
The Commissioner must hold a hearing within how many days of written demand by an aggrieved person? Select one: a.10 days b.30 days c.45 days d.90 days
B
The Guaranty Association: Select one: a.protects Agent's if an Insured is unable to pay premiums. b.protects Insured's if an insurance company is insolvent.
B
Uninsured motorist: Select one: a.is offered at the option of the Insurer b.may be waived by the Insured c.may be offered with limits that are less than the Insured's liability coverage d.covers Bodily Injury but not Property Damage
B
When the Guaranty (Insolvency) Fund pays claims, the Fund is replenished by: Select one: a.a special allocation from the state legislature b.an assessment against the remaining Insurers' premiums
B
Which of the following can never be an underwriting factor in Georgia? Select one: a.applicant's gender b.race c.age of the applicant d.geographical location of the risk
B
Work comp is NOT required for employers with fewer than how many employees? Select one: a.2 b.3 c.5 d.7
B
A Georgia Certificate of auto Self-insurance may be obtained from the: Select one: a.Governor b.Department of Motor Vehicles c.Commissioner of Insurance d.Director of Revenue
C
A client may pay a fee to an insurance agent in Georgia as long as the fee has a maximum de minimis value of: Select one: a.$10 b.$25 c.$45 d.$75
C
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? Select one: a.None. b.5 hours. c.10 hours. d.15 hours.
C
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? Select one: a.2 in the last 3 years b.2 in the last 2 years c.3 in the last 3 years d.2 in the last yeaR
C
After appointing an agent, the appointment must be registered in the Insurer's register of appointed agent's within: Select one: a.10 days. b.20 days. c.30 days. d.90 days.
C
An Insurer may pay commissions directly to the agency rather than to the agents only if: Select one: a.the commissions don't exceed the statutory amount. b.the Insurer requests a rule waiver. c.each person who sells insurance is a licensed agent. d.the Commissioner consents on a case-by-case basis.
C
An agent must inform the Commissioner of a change of business address within: Select one: a.10 days. b.20 days. c.30 days. d.60 days.
C
Any action of the Commissioner may be appealed within 30 days to: Select one: a.Georgia Supreme Court. b.The Governor. c.Superior Court of Fulton County. d.Georgia Attorney General.
C
Each of the following business entities may obtain an agent's license EXCEPT: Select one: a.partnership. b.limited liability partnership. c.an unlicensed corporate officer. d.corporation.
C
Each of the following may receive an agency licence EXCEPT: Select one: a.a corporation b.a limited liability company c.an unlicensed corporate officer d.a partnership
C
Each of the following will satisfy the Commissioner's requirement for a place of business EXCEPT: Select one: a.an office in a shopping mall b.an office in another business, such as a real estate office c.a post office box d.a home office
C
Every auto liability policy owner in Georgia must also be offered at least how much Uninsured Motorist Coverage? Select one: a.None b.$25,000/$50,000 c.$25,000/$50,000/$25,000 d.$75,000
C
The Commissioner may issue a fine for each intentional violation of the law up to: Select one: a.$1,000. b.$2,500. c.$5,000. d.$7,500.
C
The Commissioner may suspend or revoke an Agent's license for all of the following EXCEPT: Select one: a.having been convicted of a felony. b.failing to comply with a Commissioner order. c.accepting a $45 fee from a client. d.using fraudulent information while conducting insurance business.
C
Under Georgia insurance law, all of the follow are true about subagents EXCEPT? Select one: a.They cannot issue binders. b.They are not required to pass the licensing exam. c.They are legal representatives of the insurance company. d.They do not need to be licensed.
C
Unless a nonrenewal or cancellation involves a nonpayment of premium, Georgia requires Insurers to provide how many days written notice to the client? Select one: a.10 b.20 c.30 d.45
C
Which of the following correctly states the amount of required auto property damage liability coverage under Georgia's Financial Responsibility Requirements? Select one: a.$20,000 b.$10,000 c.$25,000 d.$50,000
C
Workers Compensation will cover which of the following? Select one: 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 accidental injury that occurs at work d.an auto accident while driving to work in a company-owned vehicle
C
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? Select one: a.5% b.10% c.15% d.25%
D
An insurance agent's license is required for each of the following EXCEPT: Select one: a.sign an application or an order for insurance on behalf of an applicant. b.disseminate information regarding insurance rates. c.advise a prospective purchaser on the terms of existing coverage. d.underwriting.
D
Before becoming a licensed counselor, an applicant must have had how many years of insurance experience? Select one: a.1 b.3 c.4 d.5
D
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? Select one: a.10 b.20 c.30 d.45
D
If an agent is subject to criminal arrest, the Commissioner must be notified within: Select one: a.5 days. b.10 days. c.20 days. d.30 days.
D
Licensees must keep copies of all records for: Select one: a.2 years. b.3 years. c.4 years. d.5 years.
D
Premium rates that are so low that they tend to destroy competition by creating a monopoly are referred to under Georgia insurance laws as: Select one: a.Excessive b.Discriminatory c.Predatory d.Inadequate
D
Premium rates that are unreasonably low are referred to as: Select one: a.Discriminatory b.Predatory c.Insufficient d.Inadequate
D
The Georgia Work Comp Assigned Risk Plan will assign a Work Comp policy to a private insurer if the business has been rejected by at least how many private Work Comp insurers? Select one: a.1 b.2 c.3 d.4
D
The maximum length of time a written or oral binder will be effective under Georgia law is: Select one: a.negotiable. b.30 days. c.60 days. d.90 days.
D
The purpose of the Georgia FAIR Plan is to: Select one: a.guarantee that insurance advertising fairly represents the actual policies to be sold. b.provide a source of life insurance for all applicants. c.prevent insurance rate discrimination based on race or color. d.provide property insurance to persons unable to obtain insurance.
D
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? Select one: a.10 b.15 c.20 d.30
D
Under Georgia insurance laws, a person who sells insurance for a licensed agent is known as a/an? Select one: a.producer b.customer service representative (CSR) c.limited agent d.subagent
D
Under Georgia's Guaranty Fund system, if a work comp Insurer is insolvent, claims will be covered up to a maximum of: Select one: a.$100,000 b.$250,000 c.$300,000 d.No Limit
D
Under the Georgia Automobile Insurance Plan (GAIP), the actual insurance policies are issued by: Select one: a.GAIP b.the Department of Motor Vehicles c.the Department of Insurance d.private insurance companies
D
Using different rates for persons of approximately the same rate and hazard classification is: Select one: a.Rebating. b.Coercion. c.Inducement. d.Unfair Discrimination.
D
Which of the following may subpoena witnesses and documents at a hearing? Select one: a.The Commissioner only. b.Neither the Commissioner nor the affected party. c.The affected party only. d.Both the Commissioner and the affected party.
D