chapter 24
Which of the following correctly states the amount of required auto property damage liability coverage under Georgia's Financial Responsibility Requirements?
$25,000
Every auto liability policy owner in Georgia must also be offered at least how much Uninsured Motorist Coverage?
$25,000/$50,000/$25,000
A property or casualty policy claim is covered under Georgia's Property and Casualty Guaranty Fund up to how much?
$300,000
The Guaranty Fund provides coverage for unpaid health insurance claims up to:
$300,000
A client may pay a fee to an insurance agent in Georgia as long as the fee has a maximum de minimis value of:
$45
The Commissioner may issue a fine for each intentional violation of the law up to:
$5,000
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:
$1,000
The Commissioner may issue a fine for each unintentional violation of the law up to:
$1,000
The Guaranty Fund provides coverage for the cash value under a life insurance policy up to:
$100,000
An auto policy must provide at least how much bodily injury liability coverage per person?
$25,000
If a Georgia Insurer fails to return a refund of unearned premium within 10 days, the Insurer will be assessed a penalty of:
25% plus interest of 18% per year
Work comp is NOT required for employers with fewer than how many employees?
3
The Commissioner must inspect the records of a domestic property or life insurance company every:
3 years
An Insurer does not need a reason for terminating a property or casualty policy that has been in effect less than?
60 days
The maximum length of time a written or oral binder will be effective under Georgia law is:
90 days
A property agent may split a commission with:
Another property agent
Under Georgia law, uninsured motorist covers what type of damage:
Bodily Injury and Property Damage
Which of the following may subpoena witnesses and documents at a hearing?
Both the Commissioner and the affected party.
Work Comp insurance is considered to be:
Casualty Insurance
An Insurer must obtain the following from the Commissioner before transacting insurance business:
Certificate of Authority
A Georgia Certificate of auto Self-insurance may be obtained from the:
Commissioner of Insurance
A temporary agent may:
Continue existing business but not sell new policies.
Premium rates that are unreasonably low are referred to as:
Inadequate
Georgia insurance rates are regulated by?
Insurance Commissioner
An agent's appointment letter may be revoked by the:
Insurer
Under Georgia insurance laws, the agent is presumed to represent the:
Insurer
Every auto liability policy in Georgia is required to include:
Liability only
A Georgia property insurance company is considering membership in the FAIR Plan. Which is true?
Membership is required
Under Georgia's Guaranty Fund system, if a work comp Insurer is insolvent, claims will be covered up to a maximum of:
No Limit
Who issues a probationary license?
The Commissioner
Medical malpractice Insurers must notify which of following of claim payments within 30 days?
The composite State Board of Medical Examiners
Using different rates for persons of approximately the same rate and hazard classification is:
Unfair Discrimination.
Which of the following Georgia Insurers cannot engage in limited "price fixing" by using the rates filed by a rating association?
Work Comp Insurers
A Producer may share a commission with:
a resident Producer
The Commissioner may:
a. fine a Producer $10,000 for violating a Cease and Desist order
Defamation involves making false statements about:
an Insurer
Workers Compensation will cover which of the following?
an accidental injury that occurs at work
When the Guaranty (Insolvency) Fund pays claims, the Fund is replenished by:
an assessment against the remaining Insurers' premiums
Each of the following may receive an agency licence EXCEPT:
an unlicensed corporate officer
Each of the following business entities may obtain an agent's license EXCEPT:
an unlicensed corporate officer.
An agent may split commissions with:
any agent licensed with the same line of insurance.
GAIP:
apportions applicants among existing Insurers.
FAIR Plan policies:
are issued by the Plan rather than by private insurers
One who is licensed to, for a fee, provide advice regarding insurance policies is a/an:
counselor
The Georgia Insurance Commissioner can do each of the following:
create regulations examine the records of an Insurer organize the Department of Insurance
An Insurer may pay commissions directly to the agency rather than to the agents only if:
each person who sells insurance is a licensed agent.
The Georgia Commissioner of Insurance is:
elected
A Texas insurance company selling policies in Georgia is referred to in Georgia as:
foreign
An agent pays an unlicensed person for each referral leading to the sale of insurance. Such a relationship is:
illegal
The Georgia FAIR Plan has authority to:
issue assessments against property insurance companies for Plan expenses.
A Temporary License can be renewed how many times:
may be renewed a maximum of three times
Uninsured motorist:
may be waived by the Insured
A resident Georgia Producer will lose her resident Producer license if she:
moves to a nearby state
A Surplus Lines Agent MUST:
post a $50,000 bond
Under the Georgia Automobile Insurance Plan (GAIP), the actual insurance policies are issued by:
private insurance companies
The Guaranty Association:
protects Insured's if an insurance company is insolvent
Which of the following can never be an underwriting factor in Georgia?
race
Paying a person an inducement to purchase insurance is called:
rebating
Under Georgia insurance laws, a person who sells insurance for a licensed agent is known as a/an?
subagent
The Commissioner may give an agent notice of an order by delivering the notice to:
the agent's place of business on record in the Commissioner's office
Workers compensation insurance premium rates are set by:
the individual insurance Work Comp insurance companies.
The Commissioner may issue cease and desist orders:
when any insurance company or agent violates insurance laws.
In the area of auto insurance, the residual market is intended to provide insurance for the:
worst drivers
An auto policy may be nonrenewed or cancelled for:
• Drug addiction; • Failure to fully disclose accidents or moving traffic violations; • Suspension or revocation of the driver's license of a person in the household; • Conviction of a felony; • Criminal negligence resulting in death, homicide, or assault involving the use of a motor vehicle; • Operating a motor vehicle while under the influence of drugs or alcohol; • Leaving the scene of an accident without stopping to report; • Theft of a motor vehicle; • False statements in a driver's license application; or • Conviction or forfeiture of bail for 3 or more motor vehicle violations.
Under Georgia insurance law, all of the follow are true about subagents?
1. They cannot issue binders. 2. They do not need to be licensed. 3. They are not required to pass the licensing exam
Each of the following is a method of satisfying the Georgia Motor Vehicle Reparations Act:
1. a surety bond 2. auto liability insurance 3. a certificate of self-insurance
Each of the following will satisfy the Commissioner's requirement for a place of business:
1. an office in another business, such as a real estate office 2. an office in a shopping mall 3. a home office
The Commissioner has the authority to do the following
1. interpret insurance laws. 2. subpoena documents in any investigation related to the insurance industry. 3.examine insurers to determine solvency.
An insurance agent's license is required for each of the following:
1. sign an application or an order for insurance on behalf of an applicant. 2. disseminate information regarding insurance rates. 3. advise a prospective purchaser on the terms of existing coverage.
A homeowner policy nonrenewal notice must state each of the following:
1. the actual reasons for the cancellation. 2. at least 30 days advance notice. 3. the Insured may be eligible for coverage under the Georgia FAIR Plan.
An auto policy may be cancelled due to each of the following acts by an Insured:
1. theft of a motor vehicle 27 months ago 2. a single felony conviction within the last 36 months 3. leaving the scene of an accident without stopping to report within the prior 11 months
Under Georgia law, an Insurer has how many days to return a refund of unearned premium?
10
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?
15
A person with both Property/Casualty and a Life/Health licenses must complete how many hours of continuing education?
15 hours per year
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?
15%
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:
18%
An agent may collect how much interest from a client on a premium which is past due 30 days or more?
18% per year
An agent's license lasts for:
2 years
Every agent must complete Continuing Education Courses every:
2 years
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?
25%
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?
3 in the last 3 years
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?
30
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?
30 days
If an Insurer terminates an agent's appointment, the Insurer must notify the Commissioner and explain the termination within:
30 days
If an agent is subject to criminal arrest, the Commissioner must be notified within:
30 days
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:
30 days
The Commissioner must hold a hearing within how many days of written demand by an aggrieved person?
30 days
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?
30 days
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?
45
Before becoming a licensed counselor, an applicant must have had how many years of insurance experience?
5
Licensees must keep copies of all records for:
5 years
The Commissioner may issue temporary licenses up to:
6 months renewable for up to a total of 15 months
An Insurer receives a 5% rebate from a local auto glass/repair shop in return for referrals. Such a payment is specifically:
Prohibited
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:
State employees driving highway maintenance vehicles
Any action of the Commissioner may be appealed within 30 days to:
Superior Court of Fulton County.
A temporary license can be issued to the following:
Surviving spouse.
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. What can terry do in this situation?
Terry may issue a binder to provide temporary coverage for up to 90 days
To show eligibility under the Defensive Driver Law, one must have had during the prior 3 years:
no at fault accidents and no traffic violations
A Georgia Insurer may offer food and refreshments to prospective clients during sales presentations only if:
no insurance policies are offered during the presentation.
An auto policy may be cancelled due to each of the following involving an Insured within the prior 36 months EXCEPT:
ordinary negligence resulting in an accident that kills someone