Chapter 5
A binder is effective for a period of
90 days
If a policy is cancelled due to nonpayment of premium, how many days advance notice must the insurer give the policyholder
10 days- plenty enough time
An insured must get advance meaning if the premiums will be increased by more than
15% - at least 45 days before effective date!!!
Insurers must update copes of its rates, plans, systems, and underwriting rules every
2 years - I thought it would be 1, but it's only 2!
If drivers complete defensive driving courses, how long will the discount apply to their premiums?
3 years
How many days before a policy is non renewed must an insurer deliver or mail written notice to the insured?
30 days before the date of such non renewal
Under workers compensation laws, injured workers are entitled to how many weeks of treatment from the date of the accident?
400 weeks
Rates for private passenger motor vehicle insurance on file with the commissioner are considered approved after
45 days - If it's been on file with the commissioner for 45 days - and has not been disapproved - it may be considered approved
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 foreign insurer?
An insurer with a home office in another state
The violation of a cease and desist order may result in a fine of
$10,000 - BIG DEAL
If a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be effected for which of the following reasons?
A change in the risk that substantially increases the hazard insured against.
Which of the following persons is required to hold a producer license
A person who negotiates insurance contracts
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance >> you're not required to have a license if you're simply advertising but you DO NEED one when there is solicitation
Ga requires that all owners of motor vehicles in the state carry which type of auto insurance as evidence of security in complying with the states financial responsibility law?
Auto liability coverage
Which of the following positions is responsible solely for offering advice on insurance policies (for a fee)?
Counselor
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages baded in the insureds habits and lifestyle (such as like smoking or doing meth)
If a property or casualty insurer is unable to pay claims, which entity would pay benefits to policyholders?
Georgia insurance insolvency pool
Misrepresentation
Issuing, publishing, or circulating any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms, the payment of dividends, etc. This includes oral statements.
Which of the following is NOT true regarding a certificate of authority?
It is issued to group insurance participants.
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
No taxable since the ITS treats them as a return of a portion of the premium paid
An agent license can be issued
Only to individuals - like only Kathy has her agent license and alic don't
Who might receive dividends from a mutual insurer?
Policyholders. A mutual insurer has no stock and is owned by the policyholders.
When does a producers license expire?
Producer/agent license expire every 2 years, on the last day of the licensees birth month.
The commissioner of insurance is
The chief officer of the department of insurance
Pertaining to insurance, what is the definition of a fiduciary responsibility?
Promptly forwarding premiums to the insurance company >> refers to a position of trust. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it is in the best interest of the client. A rebate is an illegal act which involves returning something of value to the client as an inducement to buy, such as the commission. Rebates are only allowed if stated in the policy. Insurance dividends are not considered rebates as the IRS considers it as a return of overpaid premium.
Who elects the commissioner of insurance to office?
Registered voters - just like the president- it's just as serious so the ppl do
Workers compensation benefits in Georgia are limited to what amount of a workers average weekly wage?
TWO-THIRDS! >> up to $575 a week! A little more than half of somebody's check
If the commissioner is not able to serve due to disability, resignation, or death, which of the following will happen?
The chief deputy commissioner will serve as the commissioner until the next election.
What is the title of the chief officer of the department of insurance?
The commissioner of insurance - elected for a 4 year term like most commissioners and presidents - duties include enforcing and carrying out provisions of the insurance code
An auto owner in this state has motor vehicle coverage with the limits of 25/50/25. All of the following are true EXCEPT
The driver must obtain new insurance >> this statement is false bc it's makes no sense! 25/50/25
Which of the following is an example of a producers fiduciary duty?
The trust that a client placed in the producer in regard to handling premiums- TRUST AND CONFIDENCE bc the producer is dealing with the insurers money
