Chapter 5 QUIZ
A non resident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residence to transact insurance business in it. This is known as a/n
Reciprocity agreement
The maximum penalty that may be assessed for a single non willful violation of the insurance code is
$1,000
An insurance agent has received a request for a hearing from the commissioner. Within how many days must the hearing be held?
30 days
Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts
Which of the following is another term for an authorized insurer?
Admitted
Which of the following must an insurer obtain in order to transact insurance within a given state?
Certificate Authority
What term is used for replacing policies for the sole purpose of making commissions?
Churning
In insurance transactions, fiduciary responsibility means
Handing insurer funds in a trust capacity
State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT
Inviting prospective clients to the grand opening of the company's new office
What is the function of a Certificate of Authority?
It allows an insurer to transact insurance in Georgia
Which of the following may NOT be included in an insurance company's advertisement?
That its policies are covered by a state Guaranty Association
Which of the following is an example of a producers fiduciary duty?
The trust that a client places in the producer in regard to handling premiums.
A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered
felony
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
foreign
Who elects the Commissioner of Insurance to office?
registered voters
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
Controlled
Which of the following would not be considered an unfair and deceptive practice?
Controlled business
When a producer was reviewing a potential customer's coverage written by another employee company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of
Defamation
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
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.
All of the following are true regarding rebates except
Rebates are allowed if it's in the best interest of the client.
In this state, what is the maximum fine for transacting insurance without a license?
$1,000
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
an 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
Which of the following will NOT be considered 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
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describes this act
illegal
Which of the following best describes a misrepresentation?
issuing sales material with exaggerated statements about policy benefits