Ga laws
What is a foreign insurer?
An insurer with a home office in another state
Which type of workers are NOT covered under Workers Compensation?
Domestic Workers
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
False advertising
A worker who suffered catastrophic injuries on the job is entitled to
Lifetime medical benefits
Which of the following best describes the unfair trade practice of defamation?
Making derogatory oral statements about another insurer's financial condition
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
A worker received a concussion after getting hit on the head at work and missed work for 5 days. At what point will the worker receive workers comp benefits for the missed work?
Never; benefits start once a worker has been unable to work for more than 7 days
Who might receive dividends from a mutual insurer?
Policyholders
An agent officers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
Rebating
An insurance agent's responsibilities include all of the following EXCEPT
represent the client
An agent is acting ethically in all the of following situations EXCEPT a. working within the conditions of his/her contract b. representing the insurer, not the insured c. keeping customers' best interests in mind d. always representing the insured
representing the insurer, not the insured
In this state, what is the maximum fine for transacting insurance without a license?
$1,000
A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered
A felony
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
When does a producer's license expire?
Every 2 years on the last day of the producer's birth month
Workers compensation coverage would NOT pay for which of the following
In-home medical devices
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
A driver who completes a defensive driving course may qualify for a premium discount of
10%
What is the maximum period of time a temporary license can be in force?
15 months (a temporary license is good for 6 months and can be renewed at 3 month intervals for a maximum of 15 months)
To legally transact insurance in this state, an insurer must obtain which of the following?
Certificate of Authority
A producer who fails to separate premium monies from his own personal funds guilty of
Commingling
Which of the following entities has the power to issue certificates of authority
Commissioner of insurance
If drivers complete defensive driving course, how long will the discount apply to their premiums?
3 years
Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?
5 years
Authorized insurance companies are examined by the commissioner at least once every
5 years
An insurer decides to stop issuing auto policies in this state, and is planning to cancel the existing policies. Along with a notice of nonrenewal, the insurer must send which of the following to it's policyholders
A Notice of eligibility for the automobile insurance plan
Which of the following would NOT be considered an unfair and deceptive practice?
Controlled business
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
What is the function of a certificate of authority?
It allows an insurer to transact insurance in GA
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 a portion of the premium paid
What is the major difference between a stock company and a mutual company?
Ownership
A participating insurance policy may do which of the following
Pay dividends to the policyowner
All of the following are unfair claims unsettlement practices EXCEPT
suggesting negotiations in settling the claim
The commissioner of insurance is
the chief officer of the department of insurance
Which of the following conditions must be met for a vehicle to be licensed in GA?
The owner has furnished proof of auto liability insurance or an approved self-insurance plan
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
When transacting business in this state an insurer formed under the laws of another country is known as a/an
Alien Insurer
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
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
False Advertising (The illegal practice of advertising or circulating materials that are untrue, deceptive, or misleading)
The Georgia workers compensation assigned risk plan exists to provide workers compensation coverage to
employers who do not qualify for coverage in the voluntary market
Which of the following best describes a misrepresentation
issuing sales material with exaggerated statements about policy benefits
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
The maximum penalty that may be assessed for a single non-willful violation of the insurance code is
$1,000
The violation of a cease and desist order may result in a fine of
$10,000 (For each violation)
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 (The purpose of a license is to primarily write business other than controlled business)
If an insured meets the state's financial requirements and is approved to transact business in the state, it is considered to be
Authorized
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized Insurer
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
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
Workers Compensation laws in GA apply to businesses that employ
3 or more employees
Which of the following is another term for an authorized insurer?
Admitted
Which of the following is NOT a responsibility of an insurance agent?
Underwriting the contract
Two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. What is this called?
Discrimination
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
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming future dividends in a life insurance proposal
Which of the following positions is responsible solely for offering advice on insurance policies (For a fee)?
Counselor
Which of the following is NOT true regarding a certificate of authority?
It is issued to group insurance participants
A agent license can be issued
only to individuals
An insured must get advance warning if the premiums will be increased by more than...
15%
The requirement that agents not comingle insurance monies with their own funds is known as
Fiduciary Responsibility
Who elects the Commissioner of Insurance to office?
Registered voters
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
Insurers must update copies of it's rates, plans, systems, and underwriting rules every
2 years
In this state no automobile insurance policy issued as proof of financial responsibility will be issued with bodily injury and property damage limits less than
25/50/25
An insurance agent has received a request for a hearing from the commissioner. Within how many days must the hearing be held?
30 days
How many days before a policy is non-renewed must an insurer deliver or mail written notice to the insured?
30 days
If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?
30 days
Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered
Discrimination
If the premiums for a policy will be increased by more than 15 percent, how much warning must the insured get?
45 Days
Rates for private passenger motor vehicle insurance on file with the commissioner are considered approved after
45 days
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
Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract?
Transacting Business
On it's advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation (Issuing or circulating any sales material that is false or misleading would be considered misrepresentation and is illegal.)
Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?
Promptly forwarding premiums to the insurance company
Which of the following is an example of a producer's fiduciary duty?
The trust that a client places in the producer in regard to handling premiums
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 a payment to the insurer
If a property or casualty insurer is unable to pay claims, which entity would pay benefits to policy holders?
Georgia Insurers Insolvency Pool
An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?
Rebating (When producers give or promise anything of value that is not specified in the policy)
A nonresident agent is allowed to conduct insurance transactions in GA because his home state allows GA residents to transact insurance business in it. This is known as a/n
Reciprocity Agreement
All of the following could be considered rebates if offered to an insured in the sales of insurance EXCEPT
Dividends from a mutual insurer
which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic
How is the commissioner of insurance selected to be the chief officer of the department of insurance?
Elected to office (4 year term)
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal
In insurance transactions, fiduciary responsibility means
Handling insurer funds in a trust capacity
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?
Sexual Orientation