Georgia Laws and Rules

Ace your homework & exams now with Quizwiz!

A person who is required to be a licensed agent would be a

person who places insurance on behalf of anyone seeking insurance

the commissioner must give___ days notice prior to holding a hearing regarding an agent's unfair or deceptive practice.

10

In Georgia, how long is the "free look" period?

10 days

When is a group accident and health policy required to provide coverage for a newborn child?

At the moment of birth

what's the requirement for a nonresident agent license applicant

Being a licensed agent in the agent's home state

Using an existing life insurance policy's cash value to purchase another policy with with same insurer for the sole purpose of earning additional commissions is called

Churning

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

Coercion

In Georgia, which of the following is considered an Unfair Trade Practice

Coercion

J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of?

Coercion

S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this?

Entire Contract

The act of an insurance company publishing misleading information about its policy's provisions is called

False advertising

what is an organization that solicits insurance only to its members

Fraternal benefit society

Who makes the legally enforceable promises

Insurance company

Which of the following is NOT an unfair claim settlement practice

Needing written documentation of claim details

Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy?

Notice to existing and replacing insurers of intention to replace

In Georgia, an insurance company must do which of the following to terminate an agent's appointment?

Notify the Commissioner within 30 days

When the Commission examines an insurer's records, who pays for the costs associated with the examination?

The insurance company being examined

When the Commissioner examines an insurer's records who pays for the costs associated with the examination?

The insurance company being examined

who would be eligible for a temporary license issued in georgia

The personal representative of a deceased agent to provide service to existing policy owners

Why would the commissioner examine an insurer's records?

To determine the solvency of the company

J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?

Twisting

Someone who is appointed by an insurer to engage in insurance transactions is called a

agent

T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as

fiduciary responsibility

In Georgia, an insurer licensed to conduct business in Georgia, but domiciled in New Jersey, is called a

foreign company

Cash surrendering an existing whole life policy and purchasing a new whole life policy is referred to as a

replacement

All agents licensed less than 20 Years are required to complete ___ continuing education hours every two years,

24

Defamation occurs when an agent makes a false statement intended to

malign another insurer

In Georgia, monthly-premium accident and sickness insurance policies must provide a grace period of at least

10 days

In Georgia, long-term care policies are required to provide benefits for at least

12 Months

Which of the following is the MINIMUM age at which an individual can sign a life insurance application?

15

Insurance agent licenses normally must be renewed every ___ years in Georgia

2

In Georgia, most life insurance policies have a contestability period of

2 years

All agents licensed less than 20 years are required to complete___ continuing education hours every two years

24

An agent must have ___ hours of ethics per continuing education reporting period

3

In Georgia, an insurance company must notify the Commissioner within___days to terminate an agent's appointment.

30

An example of false advertising would be

An insurer exaggerating its dividends in a magazine advertisement

Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency?

Georgia Life and Health Insurance Guaranty Association

Which of these is NOT a requirement to obtain an insurance agent license in Georgia

Graduate High School

An example of rebating would be

offering a client something of value not stated in the contract in exchange for their business

Before an insurance company can pay commissions to an agent, the agent must be

licensed and appointed

Convincing a prospective insured to buy an insurance policy based on exaggerations is called

misrepresentation

which type of insurance company allows their policyowners to elect a governing body?

mutual

What is the purpose of the Life and Health Insurance Guaranty Association

Protects policyowners against insolvent insurance companies

What is one of the roles of the Commissioner?

Administering insurance laws

A foreign insurance company doing business in Georgia

is a company that was formed under the laws of another state

which of the following items are regulated by the Rules Governing Advertisement of Life Insurance and Annuities?

Prepared sales presentations used by insurance agents

what is the reason for the establishment of rules governing life insurance and annuity replacements

Lessen the chance for misrepresentation and incomplete disclosure

Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? *Twisting *Intimidation *Misrepresentation *Sliding

Misrepresentation

Which of the following correctly describes a certificate of authority?

Permits an insurance company to transact business in Georgia

A domestic insurance company in Georgia is considered a company that

is incorporated and formed in Georgia

All accident and sickness plans MUST provide coverage on newborn children for ___ days

31

What is NOT a requirement for becoming a licensed agent in Georgia

High School Graduate

which of the following is not considered rebating

Sharing commission with an agent licensed in the same line of business

The ___ must provide an insured with proper disclosure concerning the replacement of an insurance policy

agent

Prior to a hearing that could potentially revoke an agent's license, what is required by the commissioner?

Giving written notice to the agent

In georgia, an accident and sickness policy that is paid on a quarterly basis requires a grace period of

31 days

a domestic insurance company must be examined by the commissioner every

5 years

after initially issued,a temporary license is valid for

6 Months

Which of the following is considered to be misrepresentation?

An agent guaranteeing a policy's dividends

In Georgia, an example of an alien insurer would be one that is incorporated in

France Alien insurance company is a company that is charted and organized in any country other than the United States. Therefore, a company chartered in France would be an alien company in Georgia.

nonprofit life insurance providers that are covered by a special section in the Georgia Insurance code are called

Fraternal life insurance organizations

What is NOT a requirement for becoming a licensed agent in Georgia?

High School graduate

What would be an accurate definition of "controlled business"?

Insurance business that is written on the agent's own life, property, or interests

Who is a mutual insurance company owned by?

Its policyholders

a mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?

Stock company is owned by its shareholders. Mutual company is owned by its policyholders

Insurance companies that are organized in countries outside the United States are referred to as

alien

Insurance agents do NOT have a fiduciary responsibility to

another agent

The purpose of the Rules Governing Advertisement of Life Insurance and Annuities is to

assure full disclosure to the public of all material and relevant information

The coordination of benefits (COB) provision exists in order to

avoid duplication of benefits payments

Using an existing life insurance policy's cash value to purchase another policy with the same insurer for the sole purpose of earning additional commissions is called:

churning

In the state of Georgia, every policyowner must be offered which of the following

free-look period

The Life and Health Insurance Guaranty Association is

funded by admitted insurance companies through assessments

Who owns a stock company?

its stockholders

An example of unfair discrimination would be

offering different terms of coverage for different policyowners having the same risk classification

Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent

only if the child is incapable of employment and chiefly dependent on the policyowner

The act of insurance company publishing misleading information about its policy's provisions is called

false advertising

An agent would be guilty of rebating by

returning a portion of a premium as incentive to purchase insurance

During the application process, the agent's primary responsibility is to

the insurance company

Life insurance replacement regulation protects the interests of

the policyowner

Which document MUST accompany an application that initiates the replacement of an existing life insurance policy

A signed statement by the applicant regarding the replacement

how often must an insurance agent license be renewed in georgia

every 2 years

which of the following situations does not apply to the georgia replacement rule

An existing policyholder purchases an additional policy from the same insurer

An example of an unfair claims practice would be

failing to effectuate prompt, fair, and equitable settlements of a claim

in georgia, which of the following statements is correct about life insurance advertisements?

An insurance agency is responsible for advertisement placed by its insurance agents

An insurance agent is in violation of the Rules Governing Advertisement of Life Insurance and Annuities if the agent takes which of the following actions during a sales presentation?

Refers to guaranteed policy dividends

An example of an unfair claims settlement practice is

turning down a claim without providing the basis of denial

An insurance agent is guilty of___ if the agent misrepresents a policy to induce a policyowner to surrender an existing policy.

twisting

A producer must notify the Commissioner within___ days of an address change

30

Under which circumstance may the Commissioner of Insurance suspend, revoke, or refuse to renew the license of an agent

Agent is found guilty of misrepresentation in obtaining the license

In Georgia, which of the following statements is CORRECT about life insurance advertisements?

An insurance agency is responsible for advertisements placed by its insurance agents

an insurance company which engages in boycott, coercion, and intimidation that results in the unreasonable restraint of trade is committing a prohibited act under Georgia insurance laws covering

unfair trade practices

An agent's license can be suspended or revoked by

writing primarily controlled business

With whom may an agent legally share commissions?

Another agent who is licensed in the same line of insurance

When advertising, an insurer is required to use its

true corporate name


Related study sets

Fundamental of Health Information, Chapter 7 Secondary Data Sources

View Set

CS3307 - UWO - Object-Oriented Design and Analysis - Fall 2017

View Set

Financial Institutions Chapter 6

View Set

Medical Terminology - Musculoskeletal system

View Set

Vocabulary words for "Hottest, Coldest, Highest, Deepest"

View Set