Insurance Adjuster
Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?
5 years
A professional who wants coverage for all liability exposures should purchase what form of liability insurance?
Commercial general and professional
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility.
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.
Which of the following statements is NOT true regarding a personal umbrella liability policy?
It provides errors and omissions coverage for an agency.
A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the
Penalty.
All of the following are examples of transacting insurance in Georgia EXCEPT
Placing advertisements for an insurer.
Who might receive dividends from a mutual insurer?
Policyholders
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.
Which of the following liability policies is usually written on a "claims-made" form?
Professional liability insurance
All of the following statements concerning liability coverage are true EXCEPT
The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.
Which of the following would NOT be considered an unfair and deceptive practice?
Controlled business
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants.
An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle totals $5,000. Which statement regarding the producer's errors and omissions liability policy is true?
It will provide coverage because the damage to the client resulted from the producer's negligence.
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
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.
A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?
Completed operations
In commercial auto insurance, what type of coverage will pay for loss or damage to a covered auto by any cause other than collision or overturn?
Comprehensive
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
A professional liability policy will provide coverage for loss in all of the following cases, except, when the insured doctor was shown to be
Criminally negligent.
Which of the following would be covered under a business liability insurance policy?
Damage to a watercraft while on shore at the insured's premises
Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?
Directors and officers liability
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?
Discrimination
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
When does a producer's license expire?
Every 2 years on the last day of the producer's birth month
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
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 a property or casualty insurer is unable to pay claims, which entity would pay benefits to policyholders?
Georgia Insurers Insolvency Pool
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
When ABC Appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage?
Personal and advertising injury liability
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 conditions must be met for a vehicle to be licensed in Georgia?
The owner has furnished proof of auto liability insurance or an approved self-insurance plan.
What is the primary objective of workers compensation?
The payment of benefits to employees for injuries arising out of their employment
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 policy is cancelled due to nonpayment of premium, how many days' advance notice must the insurer give the policyholder before cancellation?
10 days
A driver who completes a defensive driving course may qualify for a premium discount of
10%.
If drivers complete defensive driving courses, how long will the discount apply to their premiums?
3 years
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 nonrenewed 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
If the premiums for a policy will be increased by more than 15 percent, how much warning must the insured get?
45 days
Authorized insurance companies are examined by the Commissioner at least once every
5 years.
A binder is effective for a period of
90 days
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
In a personal auto policy, the medical payments coverage is similar to
Accident insurance, because it pays medical expenses regardless of fault.
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.
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 statements is TRUE regarding members of the Georgia Fair Access to Insurance Requirements (FAIR) plan?
All authorized insurers of property insurance must become members.
An agent is acting ethically in all of the following situations EXCEPT
Always representing the insured.
Which would NOT be covered by the inside the premises - robbery or safe burglary of other property coverage?
An employee is caught stealing cash from the register.
What is another name for liquor liability insurance?
Dram shop insurance
How often does an agent's insurance license expire?
Every 2 years
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
All of the following would be covered under the medical expense coverage of a businessowners policy EXCEPT
Mental health counseling.
A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it. This is known as a/n
Reciprocity agreement.
Who elects the Commissioner of Insurance to office?
Registered voters
An insurance agent's responsibilities include all of the following EXCEPT
Represent the client.
The Commissioner of Insurance is
The chief officer of the Department of Insurance.
The occurrence form trigger is based on which of the following?
The date when injury or damage occurs
Workers compensation benefits in Georgia are limited to what amount of a worker's average weekly wage?
Two-thirds
When does a business need to purchase a liquor liability policy?
When it is in the business of manufacturing, distributing, serving, or furnishing alcoholic beverages
The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information
Within 45 days.
An agent license can be issued
only individuals
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
All of the following would be considered rebating EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies.
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer.
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be
Authorized.
Georgia requires that all owners and operators of motor vehicles in the state carry which type of auto insurance as evidence of security in complying with the state's financial responsibility law?
Auto liability coverage
The liability coverage of the businessowners policy is written on a
Businessowners liability coverage form.
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 compensation benefits for the missed work?
Never; benefits start once a worker has been unable to work for more than 7 days.
A worker who suffered catastrophic injuries on the job is entitled to
Lifetime medical benefits.
The primary purpose of a surety bond is to
Make sure obligations are fulfilled
Which of the following best describes the unfair trade practice of defamation?
Making derogatory oral statements about another insurer's financial condition
On its 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.
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
A dealership loans a car to its customer to use while the dealership is repairing the customer's car. If the dealership has business auto physical damage coverage and a customer's automobile insurance does not cover damages to loaner cars, which of the following is true?
The loaner vehicle is covered by the business auto policy.
Which of the following is NOT a responsibility of an insurance agent?
Underwriting the contract
Which type of liability insurance may an insured reject in writing?
Uninsured motorist coverage
if a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?
$50,000
An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?
14,000
What is the maximum period of time a temporary license can be in force?
15 months
An insured must get advance warning if the premiums will be increased by more than
15%.
In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person?
1st limit
Insurers must update copies of its rates, plans, systems, and underwriting rules every
2 years.
Rates for private passenger motor vehicle insurance on file with the Commissioner are considered approved after
45 days.
An agent must be a resident of the state and be present in the state for at least how many months each year?
6
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
Producers in Georgia will be deemed to be using their license primarily to write controlled business if, during any calendar year,
Controlled business accounts for more than 25% of the agent's business.
All of the following are supplemental payments found in liability policies EXCEPT
Costs the insured incurred in hiring an attorney.
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.
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 under any circumstances
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.
If an insured bakery is sued because its marketing states that the products of another bakery may not be safe, which coverage of a commercial general liability policy will defend the suit?
Personal and advertising injury liability
While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?
Property damage liability
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.
A used car dealer takes a car in trade as partial payment for a car on its car lot. The customer promises to bring in the car's title but does not. Another customer takes the trade-in for a test drive and has an accident. In regard to the dealership's business auto physical damage coverage, which of the following it true?
There is no coverage.
A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered
felony
