State Laws, Rules, and Regulations
Who is responsible for the contents of life insurance advertising?
The insurer
Existing insurers must provide policyowners with a policy summary for the existing life insurance within how many days of receiving the written communication and replacement?
10 days
When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy until the conclusion of the next regular examination by the Insurance Department or for
3 years
If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?
30 days
Whenever agents submit applications to insurers, they must also submit statements disclosing whether or not replacement is involved. Who must sign these statements?
Applicant and agent
Which types of policies must provide for newborns, from the moment of birth, with all health insurance benefits applicable to children until 31 days?
Both individual and group accident and sickness
What term is used for replacing insurance policies for the sole purpose of making commissions?
Churning
A producer who fails to segregate premium monies from his own personal funds is guilty of
Commingling
Which of the following entities has the power to issue certificates of authority?
Commissioner of insurance
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
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants
Once an agent has met the requirements to sell long-term care insurance partnership policies, how often must the agent complete the 4 hours of ongoing training courses?
every 24 months
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 An agent's license authorizes them to represent an insurance company, not the insured.
Insurers must screen all marketing plans to ensure that an advertisement does NOT use as the name of any kind of an annuity contract any phrase that
Does not include the word "annuity" unless accompanied by other clear language indicating it is an annuity
Which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic
Insurers or agents soliciting partnership policies are required to provide each prospective applicant with a
Partnership Program Notice, a Partnership Disclosure Notice, and a statement that the insured does not automatically qualify for Medicaid.
Who elects the Commissioner of Insurance to office?
Registered Voters
Whenever agents submit applications to insurers, they must also submit statements, signed by the applicant and agent, disclosing the involvement or lack of involvement of
Replacement
Coverage for adopted children must be effective at what point? A
at the date of the final decree of adoption.
Most states have adopted the NAIC model act on the replacement of policies. Insurers are required to
inform its agents of the requirements of this regulation into all relevant agent-training manuals and institute procedures to confirm that the requirements of the regulation are met.
If policyowners repeatedly replace policies from the same agent, this is most likely evidence that
the agent knew that replacement was intended in connection with the sale and intentionally violated the replacement regulation
Coverage for adopted children must be effective at
the date of the final decree of adoption.
When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of A
Defamation
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
twisting
Twisting is
a misrepresentation that persuades an insured or a policyowner, to his or her detriment, to cancel, lapse, or switch policies.
Qualifications for soliciting, selling or negotiating a long-term care partnership policy include all of the following
being appointed/completing ongoing 4 hour training every 24 months/completing an initial 8 hour training
Which of the following would be considered a violation of life insurance advertising regulations?
calling a variable insurance policy an investment plan
On types of insurance, other than group, credit, or industrial; the agent must
determine whether the proposed insurance will replace existing insurance. If the insurance is to replace existing insurance, the regulations regarding replacement must be strictly followed.
what are violations of replacement
failing to ask the applicant questions regarding replacement/intentionally answering a question incorrectly/any deceptive or misleading information
When a policy is being replaced, the replacing company notifies the .
replacement company
An application for life insurance usually requires the agent to ask if the proposed insurance will replace an existing life insurance policy. All of the following are purposes for obtaining this information
to reduce the oppourtunity for misrepresentation and incomplete comparisons/to establish minimum standards of conduct involving replacement/to make available full and clear information to the applicant
A claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. The action must be brought
within 3 years (no sooner than 60)
How is the Commissioner of Insurance selected to be the chief officer of the Department of Insurance?
Elected to office
Individual and group accident and sickness policies that cover family members of the insured must also
provide for newborns, from the moment of birth, with all health insurance benefits applicable to children until 31 days.
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
Advertisements for life insurance policies and annuities must not use as the name or title of a policy or contract any phrase that does not include
the words life insurance or annuity unless accompanied by other clear language indicating that it is that type of contract.
A child is born to a mother whose insurance covers health-related losses of family members. How long will the newborn be automatically covered under the mother's plan?
31 days
How long is the Commissioner's term of office?
4 years
Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?
4 years
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making accurate comparisons of policies is not illegal.
How long after receiving notice of a claim does an insurer have to furnish proof of loss forms?
within 10 days
Once an individual is licensed as an insurance producer for life or accident and health insurance, how many hours of training must the producer complete initially to sell long-term care insurance partnership policy?
8 hours
when replacement is involved, an agent must perform the following duties:
sign replacement notice (and keep a copy), provide a list of items being replaced, leave all brochures/sales material used in the sale, take new application, submit "Copy to Replacement" notice, and it attach to application. The replacing company notifies the replacement company.
Before insurers may transact business in a specific state
they must apply for a license or Certificate of Authority from the state department of insurance and meet any financial (capital and surplus) requirements set down by the state.
When a policy is to be replaced, replacing insurers must
maintain copies of the replacement notice, all required written communications, the applicant's signed statement regarding replacement and a replacement register in their home office for at least 3 years, or until the conclusion of the next regular examination by the Insurance Department, whichever is later.
An agent acts in a fiduciary capacity, based upon
trust and confidence, when handling the financial affairs of their customers, including the handling of premiums.
