In GA, _____insurance cannot be written by a reciprocal type insurer. - ANSWER life
No insurer or licensee doing business in Georgia may pay any commissions or valuable con-
sideration to any person for services as an agent, subagent, or adjuster unless that person is
duly licensed under the - ANSWER Code
Mediation is not _____ on the parties involved, but with arbitration the decision is final and
_____. - ANSWER Binding
Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWER Independent
Rating Services
What is the application fee for filing to become a self-insurer for workers compensation in
Georgia? - ANSWER $500
Insurance adjusters have the "power to bind". Which of the following statements best de-
scribes what this means? - ANSWER The principal is bound to the decisions of the ad-
juster.
The perils most frequently covered by a Difference in Conditions policy are: - ANSWER
Flood and Earthquake
What is the purpose of the Georgia Insurance Guaranty Association? - ANSWER Cover
claims of insolvent insurers
1
, Twisting - ANSWER The act of inducing or attempting to induce a policy owner to drop an
existing life insurance policy and to take another policy that is substantially the same kind by
using misrepresentations or incomplete comparisons of the advantages and disadvantages
of the two policies. Most states have enacted legislation making twisting a crime.
Churning - ANSWER Churning occurs when an insurance agent replaces a policyholder's
insurance policy for another insurance policy, usually without consulting the policyholder
and often with no changes to the coverage itself. Agents who engage in churning do so in or-
der to secure an additional commission for the new policy they swap in.
Rebating - ANSWER Rebating — a portion of the premium or the agent's/broker's com-
mission on the premium to the insured or other inducements to place business with a spe-
cific insurer. Rebating is illegal in the majority of states. Insurers must use filed rate credits or
have supporting methodology.
Uninsured motorist coverage law in Georgia applies to bodily injury claims sustained by an
insured and caused by an uninsured motorist as defined by the law. UMPD coverage is also
included. - ANSWER
In Georgia, the Chief Deputy Commissioner must execute a bond in the amount of: - AN-
SWER $15,000
Adjusters must maintain record of each investigation or adjustment undertaken, and a state-
ment of any fee, commission, or other compensation received or to be received on account
of the investigation or adjustment. How long must the records be maintained for examina-
tion? - ANSWER 5
The limits of the Employers' Liability section of a standard workers' compensation policy are:
- ANSWER Listed on the information page
An insured has purchased BAP physical damage coverage against specified causes of loss.
Protection applies to all of the following perils, EXCEPT: - ANSWER Falling objects
2
No insurer or licensee doing business in Georgia may pay any commissions or valuable con-
sideration to any person for services as an agent, subagent, or adjuster unless that person is
duly licensed under the - ANSWER Code
Mediation is not _____ on the parties involved, but with arbitration the decision is final and
_____. - ANSWER Binding
Standard and Poor's, A.M. Best and Moody's are examples of: - ANSWER Independent
Rating Services
What is the application fee for filing to become a self-insurer for workers compensation in
Georgia? - ANSWER $500
Insurance adjusters have the "power to bind". Which of the following statements best de-
scribes what this means? - ANSWER The principal is bound to the decisions of the ad-
juster.
The perils most frequently covered by a Difference in Conditions policy are: - ANSWER
Flood and Earthquake
What is the purpose of the Georgia Insurance Guaranty Association? - ANSWER Cover
claims of insolvent insurers
1
, Twisting - ANSWER The act of inducing or attempting to induce a policy owner to drop an
existing life insurance policy and to take another policy that is substantially the same kind by
using misrepresentations or incomplete comparisons of the advantages and disadvantages
of the two policies. Most states have enacted legislation making twisting a crime.
Churning - ANSWER Churning occurs when an insurance agent replaces a policyholder's
insurance policy for another insurance policy, usually without consulting the policyholder
and often with no changes to the coverage itself. Agents who engage in churning do so in or-
der to secure an additional commission for the new policy they swap in.
Rebating - ANSWER Rebating — a portion of the premium or the agent's/broker's com-
mission on the premium to the insured or other inducements to place business with a spe-
cific insurer. Rebating is illegal in the majority of states. Insurers must use filed rate credits or
have supporting methodology.
Uninsured motorist coverage law in Georgia applies to bodily injury claims sustained by an
insured and caused by an uninsured motorist as defined by the law. UMPD coverage is also
included. - ANSWER
In Georgia, the Chief Deputy Commissioner must execute a bond in the amount of: - AN-
SWER $15,000
Adjusters must maintain record of each investigation or adjustment undertaken, and a state-
ment of any fee, commission, or other compensation received or to be received on account
of the investigation or adjustment. How long must the records be maintained for examina-
tion? - ANSWER 5
The limits of the Employers' Liability section of a standard workers' compensation policy are:
- ANSWER Listed on the information page
An insured has purchased BAP physical damage coverage against specified causes of loss.
Protection applies to all of the following perils, EXCEPT: - ANSWER Falling objects
2
