Georgia insurance laws Exam 2025
Questions and Answers
A temporary agent may: - ANSWER-Continue existing business but not sell new
policies.
Premium rates that are so low that they tend to destroy competition by creating a
monopoly are referred to under Georgia insurance laws as: - ANSWER-Inadequate
An agent cannot hold a license for the purpose of buying insurance at a discount
for the agent or associates. Such insurance is referred to as "controlled business" if
it constitutes more than what percentage of the agent's total volume of business
per year? - ANSWER-15%
Which of the following are required to be covered by work comp? - ANSWER-
restaurant employees
Under Georgia insurance laws, a person who sells insurance for a licensed agent is
known as a/an? - ANSWER-subagent
In the area of auto insurance, the residual market is intended to provide insurance
for the: - ANSWER-worst drivers
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Each of the following will satisfy the Commissioner's requirement for a place of
business: - ANSWER-- an office in a shopping mall
- an office in another business, such as a real estate office
-a home office
An agent's appointment letter may be revoked by the: - ANSWER-insurer
Licensees must keep copies of all records for: - ANSWER-5 years
The Commissioner may suspend or revoke an Agent's license for all of the
following: - ANSWER-- having been convicted of a felony
- failing to comply with a commissioner order
- using fraudulent information while conducting insurance business
An auto policy may be cancelled due to each of the following involving an Insured
within the prior 36 months: - ANSWER-- criminal negligence resulting in an
accident that kills someone
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, - drug addiction
-drunk driving
Paying a person an inducement to purchase insurance is called: - ANSWER-
rebating
Each of the following is a method of satisfying the Georgia Motor Vehicle
Reparations Act - ANSWER-- auto liability insurance
- a certificate of self-insurance
- surety bond
To show eligibility under the Defensive Driver Law, one must have had during the
prior 3 years: - ANSWER-no at fault accidents and traffic violations
The Guaranty Fund provides coverage for unpaid health insurance claims up to: -
ANSWER-$300,000
Terry is a Georgia insurance agent. She has received an application for coverage on
a single-family home. Her client has submitted an application with a premium.
Which of the following is correct? - ANSWER-Terry may issue a binder to provide
temporary coverage for up to 90 days.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Questions and Answers
A temporary agent may: - ANSWER-Continue existing business but not sell new
policies.
Premium rates that are so low that they tend to destroy competition by creating a
monopoly are referred to under Georgia insurance laws as: - ANSWER-Inadequate
An agent cannot hold a license for the purpose of buying insurance at a discount
for the agent or associates. Such insurance is referred to as "controlled business" if
it constitutes more than what percentage of the agent's total volume of business
per year? - ANSWER-15%
Which of the following are required to be covered by work comp? - ANSWER-
restaurant employees
Under Georgia insurance laws, a person who sells insurance for a licensed agent is
known as a/an? - ANSWER-subagent
In the area of auto insurance, the residual market is intended to provide insurance
for the: - ANSWER-worst drivers
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Each of the following will satisfy the Commissioner's requirement for a place of
business: - ANSWER-- an office in a shopping mall
- an office in another business, such as a real estate office
-a home office
An agent's appointment letter may be revoked by the: - ANSWER-insurer
Licensees must keep copies of all records for: - ANSWER-5 years
The Commissioner may suspend or revoke an Agent's license for all of the
following: - ANSWER-- having been convicted of a felony
- failing to comply with a commissioner order
- using fraudulent information while conducting insurance business
An auto policy may be cancelled due to each of the following involving an Insured
within the prior 36 months: - ANSWER-- criminal negligence resulting in an
accident that kills someone
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, - drug addiction
-drunk driving
Paying a person an inducement to purchase insurance is called: - ANSWER-
rebating
Each of the following is a method of satisfying the Georgia Motor Vehicle
Reparations Act - ANSWER-- auto liability insurance
- a certificate of self-insurance
- surety bond
To show eligibility under the Defensive Driver Law, one must have had during the
prior 3 years: - ANSWER-no at fault accidents and traffic violations
The Guaranty Fund provides coverage for unpaid health insurance claims up to: -
ANSWER-$300,000
Terry is a Georgia insurance agent. She has received an application for coverage on
a single-family home. Her client has submitted an application with a premium.
Which of the following is correct? - ANSWER-Terry may issue a binder to provide
temporary coverage for up to 90 days.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
