GEORGIA INSURANCE REGULATIONS EXAM 2025 |160
QUESTIONS AND ANSWERS
1. Who holds ownership in a mutual insurance company?
Shareholders
The insurance Commissioner
Its policyholders
The state government
2. Describe the significance of continuing education requirements for
insurance agents in Georgia.
Continuing education is only required for agents over 20 years of
experience.
Continuing education is optional for agents to improve their sales
skills.
Continuing education ensures that insurance agents stay
updated on regulations and practices, enhancing their
competency and protecting consumers.
Continuing education focuses solely on marketing strategies.
3. The age at which a minor can take out a life insurance policy on his or her
own life is:
15 years old
18 years old
13 years old
17 years old
,4. If an insurance agent replaces a client's existing policy with a new one
without proper disclosure, what potential consequences could arise for
the agent?
The agent will receive a bonus for new policy sales.
The agent will be praised for providing better options.
The agent will not face any consequences as it is a common
practice.
The agent may face disciplinary action from the Commissioner
for misrepresentation.
5. What is the main objective of the Rules Governing Advertisement of Life
Insurance and Annuities?
to define unfair trade practices in insurance
to regulate the pricing of life insurance policies
to assure full disclosure to the public of all material and
relevant information
to limit the number of insurance agents in Georgia
6. Which of the following is required of an insurer in order to legally
transact insurance in Georgia?
Certificate of authority
Decree of power
Insurer's certificate
Agent's license
7. If an insurance agent in Georgia shares a commission with another agent,
what must they ensure to avoid violating rebating regulations?
They must ensure that the commission sharing does not involve
returning any part of the premium to the policyholder.
, They must disclose the commission sharing to the policyholder.
They must limit the commission sharing to a maximum of 10% of
the total premium.
They must obtain prior approval from the Commissioner for the
commission sharing.
8. An agent who guarantees the future dividend return on a mutual policy
has probably engaged in what Unfair Trade Practice?
Rebating
Coercion
Misrepresentation
Twisting
9. What is the definition of rebating in the context of insurance practices?
Providing a discount on premiums for early payment.
Offering a client something of value not stated in the contract in
exchange for their business.
Offering free consultations to potential clients.
Giving clients a bonus for referring new customers.
10. What is the document that an insurance agent must provide to the
replacing insurance company when replacing a life insurance policy?
Agent's commission agreement
Policyholder's consent form
Insurance policy summary
Notice to existing and replacing insurers on intention to
replace
, 11. What would be an accurate definition of "controlled business"
insurance business that is obtained through false advertising
insurnace business that is written on the producer's own life,
property or interest
insurance business obtained by an agent through coercion,
intimidation, or boycotting
12. In your own words, explain why full disclosure in life insurance
advertisements is important for consumers.
Full disclosure is unnecessary as consumers do not read
advertisements carefully.
Full disclosure in life insurance advertisements is important
because it helps consumers make informed decisions based on
accurate information.
Full disclosure is primarily for the benefit of insurance companies.
Full disclosure is only relevant for insurance agents, not
consumers.
13. Which of the following documents must an agent submit to the replacing
insurance company during the replacement of an existing insurance
policy?
Notice to existing and replacing insurers of intention to replace
A statement made by the agent that NAIC guidelines have been
met during the replacement process
14. If an insurance company in Georgia goes bankrupt, how would the
Georgia Life and Health Insurance Guaranty Association assist affected
policyholders?
By offering lower premiums to policyholders
By facilitating the transfer of policies to other insurers
QUESTIONS AND ANSWERS
1. Who holds ownership in a mutual insurance company?
Shareholders
The insurance Commissioner
Its policyholders
The state government
2. Describe the significance of continuing education requirements for
insurance agents in Georgia.
Continuing education is only required for agents over 20 years of
experience.
Continuing education is optional for agents to improve their sales
skills.
Continuing education ensures that insurance agents stay
updated on regulations and practices, enhancing their
competency and protecting consumers.
Continuing education focuses solely on marketing strategies.
3. The age at which a minor can take out a life insurance policy on his or her
own life is:
15 years old
18 years old
13 years old
17 years old
,4. If an insurance agent replaces a client's existing policy with a new one
without proper disclosure, what potential consequences could arise for
the agent?
The agent will receive a bonus for new policy sales.
The agent will be praised for providing better options.
The agent will not face any consequences as it is a common
practice.
The agent may face disciplinary action from the Commissioner
for misrepresentation.
5. What is the main objective of the Rules Governing Advertisement of Life
Insurance and Annuities?
to define unfair trade practices in insurance
to regulate the pricing of life insurance policies
to assure full disclosure to the public of all material and
relevant information
to limit the number of insurance agents in Georgia
6. Which of the following is required of an insurer in order to legally
transact insurance in Georgia?
Certificate of authority
Decree of power
Insurer's certificate
Agent's license
7. If an insurance agent in Georgia shares a commission with another agent,
what must they ensure to avoid violating rebating regulations?
They must ensure that the commission sharing does not involve
returning any part of the premium to the policyholder.
, They must disclose the commission sharing to the policyholder.
They must limit the commission sharing to a maximum of 10% of
the total premium.
They must obtain prior approval from the Commissioner for the
commission sharing.
8. An agent who guarantees the future dividend return on a mutual policy
has probably engaged in what Unfair Trade Practice?
Rebating
Coercion
Misrepresentation
Twisting
9. What is the definition of rebating in the context of insurance practices?
Providing a discount on premiums for early payment.
Offering a client something of value not stated in the contract in
exchange for their business.
Offering free consultations to potential clients.
Giving clients a bonus for referring new customers.
10. What is the document that an insurance agent must provide to the
replacing insurance company when replacing a life insurance policy?
Agent's commission agreement
Policyholder's consent form
Insurance policy summary
Notice to existing and replacing insurers on intention to
replace
, 11. What would be an accurate definition of "controlled business"
insurance business that is obtained through false advertising
insurnace business that is written on the producer's own life,
property or interest
insurance business obtained by an agent through coercion,
intimidation, or boycotting
12. In your own words, explain why full disclosure in life insurance
advertisements is important for consumers.
Full disclosure is unnecessary as consumers do not read
advertisements carefully.
Full disclosure in life insurance advertisements is important
because it helps consumers make informed decisions based on
accurate information.
Full disclosure is primarily for the benefit of insurance companies.
Full disclosure is only relevant for insurance agents, not
consumers.
13. Which of the following documents must an agent submit to the replacing
insurance company during the replacement of an existing insurance
policy?
Notice to existing and replacing insurers of intention to replace
A statement made by the agent that NAIC guidelines have been
met during the replacement process
14. If an insurance company in Georgia goes bankrupt, how would the
Georgia Life and Health Insurance Guaranty Association assist affected
policyholders?
By offering lower premiums to policyholders
By facilitating the transfer of policies to other insurers
