Georgia State Insurance Laws Overview
Exam 2025 Questions and Answers
What are some reasons a license may be revoked or suspended in personal lines
insurance? - ANSWER-Reasons include failing an insurance exam, not complying
with regulations, lack of trustworthiness, overinsurance, failing to pay money
owed, felony convictions, and not reporting criminal prosecutions.
What is the consequence of failing to report disciplinary actions against a license? -
ANSWER-Failure to report disciplinary actions within 60 days can lead to license
suspension or revocation.
What is the procedure for a license suspension or revocation? - ANSWER-The
Commissioner must notify the license applicant or holder and insurer, and hearings
must be conducted, except for cases involving child support or debt defaults.
How long must a licensee wait to reapply for a license after revocation? -
ANSWER-A licensee must wait 5 years from the date of the final order to reapply.
What is a probationary license and how long can it last? - ANSWER-A
probationary license can be issued for 3 to 24 months and can be revoked without
a hearing.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What must an insurance agent record for each transaction? - ANSWER-Agents
must keep records of insurance contracts, including insurer and insured names,
premium amounts, and the subject of insurance.
How long must records of insurance transactions be retained? - ANSWER-
Records must be kept for at least 5 years after the transaction or contract term
ends.
What happens if an insurance contract is issued by an unauthorized person? -
ANSWER-The contract remains enforceable, but those who knowingly
participated in the violation are guilty of a misdemeanor.
What constitutes an unfair trade practice in insurance? - ANSWER-Engaging in
practices that violate the insurance code can lead to misdemeanor charges.
What is defamation in the context of insurance? - ANSWER-Defamation involves
making false or malicious statements about an insurer's financial condition with the
intent to harm.
What can happen if a licensee fails to comply with an order from the
Commissioner? - ANSWER-Failure to comply can result in suspension or
revocation of the license.
What is required of a licensee who has been convicted of a felony? - ANSWER-
They must report any criminal prosecution to the Commissioner within 30 days of
arrest.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,What effect does surrendering a license under a written consent order have? -
ANSWER-It has the same effect as a revocation.
What can the Commissioner do if a licensee has a history of felony convictions? -
ANSWER-The Commissioner may issue a probationary license if the applicant
shows cause for trustworthiness.
What must be included in the records of insurance transactions? - ANSWER-
Records must include details of the insurance contract, names of involved
licensees, and any compensation received.
What is the role of the Commissioner in issuing probationary licenses? -
ANSWER-The Commissioner prescribes the terms of probation and can extend
the probationary period or refuse to grant a license.
What is the significance of the example involving J's application for a license? -
ANSWER-It illustrates how a probationary license can be granted despite past
felony convictions if trustworthiness is demonstrated.
What is the consequence of failing to pay court-ordered child support? -
ANSWER-It can lead to automatic suspension or revocation of the license.
What is the definition of moral turpitude in relation to insurance licensing? -
ANSWER-Moral turpitude refers to conduct that is knowingly contrary to justice,
honesty, or good morals.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, What happens if a licensee fails to transact insurance business in good faith? -
ANSWER-It can result in suspension or revocation of their license.
What must an applicant show to avoid a license refusal after revocation? -
ANSWER-The applicant must show cause why the revocation should not bar the
issuance of a new license.
What is the minimum record retention period for insurance transactions? -
ANSWER-Records must be retained for at least 5 years.
What is the penalty for committing an unfair trade practice? - ANSWER-Violators
can be charged with a misdemeanor.
What constitutes misrepresentation by an insurer? - ANSWER-An insurer may not
make false estimates or illustrations, misleading statements, or misrepresent a
policy's terms, benefits, advantages, or dividends.
Is a dividend estimate based on past experience considered misrepresentation? -
ANSWER-No, if it is clearly shown to be based on past experience, it is not
considered misrepresentation.
What is considered an unfair act in the insurance application process? - ANSWER-
Failing to require agents to include all material facts relevant to the risk known or
should be known by the agent.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
Exam 2025 Questions and Answers
What are some reasons a license may be revoked or suspended in personal lines
insurance? - ANSWER-Reasons include failing an insurance exam, not complying
with regulations, lack of trustworthiness, overinsurance, failing to pay money
owed, felony convictions, and not reporting criminal prosecutions.
What is the consequence of failing to report disciplinary actions against a license? -
ANSWER-Failure to report disciplinary actions within 60 days can lead to license
suspension or revocation.
What is the procedure for a license suspension or revocation? - ANSWER-The
Commissioner must notify the license applicant or holder and insurer, and hearings
must be conducted, except for cases involving child support or debt defaults.
How long must a licensee wait to reapply for a license after revocation? -
ANSWER-A licensee must wait 5 years from the date of the final order to reapply.
What is a probationary license and how long can it last? - ANSWER-A
probationary license can be issued for 3 to 24 months and can be revoked without
a hearing.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What must an insurance agent record for each transaction? - ANSWER-Agents
must keep records of insurance contracts, including insurer and insured names,
premium amounts, and the subject of insurance.
How long must records of insurance transactions be retained? - ANSWER-
Records must be kept for at least 5 years after the transaction or contract term
ends.
What happens if an insurance contract is issued by an unauthorized person? -
ANSWER-The contract remains enforceable, but those who knowingly
participated in the violation are guilty of a misdemeanor.
What constitutes an unfair trade practice in insurance? - ANSWER-Engaging in
practices that violate the insurance code can lead to misdemeanor charges.
What is defamation in the context of insurance? - ANSWER-Defamation involves
making false or malicious statements about an insurer's financial condition with the
intent to harm.
What can happen if a licensee fails to comply with an order from the
Commissioner? - ANSWER-Failure to comply can result in suspension or
revocation of the license.
What is required of a licensee who has been convicted of a felony? - ANSWER-
They must report any criminal prosecution to the Commissioner within 30 days of
arrest.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,What effect does surrendering a license under a written consent order have? -
ANSWER-It has the same effect as a revocation.
What can the Commissioner do if a licensee has a history of felony convictions? -
ANSWER-The Commissioner may issue a probationary license if the applicant
shows cause for trustworthiness.
What must be included in the records of insurance transactions? - ANSWER-
Records must include details of the insurance contract, names of involved
licensees, and any compensation received.
What is the role of the Commissioner in issuing probationary licenses? -
ANSWER-The Commissioner prescribes the terms of probation and can extend
the probationary period or refuse to grant a license.
What is the significance of the example involving J's application for a license? -
ANSWER-It illustrates how a probationary license can be granted despite past
felony convictions if trustworthiness is demonstrated.
What is the consequence of failing to pay court-ordered child support? -
ANSWER-It can lead to automatic suspension or revocation of the license.
What is the definition of moral turpitude in relation to insurance licensing? -
ANSWER-Moral turpitude refers to conduct that is knowingly contrary to justice,
honesty, or good morals.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, What happens if a licensee fails to transact insurance business in good faith? -
ANSWER-It can result in suspension or revocation of their license.
What must an applicant show to avoid a license refusal after revocation? -
ANSWER-The applicant must show cause why the revocation should not bar the
issuance of a new license.
What is the minimum record retention period for insurance transactions? -
ANSWER-Records must be retained for at least 5 years.
What is the penalty for committing an unfair trade practice? - ANSWER-Violators
can be charged with a misdemeanor.
What constitutes misrepresentation by an insurer? - ANSWER-An insurer may not
make false estimates or illustrations, misleading statements, or misrepresent a
policy's terms, benefits, advantages, or dividends.
Is a dividend estimate based on past experience considered misrepresentation? -
ANSWER-No, if it is clearly shown to be based on past experience, it is not
considered misrepresentation.
What is considered an unfair act in the insurance application process? - ANSWER-
Failing to require agents to include all material facts relevant to the risk known or
should be known by the agent.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
