GEORGIA LAWS AND RULES 2025/2026
EXAM QUESTIONS AND ANSWERS |
100% PASS
Using an existing life insurance policy's cash value to purchase another
policy with the same insurer for the sole purpose of earning additional
commissions is called... - 🧠 ANSWER ✔✔Churning: is an illegal practice
where insurance agents unnecessarily replace existing life insurance for
the purpose of earning additional (higher) first year commissions
An example of unfair discrimination would be - 🧠 ANSWER ✔✔offering
different terms of coverage for different policyowners in the same risk
classification
A mutual insurance company and a stock insurance company have one
main difference between them. What is this major contrast? - 🧠 ANSWER
, ✔✔Stock company is owned by its shareholders. Mutual company is
owned by its policyholders
The ___ must provide an insured with proper disclosure concerning the
replacement of an insurance policy. - 🧠 ANSWER ✔✔agent
The Commissioner must give ___ days notice prior to holding a hearing
regarding an agent's unfair or deceptive practice. - 🧠 ANSWER ✔✔10
As a condition for a loan, a bank requires the borrower to purchase credit
insurance from a specific company. What is the bank guilty of? - 🧠
ANSWER ✔✔Coercion
When advertising, an insurer is required to use its ___ - 🧠 ANSWER
✔✔true corporate name
Which type of insurance company allows their policyowners to elect
governing body? - 🧠 ANSWER ✔✔Mutual
T is an agent and when hired, is reminded that he has a responsibility to
handle client's funds in an honest and ethical manner. This responsibility is
referred to as - 🧠 ANSWER ✔✔fiduciary responsibility
EXAM QUESTIONS AND ANSWERS |
100% PASS
Using an existing life insurance policy's cash value to purchase another
policy with the same insurer for the sole purpose of earning additional
commissions is called... - 🧠 ANSWER ✔✔Churning: is an illegal practice
where insurance agents unnecessarily replace existing life insurance for
the purpose of earning additional (higher) first year commissions
An example of unfair discrimination would be - 🧠 ANSWER ✔✔offering
different terms of coverage for different policyowners in the same risk
classification
A mutual insurance company and a stock insurance company have one
main difference between them. What is this major contrast? - 🧠 ANSWER
, ✔✔Stock company is owned by its shareholders. Mutual company is
owned by its policyholders
The ___ must provide an insured with proper disclosure concerning the
replacement of an insurance policy. - 🧠 ANSWER ✔✔agent
The Commissioner must give ___ days notice prior to holding a hearing
regarding an agent's unfair or deceptive practice. - 🧠 ANSWER ✔✔10
As a condition for a loan, a bank requires the borrower to purchase credit
insurance from a specific company. What is the bank guilty of? - 🧠
ANSWER ✔✔Coercion
When advertising, an insurer is required to use its ___ - 🧠 ANSWER
✔✔true corporate name
Which type of insurance company allows their policyowners to elect
governing body? - 🧠 ANSWER ✔✔Mutual
T is an agent and when hired, is reminded that he has a responsibility to
handle client's funds in an honest and ethical manner. This responsibility is
referred to as - 🧠 ANSWER ✔✔fiduciary responsibility
