GEORGIA LAWS AND RULES QUESTIONS AND ANSWERS Solved 100% CORRECT

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 Which of the following is NOT an unfair claim settlement practice? - ANSWER-Needing written documentation of claim details Before an insurance company can pay commissions to an agent, the agent must be - ANSWER-licensed and appointed What is one of the roles of the Commissioner? - ANSWER-Administering insurance laws In Georgia, an example of an alien insurer would be one that is incorporated in - ANSWER-France All agents licensed less than 20 years are required to complete ___ continuing education hours every two years. - ANSWER-24 During the application process, the agent's responsibility is to - ANSWER-the insurance company A person who is required to be a licensed agent would be a(n) - ANSWER-a person who places insurnace on behalf All accident and sickness plans MUST provide coverage on newborn children for ___ days. - ANSWER-31 Insurance agents do NOT have a fiduciary responsibility to - ANSWER-another agent The coordination of benefits (COB) provision exists in order to - ANSWER-avoid duplication of benefit payments Which of the following is the MINIMUM age at which an individual can sign a life insurance application? - ANSWER-15 Someone who is appointed by an insurer to engage in insurance transactions is called a(n) - ANSWER-agent The purpose of the Rules Governing Advertisement of Life Insurance and Annuities is to - ANSWER-assure full disclosure to the public of all material and relevant information In Georgia, an insurance company must notify the Commissioner within ____ days to terminate an agent's appointment. - ANSWER-30 What is an organization that solicits insurance only to its members? - ANSWER-Fraternal benefit society What is NOT a requirement for becoming a licensed agent in Georgia? - ANSWER-high school graduate With whom may an agent legally share commissions? - ANSWER-Another agent who is licensed in the same line of insurance Which document MUST accompany an application that initiates the replacement of an existing life insurance policy? - ANSWER-A signed statement by the applicant regarding the replacement Under which circumstance may the Commissioner of Insurance suspend, revoke, or , refuse to renew the license of an agent? - ANSWER-Agent is found guilty of misrepresentation in obtaining the license How often must an insurance agent license be renewed in Georgia? - ANSWER-every 2 years Who owns a a stock company? - ANSWER-its stockholders An insurance agent is in violation of the Rules Governing Advertisement of Life Insurance and Annuities if the agent takes which of the following actions during a sales presentation? - ANSWER-Refers to guaranteed policy dividends S takes out an accident and sickness insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this? - ANSWER-Entire Contract Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called - ANSWER-A fraternal life insurance organization is a nonprofit provider of life insurance that is covered by a special section of the Georgia insurance code A domestic insurance company in Georgia is considered a company that - ANSWER-is incorporated and formed in Georgia When is a group accident and health policy required to provide coverage for a newborn child? - ANSWER-at the moment of birth An insurance company which engages in boycott, coercion, and intimidation that results in the unreasonable restraint of trade is committing a prohibited act under Georgia insurance laws covering - ANSWER-unfair trade practices Prior to a hearing that could potentially revoke an agent's license, what is required by the Commissioner? - ANSWER-Giving written notice to the agent In Georgia, an accident and sickness policy that is paid on quarterly basis requires a grace period of - ANSWER-31 days Life insurance replacement regulation protects the interest of - ANSWER-the policyowner