Georgia Laws and Rules 2023 with Complete Solutions

J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? - ANSWER-Coercion All agents licensed less than 20 Years are required to complete ___ continuing education hours every two years, - ANSWER-24 In Georgia, most life insurance policies have a contestability period of - ANSWER-2 years All accident and sickness plans MUST provide coverage on newborn children for ___ days - ANSWER-31 In Georgia, an insurer licensed to conduct business in Georgia, but domiciled in New Jersey, is called a - ANSWER-foreign company In Georgia, which of the following statements is CORRECT about life insurance advertisements? - ANSWER-An insurance agency is responsible for advertisements placed by its insurance agents In Georgia, an example of an alien insurer would be one that is incorporated in - ANSWER-France Alien insurance company is a company that is charted and organized in any country other than the United States. Therefore, a company chartered in France would be an alien company in Georgia. In Georgia, long-term care policies are required to provide benefits for at least - ANSWER-12 Months An insurance agent is guilty of___ if the agent misrepresents a policy to induce a policyowner to surrender an existing policy. - ANSWER-twisting A domestic insurance company in Georgia is considered a company that - ANSWER-is incorporated and formed in Georgia T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as - ANSWER-fiduciary responsibility An agent would be guilty of rebating by - ANSWER-returning a portion of a premium as incentive to purchase insurance Using an existing life insurance policy's cash value to purchase another policy with with same insurer for the sole purpose of earning additional commissions is called - ANSWER-Churning An agent must have ___ hours of ethics per continuing education reporting period - ANSWER-3 Convincing a prospective insured to buy an insurance policy based on exaggerations is called - ANSWER-misrepresentation In Georgia, which of the following is considered an Unfair Trade Practice - ANSWER-Coercion In the state of Georgia, every policyowner must be offered which of the following - ANSWER-free-look period 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 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 An example of an unfair claims settlement practice is - ANSWER-turning down a claim without providing the basis of denial 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 A producer must notify the Commissioner within___ days of an address change - ANSWER-30 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 Which of the following correctly describes a certificate of authority? - ANSWER-Permits an insurance company to transact business in Georgia An example of an unfair claims practice would be - ANSWER-failing to effectuate prompt, fair, and equitable settlements of a claim When the Commission examines an insurer's records, who pays for the costs associated with the examination? - ANSWER-The insurance company being examined The Life and Health Insurance Guaranty Association is - ANSWER-funded by admitted insurance companies through assessments J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? - ANSWER-Twisting Who owns a stock company? - ANSWER-its stockholders Which of the following is the MINIMUM age at which an individual can sign a life insurance application? - ANSWER-15 Which of these is NOT a requirement to obtain an insurance agent license in Georgia - ANSWER-Graduate High School Insurance agent licenses normally must be renewed every ___ years in Georgia - ANSWER-2 What would be an accurate definition of "controlled business"? - ANSWER-Insurance business that is written on the agent's own life, property, or interests What is the purpose of the Life and Health Insurance Guaranty Association - ANSWER-Protects policyowners against insolvent insurance companies The coordination of benefits (COB) provision exists in order to - ANSWER-avoid duplication of benefits payments Before an insurance company can pay commissions to an agent, the agent must be - ANSWER-licensed and appointed Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent - ANSWER-only if the child is incapable of employment and chiefly dependent on the policyowner An example of rebating would be - ANSWER-offering a client something of value not stated in the contract in exchange for their business In Georgia, monthly-premium accident and sickness insurance policies must provide a grace period of at least - ANSWER-10 days The act of an insurance company publishing misleading information about its policy's provisions is called - ANSWER-False advertising Which of the following is NOT an unfair claim settlement practice - ANSWER-Needing written documentation of claim details Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? - ANSWER-Georgia Life and Health Insurance Guaranty Association 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 Life insurance replacement regulation protects the interests of - ANSWER-the policyowner Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? - ANSWER-Notice to existing and replacing insurers of intention to replace What is NOT a requirement for becoming a licensed agent in Georgia - ANSWER-High School Graduate A person who is required to be a licensed agent would be a - ANSWER-person who places insurance on behalf of anyone seeking insurance An example of unfair discrimination would be - ANSWER-offering different terms of coverage for different policyowners having the same risk classification Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? *Twisting *Intimidation *Misrepresentation *Sliding - ANSWER-Misrepresentation What is one of the roles of the Commissioner? - ANSWER-Administering insurance laws With whom may an agent legally share commissions? - ANSWER-Another agent who is licensed in the same line of insurance S takes out a health 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 the commissioner must give___ days notice prior to holding a hearing regarding an agent's unfair or deceptive practice. - ANSWER-10 When the Commissioner examines an insurer's records who pays for the costs associated with the examination? - ANSWER-The insurance company being examined Insurance agents do NOT have a fiduciary responsibility to - ANSWER-another agent When is a group accident and health policy required to provide coverage for a newborn child? - ANSWER-At the moment of birth which of the following items are regulated by the Rules Governing Advertisement of Life Insurance and Annuities? - ANSWER-Prepared sales presentations used by insurance agents Which of the following is considered to be misrepresentation? - ANSWER-An agent guaranteeing a policy's dividends Cash surrendering an existing whole life policy and purchasing a new whole life policy is referred to as a - ANSWER-replacement 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 Why would the commissioner examine an insurer's records? - ANSWER-To determine the solvency of the company Someone who is appointed by an insurer to engage in insurance transactions is called a - ANSWER-agent All agents licensed less than 20 years are required to complete___ continuing education hours every two years - ANSWER-24 Who is a mutual insurance company owned by? - ANSWER-Its policyholders which type of insurance company allows their policyowners to elect a governing body? - ANSWER-mutual When advertising, an insurer is required to use its - ANSWER-true corporate name In Georgia, an insurance company must do which of the following to terminate an agent's appointment? - ANSWER-Notify the Commissioner within 30 days 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