Chapter Exam: Georgia Laws and Rules
In Georgia, which of the following statements is CORRECT about life
insurance advertisements?
a.An insurance agency is responsible for advertisements placed by
its insurance agents
b. The commissioner of insurance must approve advertisements before
they are used
c. Third-party testimonials may not be used
d.The dividend may be represented as guaranteed Correct answers
An insurance agency is responsible for advertisements placed by its
insurance agents
Which Unfair Trade Practice involves an agent suggesting that an
insurance policy is like a share of stock?
e. Twisting
f. Intimidation
g. Misrepresentation
h. Sliding Correct answers Misrepresentation
Which of the following items are regulated by the Rules Governing
Advertisement of Life Insurance and Annuities?
i. Communication between marketing department and underwriting
department
j. Rate increase announced by insurance company via mass mailing
k. Prepared sales presentations used by insurance agents
l.Correspondence regarding policy loan interest rate payment
Correct answers Prepared sales presentations used by insurance
agents
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?
m.Coercion
n. Defamation
o. Rebating
p. Misrepresentation Correct answers Coercion
Which of the following is NOT an unfair claim settlement practice?
q. Failing to acknowledge and act promptly with respect to an insurance
claim
r. Compelling an insured to initiate a lawsuit by offering less on an
insurance claim
s.Failing to accept or deny a claim within reasonable time after
proof of loss is submitted
t.Needing written documentation of claim details Correct answers
Needing written documentation of claim details
The Life and Health Insurance Guaranty Association is
, a. An entity that assists in underwriting large insurance policies
b. Funded by admitted insurance companies through assessments
c. Funded by the state government
d.Administered by the Federal government Correct answers Funded
by admitted insurance companies through assessments
In Georgia, long-term care policies are required to provide benefits for
at least
e. 6 months
f. 12 months
g. 18 months
h. 24 months Correct answers 12 months
Prior to a hearing that could potentially revoke an agent's license, what is
required by the commissioner?
i. Giving oral notice to the agent
j. Giving written notice to the agent
k. Giving both oral and written notice to the appointing insurer
l.Giving oral notice to the appointing insurer Correct answers Giving
written notice to the agent
An insurance agent is guilty of if the agent misrepresents a policy to
induce a policyowner to surrender an existing policy.
m.Coercion
n. Twisting
o. Sliding
p. Misrepresentation Correct answers Twisting
Defamation occurs when an agent makes a false statement intended to
q. Malign another insurer
r. Replace an existing insurance policy with another
s. Restrict fair trade
t.Misrepresent the provisions of an insurance policy Correct answers
Malign another insurer
Which document MUST accompany an application that initiates the
replacement of an existing life insurance policy?
u. A signed statement by the applicant regarding the replacement
v. A signed replacement statement from the insurance company being
replaced
w.A detailed comparison of existing coverage and the proposed coverage
x.A signed replacement statement from the replacing insurance
company Correct answers A signed statement by the applicant
regarding the replacement
1. The coordination of benefits (COB) provision exists in order to
a. Avoid duplication of benefit payments
b. Avoid excessive hospitalization
c. Lower insurance premiums
In Georgia, which of the following statements is CORRECT about life
insurance advertisements?
a.An insurance agency is responsible for advertisements placed by
its insurance agents
b. The commissioner of insurance must approve advertisements before
they are used
c. Third-party testimonials may not be used
d.The dividend may be represented as guaranteed Correct answers
An insurance agency is responsible for advertisements placed by its
insurance agents
Which Unfair Trade Practice involves an agent suggesting that an
insurance policy is like a share of stock?
e. Twisting
f. Intimidation
g. Misrepresentation
h. Sliding Correct answers Misrepresentation
Which of the following items are regulated by the Rules Governing
Advertisement of Life Insurance and Annuities?
i. Communication between marketing department and underwriting
department
j. Rate increase announced by insurance company via mass mailing
k. Prepared sales presentations used by insurance agents
l.Correspondence regarding policy loan interest rate payment
Correct answers Prepared sales presentations used by insurance
agents
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?
m.Coercion
n. Defamation
o. Rebating
p. Misrepresentation Correct answers Coercion
Which of the following is NOT an unfair claim settlement practice?
q. Failing to acknowledge and act promptly with respect to an insurance
claim
r. Compelling an insured to initiate a lawsuit by offering less on an
insurance claim
s.Failing to accept or deny a claim within reasonable time after
proof of loss is submitted
t.Needing written documentation of claim details Correct answers
Needing written documentation of claim details
The Life and Health Insurance Guaranty Association is
, a. An entity that assists in underwriting large insurance policies
b. Funded by admitted insurance companies through assessments
c. Funded by the state government
d.Administered by the Federal government Correct answers Funded
by admitted insurance companies through assessments
In Georgia, long-term care policies are required to provide benefits for
at least
e. 6 months
f. 12 months
g. 18 months
h. 24 months Correct answers 12 months
Prior to a hearing that could potentially revoke an agent's license, what is
required by the commissioner?
i. Giving oral notice to the agent
j. Giving written notice to the agent
k. Giving both oral and written notice to the appointing insurer
l.Giving oral notice to the appointing insurer Correct answers Giving
written notice to the agent
An insurance agent is guilty of if the agent misrepresents a policy to
induce a policyowner to surrender an existing policy.
m.Coercion
n. Twisting
o. Sliding
p. Misrepresentation Correct answers Twisting
Defamation occurs when an agent makes a false statement intended to
q. Malign another insurer
r. Replace an existing insurance policy with another
s. Restrict fair trade
t.Misrepresent the provisions of an insurance policy Correct answers
Malign another insurer
Which document MUST accompany an application that initiates the
replacement of an existing life insurance policy?
u. A signed statement by the applicant regarding the replacement
v. A signed replacement statement from the insurance company being
replaced
w.A detailed comparison of existing coverage and the proposed coverage
x.A signed replacement statement from the replacing insurance
company Correct answers A signed statement by the applicant
regarding the replacement
1. The coordination of benefits (COB) provision exists in order to
a. Avoid duplication of benefit payments
b. Avoid excessive hospitalization
c. Lower insurance premiums
