Ga Final Exam

Question 1

If a Georgia property insurer is imposing a rate of 15% or more, or new policy terms that will, in effect, nonrenew the old policy, the property insurer must give how many days notice of nonrenewal?

Select one:

a. 10
b. 20
c. 30
d. 45

Answer 1

The correct answer is: 45

Question 2

Unless a nonrenewal or cancellation involves a nonpayment of premium, Georgia requires Insurers to provide how many days written notice to the client?

Select one:

a. 10
b. 20
c. 30
d. 45

Answer 2

The correct answer is: 30

Question 3

A property or casualty policy claim is covered under Georgia’s Property and Casualty Guaranty Fund up to how much?

Select one:

a. $300,000
b. $150,000
c. $50,000
d. $100,000

Answer 3

The correct answer is: $300,000

Question 4

Who issues a probationary license?

Select one:

a. The Department of Insurance
b. The local insurance agency
c. The Commissioner
d. The Insurer

Answer 4

The correct answer is: The Commissioner

Question 5

Any action of the Commissioner may be appealed within 30 days to:

Select one:

a. Superior Court of Fulton County.
b. Georgia Attorney General.
c. Georgia Supreme Court.
d. The Governor.

Answer 5

The correct answer is: Superior Court of Fulton County

Question 6

Which of the following can never be an underwriting factor in Georgia?

Select one:

a. geographical location of the risk
b. race
c. applicant’s gender
d. age of the applicant

Answer 6

The correct answer is: race

Question 7

A temporary agent may:

Select one:

a. Continue existing business but not sell new policies.
b. Operate independently without supervision of a regularly licensed agent.

Answer 7

The correct answer is: Continue existing business but not sell new policies.

Question 8

Every auto liability policy in Georgia is required to include:

Select one:

a. Liability only
b. Both Liability and Uninsured Motorist
c. Both Liability and Underinsured Motorist
d. Liability, Uninsured Motorist, and Underinsured Motorist

Answer 8

The correct answer is: Liability only

Question 9

If an Insurer terminates an agent’s appointment, the Insurer must notify the Commissioner and explain the termination within:

Select one:

a. 15 days.
b. 30 days.
c. 45 days.
d. 60 days.

Answer 9

The correct answer is: 30 days.

Question 10

The Commissioner may issue cease and desist orders:

Select one:

a. when any insurance company or agent violates insurance laws.
b. only given approval by judicial order.

Answer 10

The correct answer is: when any insurance company or agent violates insurance laws.

Question 11

The Commissioner has acted in such a way that a person is aggrieved. The aggrieved person may request a hearing which must be held by the Commissioner within:

Select one:

a. 30 days
b. 60 days
c. 90 days
d. 120 days

Answer 11

The correct answer is: 30 days

Question 12

Under the Georgia Automobile Insurance Plan (GAIP), the actual insurance policies are issued by:

Select one:

a. private insurance companies
b. the Department of Motor Vehicles
c. GAIP
d. the Department of Insurance

Answer 12

The correct answer is: private insurance companies

Question 13

When the Guaranty (Insolvency) Fund pays claims, the Fund is replenished by:

Select one:

a. an assessment against the remaining Insurers’ premiums
b. a special allocation from the state legislature

Answer 13

The correct answer is: an assessment against the remaining Insurers’ premiums

Question 14

Using different rates for persons of approximately the same rate and hazard classification is:

Select one:

a. Unfair Discrimination.
b. Coercion.
c. Inducement.
d. Rebating.

Answer 14

The correct answer is: Unfair Discrimination.

Question 15

A person with both Property/Casualty and a Life/Health licenses must complete how many hours of continuing education?

Select one:

a. 15 hours per year.
b. 15 hours every two years.

Answer 15

The correct answer is: 15 hours per year.

Question 16

Under Georgia law, an Insurer has how many days to return a refund of unearned premium?

Select one:

a. 10
b. 20
c. 30
d. 60

Answer 16

The correct answer is: 10

Question 17

Premium rates that are unreasonably low are referred to as:

Select one:

a. Insufficient
b. Discriminatory
c. Predatory
d. Inadequate

Answer 17

The correct answer is: Inadequate

Question 18

Which of the following are required to be covered by work comp?

Select one:

a. domestic servants
b. real estate agents
c. restaurant employees
d. farm workers

Answer 18

The correct answer is: restaurant employees

Question 19

The Georgia Commissioner of Insurance is:

Select one:

a. appointed by the Governor.
b. elected.

Answer 19

The correct answer is: elected.

Question 20

One who is licensed to, for a fee, provide advice regarding insurance policies is a/an:
Select one:

a. counselor
b. advisor
c. agent
d. producer

Answer 20

The correct answer is: counselor

Question 21

If a Georgia Insurer fails to return a refund of unearned premium within 10 days, in addition to a 25% penalty, the Insurer will be responsible for paying interest at the annual rate of:

Select one:

a. 18%
b. 25%
c. 50%
d. 10%

Answer 21

The correct answer is: 18%

Question 22

A Surplus Lines Agent MUST:

Select one:

a. hold an appointment letter from an Insurer.
b. post a $50,000 bond.

Answer 22

The correct answer is: post a $50,000 bond.

Question 23

An agent may collect how much interest from a client on a premium which is past due 30 days or more?

Select one:

a. None.
b. 10% per year.
c. 12% per year.
d. 18% per year.

Answer 23

The correct answer is: 18% per year.

Question 24

A retail store must have work comp if it has a minimum of how many workers?

Select one:

a. 1
b. 2
c. 3
d. 4

Answer 24

The correct answer is: 3

Question 25

A resident Georgia Producer will lose her resident Producer license if she:

Select one:

a. has an appointment from more than one Insurer
b. moves to a nearby state

Answer 25

The correct answer is: moves to a nearby state

Question 26

Which of the following Georgia Insurers cannot engage in limited “price fixing” by using the rates filed by a rating association?

Select one:

a. Auto Insurers
b. Casualty Insurers
c. Work Comp Insurers
d. Property Insurers

Answer 26

The correct answer is: Work Comp Insurers

Question 27

An Insurer does not need a reason for terminating a property or casualty policy that has been in effect less than?

Select one:

a. 60 days
b. 90 days
c. 120 days
d. 1 year

Answer 27

The correct answer is: 60 days

Question 28

The Commissioner may issue a fine for each unintentional violation of the law up to:

Select one:

a. $250.
b. $500.
c. $750.
d. $1,000.

Answer 28

The correct answer is: $1,000.

Question 29

Under Georgia law, uninsured motorist covers:

Select one:

a. Bodily Injury but not Property Damage
b. Bodily Injury and Property Damage
c. Neither Property Damage nor Bodily Injury
d. Property Damage but not Bodily Injury

Answer 29

The correct answer is: Bodily Injury and Property Damage

Question 30

The purpose of the Georgia FAIR Plan is to:

Select one:

a. provide a source of life insurance for all applicants.
b. guarantee that insurance advertising fairly represents the actual policies to be sold.
c. provide property insurance to persons unable to obtain insurance.
d. prevent insurance rate discrimination based on race or color.

Answer 30

The correct answer is: provide property insurance to persons unable to obtain insurance.

Question 31

Under Georgia insurance laws, the agent is presumed to represent the:

Select one:

a. Insured
b. Insurer

Answer 31

The correct answer is: Insurer

Question 32

A person who has held an insurance license in Georgia for 20 years or more must complete how many hours of continuing education per year?

Select one:

a. None.
b. 5 hours.
c. 10 hours.
d. 15 hours.

Answer 32

The correct answer is: 10 hours.

Question 33

A property agent may split a commission with:

Select one:

a. Another property agent.
b. A Life agent.

Answer 33

The correct answer is: Another property agent.

Question 34

A Georgia property Insurer is going to cancel an Insured policy. The notice of cancellation must provide how many days’ advance notice that the property may be eligible for coverage under the FAIR Plan?

Select one:

a. 5
b. 10
c. 20
d. 30

Answer 34

The correct answer is: 30

Question 35

An agent may split commissions with:

Select one:

a. any agent licensed with the same line of insurance.
b. any Insurance Agent in Georgia.

Answer 35

The correct answer is: any agent licensed with the same line of insurance.

Question 36

A temporary license can be issued to the following:

Select one:

a. Anyone in the state of Georgia.
b. Surviving spouse.

Answer 36

The correct answer is: Surviving spouse.

Question 37

An Insurer may pay commissions directly to the agency rather than to the agents only if:

Select one:

a. the Commissioner consents on a case-by-case basis.
b. the Insurer requests a rule waiver.
c. each person who sells insurance is a licensed agent.
d. the commissions don’t exceed the statutory amount.

Answer 37

The correct answer is: each person who sells insurance is a licensed agent.

Question 38

Under Georgia insurance law, all of the follow are true about subagents EXCEPT?

Select one:

a. They do not need to be licensed.
b. They cannot issue binders.
c. They are not required to pass the licensing exam.
d. They are legal representatives of the insurance company.

Answer 38

The correct answer is: They are legal representatives of the insurance company.

Question 39

Medical malpractice Insurers must notify which of following of claim payments within 30 days?

Select one:

a. The Insurance Commissioner
b. The Georgia Board of Hospital Examiners
c. The composite State Board of Medical Examiners
d. The Georgia Board of Physicians and Medical Professionals

Answer 39

The correct answer is: The composite State Board of Medical Examiners

Question 40

Under Georgia’s Guaranty Fund system, if a work comp Insurer is insolvent, claims will be covered up to a maximum of:

Select one:

a. $100,000
b. $250,000
c. $300,000
d. No Limit

Answer 40

The correct answer is: No Limit

Question 41

An auto policy may be cancelled due to each of the following involving an Insured within the prior 36 months EXCEPT:

Select one:

a. criminal negligence resulting in an accident that kills someone
b. drunk driving
c. ordinary negligence resulting in an accident that kills someone
d. drug addiction

Answer 41

See Page GA-4D, Paragraph 2. Ordinary negligence cannot be a reason for cancelling an auto policy, even if the negligence results in death. However, criminal negligence (extreme negligence) that results in death, homicide, or assault involving the use of a motor vehicle may be grounds for cancelling an auto policy.

The correct answer is: ordinary negligence resulting in an accident that kills someone

Question 42

A Temporary License:

Select one:

a. may be renewed a maximum of five times
b. may be renewed only once
c. may not be renewed
d. may be renewed a maximum of three times

Answer 42

The correct answer is: may be renewed a maximum of three times

Question 43

The Commissioner may issue a fine for each intentional violation of the law up to:

Select one:

a. $1,000.
b. $2,500.
c. $5,000.
d. $7,500.

Answer 43

The correct answer is: $5,000.

Question 44

To be eligible for a resident agent license, an applicant must be present in Georgia:

Select one:

a. more or less 9 months per year.
b. at least 3 months per year.
c. at least 6 months per year.
d. at least once every year.

Answer 44

The correct answer is: at least 6 months per year.

Question 45

A Producer may share a commission with:

Select one:

a. an adjuster
b. a resident Producer
c. a person who referred the applicant to the Producer
d. the Commissioner

Answer 45

The correct answer is: a resident Producer

Question 46

Workers Compensation will cover which of the following?

Select one:

a. an accidental injury that occurs at work
b. a worker who dies of a heart attack while on the job
c. an auto accident while driving to work in a company-owned vehicle
d. an auto accident while driving to work in a worker-owned vehicle

Answer 46

The correct answer is: an accidental injury that occurs at work

Question 47

A Georgia property Insurer must give at least 45 days notice of nonrenewal if the Insurer plans to impose a rate increase of at least?

Select one:

a. 10%
b. 15%
c. 25%
d. 30%

Answer 47

The correct answer is: 15%

Question 48

A Georgia Insurer may offer food and refreshments to prospective clients during sales presentations only if:

Select one:

a. each policy contains a 10-day right of rescission.
b. a representative of the Commissioner.
c. any premium checks are post-dated for at least 7 days.
d. no insurance policies are offered during the presentation.

Answer 48

The correct answer is: no insurance policies are offered during the presentation.

Question 49

After appointing an agent, the appointment must be registered in the Insurer’s register of appointed agent’s within:

Select one:

a. 10 days.
b. 20 days.
c. 30 days.
d. 90 days.

Answer 49

The correct answer is: 30 days.

Question 50

If an agent is subject to criminal arrest, the Commissioner must be notified within:

Select one:

a. 5 days.
b. 10 days.
c. 20 days.
d. 30 days.

Answer 50

The correct answer is: 30 days.

Question 51

Which public employees are concerned that motor vehicle accidents occurring while they are driving government vehicles may be used as a basis for auto insurers to increase the rates under the individuals:

Select one:

a. Emergency medical technicians
b. State employees driving highway maintenance vehicles
c. Firefighters
d. Law enforcement officers responding to emergency situations

Answer 51

The correct answer is: State employees driving highway maintenance vehicles

Question 52

A Georgia Insurer may charge rates either higher or lower than the rates filed with the Commissioner if it notifies the Commissioner in advance by filing a:

Select one:

a. Rate Deviation
b. Rate Exception
c. Rate Divergence
d. Rate Exclusion

Answer 52

The correct answer is: Rate Deviation

Question 53

Which of the following correctly states the amount of required auto property damage liability coverage under Georgia’s Financial Responsibility Requirements?

Select one:

a. $20,000
b. $25,000
c. $50,000
d. $10,000

Answer 53

The correct answer is: $25,000

Question 54

Which of the following may subpoena witnesses and documents at a hearing?

Select one:

a. Neither the Commissioner nor the affected party.
b. Both the Commissioner and the affected party.
c. The Commissioner only.
d. The affected party only.

Answer 54

The Commissioner is the only person who can subpoena witnesses for the Commissioner’s office as well as the affected party.

The correct answer is: Both the Commissioner and the affected party.

Question 55

A Georgia Insurer may ignore its filed rates and charge either higher or lower premium rates by simply filing a Rate Deviation with the Commissioner in advance. However, the Insurer may immediately bind coverage and then wait up to 20 days to file the Rate Deviation with the Commissioner if the premium exceeds:

Select one:

a. $1,000
b. $2,500
c. $5,000
d. $10,000

Answer 55

The correct answer is: $1,000

Question 56

A homeowner policy nonrenewal notice must state each of the following EXCEPT:

Select one:

a. the actual reasons for the cancellation.
b. at least 30 days advance notice.
c. the Insured may be eligible for coverage under the Georgia FAIR Plan.
d. the Insurer is required to recommend at least 2 other insurers willing to provide the coverage.

Answer 56

The correct answer is: the Insurer is required to recommend at least 2 other insurers willing to provide the coverage.

Question 57

The Commissioner must hold a hearing within how many days of written demand by an aggrieved person?

Select one:

a. 10 days
b. 30 days
c. 45 days
d. 90 days

Answer 57

The correct answer is: 30 days

Question 58

Work comp is NOT required for employers with fewer than how many employees?

Select one:

a. 2
b. 3
c. 5
d. 7

Answer 58

The correct answer is: 3

Question 59

Under Georgia insurance law, a notice of cancellation or nonrenewal must state that the client may appeal the cancellation or nonrenewal to the Insurance Commissioner within how many days?

Select one:

a. 10
b. 15
c. 20
d. 30

Answer 59

The correct answer is: 15

Question 60

Premium rates that are so low that they tend to destroy competition by creating a monopoly are referred to under Georgia insurance laws as:

Select one:

a. Inadequate
b. Discriminatory
c. Predatory
d. Excessive

Answer 60

The correct answer is: Inadequate

Question 61

If a Georgia Insurer fails to return a refund of unearned premium within 10 days, the Insurer will be assessed a penalty of:

Select one:

a. 25%
b. 50%
c. 75%
d. 100%

Answer 61

The correct answer is: 25%

Question 62

An auto policy may be cancelled due to each of the following acts by an Insured EXCEPT:

Select one:

a. theft of a motor vehicle 27 months ago
b. a single felony conviction within the last 36 months
c. leaving the scene of an accident without stopping to report within the prior 11 months
d. three traffic convictions 40 months ago

Answer 62

See Page GA-4D, Paragraph 2. Each of these actions must have occurred within the last 36 months. The 3 traffic convictions are out-of-date and cannot be used as reasons to cancel an auto policy.

The correct answer is: three traffic convictions 40 months ago

Question 63

An agent’s license lasts for:

Select one:

a. 1 year.
b. 2 years.
c. 5 years.
d. 10 years.

Answer 63

Updated information! An Agent’s license is now good for 2 years, not 1.

The correct answer is: 2 years.

Question 64

The Commissioner must conduct an examination of domestic Insurers how frequently?

Select one:

a. 2 years
b. 3 years
c. 5 years
d. 7 years

Answer 64

The correct answer is: 3 years

Question 65

The Georgia Work Comp Assigned Risk Plan will assign a Work Comp policy to a private insurer if the business has been rejected by at least how many private Work Comp insurers?

Select one:

a. 1
b. 2
c. 3
d. 4

Answer 65

The correct answer is: 4

Question 66

An Insurer must obtain the following from the Commissioner before transacting insurance business:

Select one:

a. Certificate of Authority.
b. Agent license.

Answer 66

The correct answer is: Certificate of Authority.

Question 67

An insurance agent’s license is required for each of the following EXCEPT:

Select one:

a. advise a prospective purchaser on the terms of existing coverage.
b. disseminate information regarding insurance rates.
c. underwriting.
d. sign an application or an order for insurance on behalf of an applicant.

Answer 67

The correct answer is: underwriting.

Question 68

The Commissioner has the authority to do the following EXCEPT:

Select one:

a. regulate insurance profits.
b. subpoena documents in any investigation related to the insurance industry.
c. interpret insurance laws.
d. examine insurers to determine solvency.

Answer 68

The correct answer is: regulate insurance profits.

Question 69

An auto policy must provide at least how much bodily injury liability coverage per person?

Select one:

a. $10,000
b. $25,000
c. $50,000
d. $75,000

Answer 69

The correct answer is: $25,000

Question 70

The Commissioner may give an agent notice of an order by delivering the notice to:

Select one:

a. the agent’s place of business on record in the Commissioner’s office.
b. the Insurer appointing the agent.

Answer 70

The correct answer is: the agent’s place of business on record in the Commissioner’s office.

Question 71

The Commissioner may suspend or revoke an Agent’s license for all of the following EXCEPT:

Select one:

a. using fraudulent information while conducting insurance business.
b. having been convicted of a felony.
c. accepting a $45 fee from a client.
d. failing to comply with a Commissioner order.

Answer 71

The correct answer is: accepting a $45 fee from a client.

Question 72

Paying a person an inducement to purchase insurance is called:

Select one:

a. coercion.
b. rebating.

Answer 72

The correct answer is: rebating.

Question 73

Under Georgia law, an Insurer must provide how many days’ notice prior to nonrenewal or cancellation of a property or casualty policy covering an industrial manufacturing plant?

Select one:

a. 30 days
b. 60 days
c. 90 days
d. at least 1 year

Answer 73

See Page GA-4A, Paragraph 2. Under Georgia law, 30 days’ notice is required to cancel or nonrenew any property or casualty policy – it doesn’t matter whether the policy covers a dwelling or an industrial property.

The correct answer is: 30 days

Question 74

Each of the following will satisfy the Commissioner’s requirement for a place of business EXCEPT:

Select one:

a. a home office
b. a post office box
c. an office in a shopping mall
d. an office in another business, such as a real estate office

Answer 74

The correct answer is: a post office box

Question 75

If an Insured wishes to appeal a nonrenewal or cancellation to the Insurance commissioner, the Insured must tender how many days pro rata premium to the Insurer to maintain interim coverage?

Select one:

a. 15 days
b. 30 days
c. 45 days
d. 60 days

Answer 75

The correct answer is: 30 days

Question 76

The Guaranty Fund provides coverage for unpaid health insurance claims up to:

Select one:

a. $45,000
b. $100,000
c. $250,000
d. $300,000

Answer 76

The correct answer is: $300,000

Question 77

An agent pays an unlicensed person for each referral leading to the sale of insurance. Such a relationship is:

Select one:

a. legal if reported in advance to the Insurer and the Commissioner.
b. illegal.
c. legal as long as the payment does not exceed the de minimus value of $45.
d. legal if reported in advance to the Insurer.

Answer 77

The correct answer is: illegal.

Question 78

The Commissioner may issue temporary licenses for:

Select one:

a. 6 months, nonrenewable.
b. 6 months renewable for up to a total of 12 months.
c. 6 months renewable for up to a total of 15 months.
d. 6 months renewable for up to a total of 18 months.

Answer 78

The correct answer is: 6 months renewable for up to a total of 15 months.

Question 79

Each of the following business entities may obtain an agent’s license EXCEPT:

Select one:

a. partnership.
b. an unlicensed corporate officer.
c. corporation.
d. limited liability partnership.

Answer 79

“Business entity” or “agency” means a corporation, association, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity licensed to sell insurance.

The correct answer is: an unlicensed corporate officer.

Question 80

An agent cannot hold a license for the purpose of buying insurance at a discount for the agent or associates. Such insurance is referred to as “controlled business” if it constitutes more than what percentage of the agent’s total volume of business per year?

Select one:

a. 5%
b. 10%
c. 15%
d. 25%

Answer 80

The correct answer is: 25%

Question 81

A client may pay a fee to an insurance agent in Georgia as long as the fee has a maximum de minimis value of:

Select one:

a. $10
b. $25
c. $45
d. $75

Answer 81

The correct answer is: $45

Question 82

A Texas insurance company selling policies in Georgia is referred to in Georgia as:

Select one:

a. captive
b. alien
c. domestic
d. foreign

Answer 82

See Page 1D, Paragraph 7.

The correct answer is: foreign

Question 83

A Georgia property insurance company is considering membership in the FAIR Plan. Which is true?

Select one:

a. Membership is required.
b. Membership is optional.
c. Membership is available only for domestic insurers.
d. Membership is available only to insurers that have been in business for 5 or more years.

Answer 83

The correct answer is: Membership is required.

Question 84

Terry is a Georgia insurance agent. She has received an application for coverage on a single-family home. Her client has submitted an application with a premium. Which of the following is correct?

Select one:

a. The property is automatically covered while the application is being processed.
b. Terry may issue a binder to provide temporary coverage for up to 90 days.

Answer 84

The correct answer is: Terry may issue a binder to provide temporary coverage for up to 90 days.

Question 85

The Commissioner must inspect the records of a domestic property or life insurance company every:

Select one:

a. year
b. 3 years
c. 4 years
d. 5 years

Answer 85

See Page 1C, Paragraph 3.

The correct answer is: 3 years

Question 86

After an auto policy has been in effect for 60 days, it may be cancelled for each of the following reasons EXCEPT?

Select one:

a. claims filed
b. epilepsy or heart condition
c. misrepresentation on the application
d. suspension of the insured’s driver’s license

Answer 86

The correct answer is: claims filed

Question 87

GAIP:

Select one:

a. apportions applicants among existing Insurers.
b. provides insurance directly.

Answer 87

The correct answer is: apportions applicants among existing Insurers.

Question 88

The Guaranty Fund provides coverage for the cash value under a life insurance policy up to:

Select one:

a. $100,000
b. $200,000
c. $300,000
d. $400,000

Answer 88

The correct answer is: $100,000

Question 89

An auto policy may be nonrenewed or cancelled for:

Select one:

a. getting married
b. moving to a new residence within the state
c. age
d. three traffic convictions within the last 36 months

Answer 89

See Page GA-4C, Paragraph 2. Age, location, and marital status cannot be reasons to nonrenew an auto policy. However, on Page 4D, Paragraph 2, three traffic convictions within the last 36 months is sufficient reason to cancel an auto policy.

The correct answer is: three traffic convictions within the last 36 months

Question 90

Every agent must complete Continuing Education Courses every:

Select one:

a. 1 year.
b. 2 years.
c. 3 years.
d. 4 years.

Answer 90

Updated information! An Agent’s license lasts for 2 years now, so agents must complete continuing education every 2 years by the last day of their birth month.

The correct answer is: 2 years.

Question 91

FAIR Plan policies:

Select one:

a. cover commercial property only.
b. are issued by the Plan rather than by private insurers.
c. may be denied in particular neighborhoods.
d. cover habitational property only.

Answer 91

The correct answer is: are issued by the Plan rather than by private insurers.

Question 92

The Guaranty Association:

Select one:

a. protects Insured’s if an insurance company is insolvent.
b. protects Agent’s if an Insured is unable to pay premiums.

Answer 92

The correct answer is: protects Insured’s if an insurance company is insolvent.

Question 93

Before becoming a licensed counselor, an applicant must have had how many years of insurance experience?

Select one:

a. 1
b. 3
c. 4
d. 5

Answer 93

The correct answer is: 5

Question 94

Defamation involves making false statements about:

Select one:

a. an Insurer
b. the Commissioner

Answer 94

The correct answer is: an Insurer

Question 95

Each of the following is a method of satisfying the Georgia Motor Vehicle Reparations Act EXCEPT:

Select one:

a. auto liability insurance
b. a letter from a certified public accountant attesting to the individual
c. a surety bond
d. a certificate of self-insurance

Answer 95

The correct answer is: a letter from a certified public accountant attesting to the individual

Question 96

The Georgia FAIR Plan has authority to:

Select one:

a. issue assessments against property insurance companies for Plan expenses.
b. suspend a agent’s license.

Answer 96

The correct answer is: issue assessments against property insurance companies for Plan expenses.

Question 97

The Commissioner may:

Select one:

a. imprison a Producer in a local jail
b. revoke a Producer’s appointment
c. fine a Producer $10,000 for violating a Cease and Desist order
d. modify a state statute

Answer 97

See Page 1D, Paragraph 1.

The correct answer is: fine a Producer $10,000 for violating a Cease and Desist order

Question 98

An agent’s appointment letter may be revoked by the:

Select one:

a. Commissioner.
b. Insurer.

Answer 98

The correct answer is: Insurer.

Question 99

Under Georgia insurance laws, a person who sells insurance for a licensed agent is known as a/an?

Select one:

a. producer
b. limited agent
c. subagent
d. customer service representative (CSR)

Answer 99

The correct answer is: subagent

Question 100

Acme Insurance has received one or more claims for a particular residential client. The claims have involved Acts of God (such as wind damage or fire damage) which didn’t involve negligence or intentional acts by the client. Acme may nonrenew the policy if it has received how many of these claims?

Select one:

a. 2 in the last 3 years
b. 3 in the last 3 years
c. 2 in the last 2 years
d. 2 in the last year

Answer 100

Georgia law requires at least 3 “no fault” claims over the last 3 years to nonrenew a residential policy.

The correct answer is: 3 in the last 3 years

Question 101

The maximum length of time a written or oral binder will be effective under Georgia law is:

Select one:

a. negotiable.
b. 30 days.
c. 60 days.
d. 90 days.

Answer 101

The correct answer is: 90 days.

Question 102

An Insurer receives a 5% rebate from a local auto glass/repair shop in return for referrals. Such a payment is specifically:

Select one:

a. Prohibited.
b. Permitted under Georgia insurance laws.

Answer 102

The correct answer is: Prohibited.

Question 103

The Georgia Insurance Commissioner can do each of the following EXCEPT:

Select one:

a. create regulations
b. organize the Department of Insurance
c. examine the records of an Insurer
d. modify state statutes

Answer 103

See Page GA-1B. The Georgia legislature creates statutes – statutes may only be changed by the legislature. The Commissioner may create regulations to implement the legislature’s statutes, but the Commissioner cannot change the legislature’s statutes.

The correct answer is: modify state statutes

Question 104

Each of the following may receive an agency licence EXCEPT:

Select one:

a. a corporation
b. an unlicensed corporate officer
c. a partnership
d. a limited liability company

Answer 104

The correct answer is: an unlicensed corporate officer

Question 105

Defamation involves making false statements about the financial condition of:

Select one:

a. Any client.
b. Any Insurer.
c. The Commissioner and the Department of Insurance.
d. Any Insured.

Answer 105

The correct answer is: Any Insurer.

Question 106

Work Comp insurance is considered to be:

Select one:

a. Life Insurance
b. Property Insurance
c. Health Insurance
d. Casualty Insurance

Answer 106

The correct answer is: Casualty Insurance

Question 107

In the area of auto insurance, the residual market is intended to provide insurance for the:

Select one:

a. worst drivers
b. best drivers

Answer 107

The correct answer is: worst drivers

Question 108

A Georgia Certificate of auto Self-insurance may be obtained from the:

Select one:

a. Director of Revenue
b. Commissioner of Insurance
c. Department of Motor Vehicles
d. Governor

Answer 108

The correct answer is: Commissioner of Insurance

Question 109

Licensees must keep copies of all records for:

Select one:

a. 2 years.
b. 3 years.
c. 4 years.
d. 5 years.

Answer 109

The correct answer is: 5 years.

Question 110

An agent must inform the Commissioner of a change of business address within:

Select one:

a. 10 days.
b. 20 days.
c. 30 days.
d. 60 days.

Answer 110

The correct answer is: 30 days

Question 111

An agent must pay a renewal fee every:

Select one:

a. 1 year.
b. 2 years.
c. 3 years.
d. 4 years.

Answer 111

Updated Information! Now that Agent licenses are good for 2 years, renewal fees will also be paid every 2 years.

The correct answer is: 2 years.

Question 112

Every auto liability policy owner in Georgia must also be offered at least how much Uninsured Motorist Coverage?

Select one:

a. None
b. $25,000/$50,000
c. $25,000/$50,000/$25,000
d. $75,000

Answer 112

The correct answer is: $25,000/$50,000/$25,000

Question 113

Uninsured motorist:

Select one:

a. is offered at the option of the Insurer
b. may be offered with limits that are less than the Insured’s liability coverage
c. may be waived by the Insured
d. covers Bodily Injury but not Property Damage

Answer 113

See Page GA-4H. Uninsured motorist must be offered by the Insurer, but it may be waived or rejected by the Insured.

The correct answer is: may be waived by the Insured

Question 114

An agent may receive a commission from:

Select one:

a. an unlicensed person.
b. another licensed agent having the same type of license.

Answer 114

The correct answer is: another licensed agent having the same type of license.

Question 115

Workers compensation insurance premium rates are:

Select one:

a. set by the individual insurance Work Comp insurance companies.
b. set by the Georgia State Fund which is the only source of Work Comp insurance in Georgia because Georgia is one of the few monopolistic states.
c. set by a rating service which files a standard set of rates to be used by all Work Comp Insurers in Georgia.
d. set by the Commissioner to provide uniform and fair rates that are the same for each Insurer.

Answer 115

The correct answer is: set by the individual insurance Work Comp insurance companies.

Question 116

To show eligibility under the Defensive Driver Law, one must have had during the prior 3 years:

Select one:

a. no at fault accidents and no traffic violations
b. no still or moving violations
c. no auto accidents

Answer 116

The correct answer is: no at fault accidents and no traffic violations

Question 117

Georgia insurance rates are regulated by?

Select one:

a. Division of Consumer Protection
b. FAIR Plan
c. NAIC
d. Insurance Commissioner

Answer 117

The correct answer is: Insurance Commissioner