Georgia P&C

Question 1

Passing out a brochure that misstates a competitor's financial ability to pay claims is an unfair trade practice known as:
A. Coercion
B. Defamation
C. Rebating
D. Misrepresentation

Answer 1

Answer: B. Defamation

Question 2

The purpose of Georgia Insurer’s Insolvency Pool is to:
A. Pay premiums on behalf of insured’s who become insolvent
B. Provide access to basic fire insurance for Georgia residents
C. Protect the customers of bankrupt P&C insurance companies
D. Protect insurers who lose money due to unexpected claims

Answer 2

Answer: C.

The Georgia Insurer’s Insolvency Pool is designed to protect customers of insolvent P&C insurance companies

Question 3

All rules and regulations made by the commissioner must be approved by the:
A. All licensed agents
B. Attorney General
C. Governor
D. Secretary of State

Answer 3

Answer: B.

All rules and regulations written by the Insurance Commissioner must be approved by the Attorney General

Question 4

A Florida insurer who is authorized to do business in this state is known as a(n) \_\_\_\_ insurer:
A. Domestic
B. Non-resident
C. Foreign
D. Alien

Answer 4

Answer: B. Foreign

Question 5

The state insurance code regulates all of the following EXCEPT:
A. The number of people that may serve on an insurer’s board of directors
B. Licensing of new producers (agents)
C. Producer continuing education
D. Insurance companies

Answer 5

Answer: A.
The state insurance code regulates insurers and producers
It does not tell an insurer who or how many people should serve on the board of directors

Question 6

All of the following are true regarding rates EXCEPT:
A. Rates shall not be excessive, inadequate or unfairly discriminatory
B. The use of a person’s physical disability is never allowed in determining rates
C. The use of a person’s ethnicity is never allowed in determining rates
D. Risks may be grouped by classifications for the establishment of rates

Answer 6

Answer: B.

• Rates shall not be excessive, inadequate or unfairly discriminatory
• Rates that are so low they create a monopoly or destroy competition are prohibited
• Risks may be grouped by classifications for the establishment of rates
• No insurer shall base any standard or rating plan on vehicle insurance upon race, creed or ethnic extraction
• No insurer shall base any standard or rating plan on vehicle insurance upon any physical disability unless the disability impairs the ability of the insured to drive a motor vehicle

Question 7

Which of the following is true regarding a premium refund when an insured requests cancellation of their policy prior to their normal expiration date?
A. No refund is due since it was the insured who requested the cancellation
B. The earned premium must be refunded
C. The refund is calculated on a short-rate basis
D. The refund is calculated on a pro-rats basis

Answer 7

Answer: C.
Insured cancels: short-rate refund
Insurer cancels: pro-rate refund

Question 8

The FAIR Plan:
A. Protects customers of insolvent property insurers
B. Provides access to basic fire insurance for Georgia residents
C. Provides access to Worker’s Compensation insurance for Georgia employers
D. Provides access to minimum auto liability insurance for Georgia residents

Answer 8

Answer: B.

The FAIR Plan is designed to provide access to fire insurance for Georgia residents

Question 9

The Commissioner of Insurance is:
A. Appointed by the Secretary of State
B. Elected by the people of Georgia
C. Appointed by the Governor
D. Appointed by the Attorney General

Answer 9

Answer: B. Elected