State Laws, Rules, and Regulations Flashcards
an offer than attempts to influence the other party
inducement
unable to meet financial obligations
insolvent
operate an insurance mechanism, in which members are liable only for their portion of the risk
Lloyd Association
to make public or put into action
promulgate
a formal written law enacted by legislature
statute
insurance not available from authorized insurers
surplus lines
an insurance company that is incorporated in this state
domestic insurer
an insurance company that is incorporated in another state or territorial possession
foreign insurer
insurance company that is incorporated outside of the United States
alien insurer
the authority a principal intends to grant to an agent by means of the agents contract
express authority
authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business
implied authority
the appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances that principal created
apparent authority
how often to license expire?
2 years
an individual who is domiciled and licensed as a resident producer in another state
nonresident producer
resides in a state that awards nonresident agent licenses to residents of Georgia on the same basis
reciprocity agreement
refers to anyone who engages in the business of advising customers as to the benefits under any contract of insurance issued
counselor license
someone in the position of trust
fiduciary
defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy
rebating
a misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, lapse, switch policies, or take out a policy with another insurer
twisting
defined as replacing insurance policies for the sole purpose of making commisions
churning
occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business
defamation
any coverage written on a producers own life, health, or immediate family or business associates
controlled business
a nonprofit, unincorporated association that protects policy owners, insureds, and beneficiaries of life, health, annuities, and supplemental contracts issued by member insurers who become insolvent or are unable to perform their contractual obligations
georgia life and health insurance guaranty association
any attempt to dissuade a current policy owner from the replacement of existing life insurance or annuity
conservation
how long must an agent keep copies of the replacement policy signed notice?
3 years
the insurance comapny whose policy is being replaced
existing insurer
any life insurance or annuity in force, including life insurance under a binding or conditional receipt or a life insurance policy or annuity that is within an unconditional refund period
existing life insurance or annuity
when a replacement is involved, what must the applicant sign?
replacement notice
whenn must claim forms be furnished?
10 working days
time of payment of claims
withing 30 days
legal action time
no sooner than 60 days and no later than 3 years after the proof of loss
long term care insurance policy that meets model regulations and requirements of the National Association of Insurance Commissioners and covers an insured who was a resident of the state when coverage first became effective under the policy
qualified state long term care insurance partnership policy
means that an amount of the policy holders assets equal to the amount of long term care insurance benefits received under a qualified Partnership Policy will be disregarded for the purpose of determining the insured eligibility for medicaid
Asset disregard
who is responsible for the contents of life insurance advertising
the insurer
what is a foreign insurer?
an insurer with a home office in another state
whenever agents submit applications to insurers, they must also submit statements disclosing whether or not replacement is involved. Who must sign these statements?
applicant and agent
a willfull violation of an agents fiduciary responsibility that involved funds exceeding $500 will be considered
a felony
a child is born to a mother whose insurance covers health-related losses of family members. How long will the newborn be automatically covered under the mothers plan?
31 days
If an agent changes his residence address, within how many days must the agent notify the commissioner of the change?
30 days
Medicare supplements specifically exclude all of the following except
Surgical expenses of persons eligible for medicare
a claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. The action must be brought
within 3 years
the authority granted to an agent through the agents contract is referred to
express authority
coverage for adopted children must be effective at what point?
at the date of the final decree of adoption
what is NOT true about rebating?
rebating is allowed if its in the best interest of the client
what is also known as perceived authority?
apparent authority
