State Laws, Rules, and Regulations

Question 1

an offer than attempts to influence the other party

Answer 1

inducement

Question 2

unable to meet financial obligations

Answer 2

insolvent

Question 3

operate an insurance mechanism, in which members are liable only for their portion of the risk

Answer 3

Lloyd Association

Question 4

to make public or put into action

Answer 4

promulgate

Question 5

a formal written law enacted by legislature

Answer 5

statute

Question 6

insurance not available from authorized insurers

Answer 6

surplus lines

Question 7

an insurance company that is incorporated in this state

Answer 7

domestic insurer

Question 8

an insurance company that is incorporated in another state or territorial possession

Answer 8

foreign insurer

Question 9

insurance company that is incorporated outside of the United States

Answer 9

alien insurer

Question 10

the authority a principal intends to grant to an agent by means of the agents contract

Answer 10

express authority

Question 11

authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business

Answer 11

implied authority

Question 12

the appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances that principal created

Answer 12

apparent authority

Question 13

how often to license expire?

Answer 13

2 years

Question 14

an individual who is domiciled and licensed as a resident producer in another state

Answer 14

nonresident producer

Question 15

resides in a state that awards nonresident agent licenses to residents of Georgia on the same basis

Answer 15

reciprocity agreement

Question 16

refers to anyone who engages in the business of advising customers as to the benefits under any contract of insurance issued

Answer 16

counselor license

Question 17

someone in the position of trust

Answer 17

fiduciary

Question 18

defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy

Answer 18

rebating

Question 19

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

Answer 19

twisting

Question 20

defined as replacing insurance policies for the sole purpose of making commisions

Answer 20

churning

Question 21

occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business

Answer 21

defamation

Question 22

any coverage written on a producers own life, health, or immediate family or business associates

Answer 22

controlled business

Question 23

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

Answer 23

georgia life and health insurance guaranty association

Question 24

any attempt to dissuade a current policy owner from the replacement of existing life insurance or annuity

Answer 24

conservation

Question 25

how long must an agent keep copies of the replacement policy signed notice?

Answer 25

3 years

Question 26

the insurance comapny whose policy is being replaced

Answer 26

existing insurer

Question 27

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

Answer 27

existing life insurance or annuity

Question 28

when a replacement is involved, what must the applicant sign?

Answer 28

replacement notice

Question 29

whenn must claim forms be furnished?

Answer 29

10 working days

Question 30

time of payment of claims

Answer 30

withing 30 days

Question 31

legal action time

Answer 31

no sooner than 60 days and no later than 3 years after the proof of loss

Question 32

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

Answer 32

qualified state long term care insurance partnership policy

Question 33

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

Answer 33

Asset disregard

Question 34

who is responsible for the contents of life insurance advertising

Answer 34

the insurer

Question 35

what is a foreign insurer?

Answer 35

an insurer with a home office in another state

Question 36

whenever agents submit applications to insurers, they must also submit statements disclosing whether or not replacement is involved. Who must sign these statements?

Answer 36

applicant and agent

Question 37

a willfull violation of an agents fiduciary responsibility that involved funds exceeding $500 will be considered

Answer 37

a felony

Question 38

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?

Answer 38

31 days

Question 39

If an agent changes his residence address, within how many days must the agent notify the commissioner of the change?

Answer 39

30 days

Question 40

Medicare supplements specifically exclude all of the following except

Answer 40

Surgical expenses of persons eligible for medicare

Question 41

a claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. The action must be brought

Answer 41

within 3 years

Question 42

the authority granted to an agent through the agents contract is referred to

Answer 42

express authority

Question 43

coverage for adopted children must be effective at what point?

Answer 43

at the date of the final decree of adoption

Question 44

what is NOT true about rebating?

Answer 44

rebating is allowed if its in the best interest of the client

Question 45

what is also known as perceived authority?

Answer 45

apparent authority