GEORGIA INSURANCE LAWS LICENSING
AND ETHICS PRACTICE TEST ITEMS
ANSWERS INSURANCE STANDARDS
ANALYSIS 2026
◉ _____ is the act of making a misrepresentation to any policyholder
or insured for the purpose of inducing a policyholder to lapse,
forfeit, or surrender insurance to purchase a policy with another
insurer
Answer: Twisiting
◉ __________ is the act of illegally misrepresenting an existing policy
to induce a policyholder to unnecessarily replace that policy with a
new policy from the same insurer for the purpose of earning
additional or higher commissions.
Answer: Churning
◉ A licensee may not effect controlled business that amounts to
______ or more of the total volume of premium written in any 1 year.
Answer: 25%
◉ ________ includes knowingly permitting an agreement other than as
expressed in the contract and offering anything of value as an
, inducement to insurance if not specified in the contract, except a
rebate approved by the Commissioner.
Answer: rebating
◉ Conducting promotion programs which offer prizes, goods, wares,
store gift cards, gift certificates, sporting event tickets, or
merchandise to current or prospective customers as long as the
value does not exceed $____ per customer per year and giving away
such items is not contingent upon the sale or renewal of a policy
Answer: $100
◉ The Commissioner has the power to examine and investigate
every person engaged in the insurance business to determine if
unfair methods of competition or unfair, deceptive, or prohibited
acts have occurred. If after the investigation, it is determined to be in
the best interest of the public, the Commissioner will issue and serve
a statement of charges and a notice of a hearing to be held at a fixed
time and place not less than ___ days after service of the notice.
Answer: 15 days
◉ In addition to issuing a cease and desist order, the Commissioner
may order any one or more of the following:
AND ETHICS PRACTICE TEST ITEMS
ANSWERS INSURANCE STANDARDS
ANALYSIS 2026
◉ _____ is the act of making a misrepresentation to any policyholder
or insured for the purpose of inducing a policyholder to lapse,
forfeit, or surrender insurance to purchase a policy with another
insurer
Answer: Twisiting
◉ __________ is the act of illegally misrepresenting an existing policy
to induce a policyholder to unnecessarily replace that policy with a
new policy from the same insurer for the purpose of earning
additional or higher commissions.
Answer: Churning
◉ A licensee may not effect controlled business that amounts to
______ or more of the total volume of premium written in any 1 year.
Answer: 25%
◉ ________ includes knowingly permitting an agreement other than as
expressed in the contract and offering anything of value as an
, inducement to insurance if not specified in the contract, except a
rebate approved by the Commissioner.
Answer: rebating
◉ Conducting promotion programs which offer prizes, goods, wares,
store gift cards, gift certificates, sporting event tickets, or
merchandise to current or prospective customers as long as the
value does not exceed $____ per customer per year and giving away
such items is not contingent upon the sale or renewal of a policy
Answer: $100
◉ The Commissioner has the power to examine and investigate
every person engaged in the insurance business to determine if
unfair methods of competition or unfair, deceptive, or prohibited
acts have occurred. If after the investigation, it is determined to be in
the best interest of the public, the Commissioner will issue and serve
a statement of charges and a notice of a hearing to be held at a fixed
time and place not less than ___ days after service of the notice.
Answer: 15 days
◉ In addition to issuing a cease and desist order, the Commissioner
may order any one or more of the following:
