Georgia insurance laws
A temporary agent may: Correct Answer: Continue existing business but not sell new policies.
Premium rates that are so low that they tend to destroy competition by creating a monopoly are
referred to under Georgia insurance laws as: Correct Answer: Inadequate
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? Correct Answer: 15%
Which of the following are required to be covered by work comp? Correct Answer: restaurant
employees
Under Georgia insurance laws, a person who sells insurance for a licensed agent is known as
a/an? Correct Answer: subagent
In the area of auto insurance, the residual market is intended to provide insurance for the: Correct
Answer: worst drivers
Each of the following will satisfy the Commissioner's requirement for a place of business:
Correct Answer: - an office in a shopping mall
- an office in another business, such as a real estate office
-a home office
An agent's appointment letter may be revoked by the: Correct Answer: insurer
Licensees must keep copies of all records for: Correct Answer: 5 years
The Commissioner may suspend or revoke an Agent's license for all of the following: Correct
Answer: - having been convicted of a felony
- failing to comply with a commissioner order
- using fraudulent information while conducting insurance business
An auto policy may be cancelled due to each of the following involving an Insured within the
prior 36 months: Correct Answer: - criminal negligence resulting in an accident that kills
someone
- drug addiction
-drunk driving
, Paying a person an inducement to purchase insurance is called: Correct Answer: rebating
Each of the following is a method of satisfying the Georgia Motor Vehicle Reparations Act
Correct Answer: - auto liability insurance
- a certificate of self-insurance
- surety bond
To show eligibility under the Defensive Driver Law, one must have had during the prior 3 years:
Correct Answer: no at fault accidents and traffic violations
The Guaranty Fund provides coverage for unpaid health insurance claims up to: Correct Answer:
$300,000
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? Correct Answer: Terry may issue a binder to provide temporary coverage for up to 90
days.
Uninsured motorist Correct Answer: may be waived by the insured
An insurer does not need a reason for terminating a property or casualty policy that has been less
than? Correct Answer: 60 days
A homeowner policy non renewal notice must state each of the following Correct Answer: - at
least 30 days advance notice
- the insured may be eligible for coverage under the Georgia FAIR Plan
- the actual reasons for the cancelation.
A person with both Property/Casualty and a Life/Health licenses must complete how many hours
of continuing education? Correct Answer: 15 hours per year
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: Correct Answer: 30 days
A Georgia Insurer may offer food and refreshments to prospective clients during sales
presentations only if: Correct Answer: no insurance policies are offered during the presentation.
An auto policy may be nonrenewed or cancelled for: Correct Answer: three traffic convictions
within the last 36 months
A temporary agent may: Correct Answer: Continue existing business but not sell new policies.
Premium rates that are so low that they tend to destroy competition by creating a monopoly are
referred to under Georgia insurance laws as: Correct Answer: Inadequate
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? Correct Answer: 15%
Which of the following are required to be covered by work comp? Correct Answer: restaurant
employees
Under Georgia insurance laws, a person who sells insurance for a licensed agent is known as
a/an? Correct Answer: subagent
In the area of auto insurance, the residual market is intended to provide insurance for the: Correct
Answer: worst drivers
Each of the following will satisfy the Commissioner's requirement for a place of business:
Correct Answer: - an office in a shopping mall
- an office in another business, such as a real estate office
-a home office
An agent's appointment letter may be revoked by the: Correct Answer: insurer
Licensees must keep copies of all records for: Correct Answer: 5 years
The Commissioner may suspend or revoke an Agent's license for all of the following: Correct
Answer: - having been convicted of a felony
- failing to comply with a commissioner order
- using fraudulent information while conducting insurance business
An auto policy may be cancelled due to each of the following involving an Insured within the
prior 36 months: Correct Answer: - criminal negligence resulting in an accident that kills
someone
- drug addiction
-drunk driving
, Paying a person an inducement to purchase insurance is called: Correct Answer: rebating
Each of the following is a method of satisfying the Georgia Motor Vehicle Reparations Act
Correct Answer: - auto liability insurance
- a certificate of self-insurance
- surety bond
To show eligibility under the Defensive Driver Law, one must have had during the prior 3 years:
Correct Answer: no at fault accidents and traffic violations
The Guaranty Fund provides coverage for unpaid health insurance claims up to: Correct Answer:
$300,000
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? Correct Answer: Terry may issue a binder to provide temporary coverage for up to 90
days.
Uninsured motorist Correct Answer: may be waived by the insured
An insurer does not need a reason for terminating a property or casualty policy that has been less
than? Correct Answer: 60 days
A homeowner policy non renewal notice must state each of the following Correct Answer: - at
least 30 days advance notice
- the insured may be eligible for coverage under the Georgia FAIR Plan
- the actual reasons for the cancelation.
A person with both Property/Casualty and a Life/Health licenses must complete how many hours
of continuing education? Correct Answer: 15 hours per year
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: Correct Answer: 30 days
A Georgia Insurer may offer food and refreshments to prospective clients during sales
presentations only if: Correct Answer: no insurance policies are offered during the presentation.
An auto policy may be nonrenewed or cancelled for: Correct Answer: three traffic convictions
within the last 36 months
