Georgia State Insurance Laws (2025)
Actual Exam Questions and Answers A+
Graded
What .are .some .reasons .a .license .may .be .revoked .or .suspended .in .personal
.lines .insurance? .- .CORRECT .ANSWER .-Reasons .include .failing .an .insurance
.exam, .not .complying .with .regulations, .lack .of .trustworthiness, .overinsurance,
.failing .to .pay .money .owed, .felony .convictions, .and .not .reporting .criminal
.prosecutions.
What .is .the .consequence .of .failing .to .report .disciplinary .actions .against .a
.license? .- .CORRECT .ANSWER .-Failure .to .report .disciplinary .actions .within .60
.days .can .lead .to .license .suspension .or .revocation.
What .is .the .procedure .for .a .license .suspension .or .revocation? .- .CORRECT
.ANSWER .-The .Commissioner .must .notify .the .license .applicant .or .holder .and
.insurer, .and .hearings .must .be .conducted, .except .for .cases .involving .child
.support .or .debt .defaults.
How .long .must .a .licensee .wait .to .reapply .for .a .license .after .revocation? .-
.CORRECT .ANSWER .-A .licensee .must .wait .5 .years .from .the .date .of .the .final
.order .to .reapply.
What .is .a .probationary .license .and .how .long .can .it .last? .- .CORRECT .ANSWER
.-A .probationary .license .can .be .issued .for .3 .to .24 .months .and .can .be .revoked
.without .a .hearing.
What .must .an .insurance .agent .record .for .each .transaction? .- .CORRECT
.ANSWER .-Agents .must .keep .records .of .insurance .contracts, .including .insurer
.and .insured .names, .premium .amounts, .and .the .subject .of .insurance.
How .long .must .records .of .insurance .transactions .be .retained? .- .CORRECT
.ANSWER .-Records .must .be .kept .for .at .least .5 .years .after .the .transaction .or
.contract .term .ends.
What .happens .if .an .insurance .contract .is .issued .by .an .unauthorized .person? .-
.CORRECT .ANSWER .-The .contract .remains .enforceable, .but .those .who
.knowingly .participated .in .the .violation .are .guilty .of .a .misdemeanor.
What .constitutes .an .unfair .trade .practice .in .insurance? .- .CORRECT .ANSWER .-
Engaging .in .practices .that .violate .the .insurance .code .can .lead .to .misdemeanor
.charges.
,What .is .defamation .in .the .context .of .insurance? .- .CORRECT .ANSWER .-
Defamation .involves .making .false .or .malicious .statements .about .an .insurer's
.financial .condition .with .the .intent .to .harm.
What .can .happen .if .a .licensee .fails .to .comply .with .an .order .from .the
.Commissioner? .- .CORRECT .ANSWER .-Failure .to .comply .can .result .in
.suspension .or .revocation .of .the .license.
What .is .required .of .a .licensee .who .has .been .convicted .of .a .felony? .- .CORRECT
.ANSWER .-They .must .report .any .criminal .prosecution .to .the .Commissioner
.within .30 .days .of .arrest.
What .effect .does .surrendering .a .license .under .a .written .consent .order .have? .-
.CORRECT .ANSWER .-It .has .the .same .effect .as .a .revocation.
What .can .the .Commissioner .do .if .a .licensee .has .a .history .of .felony
.convictions? .- .CORRECT .ANSWER .-The .Commissioner .may .issue .a
.probationary .license .if .the .applicant .shows .cause .for .trustworthiness.
What .must .be .included .in .the .records .of .insurance .transactions? .- .CORRECT
.ANSWER .-Records .must .include .details .of .the .insurance .contract, .names .of
.involved .licensees, .and .any .compensation .received.
What .is .the .role .of .the .Commissioner .in .issuing .probationary .licenses? .-
.CORRECT .ANSWER .-The .Commissioner .prescribes .the .terms .of .probation .and
.can .extend .the .probationary .period .or .refuse .to .grant .a .license.
What .is .the .significance .of .the .example .involving .J's .application .for .a .license?
.- .CORRECT .ANSWER .-It .illustrates .how .a .probationary .license .can .be .granted
.despite .past .felony .convictions .if .trustworthiness .is .demonstrated.
What .is .the .consequence .of .failing .to .pay .court-ordered .child .support? .-
.CORRECT .ANSWER .-It .can .lead .to .automatic .suspension .or .revocation .of .the
.license.
What .is .the .definition .of .moral .turpitude .in .relation .to .insurance .licensing? .-
.CORRECT .ANSWER .-Moral .turpitude .refers .to .conduct .that .is .knowingly
.contrary .to .justice, .honesty, .or .good .morals.
What .happens .if .a .licensee .fails .to .transact .insurance .business .in .good .faith? .-
.CORRECT .ANSWER .-It .can .result .in .suspension .or .revocation .of .their .license.
What .must .an .applicant .show .to .avoid .a .license .refusal .after .revocation? .-
.CORRECT .ANSWER .-The .applicant .must .show .cause .why .the .revocation
.should .not .bar .the .issuance .of .a .new .license.
What .is .the .minimum .record .retention .period .for .insurance .transactions? .-
.CORRECT .ANSWER .-Records .must .be .retained .for .at .least .5 .years.
, What .is .the .penalty .for .committing .an .unfair .trade .practice? .- .CORRECT
.ANSWER .-Violators .can .be .charged .with .a .misdemeanor.
What .constitutes .misrepresentation .by .an .insurer? .- .CORRECT .ANSWER .-An
.insurer .may .not .make .false .estimates .or .illustrations, .misleading .statements,
.or .misrepresent .a .policy's .terms, .benefits, .advantages, .or .dividends.
Is .a .dividend .estimate .based .on .past .experience .considered .misrepresentation?
.- .CORRECT .ANSWER .-No, .if .it .is .clearly .shown .to .be .based .on .past
.experience, .it .is .not .considered .misrepresentation.
What .is .considered .an .unfair .act .in .the .insurance .application .process? .-
.CORRECT .ANSWER .-Failing .to .require .agents .to .include .all .material .facts
.relevant .to .the .risk .known .or .should .be .known .by .the .agent.
What .is .twisting .in .insurance? .- .CORRECT .ANSWER .-Twisting .is .the .act .of
.misrepresenting .to .induce .a .policyholder .to .lapse, .forfeit, .or .surrender
.insurance .to .purchase .a .policy .from .another .insurer.
What .is .churning .in .insurance? .- .CORRECT .ANSWER .-Churning .is .illegally
.misrepresenting .an .existing .policy .to .induce .a .policyholder .to .replace .it .with .a
.new .policy .from .the .same .insurer .for .higher .commissions.
What .is .prohibited .under .false .information .and .advertising .in .insurance? .-
.CORRECT .ANSWER .-Making .untrue, .deceptive, .or .misleading .statements .about
.the .insurance .business .or .any .person .in .advertisements .or .public .statements.
What .are .some .acts .prohibited .under .unfair .trade .practices .related .to
.disclosures .and .advertising? .- .CORRECT .ANSWER .-Representing .that .a .policy
.is .endorsed .by .the .government .or .misrepresenting .associations .with .groups
.unless .true.
What .is .considered .boycott, .coercion, .or .intimidation .in .insurance? .- .CORRECT
.ANSWER .-Entering .into .agreements .that .result .in .unreasonable .restraint .or
.monopoly .in .insurance .business, .such .as .requiring .clients .to .obtain .insurance
.from .a .specific .insurer .for .loans.
What .are .false .financial .statements .in .the .context .of .insurance? .- .CORRECT
.ANSWER .-Filing .or .publishing .false .statements .about .an .insurer's .financial
.condition .with .intent .to .deceive .is .an .unfair .trade .practice.
What .is .controlled .business .in .insurance? .- .CORRECT .ANSWER .-Using .a
.license .chiefly .to .procure .insurance .on .oneself, .family, .or .business .associates
.is .considered .an .unfair .trade .practice.
What .is .the .threshold .for .controlled .business .in .insurance? .- .CORRECT
.ANSWER .-A .licensee .may .not .effect .controlled .business .that .amounts .to .25%
.or .more .of .the .total .volume .of .insurance .written .in .any .year.
Actual Exam Questions and Answers A+
Graded
What .are .some .reasons .a .license .may .be .revoked .or .suspended .in .personal
.lines .insurance? .- .CORRECT .ANSWER .-Reasons .include .failing .an .insurance
.exam, .not .complying .with .regulations, .lack .of .trustworthiness, .overinsurance,
.failing .to .pay .money .owed, .felony .convictions, .and .not .reporting .criminal
.prosecutions.
What .is .the .consequence .of .failing .to .report .disciplinary .actions .against .a
.license? .- .CORRECT .ANSWER .-Failure .to .report .disciplinary .actions .within .60
.days .can .lead .to .license .suspension .or .revocation.
What .is .the .procedure .for .a .license .suspension .or .revocation? .- .CORRECT
.ANSWER .-The .Commissioner .must .notify .the .license .applicant .or .holder .and
.insurer, .and .hearings .must .be .conducted, .except .for .cases .involving .child
.support .or .debt .defaults.
How .long .must .a .licensee .wait .to .reapply .for .a .license .after .revocation? .-
.CORRECT .ANSWER .-A .licensee .must .wait .5 .years .from .the .date .of .the .final
.order .to .reapply.
What .is .a .probationary .license .and .how .long .can .it .last? .- .CORRECT .ANSWER
.-A .probationary .license .can .be .issued .for .3 .to .24 .months .and .can .be .revoked
.without .a .hearing.
What .must .an .insurance .agent .record .for .each .transaction? .- .CORRECT
.ANSWER .-Agents .must .keep .records .of .insurance .contracts, .including .insurer
.and .insured .names, .premium .amounts, .and .the .subject .of .insurance.
How .long .must .records .of .insurance .transactions .be .retained? .- .CORRECT
.ANSWER .-Records .must .be .kept .for .at .least .5 .years .after .the .transaction .or
.contract .term .ends.
What .happens .if .an .insurance .contract .is .issued .by .an .unauthorized .person? .-
.CORRECT .ANSWER .-The .contract .remains .enforceable, .but .those .who
.knowingly .participated .in .the .violation .are .guilty .of .a .misdemeanor.
What .constitutes .an .unfair .trade .practice .in .insurance? .- .CORRECT .ANSWER .-
Engaging .in .practices .that .violate .the .insurance .code .can .lead .to .misdemeanor
.charges.
,What .is .defamation .in .the .context .of .insurance? .- .CORRECT .ANSWER .-
Defamation .involves .making .false .or .malicious .statements .about .an .insurer's
.financial .condition .with .the .intent .to .harm.
What .can .happen .if .a .licensee .fails .to .comply .with .an .order .from .the
.Commissioner? .- .CORRECT .ANSWER .-Failure .to .comply .can .result .in
.suspension .or .revocation .of .the .license.
What .is .required .of .a .licensee .who .has .been .convicted .of .a .felony? .- .CORRECT
.ANSWER .-They .must .report .any .criminal .prosecution .to .the .Commissioner
.within .30 .days .of .arrest.
What .effect .does .surrendering .a .license .under .a .written .consent .order .have? .-
.CORRECT .ANSWER .-It .has .the .same .effect .as .a .revocation.
What .can .the .Commissioner .do .if .a .licensee .has .a .history .of .felony
.convictions? .- .CORRECT .ANSWER .-The .Commissioner .may .issue .a
.probationary .license .if .the .applicant .shows .cause .for .trustworthiness.
What .must .be .included .in .the .records .of .insurance .transactions? .- .CORRECT
.ANSWER .-Records .must .include .details .of .the .insurance .contract, .names .of
.involved .licensees, .and .any .compensation .received.
What .is .the .role .of .the .Commissioner .in .issuing .probationary .licenses? .-
.CORRECT .ANSWER .-The .Commissioner .prescribes .the .terms .of .probation .and
.can .extend .the .probationary .period .or .refuse .to .grant .a .license.
What .is .the .significance .of .the .example .involving .J's .application .for .a .license?
.- .CORRECT .ANSWER .-It .illustrates .how .a .probationary .license .can .be .granted
.despite .past .felony .convictions .if .trustworthiness .is .demonstrated.
What .is .the .consequence .of .failing .to .pay .court-ordered .child .support? .-
.CORRECT .ANSWER .-It .can .lead .to .automatic .suspension .or .revocation .of .the
.license.
What .is .the .definition .of .moral .turpitude .in .relation .to .insurance .licensing? .-
.CORRECT .ANSWER .-Moral .turpitude .refers .to .conduct .that .is .knowingly
.contrary .to .justice, .honesty, .or .good .morals.
What .happens .if .a .licensee .fails .to .transact .insurance .business .in .good .faith? .-
.CORRECT .ANSWER .-It .can .result .in .suspension .or .revocation .of .their .license.
What .must .an .applicant .show .to .avoid .a .license .refusal .after .revocation? .-
.CORRECT .ANSWER .-The .applicant .must .show .cause .why .the .revocation
.should .not .bar .the .issuance .of .a .new .license.
What .is .the .minimum .record .retention .period .for .insurance .transactions? .-
.CORRECT .ANSWER .-Records .must .be .retained .for .at .least .5 .years.
, What .is .the .penalty .for .committing .an .unfair .trade .practice? .- .CORRECT
.ANSWER .-Violators .can .be .charged .with .a .misdemeanor.
What .constitutes .misrepresentation .by .an .insurer? .- .CORRECT .ANSWER .-An
.insurer .may .not .make .false .estimates .or .illustrations, .misleading .statements,
.or .misrepresent .a .policy's .terms, .benefits, .advantages, .or .dividends.
Is .a .dividend .estimate .based .on .past .experience .considered .misrepresentation?
.- .CORRECT .ANSWER .-No, .if .it .is .clearly .shown .to .be .based .on .past
.experience, .it .is .not .considered .misrepresentation.
What .is .considered .an .unfair .act .in .the .insurance .application .process? .-
.CORRECT .ANSWER .-Failing .to .require .agents .to .include .all .material .facts
.relevant .to .the .risk .known .or .should .be .known .by .the .agent.
What .is .twisting .in .insurance? .- .CORRECT .ANSWER .-Twisting .is .the .act .of
.misrepresenting .to .induce .a .policyholder .to .lapse, .forfeit, .or .surrender
.insurance .to .purchase .a .policy .from .another .insurer.
What .is .churning .in .insurance? .- .CORRECT .ANSWER .-Churning .is .illegally
.misrepresenting .an .existing .policy .to .induce .a .policyholder .to .replace .it .with .a
.new .policy .from .the .same .insurer .for .higher .commissions.
What .is .prohibited .under .false .information .and .advertising .in .insurance? .-
.CORRECT .ANSWER .-Making .untrue, .deceptive, .or .misleading .statements .about
.the .insurance .business .or .any .person .in .advertisements .or .public .statements.
What .are .some .acts .prohibited .under .unfair .trade .practices .related .to
.disclosures .and .advertising? .- .CORRECT .ANSWER .-Representing .that .a .policy
.is .endorsed .by .the .government .or .misrepresenting .associations .with .groups
.unless .true.
What .is .considered .boycott, .coercion, .or .intimidation .in .insurance? .- .CORRECT
.ANSWER .-Entering .into .agreements .that .result .in .unreasonable .restraint .or
.monopoly .in .insurance .business, .such .as .requiring .clients .to .obtain .insurance
.from .a .specific .insurer .for .loans.
What .are .false .financial .statements .in .the .context .of .insurance? .- .CORRECT
.ANSWER .-Filing .or .publishing .false .statements .about .an .insurer's .financial
.condition .with .intent .to .deceive .is .an .unfair .trade .practice.
What .is .controlled .business .in .insurance? .- .CORRECT .ANSWER .-Using .a
.license .chiefly .to .procure .insurance .on .oneself, .family, .or .business .associates
.is .considered .an .unfair .trade .practice.
What .is .the .threshold .for .controlled .business .in .insurance? .- .CORRECT
.ANSWER .-A .licensee .may .not .effect .controlled .business .that .amounts .to .25%
.or .more .of .the .total .volume .of .insurance .written .in .any .year.
