Georgia State Insurance Laws Overview
Exam 2025 Questions and Answers
What are some reasons a license may be revoked or suspended in personal lines
insurance? - --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? -
--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? - --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? - --
Answer --A licensee must wait 5 years from the date of the final order to
reapply.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What is a probationary license and how long can it last? - --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? - --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? - --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? - --
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? - --Answer --
Engaging in practices that violate the insurance code can lead to misdemeanor
charges.
What is defamation in the context of insurance? - --Answer --Defamation
involves making false or malicious statements about an insurer's financial condition
with the intent to harm.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,What can happen if a licensee fails to comply with an order from the
Commissioner? - --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? - --
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? - --
Answer --It has the same effect as a revocation.
What can the Commissioner do if a licensee has a history of felony convictions? - -
-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? - --
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? - --
Answer --The Commissioner prescribes the terms of probation and can
extend the probationary period or refuse to grant a license.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, What is the significance of the example involving J's application for a license? - --
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? - --
Answer --It can lead to automatic suspension or revocation of the license.
What is the definition of moral turpitude in relation to insurance licensing? - --
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? - --
Answer --It can result in suspension or revocation of their license.
What must an applicant show to avoid a license refusal after revocation? - --
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? - --
Answer --Records must be retained for at least 5 years.
What is the penalty for committing an unfair trade practice? - --Answer --
Violators can be charged with a misdemeanor.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
Exam 2025 Questions and Answers
What are some reasons a license may be revoked or suspended in personal lines
insurance? - --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? -
--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? - --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? - --
Answer --A licensee must wait 5 years from the date of the final order to
reapply.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What is a probationary license and how long can it last? - --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? - --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? - --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? - --
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? - --Answer --
Engaging in practices that violate the insurance code can lead to misdemeanor
charges.
What is defamation in the context of insurance? - --Answer --Defamation
involves making false or malicious statements about an insurer's financial condition
with the intent to harm.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,What can happen if a licensee fails to comply with an order from the
Commissioner? - --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? - --
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? - --
Answer --It has the same effect as a revocation.
What can the Commissioner do if a licensee has a history of felony convictions? - -
-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? - --
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? - --
Answer --The Commissioner prescribes the terms of probation and can
extend the probationary period or refuse to grant a license.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, What is the significance of the example involving J's application for a license? - --
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? - --
Answer --It can lead to automatic suspension or revocation of the license.
What is the definition of moral turpitude in relation to insurance licensing? - --
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? - --
Answer --It can result in suspension or revocation of their license.
What must an applicant show to avoid a license refusal after revocation? - --
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? - --
Answer --Records must be retained for at least 5 years.
What is the penalty for committing an unfair trade practice? - --Answer --
Violators can be charged with a misdemeanor.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
