GEORGIA LAWS AND RULES Exam
2025 Questions and Answers
Using an existing life insurance policy's cash value to purchase another policy with
the same insurer for the sole purpose of earning additional commissions is called...
- --Answer --Churning: is an illegal practice where insurance agents
unnecessarily replace existing life insurance for the purpose of earning additional
(higher) first year commissions
An example of unfair discrimination would be - --Answer --offering
different terms of coverage for different policyowners in the same risk
classification
A mutual insurance company and a stock insurance company have one main
difference between them. What is this major contrast? - --Answer --Stock
company is owned by its shareholders. Mutual company is owned by its
policyholders
The ___ must provide an insured with proper disclosure concerning the
replacement of an insurance policy. - --Answer --agent
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, The Commissioner must give ___ days notice prior to holding a hearing regarding
an agent's unfair or deceptive practice. - --Answer --10
As a condition for a loan, a bank requires the borrower to purchase credit
insurance from a specific company. What is the bank guilty of? - --Answer --
Coercion
When advertising, an insurer is required to use its ___ - --Answer --true
corporate name
Which type of insurance company allows their policyowners to elect governing
body? - --Answer --Mutual
T is an agent and when hired, is reminded that he has a responsibility to handle
client's funds in an honest and ethical manner. This responsibility is referred to as -
--Answer --fiduciary responsibility
Which of the following is NOT an unfair claim settlement practice? - --
Answer --Needing written documentation of claim details
Before an insurance company can pay commissions to an agent, the agent must be
- --Answer --licensed and appointed
What is one of the roles of the Commissioner? - --Answer --Administering
insurance laws
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
2025 Questions and Answers
Using an existing life insurance policy's cash value to purchase another policy with
the same insurer for the sole purpose of earning additional commissions is called...
- --Answer --Churning: is an illegal practice where insurance agents
unnecessarily replace existing life insurance for the purpose of earning additional
(higher) first year commissions
An example of unfair discrimination would be - --Answer --offering
different terms of coverage for different policyowners in the same risk
classification
A mutual insurance company and a stock insurance company have one main
difference between them. What is this major contrast? - --Answer --Stock
company is owned by its shareholders. Mutual company is owned by its
policyholders
The ___ must provide an insured with proper disclosure concerning the
replacement of an insurance policy. - --Answer --agent
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, The Commissioner must give ___ days notice prior to holding a hearing regarding
an agent's unfair or deceptive practice. - --Answer --10
As a condition for a loan, a bank requires the borrower to purchase credit
insurance from a specific company. What is the bank guilty of? - --Answer --
Coercion
When advertising, an insurer is required to use its ___ - --Answer --true
corporate name
Which type of insurance company allows their policyowners to elect governing
body? - --Answer --Mutual
T is an agent and when hired, is reminded that he has a responsibility to handle
client's funds in an honest and ethical manner. This responsibility is referred to as -
--Answer --fiduciary responsibility
Which of the following is NOT an unfair claim settlement practice? - --
Answer --Needing written documentation of claim details
Before an insurance company can pay commissions to an agent, the agent must be
- --Answer --licensed and appointed
What is one of the roles of the Commissioner? - --Answer --Administering
insurance laws
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
