Life, Accident & Sickness Agent (12-GA-05) Certification
Study Guide and Mock Tests| pdf
Life Insurance: Term = temporary, Whole = lifetime + cash value, Universal = flexible,
Variable = investment-based.
Key Riders: Waiver of Premium (disabled), Accidental Death, Guaranteed Insurability, Payor,
Term, LTC.
Policy Provisions: Incontestability (2 yrs), Suicide clause, Grace period, Nonforfeiture options,
Conversion.
Health & Disability: Disability income (own vs any occupation), Elimination period, LTC
(ADLs), Hospital indemnity, Major medical.
Government: Medicare (A-D), Medicaid, COBRA, Workers’ comp.
Ethics & Regulation: Illegal: rebating, twisting, churning; Agent authority: express, implied,
apparent; Goal = consumer protection
1. Which rider allows the policyowner to purchase additional insurance
without proof of insurability?
A) Term rider
B) Accidental Death rider
C) Guaranteed Insurability rider
D) Waiver of Premium rider
Answer: C
Explanation: It allows additional coverage at set dates regardless of health.
2. What does the Waiver of Premium rider provide?
,A) Increased death benefit
B) Premium refunds
C) Premiums waived if the insured becomes disabled
D) Cash value growth
Answer: C
Explanation: Keeps the policy active if the insured becomes totally disabled.
3. Which rider pays an additional benefit if death is accidental?
A) Term rider
B) Payor Benefit rider
C) Accidental Death Benefit rider
D) Child rider
Answer: C
Explanation: Pays an extra amount on accidental death.
4. Which life insurance policy provides coverage for a specified period?
A) Whole life
B) Universal life
C) Variable life
D) Term life
Answer: D
Explanation: Term insurance covers a specific time period.
5. What happens to coverage when a term policy expires?
A) Converts automatically to whole life
B) Coverage ends
C) Cash value is paid
D) Premiums stop permanently
,Answer: B
Explanation: Term insurance has no cash value and ends at expiration.
6. Who receives the policy proceeds upon the insured’s death?
A) Policyowner
B) Beneficiary
C) Insurer
D) Producer
Answer: B
7. Which policy builds guaranteed cash value?
A) Term life
B) Whole life
C) Credit life
D) Group life
Answer: B
8. What is the primary purpose of life insurance?
A) Investment growth
B) Tax shelter
C) Income replacement
D) Retirement income
Answer: C
9. Which rider covers premium payments if the payor dies or becomes
disabled?
, A) Waiver of Premium
B) Payor Benefit rider
C) Child rider
D) Term rider
Answer: B
10. What type of beneficiary can be changed at any time?
A) Irrevocable
B) Primary
C) Revocable
D) Tertiary
Answer: C
11. Which policy feature allows borrowing against cash value?
A) Dividend option
B) Policy loan provision
C) Grace period
D) Conversion option
Answer: B
12. What is the grace period for life insurance premium payment?
A) 10 days
B) 20 days
C) 30 or 31 days
D) 60 days
Answer: C
Study Guide and Mock Tests| pdf
Life Insurance: Term = temporary, Whole = lifetime + cash value, Universal = flexible,
Variable = investment-based.
Key Riders: Waiver of Premium (disabled), Accidental Death, Guaranteed Insurability, Payor,
Term, LTC.
Policy Provisions: Incontestability (2 yrs), Suicide clause, Grace period, Nonforfeiture options,
Conversion.
Health & Disability: Disability income (own vs any occupation), Elimination period, LTC
(ADLs), Hospital indemnity, Major medical.
Government: Medicare (A-D), Medicaid, COBRA, Workers’ comp.
Ethics & Regulation: Illegal: rebating, twisting, churning; Agent authority: express, implied,
apparent; Goal = consumer protection
1. Which rider allows the policyowner to purchase additional insurance
without proof of insurability?
A) Term rider
B) Accidental Death rider
C) Guaranteed Insurability rider
D) Waiver of Premium rider
Answer: C
Explanation: It allows additional coverage at set dates regardless of health.
2. What does the Waiver of Premium rider provide?
,A) Increased death benefit
B) Premium refunds
C) Premiums waived if the insured becomes disabled
D) Cash value growth
Answer: C
Explanation: Keeps the policy active if the insured becomes totally disabled.
3. Which rider pays an additional benefit if death is accidental?
A) Term rider
B) Payor Benefit rider
C) Accidental Death Benefit rider
D) Child rider
Answer: C
Explanation: Pays an extra amount on accidental death.
4. Which life insurance policy provides coverage for a specified period?
A) Whole life
B) Universal life
C) Variable life
D) Term life
Answer: D
Explanation: Term insurance covers a specific time period.
5. What happens to coverage when a term policy expires?
A) Converts automatically to whole life
B) Coverage ends
C) Cash value is paid
D) Premiums stop permanently
,Answer: B
Explanation: Term insurance has no cash value and ends at expiration.
6. Who receives the policy proceeds upon the insured’s death?
A) Policyowner
B) Beneficiary
C) Insurer
D) Producer
Answer: B
7. Which policy builds guaranteed cash value?
A) Term life
B) Whole life
C) Credit life
D) Group life
Answer: B
8. What is the primary purpose of life insurance?
A) Investment growth
B) Tax shelter
C) Income replacement
D) Retirement income
Answer: C
9. Which rider covers premium payments if the payor dies or becomes
disabled?
, A) Waiver of Premium
B) Payor Benefit rider
C) Child rider
D) Term rider
Answer: B
10. What type of beneficiary can be changed at any time?
A) Irrevocable
B) Primary
C) Revocable
D) Tertiary
Answer: C
11. Which policy feature allows borrowing against cash value?
A) Dividend option
B) Policy loan provision
C) Grace period
D) Conversion option
Answer: B
12. What is the grace period for life insurance premium payment?
A) 10 days
B) 20 days
C) 30 or 31 days
D) 60 days
Answer: C
