GA Life Insurance Exam Study Guide | 2026 Insurance
Licensing Prep
1. What is the primary purpose of life insurance?
A. Provide retirement income
B. Protect against medical costs
C. Create immediate cash value
D. Provide financial protection against premature death
✅ Correct Answer: D
Rationale: Life insurance is designed to provide financial protection to beneficiaries upon the
insured’s death.
2. Which element is NOT required for an insurance contract to be valid?
A. Consideration
B. Legal purpose
C. Witness signature
D. Competent parties
✅ Correct Answer: C
Rationale: A witness signature is not required for an insurance contract to be valid.
3. In life insurance, the consideration from the insured is:
A. Policy delivery
B. Premium payment and statements
C. Underwriting approval
D. Policy provisions
✅ Correct Answer: B
Rationale: The insured’s consideration is the premium payment and truthful application
information.
4. Which term describes the insurer’s acceptance of risk?
A. Indemnity
B. Underwriting
C. Adhesion
D. Aleatory
, ✅ Correct Answer: B
Rationale: Underwriting is the process by which insurers evaluate and accept risk.
5. Life insurance contracts are considered contracts of:
A. Commutation
B. Indemnity
C. Aleatory
D. Conditional receipt
✅ Correct Answer: C
Rationale: Life insurance is aleatory because performance depends on an uncertain event
(death).
SECTION 2: TYPES OF LIFE INSURANCE
6. Which life insurance policy provides coverage for a specific period of time?
A. Whole life
B. Universal life
C. Term life
D. Variable life
✅ Correct Answer: C
Rationale: Term life provides coverage for a stated period and has no cash value.
7. Whole life insurance is best described as:
A. Temporary coverage
B. Permanent coverage with fixed premiums
C. Investment-only plan
D. Group-only policy
✅ Correct Answer: B
Rationale: Whole life offers permanent protection with level premiums and guaranteed cash
value.
8. Which policy allows flexible premiums and adjustable death benefits?
A. Whole life
B. Term life
Licensing Prep
1. What is the primary purpose of life insurance?
A. Provide retirement income
B. Protect against medical costs
C. Create immediate cash value
D. Provide financial protection against premature death
✅ Correct Answer: D
Rationale: Life insurance is designed to provide financial protection to beneficiaries upon the
insured’s death.
2. Which element is NOT required for an insurance contract to be valid?
A. Consideration
B. Legal purpose
C. Witness signature
D. Competent parties
✅ Correct Answer: C
Rationale: A witness signature is not required for an insurance contract to be valid.
3. In life insurance, the consideration from the insured is:
A. Policy delivery
B. Premium payment and statements
C. Underwriting approval
D. Policy provisions
✅ Correct Answer: B
Rationale: The insured’s consideration is the premium payment and truthful application
information.
4. Which term describes the insurer’s acceptance of risk?
A. Indemnity
B. Underwriting
C. Adhesion
D. Aleatory
, ✅ Correct Answer: B
Rationale: Underwriting is the process by which insurers evaluate and accept risk.
5. Life insurance contracts are considered contracts of:
A. Commutation
B. Indemnity
C. Aleatory
D. Conditional receipt
✅ Correct Answer: C
Rationale: Life insurance is aleatory because performance depends on an uncertain event
(death).
SECTION 2: TYPES OF LIFE INSURANCE
6. Which life insurance policy provides coverage for a specific period of time?
A. Whole life
B. Universal life
C. Term life
D. Variable life
✅ Correct Answer: C
Rationale: Term life provides coverage for a stated period and has no cash value.
7. Whole life insurance is best described as:
A. Temporary coverage
B. Permanent coverage with fixed premiums
C. Investment-only plan
D. Group-only policy
✅ Correct Answer: B
Rationale: Whole life offers permanent protection with level premiums and guaranteed cash
value.
8. Which policy allows flexible premiums and adjustable death benefits?
A. Whole life
B. Term life
