GA Life Insurance Exam | Study Guide
Q&A | Verified Content | High-Score
Prep
• What is being delivered during a policy delivery?
A binding receipt to the proposed insured
Insurance contract to the proposed insured
Application and initial premium to the insurer
Policy summary sheet and disclosure material to the proposed insured -✓✓Insurance
contract to the proposed insured
• T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will the insurer
pay?
The total premiums paid minus any policy loans
Nothing
$50,000
100,000 -✓✓$50,000
• What advantage does the renewability feature give to a term policy?
The insured may extend the coverage period at no additional cost
The insured may apply for this policy with little to no underwriting
The insured may borrow against the cash value
The insured may extend the coverage period -✓✓The insured may extend the coverage
period
• T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an
irrevocable beneficiary. What action will the insurance company take if T requests a
change of beneficiary?
Request will be accepted only if in writing by the insured
Change will be made only if premiums are paid current
Change will be made immediately
Request of change will be refused -✓✓Request of change will be refused
• N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age
70 for life. What type of annuity did N purchase?
Fixed Period
Fixed Deferred
,Fixed Immediate
Fixed Variable -✓✓Fixed Deferred
• A student pilot can pay regular premium costs for her life insurance policy with addition
of which of the following?
Guaranteed insurability rider
Aviation exclusion
Impairment rider
Accidental Death Benefit rider -✓✓Aviation exclusion
• The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and...
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions -✓✓the initial premium
• S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT:
type of life insurance
S's attained age
dividend amount used towards purchase
beneficiary's age -✓✓beneficiary's age
• Q is looking to buy a life insurance policy that will provide the greatest amount of
protection for a temporary time period. Which of these policies should Q purchase?
Term Life
Straight Life
Endowment
Annuity -✓✓Term Life
• What is the Suicide provision designed to do?
decline an applicant who is contemplating suicide
safeguard the insurer from an applicant who is contemplating suicide
protecting the insurer from ever paying a claim that results from suicide
allows the insurer the option to pay a death benefit in the event of suicide -✓✓safeguard
the insurer from an applicant who is contemplating suicide
• M completes an application for life insurance but does not pay the initial premium. All
of these actions must occur before M's policy goes into effect, EXCEPT:
,policy is delivered
free-look period has expired
insurance company issues policy
initial premium is collected -✓✓free-look period has expired
• The entity whose sole purpose is sharing medical data among its member companies
is called the...
National Association of Insurance Commissioners (NAIC)
Medical Information Bureau (MIB)
State government
State Underwriting Association -✓✓Medical Information Bureau (MIB)
• Which type of policy is considered to be overfunded, as stated by IRS guidelines?
Modified Whole Life
Modified Endowment Contract
Variable Universal Life
Interest-Sensitive Whole Life -✓✓Modified Endowment Contract
• Which premium schedule results in the lowest cost to the policyowner?
Semi-annual
Monthly
Quarterly
Annual -✓✓Annual
• Which of the following correctly describes a certificate of authority?
Gives an agent authority to represent a specific insurance company
Permits an agent to solicit insurance in Georgia
Permits a deceased agent's relative to act as an agent for a limited period of time
Permits an insurance company to transact business in Georgia -✓✓Permits an
insurance company to transact business in Georgia
• The type of annuity that can be purchased with one monetary deposit is called a(n):
Single Deposit Annuity
Variable Annuity
Fixed Annuity
Immediate Annuity -✓✓Immediate Annuity
• The __________ is authorized to assign a Life Insurance policy as a collateral for a
loan.
, beneficiary
insured
policyowner
lender -✓✓policyowner
• Traditional individual retirement annuity (IRA) distributions must start by:
age 59 1/2
age 65
April 1st of the year following the year the participant attains age 59 1/2
April 1st of the year following the year the participant attains age 70 1/2 -✓✓April 1st of
the year following the year the participant attains age 70 1/2
• When does a life insurance contract become effective if the initial premium is not
collected during the application process?
After all medical and personal information has been evaluated
When insurer receives initial premium from producer
When producer delivers policy and collects initial premium
After application has been approved by the underwriters -✓✓When producer delivers
policy and collects initial premium
• A policyowner is able to choose the frequency of premium payments through what
policy feature?
Consideration
Payor benefit
Premium Mode
Assignment provision -✓✓Premium Mode
• A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct?
Straight Life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's
financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate -✓✓20-Pay Life
accumulates cash value faster than Straight Life
• Which of the following is NOT included in an annuity contract?
Nonforfeiture benefit
Free-Look period
Beneficiary
Q&A | Verified Content | High-Score
Prep
• What is being delivered during a policy delivery?
A binding receipt to the proposed insured
Insurance contract to the proposed insured
Application and initial premium to the insurer
Policy summary sheet and disclosure material to the proposed insured -✓✓Insurance
contract to the proposed insured
• T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will the insurer
pay?
The total premiums paid minus any policy loans
Nothing
$50,000
100,000 -✓✓$50,000
• What advantage does the renewability feature give to a term policy?
The insured may extend the coverage period at no additional cost
The insured may apply for this policy with little to no underwriting
The insured may borrow against the cash value
The insured may extend the coverage period -✓✓The insured may extend the coverage
period
• T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an
irrevocable beneficiary. What action will the insurance company take if T requests a
change of beneficiary?
Request will be accepted only if in writing by the insured
Change will be made only if premiums are paid current
Change will be made immediately
Request of change will be refused -✓✓Request of change will be refused
• N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age
70 for life. What type of annuity did N purchase?
Fixed Period
Fixed Deferred
,Fixed Immediate
Fixed Variable -✓✓Fixed Deferred
• A student pilot can pay regular premium costs for her life insurance policy with addition
of which of the following?
Guaranteed insurability rider
Aviation exclusion
Impairment rider
Accidental Death Benefit rider -✓✓Aviation exclusion
• The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and...
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions -✓✓the initial premium
• S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT:
type of life insurance
S's attained age
dividend amount used towards purchase
beneficiary's age -✓✓beneficiary's age
• Q is looking to buy a life insurance policy that will provide the greatest amount of
protection for a temporary time period. Which of these policies should Q purchase?
Term Life
Straight Life
Endowment
Annuity -✓✓Term Life
• What is the Suicide provision designed to do?
decline an applicant who is contemplating suicide
safeguard the insurer from an applicant who is contemplating suicide
protecting the insurer from ever paying a claim that results from suicide
allows the insurer the option to pay a death benefit in the event of suicide -✓✓safeguard
the insurer from an applicant who is contemplating suicide
• M completes an application for life insurance but does not pay the initial premium. All
of these actions must occur before M's policy goes into effect, EXCEPT:
,policy is delivered
free-look period has expired
insurance company issues policy
initial premium is collected -✓✓free-look period has expired
• The entity whose sole purpose is sharing medical data among its member companies
is called the...
National Association of Insurance Commissioners (NAIC)
Medical Information Bureau (MIB)
State government
State Underwriting Association -✓✓Medical Information Bureau (MIB)
• Which type of policy is considered to be overfunded, as stated by IRS guidelines?
Modified Whole Life
Modified Endowment Contract
Variable Universal Life
Interest-Sensitive Whole Life -✓✓Modified Endowment Contract
• Which premium schedule results in the lowest cost to the policyowner?
Semi-annual
Monthly
Quarterly
Annual -✓✓Annual
• Which of the following correctly describes a certificate of authority?
Gives an agent authority to represent a specific insurance company
Permits an agent to solicit insurance in Georgia
Permits a deceased agent's relative to act as an agent for a limited period of time
Permits an insurance company to transact business in Georgia -✓✓Permits an
insurance company to transact business in Georgia
• The type of annuity that can be purchased with one monetary deposit is called a(n):
Single Deposit Annuity
Variable Annuity
Fixed Annuity
Immediate Annuity -✓✓Immediate Annuity
• The __________ is authorized to assign a Life Insurance policy as a collateral for a
loan.
, beneficiary
insured
policyowner
lender -✓✓policyowner
• Traditional individual retirement annuity (IRA) distributions must start by:
age 59 1/2
age 65
April 1st of the year following the year the participant attains age 59 1/2
April 1st of the year following the year the participant attains age 70 1/2 -✓✓April 1st of
the year following the year the participant attains age 70 1/2
• When does a life insurance contract become effective if the initial premium is not
collected during the application process?
After all medical and personal information has been evaluated
When insurer receives initial premium from producer
When producer delivers policy and collects initial premium
After application has been approved by the underwriters -✓✓When producer delivers
policy and collects initial premium
• A policyowner is able to choose the frequency of premium payments through what
policy feature?
Consideration
Payor benefit
Premium Mode
Assignment provision -✓✓Premium Mode
• A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct?
Straight Life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's
financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate -✓✓20-Pay Life
accumulates cash value faster than Straight Life
• Which of the following is NOT included in an annuity contract?
Nonforfeiture benefit
Free-Look period
Beneficiary
