Page 1 of 139
Life, Accident & Sickness Agent (12-GA-05)
Certification Study Guide and Mock Tests
Agent Exam Prep: 200 Practice Question
And Correct Answers .
Q1. Which of the following best describes the concept of
insurable interest in life insurance?
A) The policyowner must have a financial interest in the continued
life of the insured
B) The insured must have an interest in the policyowner's financial
well-being
C) The beneficiary must have a familial relationship with the
insured
D) The insurer must have an interest in the policy's performance
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Answer: A
Rationale: Insurable interest requires that the policyowner would
suffer a financial loss upon the death of the insured. This exists
between family members, business partners, and
creditors/debtors. Insurable interest must exist at the time of
policy application, not necessarily at the time of death .
Q2. Under the principle of utmost good faith (uberrimae fidei),
an insurance applicant is required to:
A) Pay premiums on time
B) Disclose all material facts that could affect the insurer's
decision
C) Name a beneficiary
D) Sign the policy delivery receipt
Answer: B
Rationale: Utmost good faith requires both parties to act
honestly and disclose all material information. The applicant must
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reveal any facts that could influence the insurer's underwriting
decision, such as health conditions or hazardous occupations .
Q3. A material misrepresentation in an insurance application
occurs when:
A) The agent forgets to collect the first premium
B) The applicant makes a false statement that would affect the
insurer's underwriting decision
C) The beneficiary changes designation without notice
D) The policy lapses for non-payment
Answer: B
Rationale: A material misrepresentation is a false statement that
could affect the insurer's underwriting decision. Age affects
premium calculations and insurability. Minor traffic violations that
do not affect risk assessment are typically not considered
material .
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Q4. The insurable interest requirement in life insurance must
exist at what time?
A) At the time of policy application only
B) At the time of death only
C) At both application and death
D) Throughout the entire policy period
Answer: A
Rationale: In life insurance, insurable interest must exist at the
time of application. Unlike property insurance, it does not need
to exist at the time of loss (death) .
Q5. Which of the following is NOT a characteristic of a legal
contract?
A) Offer and acceptance
B) Competent parties
C) Unilateral agreement
D) Verbal agreement only
Life, Accident & Sickness Agent (12-GA-05)
Certification Study Guide and Mock Tests
Agent Exam Prep: 200 Practice Question
And Correct Answers .
Q1. Which of the following best describes the concept of
insurable interest in life insurance?
A) The policyowner must have a financial interest in the continued
life of the insured
B) The insured must have an interest in the policyowner's financial
well-being
C) The beneficiary must have a familial relationship with the
insured
D) The insurer must have an interest in the policy's performance
,Page 2 of 139
Answer: A
Rationale: Insurable interest requires that the policyowner would
suffer a financial loss upon the death of the insured. This exists
between family members, business partners, and
creditors/debtors. Insurable interest must exist at the time of
policy application, not necessarily at the time of death .
Q2. Under the principle of utmost good faith (uberrimae fidei),
an insurance applicant is required to:
A) Pay premiums on time
B) Disclose all material facts that could affect the insurer's
decision
C) Name a beneficiary
D) Sign the policy delivery receipt
Answer: B
Rationale: Utmost good faith requires both parties to act
honestly and disclose all material information. The applicant must
,Page 3 of 139
reveal any facts that could influence the insurer's underwriting
decision, such as health conditions or hazardous occupations .
Q3. A material misrepresentation in an insurance application
occurs when:
A) The agent forgets to collect the first premium
B) The applicant makes a false statement that would affect the
insurer's underwriting decision
C) The beneficiary changes designation without notice
D) The policy lapses for non-payment
Answer: B
Rationale: A material misrepresentation is a false statement that
could affect the insurer's underwriting decision. Age affects
premium calculations and insurability. Minor traffic violations that
do not affect risk assessment are typically not considered
material .
, Page 4 of 139
Q4. The insurable interest requirement in life insurance must
exist at what time?
A) At the time of policy application only
B) At the time of death only
C) At both application and death
D) Throughout the entire policy period
Answer: A
Rationale: In life insurance, insurable interest must exist at the
time of application. Unlike property insurance, it does not need
to exist at the time of loss (death) .
Q5. Which of the following is NOT a characteristic of a legal
contract?
A) Offer and acceptance
B) Competent parties
C) Unilateral agreement
D) Verbal agreement only
