Life Insurance Study Exam- Georgia
2025 Questions and Answers
An insurance producer selling a Variable Annuity whose cash value depends on the
performance of an underlying investment account must be registered with: - --
Answer --The Financial Industry Regulatory Authority (FINRA, formerly
the NASD)
A life insurance policy whose cash value will fluctuate depending upon the
performance of a separate account is: - --Answer --Variable Life
John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The
cash value will equal the face amount of the policy when he reaches the age of: - --
Answer --100
Which of the following types of insurance policies would provide the greatest
amount of protection for a temporary period during which an insured will have
limited financial resources? - --Answer --Term
Which of the following statements about a Renewable Term policy is true? - --
Answer --It is renewable at the option of the insured
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,An Annuity is designed to provide which of the following financial features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate - --Answer --I and II
A 45-year old customer who is seeking to supplement his retirement income at age
65 would not buy a: - --Answer --Immediate Annuity
Which of the following is an example of a Limited-Pay Life policy? - --
Answer --Life Paid-Up at Age 65
You have a client that is a real estate agent. Which of the following types of
permanent protection is best for this type of client? - --Answer --Adjustable
life
Which of the following individual policy conversions is usually permitted without
any evidence of insurability? - --Answer --Conversion from a Term policy to
a Whole Life policy
At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer
explains that he can pay for the policy in several ways. One method is called 20-
Pay Life, and another, Straight Life. Tom wishes to know which plan will
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, accumulate cash value at a faster rate in the early years of the policy. Which of the
following would be the producer's most appropriate response? - --Answer --
"20-Pay Life will accumulate cash value faster."
Sandra Timms, age 27, is advised by her producer to purchase Life insurance to
cover a 20-year-amortized $50,000 business-improvement loan. Which of the
following plans would adequately protect Ms. Timms at the minimum premium
outlay? - --Answer --A $50,000 Decreasing Term policy for 20 years
In order to sell variable life insurance you must be registered with which of the
following? - --Answer --The NASD
Which of the following contracts requires that a series of benefit payments be
made at specified intervals? - --Answer --Annuity
A life insurance policy that covers two parties, but only pays when the last party
dies is known as: - --Answer --Survivorship Life
Most Term Life insurance: - --Answer --Is convertible to permanent Whole
Life without a physical exam
If a person wants to invest a lump sum in an annuity that may appreciate along
with market and economic conditions, they should buy a: - --Answer --
Variable Annuity
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
2025 Questions and Answers
An insurance producer selling a Variable Annuity whose cash value depends on the
performance of an underlying investment account must be registered with: - --
Answer --The Financial Industry Regulatory Authority (FINRA, formerly
the NASD)
A life insurance policy whose cash value will fluctuate depending upon the
performance of a separate account is: - --Answer --Variable Life
John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The
cash value will equal the face amount of the policy when he reaches the age of: - --
Answer --100
Which of the following types of insurance policies would provide the greatest
amount of protection for a temporary period during which an insured will have
limited financial resources? - --Answer --Term
Which of the following statements about a Renewable Term policy is true? - --
Answer --It is renewable at the option of the insured
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,An Annuity is designed to provide which of the following financial features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate - --Answer --I and II
A 45-year old customer who is seeking to supplement his retirement income at age
65 would not buy a: - --Answer --Immediate Annuity
Which of the following is an example of a Limited-Pay Life policy? - --
Answer --Life Paid-Up at Age 65
You have a client that is a real estate agent. Which of the following types of
permanent protection is best for this type of client? - --Answer --Adjustable
life
Which of the following individual policy conversions is usually permitted without
any evidence of insurability? - --Answer --Conversion from a Term policy to
a Whole Life policy
At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer
explains that he can pay for the policy in several ways. One method is called 20-
Pay Life, and another, Straight Life. Tom wishes to know which plan will
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, accumulate cash value at a faster rate in the early years of the policy. Which of the
following would be the producer's most appropriate response? - --Answer --
"20-Pay Life will accumulate cash value faster."
Sandra Timms, age 27, is advised by her producer to purchase Life insurance to
cover a 20-year-amortized $50,000 business-improvement loan. Which of the
following plans would adequately protect Ms. Timms at the minimum premium
outlay? - --Answer --A $50,000 Decreasing Term policy for 20 years
In order to sell variable life insurance you must be registered with which of the
following? - --Answer --The NASD
Which of the following contracts requires that a series of benefit payments be
made at specified intervals? - --Answer --Annuity
A life insurance policy that covers two parties, but only pays when the last party
dies is known as: - --Answer --Survivorship Life
Most Term Life insurance: - --Answer --Is convertible to permanent Whole
Life without a physical exam
If a person wants to invest a lump sum in an annuity that may appreciate along
with market and economic conditions, they should buy a: - --Answer --
Variable Annuity
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
