GEORGIA INSURANCE EXAM ACTUAL
QUESTIONS AND CORRECT ANSWERS
Limited Pay - Correct answers✔Whole life insurance but does not have to pay premiums past
retirement
Securities Exchange Commission - Correct answers✔in addition to the insurance department,
they also have the authority to regulate variable life insurance
Georgia Attorney General - Correct answers✔Rules and regulations made by the commissioner
of insurance has to be approved by
Which has the greatest impact in making one individuals life insurance premium different from
another, assuming both own the same type of policy? - Correct answers✔the policy's mortality
factor
Frank is the insured in a $40,000 5-year level term policy issued in 2001. He died in 2007. His
beneficiary received - Correct answers✔NOTHING
Term insurance - Correct answers✔provides protection for only a temporary period of time
The Financial Industry Regulatory Authority
(FINRA a.k.a NASD) - Correct answers✔an insurance producer selling a variable annuity whose
cash value depends on the performance of an underlying investment account must be registered
with
Variable Life Insurance - Correct answers✔a life insurance policy whose cash value will
fluctuate depending upon the performance of a separate account or underlying investment
,Certificate of Authority - Correct answers✔permits an insurance company to transact business in
Georgia
Split dollar plan - Correct answers✔plan that allows an employer to give money to an employee
for buying a life insurance policy and also merits the employee to select the beneficiary
Ricky recently died and left behind an individual IRA account in his name. His widow was
forwarded the balance of the IRA. The widow qualifies for - Correct answers✔Marital deduction
If a corporation pays the premium on a group life policy for its employees, the corporation is
required to report how much additional taxable income for each employee? - Correct
answers✔Nothing
An incomplete life insurance application submitted to an insurer will results in what action? -
Correct answers✔Application will be returned to the writing agent
Foreign Company - Correct answers✔in Georgia, an insurer licensed to conduct business in
Georgia but domiciled in New Jersey is called a
Variable Rate Loan - Correct answers✔a life insurance policy owner take out a policy loan
against the cash value in his whole life. the interest rate applied to this loan may vary over time.
This is called a ____
Universal Life - Correct answers✔The cash value may fluctuate to reflect changing assumptions
regarding mortality cost, interest and expense factors
An insurer may normally delay the payment of a cash value loan or surrender value for up to -
Correct answers✔6 months
, An applicants' medical information received for m the Medical Information Bureau(MIB) may
be furnished to - Correct answers✔applicants physician
What is false about TAX Sheltered Annuity? - Correct answers✔Income derived from the TSA is
received income tax-free
The Georgia Commissioner of insurance elected for a period of - Correct answers✔4 years
Foreign Insurer - Correct answers✔an insurer who is domiciled In another state and is authorized
to do business in Georgia
Defamation - Correct answers✔is verbally suggesting that an insurer may not be in a position to
pay claims
A temporary license can be issued for a maximum of - Correct answers✔15 months
A home owners policy may be canceled by an insurer by mailing notice of _______ to the named
insured - Correct answers✔30 days
Commissioner must examine all domestic insurers - Correct answers✔at least once every 5 years
Decreasing term - Correct answers✔normally used when covering an insured's mortgage
Under an Interest Sensitive whole Life Policy, cash values are determined by - Correct
answers✔interest rates
QUESTIONS AND CORRECT ANSWERS
Limited Pay - Correct answers✔Whole life insurance but does not have to pay premiums past
retirement
Securities Exchange Commission - Correct answers✔in addition to the insurance department,
they also have the authority to regulate variable life insurance
Georgia Attorney General - Correct answers✔Rules and regulations made by the commissioner
of insurance has to be approved by
Which has the greatest impact in making one individuals life insurance premium different from
another, assuming both own the same type of policy? - Correct answers✔the policy's mortality
factor
Frank is the insured in a $40,000 5-year level term policy issued in 2001. He died in 2007. His
beneficiary received - Correct answers✔NOTHING
Term insurance - Correct answers✔provides protection for only a temporary period of time
The Financial Industry Regulatory Authority
(FINRA a.k.a NASD) - Correct answers✔an insurance producer selling a variable annuity whose
cash value depends on the performance of an underlying investment account must be registered
with
Variable Life Insurance - Correct answers✔a life insurance policy whose cash value will
fluctuate depending upon the performance of a separate account or underlying investment
,Certificate of Authority - Correct answers✔permits an insurance company to transact business in
Georgia
Split dollar plan - Correct answers✔plan that allows an employer to give money to an employee
for buying a life insurance policy and also merits the employee to select the beneficiary
Ricky recently died and left behind an individual IRA account in his name. His widow was
forwarded the balance of the IRA. The widow qualifies for - Correct answers✔Marital deduction
If a corporation pays the premium on a group life policy for its employees, the corporation is
required to report how much additional taxable income for each employee? - Correct
answers✔Nothing
An incomplete life insurance application submitted to an insurer will results in what action? -
Correct answers✔Application will be returned to the writing agent
Foreign Company - Correct answers✔in Georgia, an insurer licensed to conduct business in
Georgia but domiciled in New Jersey is called a
Variable Rate Loan - Correct answers✔a life insurance policy owner take out a policy loan
against the cash value in his whole life. the interest rate applied to this loan may vary over time.
This is called a ____
Universal Life - Correct answers✔The cash value may fluctuate to reflect changing assumptions
regarding mortality cost, interest and expense factors
An insurer may normally delay the payment of a cash value loan or surrender value for up to -
Correct answers✔6 months
, An applicants' medical information received for m the Medical Information Bureau(MIB) may
be furnished to - Correct answers✔applicants physician
What is false about TAX Sheltered Annuity? - Correct answers✔Income derived from the TSA is
received income tax-free
The Georgia Commissioner of insurance elected for a period of - Correct answers✔4 years
Foreign Insurer - Correct answers✔an insurer who is domiciled In another state and is authorized
to do business in Georgia
Defamation - Correct answers✔is verbally suggesting that an insurer may not be in a position to
pay claims
A temporary license can be issued for a maximum of - Correct answers✔15 months
A home owners policy may be canceled by an insurer by mailing notice of _______ to the named
insured - Correct answers✔30 days
Commissioner must examine all domestic insurers - Correct answers✔at least once every 5 years
Decreasing term - Correct answers✔normally used when covering an insured's mortgage
Under an Interest Sensitive whole Life Policy, cash values are determined by - Correct
answers✔interest rates
