Life Insurance Study Exam- Georgia
Questions and Answers 2026/2027
|Already Graded A+| Verified and
Updated
A client buys a Life insurance policy on July 1st and dies by suicide 6 months later.
The insurance company will: - CORRECT ANSWER -Deny the claim, but refund the
premium
Dividend projections may be included in a proposal for Life insurance when which
of the following is true? - CORRECT ANSWER -There is a clear statement that
payment of future dividends is not guaranteed
The contingent beneficiary will receive policy proceeds when: - CORRECT ANSWER
-The primary beneficiary pre-deceases the insured
A rider that keeps a policy from lapsing due to non-payment of premium by
borrowing from the cash value is: - CORRECT ANSWER -Automatic Premium Loan
,The clause that states the insurer's promise to pay the policy benefits in
accordance with the contract's provisions is the: - CORRECT ANSWER -Insuring
Clause
Which of the following statements about a typical Suicide clause in a Life
insurance policy is true? - CORRECT ANSWER -Suicide is excluded for a specific
period of years and covered thereafter
Margaret May wants to name her husband as the beneficiary of her Life policy;
however, she wishes to retain all of the rights of ownership. Mrs. May should
name her husband as: - CORRECT ANSWER -Revocable beneficiary
If the insured understated his age and the error is discovered after the insured's
death, the insurance company will: - CORRECT ANSWER -Pay the amount that the
premium paid would have purchased at the correct age
The Life insurance policy clause that prevents an insurance company from denying
payment of a death claim after a specified period of time is known as the: -
CORRECT ANSWER -Incontestability clause
, An insured's premium for Life insurance is based mainly upon their: - CORRECT
ANSWER -Risk classification
A producer completes an application for Life insurance and sends it to the
underwriter who approves it and issues the policy. When is coverage effective: -
CORRECT ANSWER -When the producer delivers the policy and picks up the
premium
An applicant has been denied insurance coverage because of information
contained in a consumer report. According to the Fair Credit Reporting Act, all of
the following statements are true about this situation, EXCEPT: - CORRECT
ANSWER -The applicant has the right to obtain a copy of the consumer report
directly from an insurance company that used the report
Which of the following is true when the insurer issues a 'rated' policy: - CORRECT
ANSWER -It is considered to be a counteroffer
An insurable interest must exist when: - CORRECT ANSWER -Policy ownership is
transferred
Questions and Answers 2026/2027
|Already Graded A+| Verified and
Updated
A client buys a Life insurance policy on July 1st and dies by suicide 6 months later.
The insurance company will: - CORRECT ANSWER -Deny the claim, but refund the
premium
Dividend projections may be included in a proposal for Life insurance when which
of the following is true? - CORRECT ANSWER -There is a clear statement that
payment of future dividends is not guaranteed
The contingent beneficiary will receive policy proceeds when: - CORRECT ANSWER
-The primary beneficiary pre-deceases the insured
A rider that keeps a policy from lapsing due to non-payment of premium by
borrowing from the cash value is: - CORRECT ANSWER -Automatic Premium Loan
,The clause that states the insurer's promise to pay the policy benefits in
accordance with the contract's provisions is the: - CORRECT ANSWER -Insuring
Clause
Which of the following statements about a typical Suicide clause in a Life
insurance policy is true? - CORRECT ANSWER -Suicide is excluded for a specific
period of years and covered thereafter
Margaret May wants to name her husband as the beneficiary of her Life policy;
however, she wishes to retain all of the rights of ownership. Mrs. May should
name her husband as: - CORRECT ANSWER -Revocable beneficiary
If the insured understated his age and the error is discovered after the insured's
death, the insurance company will: - CORRECT ANSWER -Pay the amount that the
premium paid would have purchased at the correct age
The Life insurance policy clause that prevents an insurance company from denying
payment of a death claim after a specified period of time is known as the: -
CORRECT ANSWER -Incontestability clause
, An insured's premium for Life insurance is based mainly upon their: - CORRECT
ANSWER -Risk classification
A producer completes an application for Life insurance and sends it to the
underwriter who approves it and issues the policy. When is coverage effective: -
CORRECT ANSWER -When the producer delivers the policy and picks up the
premium
An applicant has been denied insurance coverage because of information
contained in a consumer report. According to the Fair Credit Reporting Act, all of
the following statements are true about this situation, EXCEPT: - CORRECT
ANSWER -The applicant has the right to obtain a copy of the consumer report
directly from an insurance company that used the report
Which of the following is true when the insurer issues a 'rated' policy: - CORRECT
ANSWER -It is considered to be a counteroffer
An insurable interest must exist when: - CORRECT ANSWER -Policy ownership is
transferred
