Life Insurance Exam FX
Questions and Answers 100%
PASS
When a policy is being replaced, the replacing company notifies the—ANSWER--
Replacement company.
An insured owns a life insurance policy. To be able to pay some of her medical bills, she
withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the
insurer charges a fee. What type of policy does the insured most likely have?—ANSWER--
Universal life
Who can make a fully deductible contribution to a traditional IRA?—ANSWER--An individual
not covered by an employer-sponsored plan who has earned income
Which of the following premium payment modes will incur the lowest overall payment?—
ANSWER--Annual
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed
period or until a specific fixed amount is liquidated?—ANSWER--Annuity certain
What is the function of a Certificate of Authority?—ANSWER--It allows an insurer to transact
insurance in Georgia.
, In classifying a risk, the Home Office underwriting department will look at all of the following
EXCEPT—ANSWER--Applicant's past income.
Which of the following products provides income for a specified period of years or for life,
and protects a person against outliving their money?—ANSWER--An annuity
Which of the following is NOT true regarding an annuity certain?—ANSWER--Benefits stop at
the annuitant's death.
An insured and his wife are both involved in a head-on collision. The husband dies instantly,
and the wife dies 15 days later. The company pays the death benefit to the estate of the
insured. This indicates that the life insurance policy had what provision?—ANSWER--
Common Disaster
According to the entire contract provision, what document must be made part of the
insurance policy?—ANSWER--Copy of the original application
An employer has sponsored a qualified retirement plan for its employees where the
employer will contribute money whenever a profit is realized. What is this called?—
ANSWER--Profit sharing plan
Which of the following products will protect an individual from outliving their money?—
ANSWER--Annuity
In order for an insurer's certificate of authority to remain in effect, the insurer must maintain
a surplus equal to how much of paid-in capital stock?—ANSWER--50%
Which of the following is NOT one of the three types of term coverage based on what
happens to the face amount during the policy term?—ANSWER--Renewable
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Questions and Answers 100%
PASS
When a policy is being replaced, the replacing company notifies the—ANSWER--
Replacement company.
An insured owns a life insurance policy. To be able to pay some of her medical bills, she
withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the
insurer charges a fee. What type of policy does the insured most likely have?—ANSWER--
Universal life
Who can make a fully deductible contribution to a traditional IRA?—ANSWER--An individual
not covered by an employer-sponsored plan who has earned income
Which of the following premium payment modes will incur the lowest overall payment?—
ANSWER--Annual
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed
period or until a specific fixed amount is liquidated?—ANSWER--Annuity certain
What is the function of a Certificate of Authority?—ANSWER--It allows an insurer to transact
insurance in Georgia.
, In classifying a risk, the Home Office underwriting department will look at all of the following
EXCEPT—ANSWER--Applicant's past income.
Which of the following products provides income for a specified period of years or for life,
and protects a person against outliving their money?—ANSWER--An annuity
Which of the following is NOT true regarding an annuity certain?—ANSWER--Benefits stop at
the annuitant's death.
An insured and his wife are both involved in a head-on collision. The husband dies instantly,
and the wife dies 15 days later. The company pays the death benefit to the estate of the
insured. This indicates that the life insurance policy had what provision?—ANSWER--
Common Disaster
According to the entire contract provision, what document must be made part of the
insurance policy?—ANSWER--Copy of the original application
An employer has sponsored a qualified retirement plan for its employees where the
employer will contribute money whenever a profit is realized. What is this called?—
ANSWER--Profit sharing plan
Which of the following products will protect an individual from outliving their money?—
ANSWER--Annuity
In order for an insurer's certificate of authority to remain in effect, the insurer must maintain
a surplus equal to how much of paid-in capital stock?—ANSWER--50%
Which of the following is NOT one of the three types of term coverage based on what
happens to the face amount during the policy term?—ANSWER--Renewable
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
