GA Life Insurance Exam Questions With
Answers
Who elects the governing body of a mutual insurance company? - CORRECT
ANSWER-policyholders
What year was the McCarran-Ferguson Act enacted? - CORRECT ANSWER-1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of its members is known as: - CORRECT ANSWER-a fraternal benefit
society
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called: - CORRECT ANSWER-
reserves
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - CORRECT ANSWER-Fair Credit
Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - CORRECT
ANSWER-warranty
What is the consideration given by an insurer in the consideration clause of a life policy?
- CORRECT ANSWER-promise to pay a death benefit to a named beneficiary
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called: - CORRECT ANSWER-representations
Which of the following consists of an offer, acceptance, and consideration? - CORRECT
ANSWER-contract
Which of these require an offer, acceptance, and consideration? - CORRECT
ANSWER-contract
In regards to representation or warranties, which of these statements is TRUE? -
CORRECT ANSWER-If material to the risk, false representation will void a policy
Insurance policies are offered on a "take it or leave it" basis, which make them: -
CORRECT ANSWER-Contracts of Adhesion
, A life insurance policy would be considered a wagering contract WITHOUT: -
CORRECT ANSWER-insurable interest
Insurance policies are considered aleatory contracts because - CORRECT ANSWER-
performance is conditioned upon a future occurance
Life and health insurance policies are: - CORRECT ANSWER-Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? - CORRECT
ANSWER-insurance company
When must insurable interest be present in order for a life insurance policy to be valid? -
CORRECT ANSWER-when the application is made
Which of these is NOT a type of agent authority - CORRECT ANSWER-principal
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have: - CORRECT ANSWER-insurable interest in
the proposed insured
What kind of life insurance policy pays a specified monthly income to a beneficiary for
30 years and then pays a lump sum benefit at the end of that 30 years? - CORRECT
ANSWER-family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? - CORRECT
ANSWER-upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER-15-year decreasing term
A term life insurance policy matures: - CORRECT ANSWER-upon the insured's death
during the term of the policy
The amount of coverage on a group credit life policy is limited to: - CORRECT
ANSWER-the insured's total loan value
Which statement is TRUE regarding a Variable Whole Life policy? - CORRECT
ANSWER-a minimum guaranteed Death benefit is provided
Life insurance that covers an insured's whole life with level premiums paid over a limited
time is called: - CORRECT ANSWER-limited pay life
Which of the following characteristics is CORRECT about Interest Sensitive Whole Life?
- CORRECT ANSWER-premium payments can vary
Answers
Who elects the governing body of a mutual insurance company? - CORRECT
ANSWER-policyholders
What year was the McCarran-Ferguson Act enacted? - CORRECT ANSWER-1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of its members is known as: - CORRECT ANSWER-a fraternal benefit
society
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called: - CORRECT ANSWER-
reserves
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - CORRECT ANSWER-Fair Credit
Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - CORRECT
ANSWER-warranty
What is the consideration given by an insurer in the consideration clause of a life policy?
- CORRECT ANSWER-promise to pay a death benefit to a named beneficiary
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called: - CORRECT ANSWER-representations
Which of the following consists of an offer, acceptance, and consideration? - CORRECT
ANSWER-contract
Which of these require an offer, acceptance, and consideration? - CORRECT
ANSWER-contract
In regards to representation or warranties, which of these statements is TRUE? -
CORRECT ANSWER-If material to the risk, false representation will void a policy
Insurance policies are offered on a "take it or leave it" basis, which make them: -
CORRECT ANSWER-Contracts of Adhesion
, A life insurance policy would be considered a wagering contract WITHOUT: -
CORRECT ANSWER-insurable interest
Insurance policies are considered aleatory contracts because - CORRECT ANSWER-
performance is conditioned upon a future occurance
Life and health insurance policies are: - CORRECT ANSWER-Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? - CORRECT
ANSWER-insurance company
When must insurable interest be present in order for a life insurance policy to be valid? -
CORRECT ANSWER-when the application is made
Which of these is NOT a type of agent authority - CORRECT ANSWER-principal
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have: - CORRECT ANSWER-insurable interest in
the proposed insured
What kind of life insurance policy pays a specified monthly income to a beneficiary for
30 years and then pays a lump sum benefit at the end of that 30 years? - CORRECT
ANSWER-family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? - CORRECT
ANSWER-upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER-15-year decreasing term
A term life insurance policy matures: - CORRECT ANSWER-upon the insured's death
during the term of the policy
The amount of coverage on a group credit life policy is limited to: - CORRECT
ANSWER-the insured's total loan value
Which statement is TRUE regarding a Variable Whole Life policy? - CORRECT
ANSWER-a minimum guaranteed Death benefit is provided
Life insurance that covers an insured's whole life with level premiums paid over a limited
time is called: - CORRECT ANSWER-limited pay life
Which of the following characteristics is CORRECT about Interest Sensitive Whole Life?
- CORRECT ANSWER-premium payments can vary
