LIFE ACCIDENT And SICKNESS GA
Exam Questions With Correct Answers
At what age is the policyholder written for on a group medicare conversion that's being replaced
with another group?☑️Correct Ans-coverage is written on the policyholder at the insured's age
it was written at the inception of the replaced coverage.
Certificate of authority renewal☑️Correct Ans-annually by insurer, before january 1 each year,
but expires midnight june 30th the following year
Qualifications for a license☑️Correct Ans-18, resident of GA for 6 months out of each year,
educational requirement, 5 years experience to be a counselor, no longer required to be a US
citizen.
When can the commissioner waive the residency requirement?☑️Correct Ans-borderline agent,
if you live on the border of GA but majority of business comes from GA, you must have a GA
license.
Indemnification vs. indemnity vs indemnify is...☑️Correct Ans-the process restoring someone
to economic status prior to a loss without a gain, the promise to pay the proceeds without gain
after a loss, the act of paying the proceeds
Define the difference in insurable interest in life and health as opposed to P&C☑️Correct Ans-
insurable interest in L&H must be present at the effective date of app. II in P&C must exist at the
time of the loss. ( lady w 5 ex husbands collects 5 million)
Controlled Business☑️Correct Ans-Spouse, family, in laws, kinship; exes and friends are not
controlled business. premium must be less than 25% of business you are legal, 25% or more is
illegal.
Blue Cross Blue Shield does it cover large groups only? Does it get special consideration from
the government? Does it contract services with providers? Do subscribers pay a set
,fee?☑️Correct Ans-covers individuals as well as small and large groups. Non profit
organization. contractual relationship with the doctors and hospitals. Subscribers pay a set fee.
What are participating and non-participating companies?☑️Correct Ans-Participating policies
are issued by mutual life insurance companies. Non-participating policies are issued by stock life
insurance companies.
Do mutual companies pay dividends?☑️Correct Ans-Mutual life insurance companies pay
dividends to the policy holder.
When is the school certificate of completion void?☑️Correct Ans-After 12 months.
What can assessment insurers do?☑️Correct Ans-charge policyholders additional premiums if
those paid in are insufficient to meet claims. "open-end contract"
Temporary license☑️Correct Ans-no exam, usually issued for hardship cases or the debit agent
only valid for one company.
originally issued for 6 months, can renew 3 times for 3 months a piece. total of 15 months
Identify the landmark court cases☑️Correct Ans-McCarran-Ferguson Act, enacted in order for
the federal govt to regulate the business of ins not reg by state law. Fair credit reporting act
protects consumers privacy and requires consumer reporting agencies to ensure accurate records
and reporting. Consumer reports issued to persons who have a legitimate business need for the
information.
Reciprocal License (Retaliatory)☑️Correct Ans-If both states reciprocate license can be
transferred to a new state, they treat each other the way the other treats them
Probationary License☑️Correct Ans-Up to 12 months, no less than 3; under circumstances state
chooses to say if you do -- we will make license permanent (ex. drug use)
,Can a resident conduct business after moving to a new state with the old state's
license?☑️Correct Ans-Yes for 90 days if license from other state is in good standing.
Twisting☑️Correct Ans-Making unfair comparison
ex- bait and switch tactic
Churning☑️Correct Ans-Replacing your own company's business from within.
ex- canceled ins pol to rewrite to make more commission.
Coersion☑️Correct Ans-forcing someone into doing something
pressue, ect
Defamation☑️Correct Ans-Disparaging talk about a company, good, products, person, etc
At what age can minors enter into a contract for insurance?☑️Correct Ans-A person not less
than 15 years of age as determined by the nearest birthday, but it is not valid unless an age of
Majority, age 18, parent or guardian, also signs.
unfair trade practices☑️Correct Ans-coercion, defamation, twisting, churning, rebates and
inducements, misrepresentation of medicare/medicaid,rights of borrowers
rights of borrowers☑️Correct Ans-the lender can offer insurance, but cannot force the borrower
to make you buy it from them.
Coverage for newly borns on life insurance☑️Correct Ans-covered but must survive 15 days
before a death claim would be payable
coverage for newly born or adopted children on Health Insurance☑️Correct Ans-Child is
covered at first breath and would be covered for the first 31 days, but not after 31 days unless the
parent adds them to policy
, creditor vs. debtor☑️Correct Ans-creditor= bank; debtor= borrower or client
Age requirement for credit life☑️Correct Ans-70 or must pay off before 71
age requirement for credit accident and sickness (health)☑️Correct Ans-65, or pay off before 66
uses of life insurance☑️Correct Ans-business continuation, BOE
cross purchase
entity purchase
section 303 stock redemption
deferred compensation
split dollar
key person
buy-sell agreement
cross-purchase plan
entity-purchase plan
buy-sell agreement☑️Correct Ans-allows associates of the deceased to purchase deceased's
interest.
who can legally draw a buy-sell agreement?☑️Correct Ans-attorney
cross purchase plan☑️Correct Ans-one or more buy sell agreements funded by life insurance.
each partner buys, owns, and names himself beneficiary on a life policy naming the other partner
as insured.
entity purchase plan☑️Correct Ans-when the partnership is the owner, the beneficiary, and
premium payor on all partner's lives.
Exam Questions With Correct Answers
At what age is the policyholder written for on a group medicare conversion that's being replaced
with another group?☑️Correct Ans-coverage is written on the policyholder at the insured's age
it was written at the inception of the replaced coverage.
Certificate of authority renewal☑️Correct Ans-annually by insurer, before january 1 each year,
but expires midnight june 30th the following year
Qualifications for a license☑️Correct Ans-18, resident of GA for 6 months out of each year,
educational requirement, 5 years experience to be a counselor, no longer required to be a US
citizen.
When can the commissioner waive the residency requirement?☑️Correct Ans-borderline agent,
if you live on the border of GA but majority of business comes from GA, you must have a GA
license.
Indemnification vs. indemnity vs indemnify is...☑️Correct Ans-the process restoring someone
to economic status prior to a loss without a gain, the promise to pay the proceeds without gain
after a loss, the act of paying the proceeds
Define the difference in insurable interest in life and health as opposed to P&C☑️Correct Ans-
insurable interest in L&H must be present at the effective date of app. II in P&C must exist at the
time of the loss. ( lady w 5 ex husbands collects 5 million)
Controlled Business☑️Correct Ans-Spouse, family, in laws, kinship; exes and friends are not
controlled business. premium must be less than 25% of business you are legal, 25% or more is
illegal.
Blue Cross Blue Shield does it cover large groups only? Does it get special consideration from
the government? Does it contract services with providers? Do subscribers pay a set
,fee?☑️Correct Ans-covers individuals as well as small and large groups. Non profit
organization. contractual relationship with the doctors and hospitals. Subscribers pay a set fee.
What are participating and non-participating companies?☑️Correct Ans-Participating policies
are issued by mutual life insurance companies. Non-participating policies are issued by stock life
insurance companies.
Do mutual companies pay dividends?☑️Correct Ans-Mutual life insurance companies pay
dividends to the policy holder.
When is the school certificate of completion void?☑️Correct Ans-After 12 months.
What can assessment insurers do?☑️Correct Ans-charge policyholders additional premiums if
those paid in are insufficient to meet claims. "open-end contract"
Temporary license☑️Correct Ans-no exam, usually issued for hardship cases or the debit agent
only valid for one company.
originally issued for 6 months, can renew 3 times for 3 months a piece. total of 15 months
Identify the landmark court cases☑️Correct Ans-McCarran-Ferguson Act, enacted in order for
the federal govt to regulate the business of ins not reg by state law. Fair credit reporting act
protects consumers privacy and requires consumer reporting agencies to ensure accurate records
and reporting. Consumer reports issued to persons who have a legitimate business need for the
information.
Reciprocal License (Retaliatory)☑️Correct Ans-If both states reciprocate license can be
transferred to a new state, they treat each other the way the other treats them
Probationary License☑️Correct Ans-Up to 12 months, no less than 3; under circumstances state
chooses to say if you do -- we will make license permanent (ex. drug use)
,Can a resident conduct business after moving to a new state with the old state's
license?☑️Correct Ans-Yes for 90 days if license from other state is in good standing.
Twisting☑️Correct Ans-Making unfair comparison
ex- bait and switch tactic
Churning☑️Correct Ans-Replacing your own company's business from within.
ex- canceled ins pol to rewrite to make more commission.
Coersion☑️Correct Ans-forcing someone into doing something
pressue, ect
Defamation☑️Correct Ans-Disparaging talk about a company, good, products, person, etc
At what age can minors enter into a contract for insurance?☑️Correct Ans-A person not less
than 15 years of age as determined by the nearest birthday, but it is not valid unless an age of
Majority, age 18, parent or guardian, also signs.
unfair trade practices☑️Correct Ans-coercion, defamation, twisting, churning, rebates and
inducements, misrepresentation of medicare/medicaid,rights of borrowers
rights of borrowers☑️Correct Ans-the lender can offer insurance, but cannot force the borrower
to make you buy it from them.
Coverage for newly borns on life insurance☑️Correct Ans-covered but must survive 15 days
before a death claim would be payable
coverage for newly born or adopted children on Health Insurance☑️Correct Ans-Child is
covered at first breath and would be covered for the first 31 days, but not after 31 days unless the
parent adds them to policy
, creditor vs. debtor☑️Correct Ans-creditor= bank; debtor= borrower or client
Age requirement for credit life☑️Correct Ans-70 or must pay off before 71
age requirement for credit accident and sickness (health)☑️Correct Ans-65, or pay off before 66
uses of life insurance☑️Correct Ans-business continuation, BOE
cross purchase
entity purchase
section 303 stock redemption
deferred compensation
split dollar
key person
buy-sell agreement
cross-purchase plan
entity-purchase plan
buy-sell agreement☑️Correct Ans-allows associates of the deceased to purchase deceased's
interest.
who can legally draw a buy-sell agreement?☑️Correct Ans-attorney
cross purchase plan☑️Correct Ans-one or more buy sell agreements funded by life insurance.
each partner buys, owns, and names himself beneficiary on a life policy naming the other partner
as insured.
entity purchase plan☑️Correct Ans-when the partnership is the owner, the beneficiary, and
premium payor on all partner's lives.
