GA Life Insurance Exam 2025 Questions
and Answers
Who elects the governing body of a mutual insurance company? - ANSWER-
policyholders
What year was the McCarran-Ferguson Act enacted? - ANSWER-1945
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - 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: - ANSWER-
reserves
What is the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - ANSWER-Fair
Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - ANSWER-
warranty
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What is the consideration given by an insurer in the consideration clause of a life
policy? - 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: - ANSWER-representations
Which of the following consists of an offer, acceptance, and consideration? -
ANSWER-contract
Which of these require an offer, acceptance, and consideration? - ANSWER-
contract
In regards to representation or warranties, which of these statements is TRUE? -
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: -
ANSWER-Contracts of Adhesion
A life insurance policy would be considered a wagering contract WITHOUT: -
ANSWER-insurable interest
Insurance policies are considered aleatory contracts because - ANSWER-
performance is conditioned upon a future occurance
Life and health insurance policies are: - ANSWER-Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? - ANSWER-
insurance company
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, When must insurable interest be present in order for a life insurance policy to be
valid? - ANSWER-when the application is made
Which of these is NOT a type of agent authority - ANSWER-principal
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - 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? -
ANSWER-family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? - ANSWER-
upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? - ANSWER-15-
year decreasing term
A term life insurance policy matures: - 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: - ANSWER-the
insured's total loan value
Which statement is TRUE regarding a Variable Whole Life policy? - ANSWER-a
minimum guaranteed Death benefit is provided
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
and Answers
Who elects the governing body of a mutual insurance company? - ANSWER-
policyholders
What year was the McCarran-Ferguson Act enacted? - ANSWER-1945
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - 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: - ANSWER-
reserves
What is the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - ANSWER-Fair
Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - ANSWER-
warranty
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What is the consideration given by an insurer in the consideration clause of a life
policy? - 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: - ANSWER-representations
Which of the following consists of an offer, acceptance, and consideration? -
ANSWER-contract
Which of these require an offer, acceptance, and consideration? - ANSWER-
contract
In regards to representation or warranties, which of these statements is TRUE? -
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: -
ANSWER-Contracts of Adhesion
A life insurance policy would be considered a wagering contract WITHOUT: -
ANSWER-insurable interest
Insurance policies are considered aleatory contracts because - ANSWER-
performance is conditioned upon a future occurance
Life and health insurance policies are: - ANSWER-Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? - ANSWER-
insurance company
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, When must insurable interest be present in order for a life insurance policy to be
valid? - ANSWER-when the application is made
Which of these is NOT a type of agent authority - ANSWER-principal
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - 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? -
ANSWER-family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? - ANSWER-
upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? - ANSWER-15-
year decreasing term
A term life insurance policy matures: - 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: - ANSWER-the
insured's total loan value
Which statement is TRUE regarding a Variable Whole Life policy? - ANSWER-a
minimum guaranteed Death benefit is provided
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
