GA Life AND Health Insurance Exam QUESTIONS WITH ANSWERS

GA Life AND Health Insurance Exam
|\ |\ |\ |\ |\ |\




QUESTIONS WITH ANSWERS |\ |\




Attained Age - CORRECT ANSWERS ✔✔insured's age at the time
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


the policy is issued or renewed.
|\ |\ |\ |\ |\




Cash Value - CORRECT ANSWERS ✔✔A policy's savings element
|\ |\ |\ |\ |\ |\ |\ |\ |\


or living benefit.
|\ |\




Face Amount - CORRECT ANSWERS ✔✔The amount of benefit
|\ |\ |\ |\ |\ |\ |\ |\ |\


stated in the life insurance policy.
|\ |\ |\ |\ |\




Fixed life insurance - CORRECT ANSWERS ✔✔contracts that offer
|\ |\ |\ |\ |\ |\ |\ |\ |\


guaranteed minimum or fixed benefits. |\ |\ |\ |\




Deferred - CORRECT ANSWERS ✔✔with-held or postponed until a
|\ |\ |\ |\ |\ |\ |\ |\ |\


specified time or event in the future. |\ |\ |\ |\ |\ |\




Endow - CORRECT ANSWERS ✔✔the cash value of a whole life
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


policy has reached the contractual face amount.
|\ |\ |\ |\ |\ |\




Level Premium - CORRECT ANSWERS ✔✔the premium that does
|\ |\ |\ |\ |\ |\ |\ |\ |\


not change throughout the life of a policy.
|\ |\ |\ |\ |\ |\ |\

,Liquidation of an estate - CORRECT ANSWERS ✔✔converting a |\ |\ |\ |\ |\ |\ |\ |\ |\


person's net worth into a cash flow. |\ |\ |\ |\ |\ |\




Non-forfeiture values - CORRECT ANSWERS ✔✔benefits in a life |\ |\ |\ |\ |\ |\ |\ |\ |\


insurance policy that the policy owner cannot lose even if the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


policy is surrendered or lapses.
|\ |\ |\ |\




Policy maturity - CORRECT ANSWERS ✔✔in life policies, the time
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


when the face value is paid out.
|\ |\ |\ |\ |\ |\




Qualified plan - CORRECT ANSWERS ✔✔a retirement plan that
|\ |\ |\ |\ |\ |\ |\ |\ |\


meets IRS guidelines for receiving favorable tax treatment
|\ |\ |\ |\ |\ |\ |\




Securities - CORRECT ANSWERS ✔✔financial instruments that
|\ |\ |\ |\ |\ |\ |\


may trade for value (ex: stocks, bonds, options).
|\ |\ |\ |\ |\ |\ |\




Suitability - CORRECT ANSWERS ✔✔a requirement to determine if
|\ |\ |\ |\ |\ |\ |\ |\


an insurance product is appropriate for a customer
|\ |\ |\ |\ |\ |\ |\ |\




variable life insurance - CORRECT ANSWERS ✔✔contracts in
|\ |\ |\ |\ |\ |\ |\ |\


which the cash values accumulate based upon specific portfolio
|\ |\ |\ |\ |\ |\ |\ |\ |\


of stocks without guarantees of performance.
|\ |\ |\ |\ |\




Term life - CORRECT ANSWERS ✔✔is temporary protection
|\ |\ |\ |\ |\ |\ |\ |\


because it only provides coverage for a specific period of time.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


Also known as; provide for the greatest amount of coverage for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


the lowest premium as compared to any other form of protection.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


Usually a max age offered.
|\ |\ |\ |\ |\

,Term Life - CORRECT ANSWERS ✔✔Provide pure death protection
|\ |\ |\ |\ |\ |\ |\ |\


- if the insured dies during the term, the policy pays the death
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


benefit to the beneficiary. |\ |\ |\




Types of Term Life - CORRECT ANSWERS ✔✔Level, Increasing,
|\ |\ |\ |\ |\ |\ |\ |\ |\


Decreasing


Level term insurance - CORRECT ANSWERS ✔✔is the most
|\ |\ |\ |\ |\ |\ |\ |\ |\


common type. the word level refers to the death benefit that
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


does not change throughout the life of the policy.
|\ |\ |\ |\ |\ |\ |\ |\




Annually Renewable term (ART) - CORRECT ANSWERS ✔✔Is the |\ |\ |\ |\ |\ |\ |\ |\ |\


purest form of term insurance - the death benefit remains level
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


(in the sense it's level term policy). The policy may be
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


guaranteed to be renewable each year with out proof of |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


insurability - but the premium increases annually according the |\ |\ |\ |\ |\ |\ |\ |\ |\


the attained age - as the probability of death increases.
|\ |\ |\ |\ |\ |\ |\ |\ |\




Decreasing Term - CORRECT ANSWERS ✔✔policies feature a level |\ |\ |\ |\ |\ |\ |\ |\


premium and a death benefit that decreases each year over the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


duration of the policy term. Primarily used when the amount of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


needed protection is time sensitive. Ex: mortgage or other debts.
|\ |\ |\ |\ |\ |\ |\ |\ |\


- The amount of coverage thereby decreases as the outstanding
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


loan balance decreases each year. Usually convertable - however
|\ |\ |\ |\ |\ |\ |\ |\


it is usually not renewable since the death benefit is $0 at the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


end of the policy term. |\ |\ |\ |\




Which of the following statements is TRUE concerning the
|\ |\ |\ |\ |\ |\ |\ |\ |\


Accidental Death Rider? |\ |\

, A. It is also known as a triple indemnity rider
|\ |\ |\ |\ |\ |\ |\ |\ |\




B. This rider is only available to insureds over the age of 65
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\




C. It is only available in group insurance
|\ |\ |\ |\ |\ |\ |\




D. IT WILL PAY DOUBLE OR TRIPLE THE FACE AMOUNT - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


ANSWERS ✔✔D. It will pay double or triple the face amount.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\




An agent and an applicant for a life insurance policy fill out and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


sign the application. However, the applicant does not wish to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


give the agent the initial premium, and no conditional receipt is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


issued. When will coverage begin? |\ |\ |\ |\




A. When the agent submits the application to the company and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


the company issues a conditional receipt.
|\ |\ |\ |\ |\




B. When the agent delivers the policy, collects the initial
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


premium, and the applicant completes an acceptable Statement |\ |\ |\ |\ |\ |\ |\ |\


of Good Health.
|\ |\




C. On the designated effective date.
|\ |\ |\ |\ |\




D. On the application date. - CORRECT ANSWERS ✔✔B. When the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


agent delivers the policy, collects the initial premium, and the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


applicant completes an acceptable Statement of Good Health.
|\ |\ |\ |\ |\ |\ |\




Individual and group accident and sickness policies that cover
|\ |\ |\ |\ |\ |\ |\ |\ |\


what kinds of losses must also provide for newborns, from the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


moment of birth, with all health insurance benefits applicable to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


children?


A. specified child-related losses.
|\ |\ |\