Georgia Life and Health Mock Exam QUESTIONS WITH ANSWERS

Georgia Life and Health Mock Exam |\ |\ |\ |\ |\ |\




QUESTIONS WITH ANSWERS |\ |\




An employee of 20 years recently [retired] at age 59 1/2. This
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


employee's group life contract can be: |\ |\ |\ |\ |\




1. converted to an individual permanent policy at an individual
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


rate
2. converted to an individual permanent policy at a group rate
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\




3. continued at an individual rate
|\ |\ |\ |\ |\




4. continued at a group rate - CORRECT ANSWERS ✔✔1.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


converted to an individual permanent policy at an individual rate
|\ |\ |\ |\ |\ |\ |\ |\ |\




A [level] premium indicates:
|\ |\ |\




1. the premium is fixed for a period stated in the contract, then
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


becomes variable |\




2. the premium can only be changed with the consent of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


insurer
3. the premium stays level until the policy's renewal date
|\ |\ |\ |\ |\ |\ |\ |\ |\




4. the premium is fixed for the entire duration of the contract -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


CORRECT ANSWERS ✔✔4. the premium is fixed for the entire
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


duration of the contract |\ |\ |\




S takes out an accident and sickness insurance policy which
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


contains a provision that states that the [agent does not have
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


the authority] to change the policy or waive any of its provisions.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


Which health [policy] provision is this?
|\ |\ |\ |\ |\ |\

,1. legal actions
|\ |\




2. insurance with other insurers
|\ |\ |\ |\




3. entire contract
|\ |\




4. reinstatement - CORRECT ANSWERS ✔✔3. entire contract
|\ |\ |\ |\ |\ |\ |\




When a person returns to work after a period of total [disability]
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


but cannot earn as much as he or she did before the disability,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


this situation is called which of the following?
|\ |\ |\ |\ |\ |\ |\




1. waiver of premium
|\ |\ |\




2. recurring disability
|\ |\




3. residual disability
|\ |\




4. presumptive disability - CORRECT ANSWERS ✔✔3. residual
|\ |\ |\ |\ |\ |\ |\ |\


disability


P is a Major Medical policy owner who hospitalized as a result of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


injuries sustained from participating in a [carjacking]. How will
|\ |\ |\ |\ |\ |\ |\ |\ |\


the insurer most likely handle the claim?
|\ |\ |\ |\ |\ |\




1. claim will be denied and policy terminated
|\ |\ |\ |\ |\ |\ |\




2. claim will partially paid
|\ |\ |\ |\




3. claim will be paid
|\ |\ |\ |\




4. clim will be denied - CORRECT ANSWERS ✔✔4. claim will be
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


denied


A [mutual] insurance company and a [stock] insurance company
|\ |\ |\ |\ |\ |\ |\ |\ |\


have one main [difference] between them. What is this major
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


contrast? |\

, 1. stock company is regulated by the state where its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


incorporated. Mutual company is regulated by its policy owners.
|\ |\ |\ |\ |\ |\ |\ |\




2. stock company is considered an authorized insurer. Mutual
|\ |\ |\ |\ |\ |\ |\ |\ |\


company is considered an unauthorized insurer.
|\ |\ |\ |\ |\




3. stock company is owned by its policyowners. Mutual company
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


is owned by its shareholders.
|\ |\ |\ |\




4. stock company is owned by its shareholders. Mutual company
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


is owned by its policyholders. - CORRECT ANSWERS ✔✔4. stock
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


company is owned by its shareholders. Mutual company is owned
|\ |\ |\ |\ |\ |\ |\ |\ |\


by its policyholders.
|\ |\ |\




During the application process, the [agent's primary
|\ |\ |\ |\ |\ |\ |\


responsibility] is to |\ |\




1. the Commissioner
|\ |\




2. the applicant
|\ |\




3. the insurance company
|\ |\ |\




4. the State of Georgia - CORRECT ANSWERS ✔✔3. the insurance
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


company


B receives [yearly] dividends and interest from a participating life
|\ |\ |\ |\ |\ |\ |\ |\ |\


insurance policy. Which of these should B include as [gross
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


income] for [federal income tax] purposes?
|\ |\ |\ |\ |\




1. interest and dividends
|\ |\ |\




2. interest only
|\ |\




3. dividends only
|\ |\




4. neither interest nor dividends are taxable - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\


ANSWERS ✔✔2. interest only |\ |\ |\