Life Insurance Study Exam- Georgia QUESTIONS WITH ANSWERS

Life Insurance Study Exam- Georgia |\ |\ |\ |\ |\




QUESTIONS WITH ANSWERS |\ |\




An insurance producer selling a Variable Annuity whose cash
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value depends on the performance of an underlying investment
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account must be registered with: - CORRECT ANSWERS ✔✔The
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Financial Industry Regulatory Authority (FINRA, formerly the
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NASD)


A life insurance policy whose cash value will fluctuate depending
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upon the performance of a separate account is: - CORRECT
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ANSWERS ✔✔Variable Life |\ |\




John Livingston owns a 30-Pay Life policy that he purchased at
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the age of 30. The cash value will equal the face amount of the
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policy when he reaches the age of: - CORRECT ANSWERS ✔✔100
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Which of the following types of insurance policies would provide
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the greatest amount of protection for a temporary period during
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which an insured will have limited financial resources? - CORRECT
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ANSWERS ✔✔Term
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Which of the following statements about a Renewable Term policy
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is true? - CORRECT ANSWERS ✔✔It is renewable at the option of
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the insured |\

,An Annuity is designed to provide which of the following financial
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features?
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I. The liquidation of principal and interest
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II. Favorable tax treatment
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III. The creation of an estate - CORRECT ANSWERS ✔✔I and II
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A 45-year old customer who is seeking to supplement his
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retirement income at age 65 would not buy a: - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


ANSWERS ✔✔Immediate Annuity |\ |\




Which of the following is an example of a Limited-Pay Life policy?
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- CORRECT ANSWERS ✔✔Life Paid-Up at Age 65
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You have a client that is a real estate agent. Which of the
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following types of permanent protection is best for this type of
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client? - CORRECT ANSWERS ✔✔Adjustable life
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Which of the following individual policy conversions is usually
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permitted without any evidence of insurability? - CORRECT |\ |\ |\ |\ |\ |\ |\ |\


ANSWERS ✔✔Conversion from a Term policy to a Whole Life |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


policy


At age 30, Tom Morris wishes to purchase a Whole Life policy. His
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producer explains that he can pay for the policy in several ways.
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One method is called 20-Pay Life, and another, Straight Life. Tom
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wishes to know which plan will accumulate cash value at a faster
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rate in the early years of the policy. Which of the following would
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, be the producer's most appropriate response? - CORRECT
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ANSWERS ✔✔"20-Pay Life will accumulate cash value faster." |\ |\ |\ |\ |\ |\ |\




Sandra Timms, age 27, is advised by her producer to purchase
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Life insurance to cover a 20-year-amortized $50,000 business-
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improvement loan. Which of the following plans would |\ |\ |\ |\ |\ |\ |\ |\


adequately protect Ms. Timms at the minimum premium outlay? - |\ |\ |\ |\ |\ |\ |\ |\ |\


CORRECT ANSWERS ✔✔A $50,000 Decreasing Term policy for 20
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years


In order to sell variable life insurance you must be registered
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with which of the following? - CORRECT ANSWERS ✔✔The NASD
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Which of the following contracts requires that a series of benefit
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payments be made at specified intervals? - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\ |\ |\


✔✔Annuity


A life insurance policy that covers two parties, but only pays
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when the last party dies is known as: - CORRECT ANSWERS
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✔✔Survivorship Life |\




Most Term Life insurance: - CORRECT ANSWERS ✔✔Is convertible
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to permanent Whole Life without a physical exam
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If a person wants to invest a lump sum in an annuity that may
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appreciate along with market and economic conditions, they |\ |\ |\ |\ |\ |\ |\ |\


should buy a: - CORRECT ANSWERS ✔✔Variable Annuity
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