AD BANKER LIFE & HEALTH EXAM QUESTIONS WITH CORRECT ANSWERS
________ is/are not considered material to the policy issuance. - Answers Age and/or gender are
not considered material to the policy issuance.
One of your clients just reinstated his health insurance plane. When is coverage effective for
sickness and accident? - Answers 10 days for sickness, and immediately for accidental injuries
Jay receives an annual disability benefit of $10,000. His employer contributed 75% of the
premium. How much of Jay's benefit is subject to income tax? - Answers Jay is covered under a
contributory plan in which the employer is contributing 75% of premium, so 75% of the $10,000
benefit ($7,500) is subject to income tax
Reciprocal agreements, as defined in the Georgia Insurance Code, refers to: - Answers
Agreement between the Insurance Commissioner and regulators of other states in order to
facilitate licensing of nonresident adjusters in Georgia and other states
Burt named Liz as his beneficiary; however, he did not choose a Settlement Option. At the time
of his death, who determines the option to be used to receive the benefits? - Answers If the
owner of the policy does not select a Settlement Option while alive, then the beneficiary may
choose an option at the time of claim.
The bank may require its borrowers to have a life insurance policy to secure a loan in the event
of the borrower's death. Which provision gives the bank proportional protection but not control
of the policy. - Answers Collateral Assignment
Similar to life insurance, this party has all rights in the annuity contract. This party is referred to
as the: - Answers Owner
Which of the following causes of death is covered by an Accidental Death & Dismemberment
policy? - Answers Commercial airline crash
Which of the following statements regarding certificated of authority is correct? - Answers If an
insurance company refuses to be examined by the Commissioner, its certificate of authority
may be suspended or revoked
In a Medicare Supplement replacement sale, if the original policy has been in force for less than
________ months, the replacing insurer shall waive any time periods applicable to preexisting
conditions to the extent that they have already been satisfied under the original policy. -
Answers 6
Which of the following is the correct number of days in the grace period for each premium mode?
- Answers 7 days for weekly, 10 days for monthly, and 31 for all others
Mandatory uniform provisions found in health insurance policies are designed to protect the: -
Answers Insured
, All of the following are considered by definition to be examples of transacting insurance in the
state of Georgia, except: - Answers Adjusting a claim in Georgia
Which provision is a Mandatory Uniform Provision? - Answers Legal Actions
All of the following statements regarding producer appointments are true, except: - Answers
Certificates of authority for subagents must be renewed biennially (should read annually)
Albert owns a printing business in which he, at times, prints counterfeit money. One day while
processing counterfeit bills, his arm is severely damaged. His insurance will: - Answers Not
cover the claim since he was involved in an illegal act at the time of injury
An LTC insurer must provide notice of an upcoming premium rate schedule increase to all
policyholders at least ____ days prior to the implementation of the increase. - Answers 45
Which provision is an Optional Uniform Provision? - Answers Misstatement of Age
Which of the following is a requirement that all licensees must meet? - Answers Notify the
commissioner within 30 days of any change in business and residence address
Which of the following statements regarding the suspension of Harry's insurance agent license
accurately describes a reason for his suspension? - Answers He was default on a debt
Which of the following statements accurately describes the requirements for insurance
advertising established by the Georgia insurance code? - Answers Advertisements must
disclose the source of any statistical information used
The Life and Health Insurance Guaranty Association: - Answers Protects resident policyowners
and beneficiaries in case the insurer becomes insolvent
In Georgia, how many hours of CE does a recently licenses agent need to complete during each
biennium? - Answers 24
What is the maximum duration a temporary license may be valid for? - Answers 15 months
Timothy is the insured/owner of a universal life insurance policy and is concerned that in the
event of disability, the policy might lapse. Which rider would keep the policy from lapsing if he
became disabled? - Answers Waiver of Cost of Insurance
Alice finds she no longer is able to pay premiums on her $50,000 Whole Life Policy, but needs
that amount of protection for her family. Which Nonforfeiture Option provides this protection? -
Answers Extended Term
The widow or widower's Social Security blackout period lasts until a surviving, non-remarried
spouse reaches age _____. - Answers 60
Which policy utilizes a Corridor Deductible after Basic Medical Expense Coverage benefits have
________ is/are not considered material to the policy issuance. - Answers Age and/or gender are
not considered material to the policy issuance.
One of your clients just reinstated his health insurance plane. When is coverage effective for
sickness and accident? - Answers 10 days for sickness, and immediately for accidental injuries
Jay receives an annual disability benefit of $10,000. His employer contributed 75% of the
premium. How much of Jay's benefit is subject to income tax? - Answers Jay is covered under a
contributory plan in which the employer is contributing 75% of premium, so 75% of the $10,000
benefit ($7,500) is subject to income tax
Reciprocal agreements, as defined in the Georgia Insurance Code, refers to: - Answers
Agreement between the Insurance Commissioner and regulators of other states in order to
facilitate licensing of nonresident adjusters in Georgia and other states
Burt named Liz as his beneficiary; however, he did not choose a Settlement Option. At the time
of his death, who determines the option to be used to receive the benefits? - Answers If the
owner of the policy does not select a Settlement Option while alive, then the beneficiary may
choose an option at the time of claim.
The bank may require its borrowers to have a life insurance policy to secure a loan in the event
of the borrower's death. Which provision gives the bank proportional protection but not control
of the policy. - Answers Collateral Assignment
Similar to life insurance, this party has all rights in the annuity contract. This party is referred to
as the: - Answers Owner
Which of the following causes of death is covered by an Accidental Death & Dismemberment
policy? - Answers Commercial airline crash
Which of the following statements regarding certificated of authority is correct? - Answers If an
insurance company refuses to be examined by the Commissioner, its certificate of authority
may be suspended or revoked
In a Medicare Supplement replacement sale, if the original policy has been in force for less than
________ months, the replacing insurer shall waive any time periods applicable to preexisting
conditions to the extent that they have already been satisfied under the original policy. -
Answers 6
Which of the following is the correct number of days in the grace period for each premium mode?
- Answers 7 days for weekly, 10 days for monthly, and 31 for all others
Mandatory uniform provisions found in health insurance policies are designed to protect the: -
Answers Insured
, All of the following are considered by definition to be examples of transacting insurance in the
state of Georgia, except: - Answers Adjusting a claim in Georgia
Which provision is a Mandatory Uniform Provision? - Answers Legal Actions
All of the following statements regarding producer appointments are true, except: - Answers
Certificates of authority for subagents must be renewed biennially (should read annually)
Albert owns a printing business in which he, at times, prints counterfeit money. One day while
processing counterfeit bills, his arm is severely damaged. His insurance will: - Answers Not
cover the claim since he was involved in an illegal act at the time of injury
An LTC insurer must provide notice of an upcoming premium rate schedule increase to all
policyholders at least ____ days prior to the implementation of the increase. - Answers 45
Which provision is an Optional Uniform Provision? - Answers Misstatement of Age
Which of the following is a requirement that all licensees must meet? - Answers Notify the
commissioner within 30 days of any change in business and residence address
Which of the following statements regarding the suspension of Harry's insurance agent license
accurately describes a reason for his suspension? - Answers He was default on a debt
Which of the following statements accurately describes the requirements for insurance
advertising established by the Georgia insurance code? - Answers Advertisements must
disclose the source of any statistical information used
The Life and Health Insurance Guaranty Association: - Answers Protects resident policyowners
and beneficiaries in case the insurer becomes insolvent
In Georgia, how many hours of CE does a recently licenses agent need to complete during each
biennium? - Answers 24
What is the maximum duration a temporary license may be valid for? - Answers 15 months
Timothy is the insured/owner of a universal life insurance policy and is concerned that in the
event of disability, the policy might lapse. Which rider would keep the policy from lapsing if he
became disabled? - Answers Waiver of Cost of Insurance
Alice finds she no longer is able to pay premiums on her $50,000 Whole Life Policy, but needs
that amount of protection for her family. Which Nonforfeiture Option provides this protection? -
Answers Extended Term
The widow or widower's Social Security blackout period lasts until a surviving, non-remarried
spouse reaches age _____. - Answers 60
Which policy utilizes a Corridor Deductible after Basic Medical Expense Coverage benefits have
