GA: Life Insurance Exam
Questions and Answers
100% Pass
What is insurable interest in life insurance?
Answer: A legal requirement that the policyholder must have a financial or
emotional stake in the continued life of the insured at the time the policy is issued.
Explanation: Prevents life insurance from being used for gambling or speculation.
Which is a feature of term life insurance?
A) Builds cash value
B) Level face amount for a specified term
C) Premiums decrease automatically
D) Guaranteed payout at a certain age
Answer: B) Level face amount for a specified term.
Explanation: Term insurance provides coverage for a set period without
accumulating cash value.
Renewable term life policy means:
Answer: The policy can be renewed at the end of the term without evidence of
insurability, although premiums may increase.
Which rider allows conversion from term to whole life insurance?
A) Waiver of Premium Rider
B) Accelerated Death Benefit Rider
C) Term Conversion Rider
, D) Guaranteed Insurability Rider
Answer: C) Term Conversion Rider.
When must a GA life insurance agent provide a Buyer’s Guide?
Answer: At or before policy delivery.
What is underwriting in life insurance?
Answer: The process of evaluating risk factors such as age, health, and lifestyle to
determine eligibility and premium rates.
If the first premium is not paid when the policy is delivered:
Answer: Coverage may be conditional; a conditional receipt or temporary insurance
may apply until payment is made.
Third-party ownership means:
Answer: Someone other than the insured (like a trust or business) owns the policy
and pays the premiums.
Which of the following is generally taxable to the beneficiary?
A) Death benefit
B) Dividends left with the insurer
C) Cash value growth while policy is in force
D) None of the above
Answer: B) Dividends left with the insurer.
What is the Georgia Life & Health Insurance Guaranty Association?
Answer: A state entity that protects policyholders if their insurance company
becomes insolvent.
11–20
Which is a mandatory provision in life insurance?
Questions and Answers
100% Pass
What is insurable interest in life insurance?
Answer: A legal requirement that the policyholder must have a financial or
emotional stake in the continued life of the insured at the time the policy is issued.
Explanation: Prevents life insurance from being used for gambling or speculation.
Which is a feature of term life insurance?
A) Builds cash value
B) Level face amount for a specified term
C) Premiums decrease automatically
D) Guaranteed payout at a certain age
Answer: B) Level face amount for a specified term.
Explanation: Term insurance provides coverage for a set period without
accumulating cash value.
Renewable term life policy means:
Answer: The policy can be renewed at the end of the term without evidence of
insurability, although premiums may increase.
Which rider allows conversion from term to whole life insurance?
A) Waiver of Premium Rider
B) Accelerated Death Benefit Rider
C) Term Conversion Rider
, D) Guaranteed Insurability Rider
Answer: C) Term Conversion Rider.
When must a GA life insurance agent provide a Buyer’s Guide?
Answer: At or before policy delivery.
What is underwriting in life insurance?
Answer: The process of evaluating risk factors such as age, health, and lifestyle to
determine eligibility and premium rates.
If the first premium is not paid when the policy is delivered:
Answer: Coverage may be conditional; a conditional receipt or temporary insurance
may apply until payment is made.
Third-party ownership means:
Answer: Someone other than the insured (like a trust or business) owns the policy
and pays the premiums.
Which of the following is generally taxable to the beneficiary?
A) Death benefit
B) Dividends left with the insurer
C) Cash value growth while policy is in force
D) None of the above
Answer: B) Dividends left with the insurer.
What is the Georgia Life & Health Insurance Guaranty Association?
Answer: A state entity that protects policyholders if their insurance company
becomes insolvent.
11–20
Which is a mandatory provision in life insurance?
