GA Life Insurance Exam Study Guide | 2026 Insurance Licensing Prep
Who elects the governing body of a mutual insurance company? - (answer)policyholders
What year was the McCarran-Ferguson Act enacted? - (answer)1945
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its
members is known as: - (answer)a fraternal benefit society
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future
obligations to its policyholders is called: - (answer)reserves
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained? - (answer)Fair Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - (answer)warranty
What is the consideration given by an insurer in the consideration clause of a life policy? -
(answer)promise to pay a death benefit to a named beneficiary
Statements made on an insurance application that are believed to be true to the best of the applicant's
knowledge are called: - (answer)representations
Which of the following consists of an offer, acceptance, and consideration? - (answer)contract
Which of these require an offer, acceptance, and consideration? - (answer)contract
In regards to representation or warranties, which of these statements is TRUE? - (answer)If material to
the risk, false representation will void a policy
Insurance policies are offered on a "take it or leave it" basis, which make them: - (answer)Contracts of
Adhesion
, GA Life Insurance Exam Study Guide | 2026 Insurance Licensing Prep
A life insurance policy would be considered a wagering contract WITHOUT: - (answer)insurable interest
Insurance policies are considered aleatory contracts because - (answer)performance is conditioned upon
a future occurance
Life and health insurance policies are: - (answer)Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? - (answer)insurance company
When must insurable interest be present in order for a life insurance policy to be valid? - (answer)when
the application is made
Which of these is NOT a type of agent authority - (answer)principal
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have: - (answer)insurable interest in the proposed insured
What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then
pays a lump sum benefit at the end of that 30 years? - (answer)family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? - (answer)upon the death of the
insured
A 15-year mortgage is best protected by what kind of life policy? - (answer)15-year decreasing term
A term life insurance policy matures: - (answer)upon the insured's death during the term of the policy
The amount of coverage on a group credit life policy is limited to: - (answer)the insured's total loan
value
Who elects the governing body of a mutual insurance company? - (answer)policyholders
What year was the McCarran-Ferguson Act enacted? - (answer)1945
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its
members is known as: - (answer)a fraternal benefit society
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future
obligations to its policyholders is called: - (answer)reserves
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained? - (answer)Fair Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - (answer)warranty
What is the consideration given by an insurer in the consideration clause of a life policy? -
(answer)promise to pay a death benefit to a named beneficiary
Statements made on an insurance application that are believed to be true to the best of the applicant's
knowledge are called: - (answer)representations
Which of the following consists of an offer, acceptance, and consideration? - (answer)contract
Which of these require an offer, acceptance, and consideration? - (answer)contract
In regards to representation or warranties, which of these statements is TRUE? - (answer)If material to
the risk, false representation will void a policy
Insurance policies are offered on a "take it or leave it" basis, which make them: - (answer)Contracts of
Adhesion
, GA Life Insurance Exam Study Guide | 2026 Insurance Licensing Prep
A life insurance policy would be considered a wagering contract WITHOUT: - (answer)insurable interest
Insurance policies are considered aleatory contracts because - (answer)performance is conditioned upon
a future occurance
Life and health insurance policies are: - (answer)Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? - (answer)insurance company
When must insurable interest be present in order for a life insurance policy to be valid? - (answer)when
the application is made
Which of these is NOT a type of agent authority - (answer)principal
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have: - (answer)insurable interest in the proposed insured
What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then
pays a lump sum benefit at the end of that 30 years? - (answer)family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? - (answer)upon the death of the
insured
A 15-year mortgage is best protected by what kind of life policy? - (answer)15-year decreasing term
A term life insurance policy matures: - (answer)upon the insured's death during the term of the policy
The amount of coverage on a group credit life policy is limited to: - (answer)the insured's total loan
value
