Georgia Life Insurance Exam | Exam Questions
& Answers | Study Pack | 100% Correct | A+
• At the time of application -✓✓When must insurable interest exit?
• Insuring one's own life, family member, or business partner -✓✓What is insurable
interest?
• Agreement, consideration, competent parties and legal purpose -✓✓What are the
elements of a legal contract?
• One party prepares the contract, the other party must accept it as is -✓✓What is an
adhesion contract?
• An exchange of unequal amounts -✓✓What is an aleatory contract?
• Only one party is legally bound to do anything -✓✓What is a unilateral contract?
• Agent's observation about the applicant that can assist in underwriting -✓✓What is the
purpose of an agent's report?
• Application completed and signed, agent's report, premiums with application and
conditional receipt -✓✓What goes into the field underwriting by the agent?
• Application, consumer reports, MIB, and risk classification -✓✓What goes into
company underwriting?
• Standard, substandard, preferred -✓✓What are the three risk classifications?
• Mortality, interest, and expense -✓✓What are the three factors in premium
determination?
• How often a premium is paid -✓✓What does mode mean?
• Premium -✓✓The more frequently the premium is paid, the higher the _______
• The agent must obtain the premium and a statement of continued good health at the
time of the policy delivery -✓✓What do you do if the premium isn't paid with the
application?
• Protects consumers against circulation of inaccurate or obsolete information -✓✓What
does the Fair Credit Reporting Act protect?
,• General information and medical information -✓✓What are two parts that make up an
application?
• When the policy is signed and a check is given to the agent -✓✓When is the earliest a
policy can go into effect?
• It is intended to provide coverage on a date prior to the policy issue -✓✓What is the
purpose of a conditional receipt?
• Through and investigation and interviews with associates, friends and neighbors of the
consumer -✓✓How is information from investigative consumer reports obtained?
• Return the application to the applicant for completion -✓✓What do you do when an
application is incomplete?
• The date of the medical exam -✓✓An individual applied for an insurance policy and
paid the initial premium. The insurer issued a conditional receipt. Five days later the
applicant had to submit a medical exam. If the policy is issued, what would the effective
date be?
• $2,500 -✓✓What is the maximum penalty for habitual willful noncompliance with the
Fair Credit Reporting Act?
• Standard -✓✓Which risk represents the majority of people?
• False -✓✓True or false: Illustrations must be part of a contract.
• 5 days -✓✓If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to comply?
• True -✓✓True or false: an agent may not erase an answer on the application and put a
correct answer
• Inspection report -✓✓An underwriter may obtain information on an applicant's hobbies,
financial status, be habits by ordering a ___________
• Face amount -✓✓What does "level" refer to in level term insurance?
• False -✓✓True or false: term policies develop a cash amount.
• Adjusted each year to insured's attained age -✓✓Annually Renewable term policies'
premiums are...
,• Level, increasing and decreasing -✓✓What are the three kinds of death benefit under
term life?
• Insurance and cash account -✓✓What are the two components of a universal policy?
• Limited Pay Whole Life -✓✓Your client wants both protection and savings from the
insurance, and is willing to pay premiums until retirement at age 65. What would the
right policy be for this client?
• Can be term or whole; can convert from one to the other -✓✓What are the key
features of adjustable life?
• Can be increased or decreased by policy owners -✓✓Describe the premiums in
adjustable life
• Flexible; set by policy owner with proof of insurability -✓✓Describe the face amount in
adjustable life
• Fixed rate of return; general account -✓✓Describe the cash value in adjustable life
• Permanent insurance with renewable term protection component -✓✓What are the key
features in universal life?
• Flexible; minimum or target -✓✓Describe the premiums in universal life
• Guaranteed at a minimum level; general account -✓✓Describe the cash value in
universal life
• Permanent insurance -✓✓What is a key feature in variable life?
• Fixed (if whole life); flexible (if universal life) -✓✓Describe the premiums in variable life
• Can increase or decrease to a stated minimum -✓✓Describe the face amount in
variable life
• Not guaranteed; separate account -✓✓Describe the cash value in variable life
• Variable Universal Life Insurance -✓✓Which type of policy allows for a flexible
premium and a variable investment component?
• FINRA registration, securities license, and a life insurance license -✓✓What does an
agent need in order to sell variable life insurance?
, • False -✓✓True or false: In variable products, the premiums are invested in the
insurer's general account.
• Flexible -✓✓What type of premium do both universal life and variable life policies
have?
• Federal government, The SEC, The Insurance department -✓✓What entities regulate
variable life policies?
• Level fixed -✓✓Variable whole life insurance is based on what type of premium?
• Single premium and periodic premiums -✓✓What are the two options for premium
payments under annuities?
• Immediate or deferred -✓✓What two options are there for when payment begins under
annuities?
• Straight life or guaranteed minimum -✓✓What are the two benefit payment options
under annuities?
• Single life or Multiple life (joint/joint survivor) -✓✓What options do you have for how
many lives can be covered under an annuity?
• Fixed and variable -✓✓What are the two underlying investments under an annuity?
• Pure protection, lasts for specific term, no cash value -✓✓What are the general
characteristics of term life?
• Death benefit and premium -✓✓What is "level" under a level premium term?
• True -✓✓True or false: Annually renewable term renews each year without proof of
insurability
• They increase due to attained age -✓✓Describe the premiums under Annually
renewable term
• Coverage gradually decreases at a predetermined time -✓✓Describe the coverage
under decreasing term
• When the need for protection declines from year to year -✓✓What circumstance is
best for decreasing term?
• Renewable and convertible -✓✓What are two main features of a term policy?
& Answers | Study Pack | 100% Correct | A+
• At the time of application -✓✓When must insurable interest exit?
• Insuring one's own life, family member, or business partner -✓✓What is insurable
interest?
• Agreement, consideration, competent parties and legal purpose -✓✓What are the
elements of a legal contract?
• One party prepares the contract, the other party must accept it as is -✓✓What is an
adhesion contract?
• An exchange of unequal amounts -✓✓What is an aleatory contract?
• Only one party is legally bound to do anything -✓✓What is a unilateral contract?
• Agent's observation about the applicant that can assist in underwriting -✓✓What is the
purpose of an agent's report?
• Application completed and signed, agent's report, premiums with application and
conditional receipt -✓✓What goes into the field underwriting by the agent?
• Application, consumer reports, MIB, and risk classification -✓✓What goes into
company underwriting?
• Standard, substandard, preferred -✓✓What are the three risk classifications?
• Mortality, interest, and expense -✓✓What are the three factors in premium
determination?
• How often a premium is paid -✓✓What does mode mean?
• Premium -✓✓The more frequently the premium is paid, the higher the _______
• The agent must obtain the premium and a statement of continued good health at the
time of the policy delivery -✓✓What do you do if the premium isn't paid with the
application?
• Protects consumers against circulation of inaccurate or obsolete information -✓✓What
does the Fair Credit Reporting Act protect?
,• General information and medical information -✓✓What are two parts that make up an
application?
• When the policy is signed and a check is given to the agent -✓✓When is the earliest a
policy can go into effect?
• It is intended to provide coverage on a date prior to the policy issue -✓✓What is the
purpose of a conditional receipt?
• Through and investigation and interviews with associates, friends and neighbors of the
consumer -✓✓How is information from investigative consumer reports obtained?
• Return the application to the applicant for completion -✓✓What do you do when an
application is incomplete?
• The date of the medical exam -✓✓An individual applied for an insurance policy and
paid the initial premium. The insurer issued a conditional receipt. Five days later the
applicant had to submit a medical exam. If the policy is issued, what would the effective
date be?
• $2,500 -✓✓What is the maximum penalty for habitual willful noncompliance with the
Fair Credit Reporting Act?
• Standard -✓✓Which risk represents the majority of people?
• False -✓✓True or false: Illustrations must be part of a contract.
• 5 days -✓✓If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to comply?
• True -✓✓True or false: an agent may not erase an answer on the application and put a
correct answer
• Inspection report -✓✓An underwriter may obtain information on an applicant's hobbies,
financial status, be habits by ordering a ___________
• Face amount -✓✓What does "level" refer to in level term insurance?
• False -✓✓True or false: term policies develop a cash amount.
• Adjusted each year to insured's attained age -✓✓Annually Renewable term policies'
premiums are...
,• Level, increasing and decreasing -✓✓What are the three kinds of death benefit under
term life?
• Insurance and cash account -✓✓What are the two components of a universal policy?
• Limited Pay Whole Life -✓✓Your client wants both protection and savings from the
insurance, and is willing to pay premiums until retirement at age 65. What would the
right policy be for this client?
• Can be term or whole; can convert from one to the other -✓✓What are the key
features of adjustable life?
• Can be increased or decreased by policy owners -✓✓Describe the premiums in
adjustable life
• Flexible; set by policy owner with proof of insurability -✓✓Describe the face amount in
adjustable life
• Fixed rate of return; general account -✓✓Describe the cash value in adjustable life
• Permanent insurance with renewable term protection component -✓✓What are the key
features in universal life?
• Flexible; minimum or target -✓✓Describe the premiums in universal life
• Guaranteed at a minimum level; general account -✓✓Describe the cash value in
universal life
• Permanent insurance -✓✓What is a key feature in variable life?
• Fixed (if whole life); flexible (if universal life) -✓✓Describe the premiums in variable life
• Can increase or decrease to a stated minimum -✓✓Describe the face amount in
variable life
• Not guaranteed; separate account -✓✓Describe the cash value in variable life
• Variable Universal Life Insurance -✓✓Which type of policy allows for a flexible
premium and a variable investment component?
• FINRA registration, securities license, and a life insurance license -✓✓What does an
agent need in order to sell variable life insurance?
, • False -✓✓True or false: In variable products, the premiums are invested in the
insurer's general account.
• Flexible -✓✓What type of premium do both universal life and variable life policies
have?
• Federal government, The SEC, The Insurance department -✓✓What entities regulate
variable life policies?
• Level fixed -✓✓Variable whole life insurance is based on what type of premium?
• Single premium and periodic premiums -✓✓What are the two options for premium
payments under annuities?
• Immediate or deferred -✓✓What two options are there for when payment begins under
annuities?
• Straight life or guaranteed minimum -✓✓What are the two benefit payment options
under annuities?
• Single life or Multiple life (joint/joint survivor) -✓✓What options do you have for how
many lives can be covered under an annuity?
• Fixed and variable -✓✓What are the two underlying investments under an annuity?
• Pure protection, lasts for specific term, no cash value -✓✓What are the general
characteristics of term life?
• Death benefit and premium -✓✓What is "level" under a level premium term?
• True -✓✓True or false: Annually renewable term renews each year without proof of
insurability
• They increase due to attained age -✓✓Describe the premiums under Annually
renewable term
• Coverage gradually decreases at a predetermined time -✓✓Describe the coverage
under decreasing term
• When the need for protection declines from year to year -✓✓What circumstance is
best for decreasing term?
• Renewable and convertible -✓✓What are two main features of a term policy?
