Georgia Life Insurance Exam Prep | Study
Guide Q&A | A+ Guaranteed Pass Material
• Which of the following is NOT a characteristic of term life? -✓✓Cash value
accumulation
• Which policy guarantees both premium and death benefit? -✓✓Whole life
• Which policy allows flexible premiums? -✓✓Universal life
• Who bears the investment risk in variable life? -✓✓Policyowner
• What happens if premiums are not paid after grace period? -✓✓Policy lapses
• Which clause prevents insurer from denying claim after 2 years? -✓✓Incontestability
clause
• Which clause limits coverage for suicide early in policy? -✓✓Suicide clause
• Which beneficiary cannot be changed without consent? -✓✓Irrevocable beneficiary
• What happens if no beneficiary is named? -✓✓Proceeds go to the estate
• Which settlement option provides payments for life? -✓✓Life income
• Which option pays interest only? -✓✓Interest-only option
• Which nonforfeiture option provides temporary coverage? -✓✓Extended term
• Which option reduces face amount but keeps policy active? -✓✓Reduced paid-up
• What happens to policy loan at death? -✓✓Deducted from proceeds
• Which rider allows early access to benefits? -✓✓Accelerated benefit rider
• Which rider waives premiums during disability? -✓✓Waiver of premium rider
• Which rider guarantees future purchase without insurability? -✓✓Guaranteed
insurability rider
• Which act gives states authority to regulate insurance? -✓✓McCarran-Ferguson Act
, • Which law protects consumer credit info? -✓✓Fair Credit Reporting Act
• Which law protects medical privacy? -✓✓HIPAA
• Which practice involves illegal inducements? -✓✓Rebating
• Which practice involves misleading replacement? -✓✓Twisting
• Which term describes sharing commissions legally? -✓✓With licensed agents only
• Which risk classification has lowest premiums? -✓✓Preferred
• Which classification has highest risk? -✓✓Substandard
• What is adverse selection? -✓✓High-risk individuals seeking coverage
• What is a conditional receipt? -✓✓Coverage effective if conditions met
• What is a binding receipt? -✓✓Immediate temporary coverage
• Which type of agent authority is written? -✓✓Express authority
• Which authority is assumed necessary? -✓✓Implied authority
• Which authority appears real to others? -✓✓Apparent authority
• Which contract type involves unequal exchange? -✓✓Aleatory
• Which contract requires conditions? -✓✓Conditional
• Which contract is one-sided promise? -✓✓Unilateral
• Which contract is drafted by insurer? -✓✓Adhesion
• What is indemnity? -✓✓Restore to original financial position
• What is insurable risk? -✓✓Meets criteria for coverage
• Which hazard involves dishonesty? -✓✓Moral hazard
• Which hazard involves carelessness? -✓✓Morale hazard
• Which hazard is physical condition? -✓✓Physical hazard
Guide Q&A | A+ Guaranteed Pass Material
• Which of the following is NOT a characteristic of term life? -✓✓Cash value
accumulation
• Which policy guarantees both premium and death benefit? -✓✓Whole life
• Which policy allows flexible premiums? -✓✓Universal life
• Who bears the investment risk in variable life? -✓✓Policyowner
• What happens if premiums are not paid after grace period? -✓✓Policy lapses
• Which clause prevents insurer from denying claim after 2 years? -✓✓Incontestability
clause
• Which clause limits coverage for suicide early in policy? -✓✓Suicide clause
• Which beneficiary cannot be changed without consent? -✓✓Irrevocable beneficiary
• What happens if no beneficiary is named? -✓✓Proceeds go to the estate
• Which settlement option provides payments for life? -✓✓Life income
• Which option pays interest only? -✓✓Interest-only option
• Which nonforfeiture option provides temporary coverage? -✓✓Extended term
• Which option reduces face amount but keeps policy active? -✓✓Reduced paid-up
• What happens to policy loan at death? -✓✓Deducted from proceeds
• Which rider allows early access to benefits? -✓✓Accelerated benefit rider
• Which rider waives premiums during disability? -✓✓Waiver of premium rider
• Which rider guarantees future purchase without insurability? -✓✓Guaranteed
insurability rider
• Which act gives states authority to regulate insurance? -✓✓McCarran-Ferguson Act
, • Which law protects consumer credit info? -✓✓Fair Credit Reporting Act
• Which law protects medical privacy? -✓✓HIPAA
• Which practice involves illegal inducements? -✓✓Rebating
• Which practice involves misleading replacement? -✓✓Twisting
• Which term describes sharing commissions legally? -✓✓With licensed agents only
• Which risk classification has lowest premiums? -✓✓Preferred
• Which classification has highest risk? -✓✓Substandard
• What is adverse selection? -✓✓High-risk individuals seeking coverage
• What is a conditional receipt? -✓✓Coverage effective if conditions met
• What is a binding receipt? -✓✓Immediate temporary coverage
• Which type of agent authority is written? -✓✓Express authority
• Which authority is assumed necessary? -✓✓Implied authority
• Which authority appears real to others? -✓✓Apparent authority
• Which contract type involves unequal exchange? -✓✓Aleatory
• Which contract requires conditions? -✓✓Conditional
• Which contract is one-sided promise? -✓✓Unilateral
• Which contract is drafted by insurer? -✓✓Adhesion
• What is indemnity? -✓✓Restore to original financial position
• What is insurable risk? -✓✓Meets criteria for coverage
• Which hazard involves dishonesty? -✓✓Moral hazard
• Which hazard involves carelessness? -✓✓Morale hazard
• Which hazard is physical condition? -✓✓Physical hazard
