Georgia Life Insurance Licensing Exam |
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100% Accurate
What year was the McCarran-Ferguson Act enacted? -✓✓1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of its members is known as: -✓✓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: -✓✓reserves
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? -✓✓Fair Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: -✓✓warranty
What is the consideration given by an insurer in the consideration clause of a life policy?
-✓✓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: -✓✓representations
Which of the following consists of an offer, acceptance, and consideration? -✓✓contract
Which of these require an offer, acceptance, and consideration? -✓✓contract
In regards to representation or warranties, which of these statements is TRUE? -✓✓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: -
✓✓Contracts of Adhesion
A life insurance policy would be considered a wagering contract WITHOUT: -
✓✓insurable interest
Insurance policies are considered aleatory contracts because -✓✓performance is
conditioned upon a future occurance
Life and health insurance policies are: -✓✓Unilateral contracts
, Who makes the legally enforceable promises in a unilateral contract? -✓✓insurance
company
When must insurable interest be present in order for a life insurance policy to be valid? -
✓✓when the application is made
Which of these is NOT a type of agent authority -✓✓principal
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have: -✓✓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? -✓✓family
maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? -✓✓upon the
death of the insured
A 15-year mortgage is best protected by what kind of life policy? -✓✓15-year
decreasing term
A term life insurance policy matures: -✓✓upon the insured's death during the term of the
policy
The amount of coverage on a group credit life policy is limited to: -✓✓the insured's total
loan value
Which statement is TRUE regarding a Variable Whole Life policy? -✓✓a minimum
guaranteed Death benefit is provided
Life insurance that covers an insured's whole life with level premiums paid over a limited
time is called: -✓✓limited pay life
Which of the following characteristics is CORRECT about Interest Sensitive Whole Life?
-✓✓premium payments can vary
What kind of life insurance product covers children under their parent's policy? -✓✓term
rider
Which of the following policies is characterized by a flexible premium and death benefit
and allows the policy owner control of the investment aspect of the plan? -✓✓variable
universal life
Questions & Answers | Study Pack |
100% Accurate
What year was the McCarran-Ferguson Act enacted? -✓✓1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of its members is known as: -✓✓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: -✓✓reserves
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? -✓✓Fair Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: -✓✓warranty
What is the consideration given by an insurer in the consideration clause of a life policy?
-✓✓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: -✓✓representations
Which of the following consists of an offer, acceptance, and consideration? -✓✓contract
Which of these require an offer, acceptance, and consideration? -✓✓contract
In regards to representation or warranties, which of these statements is TRUE? -✓✓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: -
✓✓Contracts of Adhesion
A life insurance policy would be considered a wagering contract WITHOUT: -
✓✓insurable interest
Insurance policies are considered aleatory contracts because -✓✓performance is
conditioned upon a future occurance
Life and health insurance policies are: -✓✓Unilateral contracts
, Who makes the legally enforceable promises in a unilateral contract? -✓✓insurance
company
When must insurable interest be present in order for a life insurance policy to be valid? -
✓✓when the application is made
Which of these is NOT a type of agent authority -✓✓principal
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have: -✓✓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? -✓✓family
maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? -✓✓upon the
death of the insured
A 15-year mortgage is best protected by what kind of life policy? -✓✓15-year
decreasing term
A term life insurance policy matures: -✓✓upon the insured's death during the term of the
policy
The amount of coverage on a group credit life policy is limited to: -✓✓the insured's total
loan value
Which statement is TRUE regarding a Variable Whole Life policy? -✓✓a minimum
guaranteed Death benefit is provided
Life insurance that covers an insured's whole life with level premiums paid over a limited
time is called: -✓✓limited pay life
Which of the following characteristics is CORRECT about Interest Sensitive Whole Life?
-✓✓premium payments can vary
What kind of life insurance product covers children under their parent's policy? -✓✓term
rider
Which of the following policies is characterized by a flexible premium and death benefit
and allows the policy owner control of the investment aspect of the plan? -✓✓variable
universal life
