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Georgia Life and Health Insurance WITH 300
QUESTIONS AND CORRECT DETAILED
SOLUTIONS JUST RELEASED THIS YEAR
Georgia Life and Health Insurance Exam – 300 Randomized Practice Questions
Exam Overview: The Georgia Life, Accident & Sickness Agent (12-GA-05) exam is administered
by Pearson VUE. The exam contains 135 total questions (125 scored + 10 unscored pretest
questions) with a 2.5-hour (150-minute) time limit. A 70% passing score is required. Candidates
must complete 16 hours of state-approved pre-licensing education. The exam covers both
national content (life insurance types, provisions, underwriting, health policies, social insurance)
and Georgia-specific laws and regulations (O.C.G.A. Title 33).
Question 1: The concept that a large number of similar exposures allows insurers to predict
losses more accurately is called what?
A) Indemnity
B) Utmost Good Faith
C) Law of Large Numbers
D) Subrogation
Answer: C The Law of Large Numbers states that the larger the pool of individual risks, the more
predictable actual losses become relative to expected losses.
Question 2: Which of the following is NOT a requirement for an insurable risk?
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A) Definite and measurable loss
B) Intentional loss
C) Large number of similar exposure units
D) Affordable premium
Answer: B Intentional losses are not insurable because they are predictable and controllable by
the insured, creating a moral hazard.
Question 3: An agent tells a client, "This policy is exactly like whole life but cheaper." This is an
example of what?
A) Legal comparison
B) Misrepresentation
C) Twisting
D) Rebating
Answer: B Misrepresentation involves making false, misleading, or incomplete statements to
induce a purchase. "Exactly like...but cheaper" is false unless it is a specifically defined product.
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Question 4: The term "consideration" in an insurance contract consists of what?
A) Only the premium paid
B) Only the application
C) The application and the premium
D) The agent's commission
Answer: C Consideration is the binding element of a contract. The applicant provides the
application (representations) and the premium; the insurer promises to pay covered claims.
Question 5: Which type of hazard is a physical condition that increases the chance of loss?
A) Moral hazard
B) Morale hazard
C) Physical hazard
D) Legal hazard
Answer: C A physical hazard is a tangible condition—such as faulty wiring or slippery floors—
that increases the likelihood of loss.
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Question 6: Under the NAIC Producer Licensing Model Act, a producer license that has not been
renewed by its expiration date generally does what?
A) Remains valid for an additional 90-day grace period
B) Expires and the producer may not transact insurance until reinstatement
C) Automatically converts to a temporary license
D) Must be replaced by a new license after re-taking the exam
Answer: B A lapsed license cannot be used to transact business; the producer must complete
reinstatement before resuming activity.
Question 7: What is the minimum number of employees required for a group to be eligible for
group life insurance in Georgia?
A) 5 employees
B) 10 employees
C) 2 employees
D) 25 employees
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SUCCESS!
Georgia Life and Health Insurance WITH 300
QUESTIONS AND CORRECT DETAILED
SOLUTIONS JUST RELEASED THIS YEAR
Georgia Life and Health Insurance Exam – 300 Randomized Practice Questions
Exam Overview: The Georgia Life, Accident & Sickness Agent (12-GA-05) exam is administered
by Pearson VUE. The exam contains 135 total questions (125 scored + 10 unscored pretest
questions) with a 2.5-hour (150-minute) time limit. A 70% passing score is required. Candidates
must complete 16 hours of state-approved pre-licensing education. The exam covers both
national content (life insurance types, provisions, underwriting, health policies, social insurance)
and Georgia-specific laws and regulations (O.C.G.A. Title 33).
Question 1: The concept that a large number of similar exposures allows insurers to predict
losses more accurately is called what?
A) Indemnity
B) Utmost Good Faith
C) Law of Large Numbers
D) Subrogation
Answer: C The Law of Large Numbers states that the larger the pool of individual risks, the more
predictable actual losses become relative to expected losses.
Question 2: Which of the following is NOT a requirement for an insurable risk?
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A) Definite and measurable loss
B) Intentional loss
C) Large number of similar exposure units
D) Affordable premium
Answer: B Intentional losses are not insurable because they are predictable and controllable by
the insured, creating a moral hazard.
Question 3: An agent tells a client, "This policy is exactly like whole life but cheaper." This is an
example of what?
A) Legal comparison
B) Misrepresentation
C) Twisting
D) Rebating
Answer: B Misrepresentation involves making false, misleading, or incomplete statements to
induce a purchase. "Exactly like...but cheaper" is false unless it is a specifically defined product.
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Question 4: The term "consideration" in an insurance contract consists of what?
A) Only the premium paid
B) Only the application
C) The application and the premium
D) The agent's commission
Answer: C Consideration is the binding element of a contract. The applicant provides the
application (representations) and the premium; the insurer promises to pay covered claims.
Question 5: Which type of hazard is a physical condition that increases the chance of loss?
A) Moral hazard
B) Morale hazard
C) Physical hazard
D) Legal hazard
Answer: C A physical hazard is a tangible condition—such as faulty wiring or slippery floors—
that increases the likelihood of loss.
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Question 6: Under the NAIC Producer Licensing Model Act, a producer license that has not been
renewed by its expiration date generally does what?
A) Remains valid for an additional 90-day grace period
B) Expires and the producer may not transact insurance until reinstatement
C) Automatically converts to a temporary license
D) Must be replaced by a new license after re-taking the exam
Answer: B A lapsed license cannot be used to transact business; the producer must complete
reinstatement before resuming activity.
Question 7: What is the minimum number of employees required for a group to be eligible for
group life insurance in Georgia?
A) 5 employees
B) 10 employees
C) 2 employees
D) 25 employees
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