Page 1 of 189
Georgia Life, Accident & Sickness Insurance
EXAM COMPLETE 300 QUESTIONS WITH
DETAILED SOLUTIONS JUST RELEASED THIS
YEAR
Georgia Life, Accident & Sickness Insurance Exam – 300 Randomized Practice Questions
Exam Overview: The Georgia Life, Accident & Sickness (LA&S) combination exam (12-GA-05) is
administered by Pearson VUE and contains 135 total questions (125 scored + 10 unscored
pretest questions) with a 2-hour (120-minute) time limit. A 70% passing score is required on
BOTH the national section and the Georgia state section—passing one but failing the other
results in an overall failure. Candidates must complete 40 hours of state-approved pre-licensing
education from an OCI-certified provider. The exam fee is $63 per attempt.
1. An applicant for a life insurance policy in Georgia has an insurable interest in which of the
following persons under state law?
A) Any person regardless of relationship
B) Only blood relatives
C) The applicant's own life, dependents, legal obligors, and persons whose death could affect
the applicant's estate
D) Only spouses and children
1
SUCCESS!
,Page 2 of 189
Answer: C
Rationale: Georgia law requires insurable interest at the time of policy issuance, which includes
insurable interest in oneself, dependents, legal obligors, and persons whose death could affect
an estate or interest.
2. Which of the following BEST describes the Law of Large Numbers as it applies to the
insurance industry?
A) The more policies an insurer sells, the higher the premiums must be
B) The larger the pool of individual risks, the more predictable actual losses become relative to
expected losses
C) Insurance companies must maintain large cash reserves at all times
D) Large insurance companies are exempt from state regulation
Answer: B
Rationale: The Law of Large Numbers states that as the number of similar exposure units
increases, the actual loss experience becomes more predictable, allowing insurers to accurately
price risk.
2
SUCCESS!
,Page 3 of 189
3. Under Georgia insurance regulations, which of the following is NOT one of the four
elements required for a valid insurance contract?
A) Offer and acceptance
B) Consideration
C) Written form
D) Legal purpose
Answer: C
Rationale: The four elements of a valid insurance contract are offer, acceptance, consideration,
and legal purpose. While many insurance contracts are written, written form is not a required
element for validity under Georgia law.
4. An insurance agent in Georgia tells a client, "This policy is exactly like whole life but costs
much less." This statement is an example of what prohibited practice?
A) Rebating
B) Twisting
C) Misrepresentation
D) Defamation
3
SUCCESS!
, Page 4 of 189
Answer: C
Rationale: Misrepresentation involves making false, misleading, or incomplete statements to
induce a purchase. Claiming a policy is "exactly like" another product when it is not constitutes
misrepresentation under Georgia law.
5. What is the maximum death benefit coverage per insured provided by the Georgia Life and
Health Insurance Guaranty Association (GLHIGA)?
A) $100,000
B) $200,000
C) $300,000
D) $500,000
Answer: C
Rationale: The Georgia Life and Health Insurance Guaranty Association provides protection to
policyowners when member insurers become insolvent or financially impaired, with a maximum
life insurance death benefit coverage of $300,000 per insured.
4
SUCCESS!
Georgia Life, Accident & Sickness Insurance
EXAM COMPLETE 300 QUESTIONS WITH
DETAILED SOLUTIONS JUST RELEASED THIS
YEAR
Georgia Life, Accident & Sickness Insurance Exam – 300 Randomized Practice Questions
Exam Overview: The Georgia Life, Accident & Sickness (LA&S) combination exam (12-GA-05) is
administered by Pearson VUE and contains 135 total questions (125 scored + 10 unscored
pretest questions) with a 2-hour (120-minute) time limit. A 70% passing score is required on
BOTH the national section and the Georgia state section—passing one but failing the other
results in an overall failure. Candidates must complete 40 hours of state-approved pre-licensing
education from an OCI-certified provider. The exam fee is $63 per attempt.
1. An applicant for a life insurance policy in Georgia has an insurable interest in which of the
following persons under state law?
A) Any person regardless of relationship
B) Only blood relatives
C) The applicant's own life, dependents, legal obligors, and persons whose death could affect
the applicant's estate
D) Only spouses and children
1
SUCCESS!
,Page 2 of 189
Answer: C
Rationale: Georgia law requires insurable interest at the time of policy issuance, which includes
insurable interest in oneself, dependents, legal obligors, and persons whose death could affect
an estate or interest.
2. Which of the following BEST describes the Law of Large Numbers as it applies to the
insurance industry?
A) The more policies an insurer sells, the higher the premiums must be
B) The larger the pool of individual risks, the more predictable actual losses become relative to
expected losses
C) Insurance companies must maintain large cash reserves at all times
D) Large insurance companies are exempt from state regulation
Answer: B
Rationale: The Law of Large Numbers states that as the number of similar exposure units
increases, the actual loss experience becomes more predictable, allowing insurers to accurately
price risk.
2
SUCCESS!
,Page 3 of 189
3. Under Georgia insurance regulations, which of the following is NOT one of the four
elements required for a valid insurance contract?
A) Offer and acceptance
B) Consideration
C) Written form
D) Legal purpose
Answer: C
Rationale: The four elements of a valid insurance contract are offer, acceptance, consideration,
and legal purpose. While many insurance contracts are written, written form is not a required
element for validity under Georgia law.
4. An insurance agent in Georgia tells a client, "This policy is exactly like whole life but costs
much less." This statement is an example of what prohibited practice?
A) Rebating
B) Twisting
C) Misrepresentation
D) Defamation
3
SUCCESS!
, Page 4 of 189
Answer: C
Rationale: Misrepresentation involves making false, misleading, or incomplete statements to
induce a purchase. Claiming a policy is "exactly like" another product when it is not constitutes
misrepresentation under Georgia law.
5. What is the maximum death benefit coverage per insured provided by the Georgia Life and
Health Insurance Guaranty Association (GLHIGA)?
A) $100,000
B) $200,000
C) $300,000
D) $500,000
Answer: C
Rationale: The Georgia Life and Health Insurance Guaranty Association provides protection to
policyowners when member insurers become insolvent or financially impaired, with a maximum
life insurance death benefit coverage of $300,000 per insured.
4
SUCCESS!
