Georgia Life & Health Exam Questions and Answers with complete solutions

A variable insurance policy: - Answer-does not guarantee a return on its investment accounts Which of the following factors affects the amount of monthly disability benefits payable under Social Security? - Answer-The amount of the benefits available from other sources Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT? - AnswerThe income from the TSA is received income tax-free Which of the following health policy provisions states that the producer does NOT have the authority to change the policy or waive any of its provisions? - Answer-Entire Contract What kind of premium does a Whole Life policy have? - Answer-level Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - Answer-Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses? - Answer-$3,000 the insured is responsible for $1,000 deductible + 20% of the remaining bill = $3,000. An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to: - Answer-determine if the applicant is an acceptable risk by completing standard underwriting procedures An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? - Answer-Long term careT is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. Under the Model Group Coordination of Benefits provision, when T files a claim, his employer's plan is considered the: - Answer-Primary carrier The Consideration clause of an insurance contract includes: - Answer-the schedule and amount of premium payments Traditional individual retirement annuity (IRA) distributions must start by: - Answer-April 1st of the year following the year the participant attains age 70 1/2 If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act? - Answer-Insured's contingent beneficiary Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage. - Answer-6 S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations? - Answer-36 When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is: - Answer-income All of these are considered sources of underwriting information about an applicant, EXCEPT: - Answer-Except Rating Services- The Valid Sources are Inspection Report Credit Report Medical Information Bureau Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE? - Answer-Each partner owns a $500,000 policy on their partner's life Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees? - Answer-Portion of the premiums paid for by the employer may be a tax deduction