GA Life/Health Insurance Exam (Questions + Answers) Solved

Attained Age - Answer-insured's age at the time the policy is issued or renewed. Cash Value - Answer-A policy's savings element or living benefit. Face Amount - Answer-The amount of benefit stated in the life insurance policy. Fixed life insurance - Answer-contracts that offer guaranteed minimum or fixed benefits. Deferred - Answer-with-held or postponed until a specified time or event in the future. Endow - Answer-the cash value of a whole life policy has reached the contractual face amount. Level Premium - Answer-the premium that does not change throughout the life of a policy. Liquidation of an estate - Answer-converting a person's net worth into a cash flow. Non-forfeiture values - Answer-benefits in a life insurance policy that the policy owner cannot lose even if the policy is surrendered or lapses. Policy maturity - Answer-in life policies, the time when the face value is paid out. Qualified plan - Answer-a retirement plan that meets IRS guidelines for receiving favorable tax treatment Securities - Answer-financial instruments that may trade for value (ex: stocks, bonds, options). Suitability - Answer-a requirement to determine if an insurance product is appropriate for a customer variable life insurance - Answer-contracts in which the cash values accumulate based upon specific portfolio of stocks without guarantees of performance.Term life - Answer-is temporary protection because it only provides coverage for a specific period of time. Also known as; provide for the greatest amount of coverage for the lowest premium as compared to any other form of protection. Usually a max age offered. Term Life - Answer-Provide pure death protection - if the insured dies during the term, the policy pays the death benefit to the beneficiary. Types of Term Life - Answer-Level, Increasing, Decreasing Level term insurance - Answer-is the most common type. the word level refers to the death benefit that does not change throughout the life of the policy. Annually Renewable term (ART) - Answer-Is the purest form of term insurance - the death benefit remains level (in the sense it's level term policy). The policy may be guaranteed to be renewable each year with out proof of insurability - but the premium increases annually according the the attained age - as the probability of death increases. Decreasing Term - Answer-policies feature a level premium and a death benefit that decreases each year over the duration of the policy term. Primarily used when the amount of needed protection is time sensitive. Ex: mortgage or other debts. - The amount of coverage thereby decreases as the outstanding loan balance decreases each year. Usually convertable - however it is usually not renewable since the death benefit is $0 at the end of the policy term. Which of the following statements is TRUE concerning the Accidental Death Rider? A. It is also known as a triple indemnity rider B. This rider is only available to insureds over the age of 65 C. It is only available in group insurance D. IT WILL PAY DOUBLE OR TRIPLE THE FACE AMOUNT - Answer-D. It will pay double or triple the face amount. An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?A. When the agent submits the application to the company and the company issues a conditional receipt. B. When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health. C. On the designated effective date. D. On the application date. - Answer-B. When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health. Individual and group accident and sickness policies that cover what kinds of losses must also provide for newborns, from the moment of birth, with all health insurance benefits applicable to children? A. specified child-related losses. B. Health-related losses for the mother C. Maternity Losses D. Losses that happen to family members. - Answer-D. Losses that happen to family members until 31 days. Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it? A. Free Look Period B. Grace Period C. Elimination Period D. Probationary Period - Answer-A. Free Look Period All of the following and dividend options except? A. Reduction of premium B. Paid-up additions C. Fixed-period installments D. Accumulated at interest - Answer-C. Fixed-period installmentsAn insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband name as what type of beneficiary? A. Primary B. Contingent C. Irrevocable D. Revocable - Answer-D. Revocable.