GA Life/Health Ins Exam Questions with 100% Correct

GA Life/Health Ins Exam Questions with 100% Correct A claiment wants to bring a recovery action against an insurance company for a loss claimed under a policy. The action must be brought a) Within 2 years. b) Within 3 years. c) Immediately. d) Only within 60 days. - Correct Answer ️️ -b) Within 3 years. Some states require a provision limiting the time parameters in which a claimant may seek recovery from an insurer under a policy. Georgia requires legal action to be brought forth no sooner than 60 days and no later than 3 years after proof of loss. All the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Interest only c) Cash surrender d) Extended term - Correct Answer ️️ -b) Interest only Nonforfeiture values include cash surrender, extended term and reduced paid-up. Interest only is a settlement option. Brandon is rendered totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability? a) Business Expense Policy b) Employer's Disability Provision c) Business Disability Policy d) Business Overhead Expense Policy - Correct Answer ️️ -d) Business Overhead Expense Policy Business Overhead Expense (BOE) insurance is sold to small business owners for the purpose of reimbursing the policyholder for various business overhead expenses during a period of total disability. Benefit payments are typically limited to one of two years. Expenses such as rent, utilities, and employee salaries are covered. The employer's actual salary and profits are not compensated under this provision. In disability income coverage the policy covers the insured if he is unable to perform any job for which he is qualified. Total disability is defined as a) Own occupation - more restrictive b) Own occupation - less restrictive c) Any occupation - more restrictive d) Any occupation - less restrictive - Correct Answer ️️ -c) Any occupation - more restrictive than other definitions. If total disability is defined as any occupation, it means the coverage will apply only if the insured cannot find any means of income whatsoever. This is more strict than own occupation, where a person merely has to prove that they cannot perform the job for which they were previously trained. Which nonforfeiture option has the highest amount of insurance protection? a) Conversion b) Decreasing Term c) Reduced Paid-up d) Extended Term - Correct Answer ️️ -d) Extended Term The Extended Term nonforfeiture option has the same face amount as the original policy, but for a shorter period of time. An insurance contract must contain all of the following to be considered legally binding EXCEPT a) Consideration b) Competent parties. c) Beneficiary's consent d) Offer and Acceptance - Correct Answer ️️ -c) Beneficiary's consent The four essential elements of all legal contracts are offer and acceptance; consideration; competent parties; and legal purpose. Which is NOT true about uniform mandatory provisions for claims? a) Insured must give notice within 20 days. b) Insured is 2 years late in filing proof of loss, claim can be denied. c) Insured must notify insurer of claim on forms from insurer. - Correct Answ