GA LIFE INSURANCE EXAM QUESTIONS
AND CORRECT ANSWERS VERIFIED
LATEST 2023-2024 GRADE A +
Who elects the governing body of a mutual insurance company? -
CORRECT ANSWER>>policyholders
What year was the McCarran-Ferguson Act enacted? -
CORRECT ANSWER>>1945
A nonprofit incorporated society that does not have capital stock
and operates for the sole benefit of its members is known as: -
CORRECT ANSWER>>a fraternal benefit society
The stated amount or percent of liquid assets that an insurer must
have on hand that will satisfy future obligations to its policyholders
is called: - CORRECT ANSWER>>reserves
What is the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained? - CORRECT ANSWER>>Fair Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called
a: - CORRECT ANSWER>>warranty
,What is the consideration given by an insurer in the consideration
clause of a life policy? - CORRECT ANSWER>>promise to pay a
death benefit to a named beneficiary
Statements made on an insurance application that are believed to
be true to the best of the applicant's knowledge are called: -
CORRECT ANSWER>>representations
Which of the following consists of an offer, acceptance, and
consideration? - CORRECT ANSWER>>contract
Which of these require an offer, acceptance, and consideration? -
CORRECT ANSWER>>contract
In regards to representation or warranties, which of these
statements is TRUE? - CORRECT ANSWER>>If material to the
risk, false representation will void a policy
Insurance policies are offered on a "take it or leave it" basis,
which make them: - CORRECT ANSWER>>Contracts of
Adhesion
A life insurance policy would be considered a wagering contract
WITHOUT: - CORRECT ANSWER>>insurable interest
Insurance policies are considered aleatory contracts because -
CORRECT ANSWER>>performance is conditioned upon a future
occurance
, Life and health insurance policies are: - CORRECT
ANSWER>>Unilateral contracts
Who makes the legally enforceable promises in a unilateral
contract? - CORRECT ANSWER>>insurance company
When must insurable interest be present in order for a life
insurance policy to be valid? - CORRECT ANSWER>>when the
application is made
Which of these is NOT a type of agent authority - CORRECT
ANSWER>>principal
When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to have:
- CORRECT ANSWER>>insurable interest in the proposed
insured
What kind of life insurance policy pays a specified monthly
income to a beneficiary for 30 years and then pays a lump sum
benefit at the end of that 30 years? - CORRECT
ANSWER>>family maintenance policy
When is the face amount paid under a Joint Life and Survivor
policy? - CORRECT ANSWER>>upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? -
CORRECT ANSWER>>15-year decreasing term
AND CORRECT ANSWERS VERIFIED
LATEST 2023-2024 GRADE A +
Who elects the governing body of a mutual insurance company? -
CORRECT ANSWER>>policyholders
What year was the McCarran-Ferguson Act enacted? -
CORRECT ANSWER>>1945
A nonprofit incorporated society that does not have capital stock
and operates for the sole benefit of its members is known as: -
CORRECT ANSWER>>a fraternal benefit society
The stated amount or percent of liquid assets that an insurer must
have on hand that will satisfy future obligations to its policyholders
is called: - CORRECT ANSWER>>reserves
What is the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained? - CORRECT ANSWER>>Fair Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called
a: - CORRECT ANSWER>>warranty
,What is the consideration given by an insurer in the consideration
clause of a life policy? - CORRECT ANSWER>>promise to pay a
death benefit to a named beneficiary
Statements made on an insurance application that are believed to
be true to the best of the applicant's knowledge are called: -
CORRECT ANSWER>>representations
Which of the following consists of an offer, acceptance, and
consideration? - CORRECT ANSWER>>contract
Which of these require an offer, acceptance, and consideration? -
CORRECT ANSWER>>contract
In regards to representation or warranties, which of these
statements is TRUE? - CORRECT ANSWER>>If material to the
risk, false representation will void a policy
Insurance policies are offered on a "take it or leave it" basis,
which make them: - CORRECT ANSWER>>Contracts of
Adhesion
A life insurance policy would be considered a wagering contract
WITHOUT: - CORRECT ANSWER>>insurable interest
Insurance policies are considered aleatory contracts because -
CORRECT ANSWER>>performance is conditioned upon a future
occurance
, Life and health insurance policies are: - CORRECT
ANSWER>>Unilateral contracts
Who makes the legally enforceable promises in a unilateral
contract? - CORRECT ANSWER>>insurance company
When must insurable interest be present in order for a life
insurance policy to be valid? - CORRECT ANSWER>>when the
application is made
Which of these is NOT a type of agent authority - CORRECT
ANSWER>>principal
When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to have:
- CORRECT ANSWER>>insurable interest in the proposed
insured
What kind of life insurance policy pays a specified monthly
income to a beneficiary for 30 years and then pays a lump sum
benefit at the end of that 30 years? - CORRECT
ANSWER>>family maintenance policy
When is the face amount paid under a Joint Life and Survivor
policy? - CORRECT ANSWER>>upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? -
CORRECT ANSWER>>15-year decreasing term
