GA LIFE ACCIDENT AND SICKNESS
Exam Questions With Correct Answers
100%
A policy of adhesion can only be modified by whom?☑️Correct Ans-The insurance company.
(A policy of adhesion is best described as a policy which only the insurance company can
modify.)
A life insurance agreement which circumvents insurable interest statutes is called☑️Correct
Ans-Investor - originated life insurance
Which of these is not a type of agent authority?☑️Correct Ans-principal
In an insurance contract, the insurer is the only party who makes a legally enforceable promise.
What kind of contract is this?☑️Correct Ans-Unilateral
Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of
enforceable promise.
When third-party ownership is involved, applicants who also happens to be the stated primary
beneficiary are required to have☑️Correct Ans-Insurable interest in the proposed insured
Which of these require an offer, acceptance, and consideration?☑️Correct Ans-Contract
Offer, acceptance, and consideration are all elements of a contract.
Insurance policies are considered aleatory contracts because☑️Correct Ans-performance is
conditioned upon a future occurrence
,Which of these arrangements allows one to bypass insurable interest laws?☑️Correct Ans-
Investor-originated life insurance (or IOLI), sometimes called stranger-originated life insurance
(or STOLI) is used to circumvent state insurable interest statutes. This is done when an investor
(or stranger) persuades an individual to take out life insurance specifically for the purpose of
selling the policy to the investor. The investor compensates the insured and makes the premiums,
then collects the death benefit when the insured dies.
A contract where one party either except or reject the terms of a contract written by another party
is called a contract of☑️Correct Ans-Adhesion
Insurance contracts are known as___because certain future conditions or ask must occur before
any claims can be paid☑️Correct Ans-Conditional
In regards to representations or warranties, which of these statements is TRUE?☑️Correct Ans-
If material to the risk, false representations will void a policy
Which of these is not considered to be an element of an insurance contract?☑️Correct Ans-
negotiating
Insurance policies are offered on a take it or leave it bases, which make them☑️Correct Ans-
Contracts of adhesion
Statements made on insurance application that are believed to be true to the best of the applicants
knowledge are called☑️Correct Ans-representations
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his
beneficiary if he dies before age 70. What kind of policy does P own?☑️Correct Ans-
Endowment at age 70
Credit Life Insurance is☑️Correct Ans-issued in an amount not to exceed the amount of the
loan
, Which of the following information is not required to be included in a whole life
policy?☑️Correct Ans-Policy's guaranteed dividend table
Which of the following types of policies pays a benefit if the insured goes blind?☑️Correct
Ans-Accidental Death and Dismemberment provision (AD&D)
In order to sell an ___ Life policy, a producer is required to register with the financial industry
regulatory authority (FINRA)☑️Correct Ans-Variable
A life policy with a death benefit in cash value that can fluctuate according to the performance of
its underlying investment portfolio is referred to as☑️Correct Ans-Variable Life
The most important factor to consider when determining whether to convert term insurance at the
insured's attained age or the insured's original age is☑️Correct Ans-The cost
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were
to die at age 50, how long would G's family receive an income?☑️Correct Ans-10 years
A(n) _____ Life Policy offers the owner investment and products such as money market funds,
long-term bonds in equities☑️Correct Ans-variable
All of these insurance products require an agent to have proper FINRA securities registration in
order to sell them EXCEPT for☑️Correct Ans-Modified Whole Life
Term life policies that have the ability to be permanent coverage may do so during a specific
time period. This conversation period☑️Correct Ans-Varies according to the contract
K by the policy where the premium stays fixed for the first five years. The premium that
increases in 6 And stays level there after, all the while the death benefit remains the same. What
kind of policy is this☑️Correct Ans-Modified whole life
Exam Questions With Correct Answers
100%
A policy of adhesion can only be modified by whom?☑️Correct Ans-The insurance company.
(A policy of adhesion is best described as a policy which only the insurance company can
modify.)
A life insurance agreement which circumvents insurable interest statutes is called☑️Correct
Ans-Investor - originated life insurance
Which of these is not a type of agent authority?☑️Correct Ans-principal
In an insurance contract, the insurer is the only party who makes a legally enforceable promise.
What kind of contract is this?☑️Correct Ans-Unilateral
Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of
enforceable promise.
When third-party ownership is involved, applicants who also happens to be the stated primary
beneficiary are required to have☑️Correct Ans-Insurable interest in the proposed insured
Which of these require an offer, acceptance, and consideration?☑️Correct Ans-Contract
Offer, acceptance, and consideration are all elements of a contract.
Insurance policies are considered aleatory contracts because☑️Correct Ans-performance is
conditioned upon a future occurrence
,Which of these arrangements allows one to bypass insurable interest laws?☑️Correct Ans-
Investor-originated life insurance (or IOLI), sometimes called stranger-originated life insurance
(or STOLI) is used to circumvent state insurable interest statutes. This is done when an investor
(or stranger) persuades an individual to take out life insurance specifically for the purpose of
selling the policy to the investor. The investor compensates the insured and makes the premiums,
then collects the death benefit when the insured dies.
A contract where one party either except or reject the terms of a contract written by another party
is called a contract of☑️Correct Ans-Adhesion
Insurance contracts are known as___because certain future conditions or ask must occur before
any claims can be paid☑️Correct Ans-Conditional
In regards to representations or warranties, which of these statements is TRUE?☑️Correct Ans-
If material to the risk, false representations will void a policy
Which of these is not considered to be an element of an insurance contract?☑️Correct Ans-
negotiating
Insurance policies are offered on a take it or leave it bases, which make them☑️Correct Ans-
Contracts of adhesion
Statements made on insurance application that are believed to be true to the best of the applicants
knowledge are called☑️Correct Ans-representations
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his
beneficiary if he dies before age 70. What kind of policy does P own?☑️Correct Ans-
Endowment at age 70
Credit Life Insurance is☑️Correct Ans-issued in an amount not to exceed the amount of the
loan
, Which of the following information is not required to be included in a whole life
policy?☑️Correct Ans-Policy's guaranteed dividend table
Which of the following types of policies pays a benefit if the insured goes blind?☑️Correct
Ans-Accidental Death and Dismemberment provision (AD&D)
In order to sell an ___ Life policy, a producer is required to register with the financial industry
regulatory authority (FINRA)☑️Correct Ans-Variable
A life policy with a death benefit in cash value that can fluctuate according to the performance of
its underlying investment portfolio is referred to as☑️Correct Ans-Variable Life
The most important factor to consider when determining whether to convert term insurance at the
insured's attained age or the insured's original age is☑️Correct Ans-The cost
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were
to die at age 50, how long would G's family receive an income?☑️Correct Ans-10 years
A(n) _____ Life Policy offers the owner investment and products such as money market funds,
long-term bonds in equities☑️Correct Ans-variable
All of these insurance products require an agent to have proper FINRA securities registration in
order to sell them EXCEPT for☑️Correct Ans-Modified Whole Life
Term life policies that have the ability to be permanent coverage may do so during a specific
time period. This conversation period☑️Correct Ans-Varies according to the contract
K by the policy where the premium stays fixed for the first five years. The premium that
increases in 6 And stays level there after, all the while the death benefit remains the same. What
kind of policy is this☑️Correct Ans-Modified whole life
