GA Life/Health Ins Exam Questions With
Correct Answers 100% Pass
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 Ans-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 Ans-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 Ans-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 Ans-c) An insured
must notify the insurer of a claim on forms prescribed by the insurer.
If forms are not furnished, written proof of the occurrence, nature of the loss, and extent of loss
must be submitted to the insurer.
All of the following are true of Key Employee life insurance EXCEPT
a) The death benefit is free from income taxes.
b) The key employee has premiums deducted from his salary.
c) The business is the owner and beneficiary of the policy.
d) The key employee is the insured.☑️Correct Ans-b) The key employee has premiums
deducted from his salary.
The business pays the premiums that are not deductible, but the death benefit is free from income
taxes.
What is a material misrepresentation?
a) Any misstatement made by an applicant for insurance
b) Any misstatement by the producer
c) Concealment
d) A statement by the applicant that, upon discovery, would affect the underwriting decision of
the insurance company☑️Correct Ans-d) A statement by the applicant that, upon discovery,
would affect the underwriting decision of the insurance company
A material misrepresentation is a statement that, if discovered, would after the underwriting
decision of the insurance company.
Which is INCORRECT concerning an MSA?
a) If there is a balance at year end, employee can let it earn interest or withdraw the amount (as
taxable income).
Correct Answers 100% Pass
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 Ans-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 Ans-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 Ans-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 Ans-c) An insured
must notify the insurer of a claim on forms prescribed by the insurer.
If forms are not furnished, written proof of the occurrence, nature of the loss, and extent of loss
must be submitted to the insurer.
All of the following are true of Key Employee life insurance EXCEPT
a) The death benefit is free from income taxes.
b) The key employee has premiums deducted from his salary.
c) The business is the owner and beneficiary of the policy.
d) The key employee is the insured.☑️Correct Ans-b) The key employee has premiums
deducted from his salary.
The business pays the premiums that are not deductible, but the death benefit is free from income
taxes.
What is a material misrepresentation?
a) Any misstatement made by an applicant for insurance
b) Any misstatement by the producer
c) Concealment
d) A statement by the applicant that, upon discovery, would affect the underwriting decision of
the insurance company☑️Correct Ans-d) A statement by the applicant that, upon discovery,
would affect the underwriting decision of the insurance company
A material misrepresentation is a statement that, if discovered, would after the underwriting
decision of the insurance company.
Which is INCORRECT concerning an MSA?
a) If there is a balance at year end, employee can let it earn interest or withdraw the amount (as
taxable income).
