Life Insurance FINAL Exam 1- Georgia
Protection against unintentional lapse of a Life policy is afforded by: Correct
answers An Automatic Premium Loan
The purpose of a Grace Period provision is to: Correct answers Protect the
policy owner against unintentional lapse
A statement that an applicant for Life insurance makes on their
application, that is the truth to the best of their knowledge, is considered
to be a(n): Correct answers Representation
Your client has a $100,000 policy with triple indemnity. Your client
dies in a car accident. How much will the policy pay? Correct
answers $300,000
Which of the following policies only provides a Death benefit that
declines over a definite and limited period of time? Correct answers
Decreasing Term
When an insured purchases a Decreasing Term policy, which of the
following decreases each year? Correct answers The face amount
If the insured understated his age and the error is discovered after the
insured's death, the insurance company will: Correct answers Pay the
amount the premium would have purchased at the correct age
Which of the following statements about a Waiver of Premium provision in a
Whole Life policy written on a standard risk is/are true?
I. It increases the policy's cash value
II.It must be continued by the insurance company when the insured
changes from a low-hazard to a high-hazard job Correct answers II only
If the insured's age was overstated at the time a Life insurance policy was
purchased, and the error is discovered on the death of the insured, the
insurance company will: Correct answers Provide the additional insurance
in the amount that has been purchased by the additional premium
All of the following may be included in the Accelerated Death Benefit
Rider, EXCEPT: Correct answers Long-term Disability
Of the following statements which one is incorrect? Correct answers
ERISA was established in 2001
, When insuring substandard Life insurance risks, provisions are usually
made for the expected higher death rate by: Correct answers Charging an
extra premium
Which of the following statements about the Assignment of a Life insurance
policy is/are true?
I.Most insurance companies require that notice of any assignment of a
policy be filed at the home office
II.An insurance policy cannot be assigned to a lending institution for
the purpose of securing a loan Correct answers I only
A person has inherited a sum of money. She is age 60 and desires to
purchase an Annuity that will appreciate with market and economic
conditions. Which of the following types of Annuities should she consider?
Correct answers Variable
A period following the termination of employment during which the
employee may exchange their group coverage for an individual policy is
which of the following? Correct answers Conversion period
Which of the following statements about a Life Annuity with 10 Years
Certain is/are true?
III.If the annuitant lives for 20 years after the start of the Income Payment
period she will receive income payments for 20 years
IV.If the annuitant dies 5 years after the start of the Income Payment
period, the beneficiary will receive Income payments for an additional 10
years Correct answers I
only
Which of the following statements about representations and warranties
is/are true?
V.A warranty may be true insofar as the applicant is aware, but a
representation must be absolutely and literally true
VI.In order to invalidate a contract, a representation must be proved both
incorrect and material, whereas a warranty must only be proved incorrect
Correct answers II only
The Survivor Life Annuity contract calls for the beneficiary to receive a:
Correct answers Predetermined income for life
Your client has a Whole Life policy and would like to add coverage for his
child. Which one of the following riders would you recommend? Correct
answers Child Term Rider
An employee's evidence of participation in a Group Life plan is the:
Correct answers Certificate
When the primary beneficiary predeceases the insured, the proceeds are
paid to the: Correct answers Contingent beneficiary
Protection against unintentional lapse of a Life policy is afforded by: Correct
answers An Automatic Premium Loan
The purpose of a Grace Period provision is to: Correct answers Protect the
policy owner against unintentional lapse
A statement that an applicant for Life insurance makes on their
application, that is the truth to the best of their knowledge, is considered
to be a(n): Correct answers Representation
Your client has a $100,000 policy with triple indemnity. Your client
dies in a car accident. How much will the policy pay? Correct
answers $300,000
Which of the following policies only provides a Death benefit that
declines over a definite and limited period of time? Correct answers
Decreasing Term
When an insured purchases a Decreasing Term policy, which of the
following decreases each year? Correct answers The face amount
If the insured understated his age and the error is discovered after the
insured's death, the insurance company will: Correct answers Pay the
amount the premium would have purchased at the correct age
Which of the following statements about a Waiver of Premium provision in a
Whole Life policy written on a standard risk is/are true?
I. It increases the policy's cash value
II.It must be continued by the insurance company when the insured
changes from a low-hazard to a high-hazard job Correct answers II only
If the insured's age was overstated at the time a Life insurance policy was
purchased, and the error is discovered on the death of the insured, the
insurance company will: Correct answers Provide the additional insurance
in the amount that has been purchased by the additional premium
All of the following may be included in the Accelerated Death Benefit
Rider, EXCEPT: Correct answers Long-term Disability
Of the following statements which one is incorrect? Correct answers
ERISA was established in 2001
, When insuring substandard Life insurance risks, provisions are usually
made for the expected higher death rate by: Correct answers Charging an
extra premium
Which of the following statements about the Assignment of a Life insurance
policy is/are true?
I.Most insurance companies require that notice of any assignment of a
policy be filed at the home office
II.An insurance policy cannot be assigned to a lending institution for
the purpose of securing a loan Correct answers I only
A person has inherited a sum of money. She is age 60 and desires to
purchase an Annuity that will appreciate with market and economic
conditions. Which of the following types of Annuities should she consider?
Correct answers Variable
A period following the termination of employment during which the
employee may exchange their group coverage for an individual policy is
which of the following? Correct answers Conversion period
Which of the following statements about a Life Annuity with 10 Years
Certain is/are true?
III.If the annuitant lives for 20 years after the start of the Income Payment
period she will receive income payments for 20 years
IV.If the annuitant dies 5 years after the start of the Income Payment
period, the beneficiary will receive Income payments for an additional 10
years Correct answers I
only
Which of the following statements about representations and warranties
is/are true?
V.A warranty may be true insofar as the applicant is aware, but a
representation must be absolutely and literally true
VI.In order to invalidate a contract, a representation must be proved both
incorrect and material, whereas a warranty must only be proved incorrect
Correct answers II only
The Survivor Life Annuity contract calls for the beneficiary to receive a:
Correct answers Predetermined income for life
Your client has a Whole Life policy and would like to add coverage for his
child. Which one of the following riders would you recommend? Correct
answers Child Term Rider
An employee's evidence of participation in a Group Life plan is the:
Correct answers Certificate
When the primary beneficiary predeceases the insured, the proceeds are
paid to the: Correct answers Contingent beneficiary
