Life Insurance Study Exam- Georgia –
100 Questions and Answers
An insurance producer selling a Variable Annuity whose cash value depends
on the performance of an underlying investment account must be registered
with: - -The Financial Industry Regulatory Authority (FINRA, formerly the
NASD)
- A life insurance policy whose cash value will fluctuate depending upon the
performance of a separate account is: - -Variable Life
- John Livingston owns a 30-Pay Life policy that he purchased at the age of
30. The cash value will equal the face amount of the policy when he reaches
the age of: - -100
- Which of the following types of insurance policies would provide the
greatest amount of protection for a temporary period during which an
insured will have limited financial resources? - -Term
- Which of the following statements about a Renewable Term policy is true? -
-It is renewable at the option of the insured
- An Annuity is designed to provide which of the following financial features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate - -I and II
- A 45-year old customer who is seeking to supplement his retirement
income at age 65 would not buy a: - -Immediate Annuity
- Which of the following is an example of a Limited-Pay Life policy? - -Life
Paid-Up at Age 65
- You have a client that is a real estate agent. Which of the following types
of permanent protection is best for this type of client? - -Adjustable life
- Which of the following individual policy conversions is usually permitted
without any evidence of insurability? - -Conversion from a Term policy to a
Whole Life policy
- At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer
explains that he can pay for the policy in several ways. One method is called
20-Pay Life, and another, Straight Life. Tom wishes to know which plan will
, accumulate cash value at a faster rate in the early years of the policy. Which
of the following would be the producer's most appropriate response? - -"20-
Pay Life will accumulate cash value faster."
- Sandra Timms, age 27, is advised by her producer to purchase Life
insurance to cover a 20-year-amortized $50,000 business-improvement loan.
Which of the following plans would adequately protect Ms. Timms at the
minimum premium outlay? - -A $50,000 Decreasing Term policy for 20 years
- In order to sell variable life insurance you must be registered with which of
the following? - -The NASD
- Which of the following contracts requires that a series of benefit payments
be made at specified intervals? - -Annuity
- A life insurance policy that covers two parties, but only pays when the last
party dies is known as: - -Survivorship Life
- Most Term Life insurance: - -Is convertible to permanent Whole Life
without a physical exam
- If a person wants to invest a lump sum in an annuity that may appreciate
along with market and economic conditions, they should buy a: - -Variable
Annuity
- If a client wants cash value life insurance with a flexible premium and an
adjustable death benefit that will allow the policy owner a choice of various
cash value investment options, he should buy: - -Variable/Universal Life
- Which of the following statements is true about the premium payment
schedule for a Whole Life policy? - -Premiums are payable throughout the
insured's lifetime, and coverage continues until the insured's death
- Which of the following policies provides the greatest amount of protection
for an insured's premium dollar as well as some cash accumulation? - -
Whole Life
- Which of the following is NOT correct regarding Ordinary Whole Life
policies? - -The cash value grows more quickly in the beginning years of the
policy
- A business owner with a fluctuating income who wants a life insurance
policy that can be changed to suit economic conditions should buy: - -
Adjustable Life
100 Questions and Answers
An insurance producer selling a Variable Annuity whose cash value depends
on the performance of an underlying investment account must be registered
with: - -The Financial Industry Regulatory Authority (FINRA, formerly the
NASD)
- A life insurance policy whose cash value will fluctuate depending upon the
performance of a separate account is: - -Variable Life
- John Livingston owns a 30-Pay Life policy that he purchased at the age of
30. The cash value will equal the face amount of the policy when he reaches
the age of: - -100
- Which of the following types of insurance policies would provide the
greatest amount of protection for a temporary period during which an
insured will have limited financial resources? - -Term
- Which of the following statements about a Renewable Term policy is true? -
-It is renewable at the option of the insured
- An Annuity is designed to provide which of the following financial features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate - -I and II
- A 45-year old customer who is seeking to supplement his retirement
income at age 65 would not buy a: - -Immediate Annuity
- Which of the following is an example of a Limited-Pay Life policy? - -Life
Paid-Up at Age 65
- You have a client that is a real estate agent. Which of the following types
of permanent protection is best for this type of client? - -Adjustable life
- Which of the following individual policy conversions is usually permitted
without any evidence of insurability? - -Conversion from a Term policy to a
Whole Life policy
- At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer
explains that he can pay for the policy in several ways. One method is called
20-Pay Life, and another, Straight Life. Tom wishes to know which plan will
, accumulate cash value at a faster rate in the early years of the policy. Which
of the following would be the producer's most appropriate response? - -"20-
Pay Life will accumulate cash value faster."
- Sandra Timms, age 27, is advised by her producer to purchase Life
insurance to cover a 20-year-amortized $50,000 business-improvement loan.
Which of the following plans would adequately protect Ms. Timms at the
minimum premium outlay? - -A $50,000 Decreasing Term policy for 20 years
- In order to sell variable life insurance you must be registered with which of
the following? - -The NASD
- Which of the following contracts requires that a series of benefit payments
be made at specified intervals? - -Annuity
- A life insurance policy that covers two parties, but only pays when the last
party dies is known as: - -Survivorship Life
- Most Term Life insurance: - -Is convertible to permanent Whole Life
without a physical exam
- If a person wants to invest a lump sum in an annuity that may appreciate
along with market and economic conditions, they should buy a: - -Variable
Annuity
- If a client wants cash value life insurance with a flexible premium and an
adjustable death benefit that will allow the policy owner a choice of various
cash value investment options, he should buy: - -Variable/Universal Life
- Which of the following statements is true about the premium payment
schedule for a Whole Life policy? - -Premiums are payable throughout the
insured's lifetime, and coverage continues until the insured's death
- Which of the following policies provides the greatest amount of protection
for an insured's premium dollar as well as some cash accumulation? - -
Whole Life
- Which of the following is NOT correct regarding Ordinary Whole Life
policies? - -The cash value grows more quickly in the beginning years of the
policy
- A business owner with a fluctuating income who wants a life insurance
policy that can be changed to suit economic conditions should buy: - -
Adjustable Life
