GA Life Insurance Exam |130
Accurate Q’s and A’s
Who elects the governing body of a mutual insurance company? - -
policyholders
- What year was the McCarran-Ferguson Act enacted? - -1945
- A nonprofit incorporated society that does not have capital stock and
operates for the sole benefit of its members is known as: - -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: - -
reserves
- What is the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - -Fair Credit
Reporting Act
- The part of a life insurance policy guaranteed to be true is called a: - -
warranty
- What is the consideration given by an insurer in the consideration clause of
a life policy? - -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: - -representations
- Which of the following consists of an offer, acceptance, and consideration?
- -contract
- Which of these require an offer, acceptance, and consideration? - -contract
- In regards to representation or warranties, which of these statements is
TRUE? - -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: - -Contracts of Adhesion
- A life insurance policy would be considered a wagering contract WITHOUT:
- -insurable interest
, - Insurance policies are considered aleatory contracts because - -
performance is conditioned upon a future occurance
- Life and health insurance policies are: - -Unilateral contracts
- Who makes the legally enforceable promises in a unilateral contract? - -
insurance company
- When must insurable interest be present in order for a life insurance policy
to be valid? - -when the application is made
- Which of these is NOT a type of agent authority - -principal
- When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: - -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? - -family maintenance policy
- When is the face amount paid under a Joint Life and Survivor policy? - -
upon the death of the insured
- A 15-year mortgage is best protected by what kind of life policy? - -15-
year decreasing term
- A term life insurance policy matures: - -upon the insured's death during
the term of the policy
- The amount of coverage on a group credit life policy is limited to: - -the
insured's total loan value
- Which statement is TRUE regarding a Variable Whole Life policy? - -a
minimum guaranteed Death benefit is provided
- Life insurance that covers an insured's whole life with level premiums paid
over a limited time is called: - -limited pay life
- Which of the following characteristics is CORRECT about Interest Sensitive
Whole Life? - -premium payments can vary
- What kind of life insurance product covers children under their parent's
policy? - -term rider
Accurate Q’s and A’s
Who elects the governing body of a mutual insurance company? - -
policyholders
- What year was the McCarran-Ferguson Act enacted? - -1945
- A nonprofit incorporated society that does not have capital stock and
operates for the sole benefit of its members is known as: - -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: - -
reserves
- What is the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - -Fair Credit
Reporting Act
- The part of a life insurance policy guaranteed to be true is called a: - -
warranty
- What is the consideration given by an insurer in the consideration clause of
a life policy? - -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: - -representations
- Which of the following consists of an offer, acceptance, and consideration?
- -contract
- Which of these require an offer, acceptance, and consideration? - -contract
- In regards to representation or warranties, which of these statements is
TRUE? - -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: - -Contracts of Adhesion
- A life insurance policy would be considered a wagering contract WITHOUT:
- -insurable interest
, - Insurance policies are considered aleatory contracts because - -
performance is conditioned upon a future occurance
- Life and health insurance policies are: - -Unilateral contracts
- Who makes the legally enforceable promises in a unilateral contract? - -
insurance company
- When must insurable interest be present in order for a life insurance policy
to be valid? - -when the application is made
- Which of these is NOT a type of agent authority - -principal
- When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: - -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? - -family maintenance policy
- When is the face amount paid under a Joint Life and Survivor policy? - -
upon the death of the insured
- A 15-year mortgage is best protected by what kind of life policy? - -15-
year decreasing term
- A term life insurance policy matures: - -upon the insured's death during
the term of the policy
- The amount of coverage on a group credit life policy is limited to: - -the
insured's total loan value
- Which statement is TRUE regarding a Variable Whole Life policy? - -a
minimum guaranteed Death benefit is provided
- Life insurance that covers an insured's whole life with level premiums paid
over a limited time is called: - -limited pay life
- Which of the following characteristics is CORRECT about Interest Sensitive
Whole Life? - -premium payments can vary
- What kind of life insurance product covers children under their parent's
policy? - -term rider
