GEORGIA LIFE INSURANCE EXAM 2025 |150 QUESTIONS WITH
ACCURATE SOLUTIONS
1. If an individual chooses a Limited-Pay Life policy and pays premiums until
age 65, what happens to their coverage after that age?
The coverage is terminated and no benefits are paid.
The coverage continues without the need for further premium
payments.
The coverage is reduced significantly.
The individual must start paying premiums again.
2. Which of the following takes place during an annuity's annuity period?
the principal earns interest
the contract may be funded with a series of premium payments
payouts begin
the contract may be funded with a lump sum
3. Describe the role of a Conditional Receipt in the context of life insurance
contracts.
A Conditional Receipt serves as a temporary policy until the full
policy is issued.
A Conditional Receipt allows for coverage to begin before the
formal issuance of the policy, based on certain conditions being
met.
A Conditional Receipt is used to adjust premiums based on the
insured's age.
A Conditional Receipt guarantees that the policy will be issued
,regardless of underwriting results.
,4. Describe the implications of material misrepresentation in a life insurance
policy after the insured's death.
The insurer may still pay the claim despite the misrepresentation
if it does not affect the risk significantly.
The insurer will always deny the claim if misrepresentation is
found.
The insured's beneficiaries will receive a reduced payout.
The policy will be automatically canceled.
5. What type of contract is designed to provide a series of benefit
payments at specified intervals?
Term insurance
Annuity
Life insurance
Whole life insurance
6. If a policyholder wants both lifelong coverage and the ability to
accumulate cash value, which policy should they choose and why?
They should choose Term Life insurance because it is more
affordable.
They should choose Variable Life insurance for higher investment
returns.
They should choose Universal Life insurance for its flexibility in
premium payments.
They should choose Whole Life insurance because it offers
lifelong protection and cash accumulation.
7. Which of the following is NOT considered a part of a life insurance
policy?
, Suicide Clause
Conditional Receipt
Reinstatement Provision
Entire Contract Clause
8. If a client purchases a life insurance policy and dies by suicide after 18
months, how should the insurance company respond based on the
suicide clause?
Pay the full death benefit immediately
Adjust the premium based on the insured's age at death
Investigate the circumstances surrounding the death
Deny the claim, but refund the premium
9. If a business owner experiences a significant increase in income, how
might they utilize their Adjustable Life insurance policy?
They could only decrease their coverage but not increase it.
They could increase their coverage or premium payments to
reflect their higher income.
They would have to cancel the policy and purchase a new one.
They would need to wait until the policy renewal period to make
changes.
10. What type of beneficiary designation allows the policyholder to retain
ownership rights while naming someone else to receive benefits?
Irrevocable beneficiary
Primary beneficiary
Revocable beneficiary
Contingent beneficiary
ACCURATE SOLUTIONS
1. If an individual chooses a Limited-Pay Life policy and pays premiums until
age 65, what happens to their coverage after that age?
The coverage is terminated and no benefits are paid.
The coverage continues without the need for further premium
payments.
The coverage is reduced significantly.
The individual must start paying premiums again.
2. Which of the following takes place during an annuity's annuity period?
the principal earns interest
the contract may be funded with a series of premium payments
payouts begin
the contract may be funded with a lump sum
3. Describe the role of a Conditional Receipt in the context of life insurance
contracts.
A Conditional Receipt serves as a temporary policy until the full
policy is issued.
A Conditional Receipt allows for coverage to begin before the
formal issuance of the policy, based on certain conditions being
met.
A Conditional Receipt is used to adjust premiums based on the
insured's age.
A Conditional Receipt guarantees that the policy will be issued
,regardless of underwriting results.
,4. Describe the implications of material misrepresentation in a life insurance
policy after the insured's death.
The insurer may still pay the claim despite the misrepresentation
if it does not affect the risk significantly.
The insurer will always deny the claim if misrepresentation is
found.
The insured's beneficiaries will receive a reduced payout.
The policy will be automatically canceled.
5. What type of contract is designed to provide a series of benefit
payments at specified intervals?
Term insurance
Annuity
Life insurance
Whole life insurance
6. If a policyholder wants both lifelong coverage and the ability to
accumulate cash value, which policy should they choose and why?
They should choose Term Life insurance because it is more
affordable.
They should choose Variable Life insurance for higher investment
returns.
They should choose Universal Life insurance for its flexibility in
premium payments.
They should choose Whole Life insurance because it offers
lifelong protection and cash accumulation.
7. Which of the following is NOT considered a part of a life insurance
policy?
, Suicide Clause
Conditional Receipt
Reinstatement Provision
Entire Contract Clause
8. If a client purchases a life insurance policy and dies by suicide after 18
months, how should the insurance company respond based on the
suicide clause?
Pay the full death benefit immediately
Adjust the premium based on the insured's age at death
Investigate the circumstances surrounding the death
Deny the claim, but refund the premium
9. If a business owner experiences a significant increase in income, how
might they utilize their Adjustable Life insurance policy?
They could only decrease their coverage but not increase it.
They could increase their coverage or premium payments to
reflect their higher income.
They would have to cancel the policy and purchase a new one.
They would need to wait until the policy renewal period to make
changes.
10. What type of beneficiary designation allows the policyholder to retain
ownership rights while naming someone else to receive benefits?
Irrevocable beneficiary
Primary beneficiary
Revocable beneficiary
Contingent beneficiary
