GA LIFE INSURANCE EXAM 2025 |178 QUESTIONS WITH
ACCURATE SOLUTIONS
1. Describe the primary features of a family maintenance policy in life
insurance.
A family maintenance policy is designed solely for funeral
expenses.
A family maintenance policy provides a monthly income to a
beneficiary for a specified period and a lump sum at the end of
that period.
A family maintenance policy only pays a lump sum benefit upon
the policyholder's death.
A family maintenance policy allows policyholders to borrow
against their cash value.
2. Because they are aleatory contracts, insurance policies:
make sure that each party receives a fair amount of consideration
can be arbitrated by a third party
involve a high degree of certainty
often award disproportionately large benefits due to chance
events
3. Which of the following best describes a Modified Endowment Contract?
It is tested by the HR-10 rule
It is tested by the Section 1035 rule
It exceeds the maximum amount of premium that can be paid
into a policy and still have it recognized as a Life insurance
,contract
, It is below the minimum amount of premium that can be paid into
a policy and still have it recognized as a Life insurance contract
4. What type of Whole Life policy accumulates cash value faster in the early
years according to the producer's statement?
Term life
Straight life
Universal life
20-pay life
5. If an employer pays $10,000 in premiums for group life insurance for
employees, how would this affect the employer's tax return?
It would have no effect on the employer's taxable income.
It would reduce the employer's taxable income by $10,000.
It would require the employer to pay additional taxes.
It would increase the employer's taxable income by $10,000.
6. The waiting period to be eligible for Social Security disability benefits is:
5 months
24 months
30 days
60 days
7. A Renewable Term policy allows the insured the option to:
Change to a different type of policy after the expiration of the
original policy without evidence of health but at an increased
premium.
Continue with the same type of policy after expiration of the
original policy without evidence of health at the same premium
, but with an increased sum insured to reflect inflation
Continue with the same type of policy after expiration of the
original policy without evidence of health and at the same
premium.
Continue with the same type of policy after expiration of the
original policy without evidence of health but at an increased
premium.
8. If T had committed suicide after the two-year contestability period of the
life insurance policy, what would be the insurer's obligation?
$0
$50,000
$100,000
$25,000
9. Describe the types of benefits that are typically provided under Social
Security and identify which one is excluded from this classification.
Unemployment benefits are included as part of Social Security
benefits.
Social Security provides only disability benefits and excludes
retirement benefits.
Social Security provides retirement, disability, and survivor
benefits, but does not include unemployment benefits.
Social Security only provides retirement benefits and excludes all
others.
10. Which of the following is a correct statement about accelerated benefit
provisions?
They are available only with a separate rider.
ACCURATE SOLUTIONS
1. Describe the primary features of a family maintenance policy in life
insurance.
A family maintenance policy is designed solely for funeral
expenses.
A family maintenance policy provides a monthly income to a
beneficiary for a specified period and a lump sum at the end of
that period.
A family maintenance policy only pays a lump sum benefit upon
the policyholder's death.
A family maintenance policy allows policyholders to borrow
against their cash value.
2. Because they are aleatory contracts, insurance policies:
make sure that each party receives a fair amount of consideration
can be arbitrated by a third party
involve a high degree of certainty
often award disproportionately large benefits due to chance
events
3. Which of the following best describes a Modified Endowment Contract?
It is tested by the HR-10 rule
It is tested by the Section 1035 rule
It exceeds the maximum amount of premium that can be paid
into a policy and still have it recognized as a Life insurance
,contract
, It is below the minimum amount of premium that can be paid into
a policy and still have it recognized as a Life insurance contract
4. What type of Whole Life policy accumulates cash value faster in the early
years according to the producer's statement?
Term life
Straight life
Universal life
20-pay life
5. If an employer pays $10,000 in premiums for group life insurance for
employees, how would this affect the employer's tax return?
It would have no effect on the employer's taxable income.
It would reduce the employer's taxable income by $10,000.
It would require the employer to pay additional taxes.
It would increase the employer's taxable income by $10,000.
6. The waiting period to be eligible for Social Security disability benefits is:
5 months
24 months
30 days
60 days
7. A Renewable Term policy allows the insured the option to:
Change to a different type of policy after the expiration of the
original policy without evidence of health but at an increased
premium.
Continue with the same type of policy after expiration of the
original policy without evidence of health at the same premium
, but with an increased sum insured to reflect inflation
Continue with the same type of policy after expiration of the
original policy without evidence of health and at the same
premium.
Continue with the same type of policy after expiration of the
original policy without evidence of health but at an increased
premium.
8. If T had committed suicide after the two-year contestability period of the
life insurance policy, what would be the insurer's obligation?
$0
$50,000
$100,000
$25,000
9. Describe the types of benefits that are typically provided under Social
Security and identify which one is excluded from this classification.
Unemployment benefits are included as part of Social Security
benefits.
Social Security provides only disability benefits and excludes
retirement benefits.
Social Security provides retirement, disability, and survivor
benefits, but does not include unemployment benefits.
Social Security only provides retirement benefits and excludes all
others.
10. Which of the following is a correct statement about accelerated benefit
provisions?
They are available only with a separate rider.
