GA LIFE INSURANCE EXAM | QUESTIONS AND ANSWERS | VERIFIED
AND WELL DETAILED ANSWER | LATEST EXAM UPADTE
Who elects the governing body of a mutual insurance company? - CORRECT
ANSWER - policyholders
What year was the McCarran-Ferguson Act enacted? - CORRECT ANSWER -
1945
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - CORRECT ANSWER - 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: - CORRECT
ANSWER - reserves
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - CORRECT ANSWER - Fair
Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - CORRECT
ANSWER - warranty
What is the consideration given by an insurer in the consideration clause of a life
policy? - CORRECT ANSWER - 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: - CORRECT ANSWER - representations
Which of the following consists of an offer, acceptance, and consideration? -
CORRECT ANSWER - contract
Which of these require an offer, acceptance, and consideration? - CORRECT
ANSWER - contract
In regards to representation or warranties, which of these statements is TRUE? -
CORRECT ANSWER - 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: -
CORRECT ANSWER - Contracts of Adhesion
A life insurance policy would be considered a wagering contract WITHOUT: -
CORRECT ANSWER - insurable interest
Insurance policies are considered aleatory contracts because - CORRECT
ANSWER - performance is conditioned upon a future occurance
Life and health insurance policies are: - CORRECT ANSWER - Unilateral
contracts
Who makes the legally enforceable promises in a unilateral contract? -
CORRECT ANSWER - insurance company
, When must insurable interest be present in order for a life insurance policy to be
valid? - CORRECT ANSWER - when the application is made
Which of these is NOT a type of agent authority - CORRECT ANSWER -
principal
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - CORRECT ANSWER -
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? - CORRECT ANSWER - family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? -
CORRECT ANSWER - upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER - 15-year decreasing term
A term life insurance policy matures: - CORRECT ANSWER - upon the insured's
death during the term of the policy
The amount of coverage on a group credit life policy is limited to: - CORRECT
ANSWER - the insured's total loan value
AND WELL DETAILED ANSWER | LATEST EXAM UPADTE
Who elects the governing body of a mutual insurance company? - CORRECT
ANSWER - policyholders
What year was the McCarran-Ferguson Act enacted? - CORRECT ANSWER -
1945
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - CORRECT ANSWER - 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: - CORRECT
ANSWER - reserves
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - CORRECT ANSWER - Fair
Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - CORRECT
ANSWER - warranty
What is the consideration given by an insurer in the consideration clause of a life
policy? - CORRECT ANSWER - 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: - CORRECT ANSWER - representations
Which of the following consists of an offer, acceptance, and consideration? -
CORRECT ANSWER - contract
Which of these require an offer, acceptance, and consideration? - CORRECT
ANSWER - contract
In regards to representation or warranties, which of these statements is TRUE? -
CORRECT ANSWER - 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: -
CORRECT ANSWER - Contracts of Adhesion
A life insurance policy would be considered a wagering contract WITHOUT: -
CORRECT ANSWER - insurable interest
Insurance policies are considered aleatory contracts because - CORRECT
ANSWER - performance is conditioned upon a future occurance
Life and health insurance policies are: - CORRECT ANSWER - Unilateral
contracts
Who makes the legally enforceable promises in a unilateral contract? -
CORRECT ANSWER - insurance company
, When must insurable interest be present in order for a life insurance policy to be
valid? - CORRECT ANSWER - when the application is made
Which of these is NOT a type of agent authority - CORRECT ANSWER -
principal
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - CORRECT ANSWER -
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? - CORRECT ANSWER - family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? -
CORRECT ANSWER - upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER - 15-year decreasing term
A term life insurance policy matures: - CORRECT ANSWER - upon the insured's
death during the term of the policy
The amount of coverage on a group credit life policy is limited to: - CORRECT
ANSWER - the insured's total loan value
