GEORGIA LIFE AND HEALTH INSURANCE FINAL
EXAM PAPER 2026 ACTUAL QUESTIONS AND
VERIFIED ANSWERS COMPLETE SOLUTION
GUIDE
▶ Accident insurance. Answer: A type of insurance that protects the
insured against loss due to an accidental bodily injury
▶ Accidental Death and Dismemberment. Answer: An insurance policy
which pays a specified number or specified multiple of the insurer's
benefit if the insured dies, loses his/her sight, or loses two limbs due to
an accident.
▶ Actual charge. Answer: The amount a physician or supplier actually
bills for a particular service or supply.
▶ Adhesion. Answer: A contract offered on a "take it or leave it" basis
by an insured, in which the insured's only option is to accept or reject the
contract. Any ambiguities in the contract will be settled in favor of the
imsured.
▶ Admitted (Authorized) Insurer. Answer: An insurance company
authorized and licensed to transact business in a particular state.
,▶ Adverse Selection. Answer: The tendency of risks witha higher
probability of loss to purchase and maintain insurance more often than
the risks who present lower probability
▶ Aleatory. Answer: A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will
pay in the event of a loss.
▶ Alien Insurer. Answer: An insurance company that is incorporated
outside the United States.
▶ Approved Amount. Answer: The amount Medicare determines to be
reasonable for a service that is covered under part B of Medicare.
▶ Assignment. Answer: A claim to a provider or medical supplier to
receive payments directly from Medicare.
▶ Attained Age. Answer: The age of the insured at a determined date.
▶ Attending Physician Statement (APS). Answer: A statement usually
obtained from the applicant's doctor.
,▶ Avoidance. Answer: A method of dealing with risk (e.g. if a person
wanted to avoid the risk of being killed in an airplane crash, he/she
might choose never to fly in a plane).
▶ Basic Hospital Expense Insurance. Answer: Coverage that provides
benefits for room, board and miscellaneous hospital expenses for a
certain number of days during a hospital stay.
▶ Basic Medical Expense Insurance. Answer: Coverage for doctor
visits, x-rays, lab tests, and emergency room visits; benefits, however,
are limited to specified dollar amounts.
▶ Beneficiary. Answer: The person who receives the proceeds from the
policy when the insured dies.
▶ Benefit Period. Answer: The length of time over which the insurance
benefits will be paid for each illness, disability, or hospital stay
▶ Birthday Rule. Answer: The method of determining primary coverage
for a dependent child, under which the plan of the parent whose birthday
occurs first in the calendar year is designated as primary.
▶ Blanket Medical Insurance. Answer: A policy that provides benefits
for all medical costs, including doctor visits, hospitalization, and drugs.
, ▶ Cafeteria Plan. Answer: A selection of health care benefits from
which an employee may choose the ones that he/she needs.
▶ Capital Amount. Answer: A percentage of the principal amount of a
policy paid to the insured if he/she suffered the loss of an appendage.
▶ Carriers. Answer: Organizations that process claims and pay benefits
in an insurance policy
▶ Cease and Desist Order. Answer: A demand of a person to stop
committing an action that is in violation of a provision.
▶ Certificate Authority. Answer: A document that authorizes a company
to start conducting business and specifies the kind(s) of insurance a
company can transact. It is illegal for an insurance company to transact
insurance without this certificate.
▶ Certificate of Insurance. Answer: A written document that indicates
that an insurance policy has been issued, and that states both the
amounts and types of insurance provided.
▶ Claim. Answer: A request for payment of the benefits provided by an
insurance contract.
EXAM PAPER 2026 ACTUAL QUESTIONS AND
VERIFIED ANSWERS COMPLETE SOLUTION
GUIDE
▶ Accident insurance. Answer: A type of insurance that protects the
insured against loss due to an accidental bodily injury
▶ Accidental Death and Dismemberment. Answer: An insurance policy
which pays a specified number or specified multiple of the insurer's
benefit if the insured dies, loses his/her sight, or loses two limbs due to
an accident.
▶ Actual charge. Answer: The amount a physician or supplier actually
bills for a particular service or supply.
▶ Adhesion. Answer: A contract offered on a "take it or leave it" basis
by an insured, in which the insured's only option is to accept or reject the
contract. Any ambiguities in the contract will be settled in favor of the
imsured.
▶ Admitted (Authorized) Insurer. Answer: An insurance company
authorized and licensed to transact business in a particular state.
,▶ Adverse Selection. Answer: The tendency of risks witha higher
probability of loss to purchase and maintain insurance more often than
the risks who present lower probability
▶ Aleatory. Answer: A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will
pay in the event of a loss.
▶ Alien Insurer. Answer: An insurance company that is incorporated
outside the United States.
▶ Approved Amount. Answer: The amount Medicare determines to be
reasonable for a service that is covered under part B of Medicare.
▶ Assignment. Answer: A claim to a provider or medical supplier to
receive payments directly from Medicare.
▶ Attained Age. Answer: The age of the insured at a determined date.
▶ Attending Physician Statement (APS). Answer: A statement usually
obtained from the applicant's doctor.
,▶ Avoidance. Answer: A method of dealing with risk (e.g. if a person
wanted to avoid the risk of being killed in an airplane crash, he/she
might choose never to fly in a plane).
▶ Basic Hospital Expense Insurance. Answer: Coverage that provides
benefits for room, board and miscellaneous hospital expenses for a
certain number of days during a hospital stay.
▶ Basic Medical Expense Insurance. Answer: Coverage for doctor
visits, x-rays, lab tests, and emergency room visits; benefits, however,
are limited to specified dollar amounts.
▶ Beneficiary. Answer: The person who receives the proceeds from the
policy when the insured dies.
▶ Benefit Period. Answer: The length of time over which the insurance
benefits will be paid for each illness, disability, or hospital stay
▶ Birthday Rule. Answer: The method of determining primary coverage
for a dependent child, under which the plan of the parent whose birthday
occurs first in the calendar year is designated as primary.
▶ Blanket Medical Insurance. Answer: A policy that provides benefits
for all medical costs, including doctor visits, hospitalization, and drugs.
, ▶ Cafeteria Plan. Answer: A selection of health care benefits from
which an employee may choose the ones that he/she needs.
▶ Capital Amount. Answer: A percentage of the principal amount of a
policy paid to the insured if he/she suffered the loss of an appendage.
▶ Carriers. Answer: Organizations that process claims and pay benefits
in an insurance policy
▶ Cease and Desist Order. Answer: A demand of a person to stop
committing an action that is in violation of a provision.
▶ Certificate Authority. Answer: A document that authorizes a company
to start conducting business and specifies the kind(s) of insurance a
company can transact. It is illegal for an insurance company to transact
insurance without this certificate.
▶ Certificate of Insurance. Answer: A written document that indicates
that an insurance policy has been issued, and that states both the
amounts and types of insurance provided.
▶ Claim. Answer: A request for payment of the benefits provided by an
insurance contract.
