GA Life/Health Insurance Exam COMPLETE
QUESTIONS & SOLUTIONS(RATED A)
Attained Age - ANSWER insured's age at the time the policy is issued or renewed.
Cash Value - ANSWER A policy's savings element or living benefit.
Face Amount - ANSWER The amount of benefit stated in the life insurance policy.
Fixed life insurance - ANSWER contracts that offer guaranteed minimum or fixed benefits.
Deferred - ANSWER with-held or postponed until a specified time or event in the future.
Endow - ANSWER the cash value of a whole life policy has reached the contractual face amount.
Level Premium - ANSWER the premium that does not change throughout the life of a policy.
Liquidation of an estate - ANSWER converting a person's net worth into a cash flow.
Non-forfeiture values - ANSWER benefits in a life insurance policy that the policy owner cannot lose even
if the policy is surrendered or lapses.
Policy maturity - ANSWER in life policies, the time when the face value is paid out.
Qualified plan - ANSWER a retirement plan that meets IRS guidelines for receiving favorable tax
treatment
Securities - ANSWER financial instruments that may trade for value (ex: stocks, bonds, options).
, Suitability - ANSWER a requirement to determine if an insurance product is appropriate for a customer
variable life insurance - ANSWER contracts in which the cash values accumulate based upon specific
portfolio of stocks without guarantees of performance.
Term life - ANSWER is temporary protection because it only provides coverage for a specific period of
time. Also known as; provide for the greatest amount of coverage for the lowest premium as compared
to any other form of protection. Usually a max age offered.
Term Life - ANSWER Provide pure death protection - if the insured dies during the term, the policy pays
the death benefit to the beneficiary.
Types of Term Life - ANSWER Level, Increasing, Decreasing
Level term insurance - ANSWER is the most common type. the word level refers to the death benefit that
does not change throughout the life of the policy.
Annually Renewable term (ART) - ANSWER Is the purest form of term insurance - the death benefit
remains level (in the sense it's level term policy). The policy may be guaranteed to be renewable each
year with out proof of insurability - but the premium increases annually according the the attained age -
as the probability of death increases.
Decreasing Term - ANSWER policies feature a level premium and a death benefit that decreases each
year over the duration of the policy term. Primarily used when the amount of needed protection is time
sensitive. Ex: mortgage or other debts. - The amount of coverage thereby decreases as the outstanding
loan balance decreases each year. Usually convertable - however it is usually not renewable since the
death benefit is $0 at the end of the policy term.
Which of the following statements is TRUE concerning the Accidental Death Rider?
A. It is also known as a triple indemnity rider
B. This rider is only available to insureds over the age of 65
, C. It is only available in group insurance
D. IT WILL PAY DOUBLE OR TRIPLE THE FACE AMOUNT - ANSWER D. It will pay double or triple the face
amount.
An agent and an applicant for a life insurance policy fill out and sign the application. However, the
applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When
will coverage begin?
A father owns a life insurance policy on his 15-year old daughter. The policy contains the optional Payor
Benefit rider. If the father becomes disables, what will happen to the life insurance premiums?
A. The insured will have to pay premiums for 6 months. If at the end of this period the father is still
disabled, the insured will be refunded the premiums.
B. The insured's premiums will be waived until she is 21.
C. The premiums will become tax deductible until the insured's 18th birthday.
D. Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy
will not be affected. - ANSWER B. The insured's premiums will be waived until she is 21.
An applicant for a health insurance policy returns a completed application to her agent, along with a
check for the first premium. She receives a conditional receipt two weeks later. Which of the following
has the insurer done by this point?
A. Approved the application
B. Issued the policy
C. Neither approved the application nor issued the policy.
D. Both approved the application and issued the policy. - ANSWER C. Neither approved the application
nor issued the policy.
Most LTC plans have which of the following features?
A. No elimination period
, B. Variable premiums
C. Open enrollment
D. Guaranteed renewability - ANSWER D. Guaranteed renewability
All of the following are true regarding the convertability option under a term life insurance policy EXCEPT
A. Most term policies contain a convertability option
B. Upon conversion, the premium for the permanent policy will be based upon attained age.
C. Upon conversion, the death benefit of the permanent policy will be reduced by 50%
D. Evidence of insurability is not required. - ANSWER C. Upon conversion, the death benefit of the
permanent policy will be reduced by 50%.
Insurers may change which of the following on a guaranteed renewable health insurance policy?
A. Coverage
B. Individual rates
C. No changes are permitted
D. Rates by class - ANSWER D. Rates by class. (on a guaranteed renewable health insurance policy, the
insurer may increase premiums on a class basis only, and not on an individual policy.
Which of the following is correct regarding Business Overhead Expense insurance?
A. Benefits received are received tax free.
B. Benefits received are taxable income the employee.
C. Premiums are not tax deductible.
D. Premiums are tax deductible. - ANSWER D. Premiums are tax deductible.
Qualifications for soliciting, selling or negotiating a long-term care partnership policy include all of the
following EXCEPT
QUESTIONS & SOLUTIONS(RATED A)
Attained Age - ANSWER insured's age at the time the policy is issued or renewed.
Cash Value - ANSWER A policy's savings element or living benefit.
Face Amount - ANSWER The amount of benefit stated in the life insurance policy.
Fixed life insurance - ANSWER contracts that offer guaranteed minimum or fixed benefits.
Deferred - ANSWER with-held or postponed until a specified time or event in the future.
Endow - ANSWER the cash value of a whole life policy has reached the contractual face amount.
Level Premium - ANSWER the premium that does not change throughout the life of a policy.
Liquidation of an estate - ANSWER converting a person's net worth into a cash flow.
Non-forfeiture values - ANSWER benefits in a life insurance policy that the policy owner cannot lose even
if the policy is surrendered or lapses.
Policy maturity - ANSWER in life policies, the time when the face value is paid out.
Qualified plan - ANSWER a retirement plan that meets IRS guidelines for receiving favorable tax
treatment
Securities - ANSWER financial instruments that may trade for value (ex: stocks, bonds, options).
, Suitability - ANSWER a requirement to determine if an insurance product is appropriate for a customer
variable life insurance - ANSWER contracts in which the cash values accumulate based upon specific
portfolio of stocks without guarantees of performance.
Term life - ANSWER is temporary protection because it only provides coverage for a specific period of
time. Also known as; provide for the greatest amount of coverage for the lowest premium as compared
to any other form of protection. Usually a max age offered.
Term Life - ANSWER Provide pure death protection - if the insured dies during the term, the policy pays
the death benefit to the beneficiary.
Types of Term Life - ANSWER Level, Increasing, Decreasing
Level term insurance - ANSWER is the most common type. the word level refers to the death benefit that
does not change throughout the life of the policy.
Annually Renewable term (ART) - ANSWER Is the purest form of term insurance - the death benefit
remains level (in the sense it's level term policy). The policy may be guaranteed to be renewable each
year with out proof of insurability - but the premium increases annually according the the attained age -
as the probability of death increases.
Decreasing Term - ANSWER policies feature a level premium and a death benefit that decreases each
year over the duration of the policy term. Primarily used when the amount of needed protection is time
sensitive. Ex: mortgage or other debts. - The amount of coverage thereby decreases as the outstanding
loan balance decreases each year. Usually convertable - however it is usually not renewable since the
death benefit is $0 at the end of the policy term.
Which of the following statements is TRUE concerning the Accidental Death Rider?
A. It is also known as a triple indemnity rider
B. This rider is only available to insureds over the age of 65
, C. It is only available in group insurance
D. IT WILL PAY DOUBLE OR TRIPLE THE FACE AMOUNT - ANSWER D. It will pay double or triple the face
amount.
An agent and an applicant for a life insurance policy fill out and sign the application. However, the
applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When
will coverage begin?
A father owns a life insurance policy on his 15-year old daughter. The policy contains the optional Payor
Benefit rider. If the father becomes disables, what will happen to the life insurance premiums?
A. The insured will have to pay premiums for 6 months. If at the end of this period the father is still
disabled, the insured will be refunded the premiums.
B. The insured's premiums will be waived until she is 21.
C. The premiums will become tax deductible until the insured's 18th birthday.
D. Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy
will not be affected. - ANSWER B. The insured's premiums will be waived until she is 21.
An applicant for a health insurance policy returns a completed application to her agent, along with a
check for the first premium. She receives a conditional receipt two weeks later. Which of the following
has the insurer done by this point?
A. Approved the application
B. Issued the policy
C. Neither approved the application nor issued the policy.
D. Both approved the application and issued the policy. - ANSWER C. Neither approved the application
nor issued the policy.
Most LTC plans have which of the following features?
A. No elimination period
, B. Variable premiums
C. Open enrollment
D. Guaranteed renewability - ANSWER D. Guaranteed renewability
All of the following are true regarding the convertability option under a term life insurance policy EXCEPT
A. Most term policies contain a convertability option
B. Upon conversion, the premium for the permanent policy will be based upon attained age.
C. Upon conversion, the death benefit of the permanent policy will be reduced by 50%
D. Evidence of insurability is not required. - ANSWER C. Upon conversion, the death benefit of the
permanent policy will be reduced by 50%.
Insurers may change which of the following on a guaranteed renewable health insurance policy?
A. Coverage
B. Individual rates
C. No changes are permitted
D. Rates by class - ANSWER D. Rates by class. (on a guaranteed renewable health insurance policy, the
insurer may increase premiums on a class basis only, and not on an individual policy.
Which of the following is correct regarding Business Overhead Expense insurance?
A. Benefits received are received tax free.
B. Benefits received are taxable income the employee.
C. Premiums are not tax deductible.
D. Premiums are tax deductible. - ANSWER D. Premiums are tax deductible.
Qualifications for soliciting, selling or negotiating a long-term care partnership policy include all of the
following EXCEPT
