GEORGIA LIFE AND HEALTH INSURANCE EXAM 2025|179
QUESTIONS WITH ACCURATE SOLUTIONS
1. What is a MEWA?
A trust consisting of multiple small employers in the same industry,
formed for the purpose of purchasing group health insurance
A technical term under federal law that encompasses essentially
any arrangement not maintained pursuant to a collective
bargaining agreement that provides health insurance benefits to
the employees
All of these are correct
A Multi-Employer Welfare Arrangement
2. An example of an intentional injury is:
drowning
murder
road rage
a car crash
3. The Consideration clause in an insurance policy indicates that a
policyowner's consideration consists of a completed application and...
Disclosure of any medical conditions
Delivery of policy
Agreeing to a physical examination
The initial premium
4. Describe the significance of a Certificate of Insurance in the context of
,insurance policies.
, A Certificate of Insurance is only necessary for health insurance
policies.
A Certificate of Insurance is used to deny claims made by the
insured.
A Certificate of Insurance serves as proof that an insurance
policy is in effect and outlines the coverage details.
A Certificate of Insurance is a legal document that cannot be
modified once issued.
5. Describe how speculative risk differs from pure risk in the context of
insurance.
Speculative risk is only concerned with guaranteed losses,
whereas pure risk can lead to gains.
Speculative risk is irrelevant in insurance, while pure risk is the
primary focus.
Speculative risk involves the chance of both loss and gain, while
pure risk only involves the possibility of loss.
Speculative risk is a type of insurance that covers only losses,
while pure risk covers gains.
6. Alzheimer's Disease is a neurodegenerative disorder characterized by:
Progressive mental deterioration
Loss of memory and cognitive functions
A reduced ability/inability to carry out the activities of daily living
A& B
B&C
All of the above
7. A noncancellable policy is most likely a:
, Individual disability income policy
Group policy
Individual health insurance contract
Accident only policy
8. Describe the key characteristic of a contributory insurance plan and its
implications for employees.
A contributory insurance plan offers benefits only to employees
who do not pay premiums.
A contributory insurance plan is solely funded by the employer,
ensuring no cost to employees.
A contributory insurance plan is a type of insurance that does not
require any payment from employees.
A contributory insurance plan requires employees to share the
cost of premiums, which can lead to greater employee
investment in the insurance coverage.
9. Describe the purpose of a rider in an insurance policy.
A rider is used to increase the premium of the policy.
A rider serves to expand coverage or waive certain conditions in
the policy.
A rider is a legal term that defines the insurer's obligations.
A rider is a document that outlines the policyholder's rights.
10. Describe how a Preferred Provider Organization (PPO) benefits both
clients and medical providers.
A PPO benefits clients by offering lower costs for services
when using in-network providers, while medical providers gain
a steady stream of patients.
QUESTIONS WITH ACCURATE SOLUTIONS
1. What is a MEWA?
A trust consisting of multiple small employers in the same industry,
formed for the purpose of purchasing group health insurance
A technical term under federal law that encompasses essentially
any arrangement not maintained pursuant to a collective
bargaining agreement that provides health insurance benefits to
the employees
All of these are correct
A Multi-Employer Welfare Arrangement
2. An example of an intentional injury is:
drowning
murder
road rage
a car crash
3. The Consideration clause in an insurance policy indicates that a
policyowner's consideration consists of a completed application and...
Disclosure of any medical conditions
Delivery of policy
Agreeing to a physical examination
The initial premium
4. Describe the significance of a Certificate of Insurance in the context of
,insurance policies.
, A Certificate of Insurance is only necessary for health insurance
policies.
A Certificate of Insurance is used to deny claims made by the
insured.
A Certificate of Insurance serves as proof that an insurance
policy is in effect and outlines the coverage details.
A Certificate of Insurance is a legal document that cannot be
modified once issued.
5. Describe how speculative risk differs from pure risk in the context of
insurance.
Speculative risk is only concerned with guaranteed losses,
whereas pure risk can lead to gains.
Speculative risk is irrelevant in insurance, while pure risk is the
primary focus.
Speculative risk involves the chance of both loss and gain, while
pure risk only involves the possibility of loss.
Speculative risk is a type of insurance that covers only losses,
while pure risk covers gains.
6. Alzheimer's Disease is a neurodegenerative disorder characterized by:
Progressive mental deterioration
Loss of memory and cognitive functions
A reduced ability/inability to carry out the activities of daily living
A& B
B&C
All of the above
7. A noncancellable policy is most likely a:
, Individual disability income policy
Group policy
Individual health insurance contract
Accident only policy
8. Describe the key characteristic of a contributory insurance plan and its
implications for employees.
A contributory insurance plan offers benefits only to employees
who do not pay premiums.
A contributory insurance plan is solely funded by the employer,
ensuring no cost to employees.
A contributory insurance plan is a type of insurance that does not
require any payment from employees.
A contributory insurance plan requires employees to share the
cost of premiums, which can lead to greater employee
investment in the insurance coverage.
9. Describe the purpose of a rider in an insurance policy.
A rider is used to increase the premium of the policy.
A rider serves to expand coverage or waive certain conditions in
the policy.
A rider is a legal term that defines the insurer's obligations.
A rider is a document that outlines the policyholder's rights.
10. Describe how a Preferred Provider Organization (PPO) benefits both
clients and medical providers.
A PPO benefits clients by offering lower costs for services
when using in-network providers, while medical providers gain
a steady stream of patients.
