Georgia Life and Health Insurance ACTUAL EXAM 150 QUESTIONS
AND CORRECT ANSWERS WITH RATIONALES COVERING THE RECENT
MOST TESTED QUESTIONS PERFECT FOR A+ GRADE
1. What type of life insurance provides coverage for a specific period and pays a death benefit
only if the insured dies during that period?
A. Whole Life
B. Term Life
C. Universal Life
D. Variable Life
Rationale: Term life provides coverage for a set number of years and has no cash value.
2. Which type of policy accumulates cash value and provides lifelong coverage?
A. Term Life
B. Universal Life
C. Whole Life
D. Variable Life
Rationale: Whole life offers permanent coverage and a cash value component.
3. In health insurance, what is the amount paid by the insured before the insurance company
begins to pay?
A. Copayment
B. Coinsurance
C. Deductible
D. Premium
Rationale: A deductible is the initial out-of-pocket cost before benefits begin.
4. Which provision allows an insured to continue a policy without further evidence of
insurability after leaving a group plan?
A. Conversion
B. Grace Period
,C. Reinstatement
D. Assignment
Rationale: Conversion permits moving from group to individual coverage.
5. What is a “premium” in insurance terms?
A. Amount insurer pays
B. Amount insured pays for coverage
C. Death benefit
D. Cash value
Rationale: Premium is the cost of maintaining an insurance policy.
6. Which type of life insurance allows flexible premiums and adjustable death benefits?
A. Whole Life
B. Term Life
C. Universal Life
D. Variable Life
Rationale: Universal life offers flexibility in premiums and death benefit adjustments.
7. Which government program provides health insurance for individuals aged 65 and older?
A. Medicaid
B. Medicare
C. CHIP
D. TRICARE
Rationale: Medicare covers seniors and certain disabled individuals.
8. Which type of health plan requires primary care physician referrals for specialists?
A. PPO
B. HMO
C. POS
D. Indemnity
Rationale: HMOs manage care through PCPs to control costs and coordinate treatment.
,9. What is coinsurance?
A. Fixed amount paid per visit
B. Percentage of costs shared between insured and insurer
C. Full premium paid by employer
D. Amount paid before benefits start
Rationale: Coinsurance splits covered costs between insurer and insured after the deductible.
10. What is the purpose of a grace period in insurance?
A. Extend coverage without penalty for late payment
B. Allow early claims
C. Increase death benefit
D. Cancel policy
Rationale: Grace periods prevent policy lapse if premiums are paid shortly after due date.
11. Which type of life insurance allows the policyholder to invest in subaccounts linked to
stocks or bonds?
A. Whole Life
B. Variable Life
C. Term Life
D. Universal Life
Rationale: Variable life offers investment options and potential cash value growth.
12. In health insurance, what is a copayment?
A. Percentage of claim paid by insured
B. Fixed amount paid per service
C. Premium
D. Deductible
Rationale: Copayments are fixed amounts for medical visits or prescriptions.
13. Which health insurance policy covers hospital and surgical expenses?
A. Major Medical
B. Basic Medical
C. Hospital-Surgical
D. Disability
, Rationale: Hospital-Surgical policies specifically cover inpatient care and surgery costs.
14. What type of policy allows policyowners to borrow against cash value?
A. Term Life
B. Whole Life
C. Universal Life
D. Health Insurance
Rationale: Whole life accumulates cash value that can be borrowed.
15. Which life insurance beneficiary designation can change without the insured’s consent?
A. Irrevocable
B. Revocable
C. Primary
D. Contingent
Rationale: Revocable designations allow the policyholder to change beneficiaries.
16. What is the purpose of underwriting?
A. Selling insurance
B. Evaluating risk to determine coverage and premium
C. Paying claims
D. Filing lawsuits
Rationale: Underwriting assesses risk to price and approve coverage.
17. Which program provides health coverage for low-income individuals in Georgia?
A. Medicare
B. Medicaid
C. CHIP
D. TRICARE
Rationale: Medicaid offers health services to eligible low-income residents.
18. What is the purpose of a waiting period in a disability policy?
A. Delay benefit payout after claim
B. Increase premium
AND CORRECT ANSWERS WITH RATIONALES COVERING THE RECENT
MOST TESTED QUESTIONS PERFECT FOR A+ GRADE
1. What type of life insurance provides coverage for a specific period and pays a death benefit
only if the insured dies during that period?
A. Whole Life
B. Term Life
C. Universal Life
D. Variable Life
Rationale: Term life provides coverage for a set number of years and has no cash value.
2. Which type of policy accumulates cash value and provides lifelong coverage?
A. Term Life
B. Universal Life
C. Whole Life
D. Variable Life
Rationale: Whole life offers permanent coverage and a cash value component.
3. In health insurance, what is the amount paid by the insured before the insurance company
begins to pay?
A. Copayment
B. Coinsurance
C. Deductible
D. Premium
Rationale: A deductible is the initial out-of-pocket cost before benefits begin.
4. Which provision allows an insured to continue a policy without further evidence of
insurability after leaving a group plan?
A. Conversion
B. Grace Period
,C. Reinstatement
D. Assignment
Rationale: Conversion permits moving from group to individual coverage.
5. What is a “premium” in insurance terms?
A. Amount insurer pays
B. Amount insured pays for coverage
C. Death benefit
D. Cash value
Rationale: Premium is the cost of maintaining an insurance policy.
6. Which type of life insurance allows flexible premiums and adjustable death benefits?
A. Whole Life
B. Term Life
C. Universal Life
D. Variable Life
Rationale: Universal life offers flexibility in premiums and death benefit adjustments.
7. Which government program provides health insurance for individuals aged 65 and older?
A. Medicaid
B. Medicare
C. CHIP
D. TRICARE
Rationale: Medicare covers seniors and certain disabled individuals.
8. Which type of health plan requires primary care physician referrals for specialists?
A. PPO
B. HMO
C. POS
D. Indemnity
Rationale: HMOs manage care through PCPs to control costs and coordinate treatment.
,9. What is coinsurance?
A. Fixed amount paid per visit
B. Percentage of costs shared between insured and insurer
C. Full premium paid by employer
D. Amount paid before benefits start
Rationale: Coinsurance splits covered costs between insurer and insured after the deductible.
10. What is the purpose of a grace period in insurance?
A. Extend coverage without penalty for late payment
B. Allow early claims
C. Increase death benefit
D. Cancel policy
Rationale: Grace periods prevent policy lapse if premiums are paid shortly after due date.
11. Which type of life insurance allows the policyholder to invest in subaccounts linked to
stocks or bonds?
A. Whole Life
B. Variable Life
C. Term Life
D. Universal Life
Rationale: Variable life offers investment options and potential cash value growth.
12. In health insurance, what is a copayment?
A. Percentage of claim paid by insured
B. Fixed amount paid per service
C. Premium
D. Deductible
Rationale: Copayments are fixed amounts for medical visits or prescriptions.
13. Which health insurance policy covers hospital and surgical expenses?
A. Major Medical
B. Basic Medical
C. Hospital-Surgical
D. Disability
, Rationale: Hospital-Surgical policies specifically cover inpatient care and surgery costs.
14. What type of policy allows policyowners to borrow against cash value?
A. Term Life
B. Whole Life
C. Universal Life
D. Health Insurance
Rationale: Whole life accumulates cash value that can be borrowed.
15. Which life insurance beneficiary designation can change without the insured’s consent?
A. Irrevocable
B. Revocable
C. Primary
D. Contingent
Rationale: Revocable designations allow the policyholder to change beneficiaries.
16. What is the purpose of underwriting?
A. Selling insurance
B. Evaluating risk to determine coverage and premium
C. Paying claims
D. Filing lawsuits
Rationale: Underwriting assesses risk to price and approve coverage.
17. Which program provides health coverage for low-income individuals in Georgia?
A. Medicare
B. Medicaid
C. CHIP
D. TRICARE
Rationale: Medicaid offers health services to eligible low-income residents.
18. What is the purpose of a waiting period in a disability policy?
A. Delay benefit payout after claim
B. Increase premium
