LIFE INSURANCE STUDY EXAM- GEORGIA

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LIFE INSURANCE STUDY EXAM- GEORGIA

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of the following statements about the Reinstatement provision is true?

Answer:

It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated Question 2: With proper notice and authorization, insurers may report underwriting information

that an applicant lists on their application for Life insurance to the:

Answer:

Medical Information Bureau (MIB) Question 3: A client with a participating Life insurance policy receives both interest and dividends. What are the tax implications?

Answer:

The interest is taxable, but the dividends are not Question 4: A life insurance policy that combines term insurance protection, a flexible premium,

and cash value accumulation is:

Answer:

Universal Life

Question 5: An Annuity is designed to provide which of the following financial features?

• The liquidation of principal and interest

II. Favorable tax treatment III. The creation of an estate

Answer:

I and II Question 6: A client buys a Life insurance policy on July 1st and dies by suicide 6 months later.

The insurance company will:

Answer:

Deny the claim, but refund the premium Question 7: What Life insurance policy provision applies if a policy lapsed last year and the insured wants it back?

Answer:

Reinstatement Question 8: An insured's premium for Life insurance is based mainly upon their:

Answer:

Risk classification Question 9: The contingent beneficiary will receive policy proceeds when:

Answer:

The primary beneficiary pre-deceases the insured Question 10: Which of the following statements about a typical Suicide clause in a Life insurance policy is true?

Answer:

Suicide is excluded for a specific period of years and covered thereafter Question 11: A business owner with a fluctuating income who wants a life insurance policy that

can be changed to suit economic conditions should buy:

Answer:

Adjustable Life

Question 12: A client buys a $50,000 Whole Life policy on himself and wants to add $25,000 in Term coverage for his spouse. He should add which of the following riders to his policy?

Answer:

Other Insured Rider Question 13: Jim gets married and wants to add his new spouse to his existing Life insurance policy. Which rider should he add?

Answer:

Other Insured Rider Question 14: Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?

Answer:

Term Question 15: A producer submits a completed and signed application to the underwriter along with the first premium check. After checking the results of the physical exam, the underwriter

issues a 'rated' policy. Which of the following will not be required:

Answer:

A new completed and signed application Question 16: If a client wants cash value life insurance with a flexible premium and an adjustable death benefit that will allow the policy owner a choice of various cash value

investment options, he should buy:

Answer:

Variable/Universal Life Question 17: The clause that states the insurer's promise to pay the policy benefits in

accordance with the contract's provisions is the:

Answer:

Insuring Clause Question 18: If a person wants to invest a lump sum in an annuity that may appreciate along

with market and economic conditions, they should buy a:

Answer:

Variable Annuity

Question 19: A 45-year old customer who is seeking to supplement his retirement income at age

65 would not buy a:

Answer:

Immediate Annuity Question 20: The time period covered by the Free Look provision of a Life insurance contract

starts:

Answer:

When the insured receives the contract and makes the first premium payment, if needed Question 21: Once completed and signed by the applicant, a producer may change an

application:

Answer:

If the applicant initials the change Question 22: Which of the following policies provides the greatest amount of protection for an insured's premium dollar as well as some cash accumulation?

Answer:

Whole Life Question 23: Which of the following individual policy conversions is usually permitted without any evidence of insurability?

Answer:

Conversion from a Term policy to a Whole Life policy Question 24: Carl Burk, whose wife is his business partner, buys a Life insurance policy on his wife's life. Because of this third-party ownership, the beneficiary should be the:

Answer:

Policy owner Question 25: An applicant has been denied insurance coverage because of information contained in a consumer report. According to the Fair Credit Reporting Act, all of the following

statements are true about this situation, EXCEPT:

Answer:

The applicant has the right to obtain a copy of the consumer report directly from an insurance company that used the report