XCEL SOLUTIONS: Georgia Life-Only Pre-Licensing Questions And Answers With Verified Updates
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Course
Georgia Life-Only
Institution
Georgia Life-Only
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of
the following?
-Guaranteed Insurability rider
-Aviation exclusion
-Impairment rider
-Accidental Death Benefit rider - -Aviation exclusion
A life insurance policyowner would like to take o...
XCEL SOLUTIONS: Georgia Life-Only
Pre-Licensing
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of
the following?
-Guaranteed Insurability rider
-Aviation exclusion
-Impairment rider
-Accidental Death Benefit rider - -Aviation exclusion
A life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life
policy. The interest rate applied to this loan may vary over time. This is referred to as a(n) ____________
rate loan.
-Fluctuating
-Fixed
-Variable
-Increasing - -Variable
The interest rate on a Variable rate cash value loan may vary over time.
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its
members is known as:
-a fraternal benefit society
-a stock insurer
-a mutual insurer
-the Life and Health Insurance Guaranty Association - -a fraternal benefit society
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its
members is known as a fraternal benefit society.
A policy loan is made possible by which of these life insurance policy features?
-Extended term provision
,-Cash value provision
-Owner's rights provision
-Consideration clause - -Cash value provision
The cash value provision makes a policy loan possible.
A policyowner may generate taxable income from which of the following Dividend Options?
-Nonforfeiture
-Cash
-Accumulation at Interest
-Reduced Premium - -Accumulation at Interest
While policy dividends are not taxable, any interest paid on them is taxable income in the year the
interest is credited to the policy.
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a
faster rate in the early years of the policy. Which of these statements made by the producer would be
correct?
-Straight life accumulates faster than Limited-pay Life
-20-Pay Life accumulates cash value faster than Straight Life
-Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial rating
-20-Pay Life and Straight Life accumulate cash value at the same rate - -20-Pay Life accumulates
cash value faster than Straight Life
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see
the interest earned, cost of insurance, and the
-inherent risk
-commission rate
-inflation factor
-expense charges - -expense charges
The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense
charges, the interest earned, and the cost of insurance.
, A whole life insurance policyowner does not wish to continue making premium payments. Which of the
following enables the policyowner to sell the policy for more than its cash value?
-Cash surrender
-Life settlement contract
-Buy-sell contract
-1031 Exchange - -Life settlement contract
A life settlement contract allows a policyowner to sell a life insurance policy for more than its cash value.
A(n) _____________ contained in a life insurance policy states that the policy will NOT cover certain
risks.
-elimination
-exclusion
-limitation
-curtailment - -exclusion
An exclusion contained in a life insurance policy states that the policy will NOT cover certain risks.
A(n) ______________ beneficiary may be changed by the policyowner WITHOUT the consent of the
beneficiary.
-Revocable
-Irrevocable
-Tertiary
-Replaceable - -Revocable
All are true statements regarding the underwriting process, EXCEPT:
-Signed consent from the applicant must be provided in order to test for AIDS and HIV virus
-AIDS and HIV virus exams can be conducted in a discriminatory fashion
-The cost of any examination is paid for by the insurer
-The original application is the primary source of information used in the underwriting process - -
AIDS and HIV virus exams can be conducted in a discriminatory fashion
AIDS and HIV testing must be conducted in a uniform fashion and cannot be discriminatory.
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