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GA Life Health Insurance Exam 132 Questions with Verified Answers,100% CORRECT
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GA Life Health Insurance Exam 132 Questions with Verified Answers
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GA Life Health Insurance Exam 132 Questions with VerifiedAnswers
Attained Age - CORRECT ANSWER insured's age at the time the policy is issued or
renewed.
Cash Value - CORRECT ANSWER A policy's savings element or living benefit.
Face Amount - CORRECT ANSWER The amount of benefit stated in the life
insurance policy.
Fixed life insurance - CORRECT ANSWER contracts that offer guaranteed minimum
or fixed benefits.
Deferred - CORRECT ANSWER with-held or postponed until a specified time or
event in the future.
Endow - CORRECT ANSWER the cash value of a whole life policy has reached the
contractual face amount.
Level Premium - CORRECT ANSWER the premium that does not change
throughout the life of a policy.
Liquidation of an estate - CORRECT ANSWER converting a person's net worth into
a cash flow.
Non-forfeiture values - CORRECT ANSWER benefits in a life insurance policy that
the policy owner cannot lose even if the policy is surrendered or lapses.
Policy maturity - CORRECT ANSWER in life policies, the time when the face value is
paid out.
Qualified plan - CORRECT ANSWER a retirement plan that meets IRS guidelines for
receiving favorable tax treatment
,Securities - CORRECT ANSWER financial instruments that may trade for value (ex:
stocks, bonds, options).
Suitability - CORRECT ANSWER a requirement to determine if an insurance
product is appropriate for a customer
variable life insurance - CORRECT ANSWER contracts in which the cash values
accumulate based upon specific portfolio of stocks without guarantees of
performance.
Term life - CORRECT 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 - CORRECT 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 - CORRECT ANSWER Level, Increasing, Decreasing
Level term insurance - CORRECT 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) - CORRECT 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 - CORRECT 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 - CORRECT 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. When the agent submits the application to the company and the company
issues a conditional receipt.
B. When the agent delivers the policy, collects the initial premium, and the
applicant completes an acceptable Statement of Good Health.
C. On the designated effective date.
D. On the application date. - CORRECT ANSWER B. When the agent delivers the
policy, collects the initial premium, and the applicant completes an acceptable
Statement of Good Health.
Individual and group accident and sickness policies that cover what kinds of losses
must also provide for newborns, from the moment of birth, with all health
insurance benefits applicable to children?
A. specified child-related losses.
B. Health-related losses for the mother
C. Maternity Losses
D. Losses that happen to family members. - CORRECT ANSWER D. Losses that
happen to family members until 31 days.
Which provision allows the policyholder a period of time, while coverage is in
force, to examine a health insurance policy and determine whether or not to keep
it?
A. Free Look Period
, B. Grace Period
C. Elimination Period
D. Probationary Period - CORRECT ANSWER A. Free Look Period
All of the following and dividend options except?
A. Reduction of premium
B. Paid-up additions
C. Fixed-period installments
D. Accumulated at interest - CORRECT ANSWER C. Fixed-period installments
An insured wants to name her husband as the beneficiary of her health policy.
She also wishes to retain all of the rights of ownership. The insured should have
her husband name as what type of beneficiary?
A. Primary
B. Contingent
C. Irrevocable
D. Revocable - CORRECT ANSWER D. Revocable.
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. - CORRECT 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
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