Who elects the governing body of a mutual insurance company? - CORRECT
ANSWER-policyholders
What year was the McCarran-Ferguson Act enacted? - CORRECT ANSWER-1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of its members is know...
GA Life Insurance Exam Questions With
Answers
Who elects the governing body of a mutual insurance company? - CORRECT
ANSWER-policyholders
What year was the McCarran-Ferguson Act enacted? - CORRECT ANSWER-1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of its members is known as: - CORRECT ANSWER-a fraternal benefit
society
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called: - CORRECT ANSWER-
reserves
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - CORRECT ANSWER-Fair Credit
Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - CORRECT
ANSWER-warranty
What is the consideration given by an insurer in the consideration clause of a life policy?
- CORRECT ANSWER-promise to pay a death benefit to a named beneficiary
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called: - CORRECT ANSWER-representations
Which of the following consists of an offer, acceptance, and consideration? - CORRECT
ANSWER-contract
Which of these require an offer, acceptance, and consideration? - CORRECT
ANSWER-contract
In regards to representation or warranties, which of these statements is TRUE? -
CORRECT ANSWER-If material to the risk, false representation will void a policy
Insurance policies are offered on a "take it or leave it" basis, which make them: -
CORRECT ANSWER-Contracts of Adhesion
, A life insurance policy would be considered a wagering contract WITHOUT: -
CORRECT ANSWER-insurable interest
Insurance policies are considered aleatory contracts because - CORRECT ANSWER-
performance is conditioned upon a future occurance
Life and health insurance policies are: - CORRECT ANSWER-Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? - CORRECT
ANSWER-insurance company
When must insurable interest be present in order for a life insurance policy to be valid? -
CORRECT ANSWER-when the application is made
Which of these is NOT a type of agent authority - CORRECT ANSWER-principal
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have: - CORRECT ANSWER-insurable interest in
the proposed insured
What kind of life insurance policy pays a specified monthly income to a beneficiary for
30 years and then pays a lump sum benefit at the end of that 30 years? - CORRECT
ANSWER-family maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? - CORRECT
ANSWER-upon the death of the insured
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER-15-year decreasing term
A term life insurance policy matures: - CORRECT ANSWER-upon the insured's death
during the term of the policy
The amount of coverage on a group credit life policy is limited to: - CORRECT
ANSWER-the insured's total loan value
Which statement is TRUE regarding a Variable Whole Life policy? - CORRECT
ANSWER-a minimum guaranteed Death benefit is provided
Life insurance that covers an insured's whole life with level premiums paid over a limited
time is called: - CORRECT ANSWER-limited pay life
Which of the following characteristics is CORRECT about Interest Sensitive Whole Life?
- CORRECT ANSWER-premium payments can vary
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ACADEMICS56. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.89. You're not tied to anything after your purchase.
