GA Life Insurance Exam Questions Reviewed And Revised With Correct Answers <Guarantee Pass |Updated!!>
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GA LIFE INSURANCE
Institution
GA LIFE INSURANCE
GA Life Insurance Exam
Questions Reviewed And Revised
With Correct Answers
<Guarantee Pass |Updated!!>
1) What are the three types of annuities? - ANSWER
variable, and indexed
Fixed,
2) What are the main features of a fixed annuity? - ANSWER
guaranteed, fixed payment amo...
GA Life Insurance Exam
Questions Reviewed And Revised
With Correct Answers
<Guarantee Pass |Updated!!>
1) What are the three types of annuities? - ANSWER Fixed,
variable, and indexed
2) What are the main features of a fixed annuity? - ANSWER
guaranteed, fixed payment amount, premiums in general
account
3) What are the main features of a variable annuity? - ANSWER
payment not guaranteed, premiums in separate account,
and invested in stocks and bonds
4) What are the main features of an indexed annuity? -
ANSWER interest rate tied to an index, earn higher rate
than fixed, not as risky as variable or mutual fund
,5) Describe a single premium payment in an annuity - ANSWER
one lump sum payment; the principal is created
immediately (both immediate and deferred)
6) Describe a periodic (flexible) premium payment in an annuity
- ANSWER multiple payments; the principal is created over
time (used for deferred annuity only)
7) Describe an immediate income payment under an annuity -
ANSWER purchased with a single premium; income
payments start within 12 months from the date of purchase
8) Describe a deferred income payment under an annuity -
ANSWER purchased with either lump sum or periodic
payments; benefits start sometimes after 1 year within the date
of purchase
9) An insured committed suicide one year after his policy was
issued. What will the insurer do? - ANSWER Refund the
premiums paid only; no death benefit if insured commits
suicide within 2 years of policy purchase
,10) If a policy has an automatic premium loan provision, what
happens if the insured dies before the loan is paid back? -
ANSWER The balance of the loan will be taken out of the
full death benefit
What type of insurance would be used for a return of premium
rider? - ANSWER Increasing Term
What does the return of premium rider mean when added to a
whole life policy? - ANSWER It provides that at death prior
to any given age, not only is the original face amount payable,
but also premiums previously paid are payable to the
beneficiary
An insured has chosen joint and 2/3 survivor as the settlement
option. What does this mean for the beneficiaries? - ANSWER
The surviving beneficiary will continue receiving 2/3 of the
benefit paid when both beneficiaries were alive
When attached to a permanent life insurance policy, what
allows the policy owner to customize the policy to provide an
additional amount of temporary insurance on the insured, or
allows amounts of temporary insurance to cover other family
members? - ANSWER Term rider
, What will happen if an insured continually uses the automatic
premium loan option to pay the policy premium? - ANSWER
The policy will terminate when the cash value is reduced to
nothing.
If a whole life policy lapses or is surrendered prior to maturity,
what can the cash value be used for? - ANSWER To
purchase a single premium policy for a reduced face amount.
An insured owns a $50k whole life policy. At age 47, the
insured decides to cancel his policy and exercise the extended
term option for the policy's cash value, which is currently $20k.
What would the face amount of the new term policy be? -
ANSWER $20k
Under which nonforfeiture option does the company pay the
surrender value and have no further obligations to the policy
owner? - ANSWER Cash surrender
Which annuity invests on an aggressive basis in order to yield
higher returns? - ANSWER Equity indexes annuities
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