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GA Life Insurance Exam With Complete Solutions 2024
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GA Life Insurance Exam With Complete Solutions 2024
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GA Life Insurance Exam With CompleteSolutions 2024
Who elects the governing body of a mutual insurance company? Answer: policyholders
What year was the McCarran-Ferguson Act enacted? Answer: 1945
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its
members is known as: 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: Answer: reserves
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained? Answer: Fair Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: Answer: warranty
What is the consideration given by an insurer in the consideration clause of a life policy? 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: Answer: representations
Which of the following consists of an offer, acceptance, and consideration? Answer: contract
, Which of these require an offer, acceptance, and consideration? Answer: contract
In regards to representation or warranties, which of these statements is TRUE? 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: Answer: Contracts
of Adhesion
A life insurance policy would be considered a wagering contract WITHOUT: Answer: insurable
interest
Insurance policies are considered aleatory contracts because Answer: performance is conditioned
upon a future occurance
Life and health insurance policies are: Answer: Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? Answer: insurance company
When must insurable interest be present in order for a life insurance policy to be valid? Answer:
when the application is made
Which of these is NOT a type of agent authority Answer: principal
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have: 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? Answer: family maintenance policy
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