GEORGIA INSURANCE LICENSE REAL EXAM 240 QUESTIONS
AND CORRECT ANSWERS 2024-2025 ;ATEST
VERSION//ALREADY GRADED A+
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - CORRECT
ANSWER-at future dates specified in the contract with no evidence of insurability required
which of the following features of a Group Term Life policy enables an individual to leave the group and
continue his or her insurance without providing evidence of insurability? - CORRECT ANSWER-
Conversion Privilege
An example of an unfair claims practice would be - CORRECT ANSWER-failing to effectuate prompt, fair,
and equitable settlements of a claim
Which Accident and Health policy provision addresses preexisting conditions? - CORRECT ANSWER-Time
Limit on certain defenses
Which of the following is considered an element of a Variable Life policy? - CORRECT ANSWER-
Underlying equity investment
What action can a policyowner take if an application for a bank loan requires collateral? - CORRECT
ANSWER-Assign policy ownership to the bank
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see
the interest earned, expense charges, and the - CORRECT ANSWER-cost of insurance
Which of these Nonforfeiture Options continue a build-up of cash value? - CORRECT ANSWER-Reduced-
paid up
Taking receipt of premiums and holding them for the insurance company is an example of - CORRECT
ANSWER-Fiduciary responsibility
,P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if
he dies before age 70. What kind of policy does P own? - CORRECT ANSWER-Endowment of age 70
a catastrophic illness would be best covered by which of the following health insurance plans? -
CORRECT ANSWER-Major Medical
A policyowner's rights are limited under which beneficiary designation - CORRECT ANSWER-Irrevocable
Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? -
CORRECT ANSWER-Decreasing Term
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum.
Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax
consequence of the distribution sent to this employee? - CORRECT ANSWER-Distribution is subject to
federal income tax withholding
The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is
called the - CORRECT ANSWER-Insuring Clause
S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did
not respond to the claim. S can take legal action against the insurer beginning - CORRECT ANSWER-
November 1
A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the
following? - CORRECT ANSWER-Inability of the insured to perform more than 2 activities of daily living
(ADL's)
Which of the following types of care is typically not covered in a Long-Term Care policy? - CORRECT
ANSWER-Acupuncture
The amount of monthly disability benefits payable under Social Security is affected by which of the
following factors? - CORRECT ANSWER-Amount of the benefits available from other sources
, A domestic insurance company in Georgia is considered a company that - CORRECT ANSWER-is
incorporated and formed in Georgia
Under a Guaranteed Renewable health insurance policy, the insurer - CORRECT ANSWER-may cancel the
policy for nonpayment only
R had received full disability income benefits for 6 months. When he returns to work, he is only able to
resume half his normal daily workload. Which provision pays reduced benefits to R while he is not
working at full capacity? - CORRECT ANSWER-Residual Disability
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy? - CORRECT ANSWER-if the primary beneficiary dies before the insured
Variable Life products require a producer to - CORRECT ANSWER-hold a Life Insurance license and a
Securities license
K has a health policy that must be renewed by the insurer and the premiums can only be increased if
applied to the entire class of insureds. This type of policy is considered - CORRECT ANSWER-Guaranteed
renewable
An insurance company receives E's application for an individual health policy. E did not complete all of
the medical history questions because she could not remember the exact dates. E signed the policy and
submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is
hospitalized without completing the medical history questions and paying the initial premium. E is not
insured. Which of the following clauses details the conditions that E did not meet? - CORRECT ANSWER-
Consideration clause
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? - CORRECT ANSWER-20-Pay Life accumulates cash value faster than straight Straight Life
Which of the following features of a group Term life policy enables an individual to leave the group and
continue his or her insurance without providing evidence of insurability? - CORRECT ANSWER-
Conversion privilege
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