This document contains a compilation of practice test for the LIFE INSURANCE board exam. This prep exam questions will improve your knowledge and understanding on LIFE INSURANCE topics.
GA LIFE INSURANCE EXAM REVIEW
QUESTIONS WITH VERIFIED
SOLUTIONS
Who elects the governing body of a mutual insurance company? - policyholders
What year was the McCarran-Ferguson Act enacted? - 1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of its members is known as: - 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: - reserves
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - Fair Credit Reporting Act
The part of a life insurance policy guaranteed to be true is called a: - warranty
What is the consideration given by an insurer in the consideration clause of a life policy?
- 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: - representations
Which of the following consists of an offer, acceptance, and consideration? - contract
Which of these require an offer, acceptance, and consideration? - contract
In regards to representation or warranties, which of these statements is TRUE? - 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: -
Contracts of Adhesion
A life insurance policy would be considered a wagering contract WITHOUT: - insurable
interest
, Insurance policies are considered aleatory contracts because - performance is
conditioned upon a future occurance
Life and health insurance policies are: - Unilateral contracts
Who makes the legally enforceable promises in a unilateral contract? - insurance
company
When must insurable interest be present in order for a life insurance policy to be valid? -
when the application is made
Which of these is NOT a type of agent authority - principal
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have: - 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? - family
maintenance policy
When is the face amount paid under a Joint Life and Survivor policy? - upon the death
of the insured
A 15-year mortgage is best protected by what kind of life policy? - 15-year decreasing
term
A term life insurance policy matures: - upon the insured's death during the term of the
policy
The amount of coverage on a group credit life policy is limited to: - the insured's total
loan value
Which statement is TRUE regarding a Variable Whole Life policy? - 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: - limited pay life
Which of the following characteristics is CORRECT about Interest Sensitive Whole Life?
- premium payments can vary
What kind of life insurance product covers children under their parent's policy? - term
rider
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