Georgia State Life Insurance Agent Practice Exam

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• A policy with separate accounts and no guaranteed cash values is:
• What does the Insurance Information Institute do?
• Which nonforfeiture option uses the policy's cash value to buy reduced coverage?
• Which type of term life insurance allows the policyholder to change to permanent coverage without proof of insurability?
• What is the primary purpose of the Georgia Life and Health Insurance Guaranty Association?
• Which term describes a temporary agreement providing immediate coverage?
• What is the purpose of an "accelerated death benefit"?
• A policy that permits changing face amount/type of coverage without issuing a new contract is:
• What does "convertibility" in life insurance refer to?
• What action is NOT allowed under the provisions of a life insurance policy's grace period?
• In life insurance, what does "exclusion clause" commonly address?
• What is "rate classification" in the context of underwriting?
• Settlement option that pays income for life of the beneficiary is:
• What is the result of a preferred risk classification?
• What financial advantage might an insured gain from charitable life insurance?
• A policy cannot be issued without the applicant's:
• What is the underwriting process in life insurance?
• In Georgia, what is the status of a producer mainly writing controlled business?
• Which is the best definition of replacement?
• What additional requirement is needed when replacing life insurance in Georgia?
• In the context of life insurance policies, what does "lapse" refer to?
• Why might an insurer postpone underwriting?
• The misstatement of age provision in a life insurance policy requires the insurer to do what?
• Which type of life insurance provides coverage for a specific period and has no cash value?
• Under Georgia law, a producer who mishandles client funds may face:
• What primary effect does a Modified Endowment Contract (MEC) have?
• What does "riders" mean in the context of life insurance?
• Industrial (home service) life is characterized by:
• What is the maximum penalty per violation for an unfair trade practice in Georgia?
• Which policy pays when the first of two insureds dies?
• The Georgia Commissioner of Insurance may examine an insurer's records at least:
• How are policy loans from a whole life policy treated for tax purposes?
• Which dividend option buys additional small amounts of paid-up insurance?
• What signatures are typically required on a life application?
• A grace period in a life insurance policy allows the policyholder to:
• If an application is incomplete, what is the likely action taken by the insurer?
• What is meant by "insurable interest" in life insurance?
• What does contestability in life insurance refer to?
• Which statement best describes the primary function of a life insurance policy?
• What are "living benefits" in a life insurance policy?
• Backdating a policy is permitted primarily to:
• What is the Policy Replacement process?
• What is "adjustable life insurance"?
• Very low starting premiums that rise each year for a period describes:
• In life insurance, beneficiaries typically receive what when a policyholder dies?
• What is a "waiver of premium rider"?
• What type of income do dividends from a life policy typically represent?
• What does the non-forfeiture option refer to?
• In Georgia, what is required for insurers when advertising their products?
• What does permanent life insurance cover?
• What characteristic is associated with a Variable Life policy?
• What is the role of the Georgia Commissioner of Insurance regarding licensees?
• A joint life policy covers:
• The agent's report is used to:
• The incontestability clause in Georgia life insurance policies prevents the insurer from:
• In life insurance, what does the term "permanent insurance" typically mean?
• If an applicant pays the initial premium and passes underwriting, coverage typically begins:
• What distinguishes a revocable beneficiary from an irrevocable beneficiary?
• Which policy offers flexible premiums and investment choices?
• Term insurance that renews each year at a higher premium is:
• The suicide exclusion typically lasts for:
• How does "cash value" function in a whole life policy?
• What is the tax treatment of dividends from a participating life policy?
• Which policy features a level premium and guaranteed cash value accumulation?
• What role does the agent have in the underwriting process?
• What is the penalty for early withdrawal from a Modified Endowment Contract?
• What does the term "insurable interest" mean in Georgia life insurance law?
• Which document is often used to determine a policy's premium during the underwriting process?
• Premium payments are typically based on which factors?
• In Georgia, failing to complete required continuing education may result in:
• What is meant by "individual life insurance policy"?
• What are "insurer's reserves"?
• Settlement option paying a chosen dollar amount until funds (plus interest) are exhausted:
• What is the purpose of the "binding receipt"?
• What is the significance of the contestability period in life insurance?
• What does "whole life cash value growth" refer to?
• What does the "standard risk" classification signify?
• What is the typical grace period for individual life policies in Georgia?
• When is an insurable interest required in life insurance contracts in Georgia?
• What is the primary source of underwriting information?
• In Georgia, the Commissioner of Insurance is elected for a term of how many years?
• Which life insurance settlement option pays the beneficiary a guaranteed income for life?
• Which nonforfeiture option gives the longest duration of coverage?
• Which type of insurance policy typically provides coverage for a specified term?
• Which type of term insurance decreases in face value over the policy term?
• Which nonforfeiture option keeps the original face amount for a limited time?
• In Georgia, the continuing education requirement for a life insurance producer is how many hours every 2 years?
• What is the primary purpose of life insurance?
• An insurance producer in Georgia may be disciplined for all of the following EXCEPT:
• What does "face value" refer to in a life insurance policy?
• Which dividend option leaves dividends with the insurer to earn interest?
• Which of the following allows a policyowner to take a portion of the death benefit while still alive if diagnosed with a terminal illness?
• Which type of life insurance is typically used for business key man policies?
• What are "clause exclusions" in a life insurance policy?
• What happens when an insurance policy is issued with a substandard risk classification?
• How is the premium payment structure of whole life insurance typically defined?
• In which scenario would employer-paid premiums for group life be taxable to the employee?
• What is the tax implication of receiving a cash value from a life insurance policy when it exceeds the total premiums paid?
• What does the term "cash surrender value" refer to?
• Which of the following is NOT considered an unfair claims settlement practice?
• What are the two main types of life insurance?
• What is a buy-sell agreement in a business context?
• Which life insurance policy builds cash value based on the insurer's general account performance?
• Which is commonly used for estate liquidity for wealthy couples?
• What does the Fair Credit Reporting Act require notice for?
• Which annuity payout option provides the highest periodic income?
• What is the tax status of death benefits paid in a lump sum to an individual?
• What is the term length for the election of the Georgia Insurance Commissioner?
• Who is considered a beneficiary in a life insurance policy?
• What is the main purpose of a Guaranteed Insurability Rider?
• How many days does a licensee have to notify the Commissioner of a change of address in Georgia?
• What describes the "risk classification" process?
• Claims processing in life insurance involves which of the following?
• How is rebating treated under Georgia law?
• What is the maximum face value limit for a single life policy under Georgia law?
• Which retirement plan is specifically designed for public schools and certain nonprofits?
• A revocable beneficiary means the owner:
• Which nonforfeiture option continues the policy's original coverage for a limited period?
• Credit life insurance is most commonly written as:
• When can a policyholder exercise a 'guaranteed insurability rider' option?
• Stranger-originated life insurance (STOLI) is typically:
• A contingent beneficiary receives the death benefit if:
• How is "universal life insurance" defined?
• Which element is NOT typically included in a life insurance policy?
• What is one advantage of whole life insurance policies?
• What term is used for the person who receives the death benefit from a life insurance policy?
• Which policy is designed to mature at a specified time or age for a lump sum?
• A conditional receipt generally provides coverage effective on the:
• What does the term “surrender value” refer to?
• In Georgia, which entity approves insurance policy forms before they can be sold?
• What is the minimum free-look period for individual life policies in Georgia?
• Who can be classified as a licensed professional in the insurance field?
• Which term feature lets the owner switch to permanent coverage without evidence of insurability?
• What is a "statement of good health"?
• Under Georgia law, an insurance company must notify the policyholder of a lapse for nonpayment at least how many days before coverage ends?
• What is the tax status of cash value growth in a life policy?
• Which life insurance policy is typically used for key person insurance?
• Lower initial premiums that jump once then remain level describes:
• Under Georgia law, the penalty for acting as an insurance producer without a license is:
• A policy loan in a whole life policy:
• Which of the following is true about term life insurance?
• Which of the following annuities begins payments immediately after a lump-sum premium is paid?
• What is "group life insurance"?
• What is the continuing education requirement for Georgia resident producers every 2 years?
• What generally occurs when surrendering a policy for more than total premiums paid?
• What does "free look period" refer to?
• Under Georgia law, an insurance producer must report administrative actions taken in another state within:
• What does a cash surrender value in a life insurance policy refer to?
• The free-look period in Georgia for life insurance is:
• In Georgia, a temporary insurance license may be issued for up to how long?
• Delivering a policy and collecting any outstanding premium is called:
• What happens to a whole life policy if the policyholder stops paying premiums?
• Who performs field underwriting?
• Which policy lets the owner change premium and death benefit within set limits?
• Which type of term insurance typically has a decreasing benefit over time?
• Which life insurance option allows policyholders to change premium payments and death benefits?
• What are "exemptions" in a life insurance policy?
• Which annuity guarantees payments for a certain period, regardless of whether the annuitant lives that long?
• What must Georgia's replacing insurer provide to policyholders?
• Which term policy has a death benefit that declines over time?
• What does a "guaranteed insurability rider" allow policyholders to do?
• What is the main purpose of life insurance?
• Which of the following best describes a conditional receipt in life insurance?
• Which of the following riders waives premiums if the insured becomes totally disabled?
• What is the maximum coverage amount typically offered under a life insurance policy?
• The replacement of an existing life insurance policy in Georgia requires what documentation?
• In the context of life insurance, what does "lapse" mean?
• What do underwriting guidelines involve?
• Delivering the Buyer's Guide and Policy Summary helps satisfy which requirement?
• What is the potential cash value someone may receive when surrendering their life insurance policy called?
• Which of the following is a dividend option in a participating whole life policy?
• Which type of insurance offers a combination of term and investment options?
• Which type of beneficiary cannot be changed without the beneficiary's written consent?
• What is the primary role of a broker in the insurance industry?
• What is an advantage of Term Life insurance?
• What is the classification of twisting under Georgia insurance law?
• How long must Georgia insurance producers retain records such as applications?
• Which term plan increases its death benefit periodically to offset inflation?
• What does a "medical examination" in insurance applications entail?
• What does a life insurance agent primarily do on behalf of an insurer?
• Who are secondary beneficiaries in a life insurance policy?
• Which factor is essential for the activation of a life insurance policy?
• Which insurance type typically has a cash value that grows over time?
• Automatic Premium Loan (APL) prevents lapse by:
• In Georgia, insurance advertisements must be:
• Which of the following policies is most likely to be used for mortgage protection?
• What does the term “non-payment of premiums” result in concerning life insurance policies?
• Which type of life insurance policy allows the investment of cash value into separate accounts?
• How does misspecification of information in an application affect the underwriting process?
• How are annuity payments taxed when received?
• Settlement option paying equal installments for a set time, regardless of interest earned:
• A Medical Information Bureau (MIB) report is used to:
• If no premium was paid at application, coverage typically begins:
• What is referred to as a "premium" in life insurance?
• Under Georgia law, rebating includes which of the following practices?
• What is a primary characteristic of whole life insurance?
• What key element is reviewed during the "free look period"?
• Which of the following best describes the term “claims” in insurance?
• How are funds received from an annuity taxed for the receiver?
• What characterizes term life insurance?
• What is a premium holiday in life insurance?
• How are employer-paid premiums for an employee's group term life insurance up to $50,000 treated for tax purposes?
• Which policy pays when the second insured dies?
• What is the primary purpose of a life insurance policy's cash value?
• What does "mortality risk" mean in insurance?
• Which of the following riders can be added to a life insurance policy to cover additional needs as they arise?
• Under Georgia insurance law, "twisting" refers to:
• What is charitable life insurance?
• What is typically true about a 'surrendered policy'?
• What is "extended term insurance"?
• Which term feature allows continuing coverage at the end of the term without proof of insurability?
• In a joint life policy, what is true about the premium payment?
• A client wants to ensure her policy's death benefit keeps up with inflation. Which rider should she choose?
• What is whole life insurance known for?
• What does the term "initial premium payment" refer to in life insurance?
• A Keogh (HR-10) plan is intended for which type of individuals?
• Which settlement option only pays the interest on the death benefit, keeping the principal intact?
• Georgia requires insurers to maintain policy records for at least:
• When is a Statement of Good Health typically required at delivery?
• What is a term rider in life insurance?
• What is typically the biggest factor in determining life insurance premiums?
• What is "salvage value" within the life insurance framework?
• What happens to cash value in a whole life policy if the policy is surrendered?
• Which pays the face amount plus cash value at death?
• Which rider allows the purchase of additional insurance at specified intervals without medical evidence?
• What is a "death benefit"?
• Which type of life insurance would typically have a premium that decreases over time?
• What does adverse selection entail?
• What is a "policy loan" in life insurance?
• What is the primary responsibility of a life insurance agent?
• What does a "disability income rider" provide?
• A life insurance illustration must include which of the following elements?