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2025/2026 LIFE, ACCIDENT & SICKNESS AGENT
FINAL EXAM (GA)|QUESTIONS AND
ANSWERS|GRADED A +
A policy has lapsed because of nonpayment of premium. It can be reinstated under certain conditions. Which of the following nonforfeiture options allows for reinstatement? Extended Term insurance and reduced-paid up The Commissioner of Insurance is granted broad authority in the regulation of insurance. Which of the following is not one of the Commissioner's areas of authority? Enactment of legislation what is required when a 58-year old takes a lump sum payout from anon-qualified annuity? tax on the interest and a 10 percent penalty the clause in a life insurance policy stating that neither party to the contract can unilaterally introduce modifications to the contract is called the_____. incontestible which of the following is true about universal life? the policy owner may withdraw the entire cash value of the policy is tax free
Long Term Care insurance means any accident and sickness insurance policy designed to provide coverage for not less than ____ consecutive months. 12 Which of the following is permitted to write insurance without a license? None of the above when a 58 year old takes a lump sum payout from a non qualified annuity? NOT, tax on principal and a 10 percent penalty, TRY tax on the interest and a 10 percent penalty Which of the following statements best describe the term Advertisement as used in Georgia insurance law? Any written or verbal material or communication designed to create public interest in life insurance or annuities which includes the public to purchase such product. Wayne has sold life and health insurance for a number of years. On January 2, 2009, he decides to expand his business by selling Long Term Care insurance, What must he do?
The replacing company must maintain a copy of the replacement notice and other required material for at least 3 years. Insurance companies must contain copies of Health insurance advertisements for at least how long? five years To obtain a producer's license in Georgia a person must be at least __ years. 18 The purpose of the Georgia Life and Health Association is to protect: policyowners Which of the following persons are not exempt from getting a license to sell, solicit and negotiate insurance? A person with at least 20 years of insurance experience. The Commissioner may take a variety of action against an insurance producer for violation. Which of the following describes an order by Commission in which a producer is unable to sell for a period of time? suspension
In the case of a denial of an application for a license the applicant can compete and file a new application _____. After 5 years of notice of denial. Offering to give your client half of your commission in order to motivate him to buy from you is considered _____. rebating Which of the following would be a violation of the unfair trade practices statute? Charging a woman who has no losses a higher premium on an auto policy than a man. If the Commissioner decides that someone has committed an unfair method of competition or deceptive act of practice then the Commissioner has the discretion to order which of the following: Pay a civil penalty of not more than $1,000 for each violation, Suspension, Revocation The rules relate replacement of life insurance apply to the following: Variable life insurance
Benefits paid to employees under a Group nonparticipating Disability Income policy are: Taxable Under Part B of Medicare, what % of the costs does Medicare pay after the deductible? 80% A poverty-stricken 75 year old would use which of the following to cover Medicare deductibles and copayments? Medicaid Ohio Casualty is doing regular business in Indiana. Within the state of Indiana, Ohio Casualty would be considered a(n) Foreign Company Under your agency contract, which of the following is true? You are the agent and your company is the principal. An application for insurance is submitted to the underwriting department for review. Which of the following is true?
If any conditional receipt was issued, the policy becomes effective if approved by the underwriting department and with the results of any required medical exam. "J", age 35, has purchased a 20-pay life policy. When she is 55, she will: Stop paying premiums "C" is 25 years old. She wants to take advantage of variable interest rates and to vary her premium payments throughout the year. Which policy would you recommend? Variable Universal Life Which of the following is part of the Consideration provision? Premium payments are due in advance All of the following statements regarding Annuity payout options are correct EXCEPT: A REFUND life Annuity will always pay the beneficiary an amount equal to the beginning Annuity balance. In which part of a Health policy would you look for the coverage details? Benefit provisions
Awealthy 75 year old would use which of the following to cover Medicare deductibles and copayments? An MSP Ohio Casualty is doing regular business in Indiana. Within the state of Indiana, Ohio Casualty would be considered a(n) admitted company Responsibilities outlined in your agency contract would be considered: expressed authority Each application for life insurance requires the signature of all of: The proposed insured, the policyowner, the agent M and N, both insureds, purchased a life policy that will pay a death benefit when the first dies. M and N purchased a: Joint Life Policy Which of the following policies requires a Life license and a Securities license? Variable Life
All of the following are rights of the policyowner EXCEPT: Assign the policy when an irrevocable beneficiary has been named. All of the following settlement options pay the beneficiary principal (policy proceeds) and interest EXCEPT: Lump Sum Cash M and N receive $1,000 a month from their annuity. M dies and N continues to receive the $1,000 payment as long as she lives. When n dies, payments stop. What type of annuity is this? Joint and Survivor An Exclusion rider does which of the following? Has no effect on the cost All of the following characterize Basic Medical EXCEPT: Schedule of indemnities Which of the following would be the least expensive structure for a Disability Income policy?
Which of the following statements is true regarding an outstanding policy loan upon death of the insured? The loan, plus any interest due, is deducted from the death benefit. All of the following statements about Universal Life are true EXCEPT: The policyowner has the right to increase or decrease the interest rate credited to the cash value fund. Which of the following is true regarding the Automatic Premium Loan provision? It keeps the policy in force when it would otherwise lapse due to nonpayment of the premium. L is receiving Interest Only payments on the settlement of her mother's Life insurance policy. If L dies before the lump sum is paid to her, what happens to the policy proceeds? The policy proceeds can only be paid into L's estate. A premature distribution from a qualified retirement plan or traditional IRA can be taxed as income and suffer a tax penalty of ______% 10
David buys his own Disability Income policy. Any benefits he receives are tax exempt which of the following do Medical Expense companies utilize to eliminate small claims? deductibles A policy often used as a salary continuation plan for a disabled individual empoyee is: Key Employee Calvin Jr. can no longer be insured under his parents' Medical Expense policy when he reaches what age? 26 LTCs must provide a minimum of how many months of continuous nursing home care? 12 Choosing a deductible is a way of
A policy owned by a business that can pay on a reimbursement basis for actual cost incurred during the disability of the owner/operator is called: Business Overhead Expense Timely entry is defined under the HIPAA as no more than: 63 days If an company markets MSPs it must offer: Plan A Mary and John begin to take a Straight Life Income distribution from their identical Annuities when they are both 65 years old. Which is true about their monthly benefits? John will get a larger check. The Payor Rider states that premiums will be: Waived upon the death or disability of the premium payer until the insured child reaches the age of majority.
If you choose to get medical care from a physician who is not on the list of providers approved by your PPO, your actions will result in: A higher co-payment Social Security tax is paid by employee and employer. What does a self-employed person pay? Both the employee's and the employer's portion of the tax. In the Annuity phase, the product offsets the risk of: Living too Long In purchasing an insurance contract, the applicant must accept the contract as written. This type of contract is referred to as a(n) Contract of Adhesion An Adjustable Life Policy allows for the policyowner to do all of the following EXCEPT: investment vehicle Following a loss, the policyowner must give the company notice of claim within how many days?
"R" owns a $100,000 Whole Life policy and does not want to continue premium payments. He decides to use the policy's cash value for the Reduced Paid-Up nonforfeiture option. The cash value of his new policy will $100, Charlie owns a Comprehensive Major policy with a $1,000 Base plan, a $ deductible and 80/20 coinsurance. If he suffers a covered loss of $9,500 how much will the company pay? $6, Keogh plans are available to : self-employeed professionals "R" owns a $100,000 Whole Life policy and does not want to continue premium payments. He decides to use the policy's cash value for the Reduced Paid-Up nonforfeiture option. The cash value of his new policy will (HINT: words not numbers): Continue to increase Which of the following statements is FALSE regarding the classificiation of risks? An insurer can never reject a substandard applicant.
Which of the following policies would have an increased premium after a given period of time? Convertible Term What feature of a Major Medical policy requires 100% payment of covered expenses after the insured's claim cost reaches a certain level? Stop Loss What is the Government Medical Expense program for people over 65 years of age? Medicare Benefits paid from Social Security are based upon a worker's : Primary Insurance Amount (PIA) All of the following statements about Universal Life are true EXCEPT: Growth of cash value that exceeds the guaranteed interest rate is taxed as current income. Which of the following policies would have the fastest growth of cash value?
