GA Life and Health

In Georgia, an accident and sickness policy that is paid on a quarterly basis requires a grace period of

31 days

M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force?

45 days

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits?

5

When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n)

Anti-Money Laundering violation

All of the following are limited benefit plans EXCEPT

life insurance policies

An agent who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of

misrepresentation

An insurance agent is guilty of twisting if the agent

misrepresents a policy to induce a policyowner to surrender an existing policy

What percent of personal life insurance premiums is usually deductible for federal income tax purposes?

0%

J purchased a Disability Income Policy that ONLY J can terminate and on which the rates will never increase above those illustrated in the policy. Which of the following types of policies did J purchase?

Noncancelable

On an Accidental Death and Dismemberment (AD&D) insurance policy, who is qualified to change the beneficiary designation?

Policyowner

When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits?

Recurrent Disability

An insurance agent is in violation of the Rules Governing Advertisement of Life Insurance and Annuities if the agent takes which of the following actions during a sales presentation?

Refers to guaranteed policy dividends

The insuring clause

States the scope and limits of the coverage

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n)

Straight Life annuity

Which of the following statements about the classification of applicants is INCORRECT?

Substandard applicants are never declined by underwriters

Life and health insurance policies are

Unilateral contracts

What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?

Waiver of Premium rider

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will

adjust the death benefit to a reduced amount

A qualified profit-sharing plan is designed to

allow employees to participate in the profits of the company

What action will an insurer take if an interest payment on a policy loan is not made on time?

automatically add the amount of interest due to the loan balance

The coordination of benefits (COB) provision exists in order to

avoid duplication of benefit payments

Variable Whole Life Insurance can be described as

both an insurance and securities product

K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

daughter

Additional coverage can be added to a Whole Life policy by adding a(n)

decreasing term rider

A variable insurance policy

does not guarantee a return on its investment accounts

In life insurance, the needs approach is used mostly to establish

how much life insurance a client should apply for

An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the

insurer dates the policy

Which of these types of coverage is best described as a short term medical policy?

interim coverage

Select the appropriate response A insurance agent does NOT have fiduciary responsibilities to

other agents

Insurance policies are considered aleatory contracts because

performance is conditioned upon a future occurrence

The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the

policyowner

Which of the following is an example of rebating?

returning a portion of a premium as inducement to purchase insurance

What is the Suicide provision designed to do?

safeguard the insurer from an applicant who is contemplating suicide

An immediate annuity consists of a

single premium

Georgia's Replacement Rule applies to all of the following situations EXCEPT

the existing policy is kept in force and an additional policy is purchased from the same company

A level premium indicates

the premium is fixed for the entire duration of the contract

What is the primary factor that determines the benefits paid under a disability income policy?

wages

Before holding a hearing that may lead to suspension or revocation of an agent's license, the Commissioner MUST give

written notice to the agent

Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract?

Entire Contract

Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself?

Entire Contract Provision

Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?

Evidence of insurability is required when the option is exercised

Long Term Care policies will usually pay for eligible benefits using which of the following methods?

Expense incurred

From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?

Fair Credit Reporting Act

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

In Georgia, the Commissioner may place on probation, suspend, revoke, refuse to renew, or deny a license for all of the following reasons EXCEPT:

Filing bankruptcy

Which of these is NOT a reason for purchasing life insurance on the life of a minor?

If both parents were to die, it would provide death benefits to the child

In Georgia, an insurance company must do which of the following to terminate an agent's appointment?

Notify the Commissioner within 30 days

Which of the following actions by an insurance company or an agent is considered rebating?

Offering a prospect something of value that is not specified in a contract to induce the purchase of that contract

All of the following statements are true regarding a policy's Grace period EXCEPT

Past due premiums are waived

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

Pay face amount minus the past due premium

The provision that defines to whom the insurer will pay benefits to is called

Payment of Claims

What benefit does the Payor clause on a Juvenile Life policy provide?

Premiums are waived if payor becomes disabled

Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT?

Premiums normally increase at time of renewal

The Rules Governing Advertisement of Life Insurance and Annuities apply to which of the following items?

Prepared sales presentations used by insurance agents

What must the policyowner provide to the insurer for validation that a loss has occurred?

Proof of Loss

All of these are considered sources of underwriting information about an applicant EXCEPT

Rating Services

What type of life policy covers two people and pays upon the death of the last insured?

Survivorship

When applied to Whole Life insurance, the word "straight" denotes

The duration of premium payments

The phrase "This policy will only pay for a semi-private room" is an example of a(n)

internal limit

Basic Hospital and Surgical policy benefits are

lower than the actual expenses incurred

According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options?

monthly

The Notice of Claims provision requires a policyowner to

notify an insurer of a claim within a specified time

What is the maximum contestability period for most life insurance policies?

2 years

All agents licensed less than 20 years are required to complete how many continuing education hours every two years?

24

How long is the typical free look period for Long Term care insurance policies?

30 days

Which of the following individuals MUST be licensed as an agent?

A person who places insurance on behalf of anyone seeking insurance

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called

An installment Refund annuity

Which of the following statements BEST describes what the Legal Actions provision of an Accident and Health policy requires?

An insured must wait at least 60 days after Proof of Loss has been submitted before a lawsuit can be filed

Any changes made on an insurance application requires the initials of whom?

Applicant

An incomplete life insurance application submitted to an insurer will result in which of these actions?

Application will be returned to the writing agent

The difference between group insurance and blanket health policies is

Blanket health policies do not issue certificates

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?

Claim will be denied

Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures?

Commercial insurer

Insurance policies are offered on a "take it or leave it" basis, which make them

Contracts of Adhesion

A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant?

Disability Income

At the age of 45, an individual withdraws $50,000 from his Qualified Profit-Sharing Plan and then deposits this amount into a personal savings account. This action would result in

Income tax and a 10% penalty assessed upon funds withdrawn from the Qualified Plan

T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?

Income that cannot be outlived by the owner

Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

Inspection report

A Renewable Term Policy is renewable at the option of the

Insured

Which of the following health insurance policy provisions specifies the health care services a policy will provide?

Insuring clause

What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made?

Irrevocable beneficiary

Which of these would be considered a Limited-Pay Life policy?

Life Paid-Up at Age 70

In Major Medical Expense policies, what is the intent of a Stop Loss provision?

Limits an insured's out-of-pocket medical expenses

Which of these is NOT relevant when determining the amount of personal life insurance needed?

Local unemployment rate

Comprehensive Major Medical policies usually combine

Major Medical with Basic Hospital/Surgical coverage

If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses?

Medicare Supplement

Policyholders elect the governing bodies of which of the following types of insurance companies?

Mutual

Which of the following BEST describes a short-term medical expense policy?

Nonrenewable

Which of these statements concerning an individual Disability Income policy is TRUE?

Normally includes an Elimination period

Which of these is considered a statement that is assured to be true in every respect?

Warranty