Georgia Life Exam

All of the following are requirements for life insurance illustrations EXCEPT?

They must be part of the contract.

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

Which type of life policy allows the policyowner to pay more of less than the planned premium?

Universal Life

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT?

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection.

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date prior to the policy issue.

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits.

An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover?

$8,000, 60 days

What is the maximum period of time a temporary license can be in force?

15 months

Authorized insurance companies are examined by the Commissioner at least once every..

5 years

The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is..

A nonqualified annuity plan.

Who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer-sponsored plan who has earned income.

A tax-sheltered annuity is a special tax-favored retirement plan available to

Certain groups of employees only.

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions

The type of policy that can be changed from one that does not accumulate cash value to the ones that does is a..

Convertible Term Policy

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated.

The term "fixed"in a fixed annuity refers to all of the following EXCEPT?

Death benefit

Which of the following is NOT typically excluded from life policies?

Death due to plane crash for a fare-paying passenger.

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option.

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?

If the father is disabled for more than 6 months

What type of insurance would be used for a Return of Premium rider?

Increasing Term

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

Inspection Report

An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?

It will increase because the insured will be 5 years older than when the policy was originally purchased.

Which of the following settlement options in life insurance is known as straight life?

Life income

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the..

Other-insured rider

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will..

Pay the policy proceeds only if it would have issued the policy.

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

Nonforfeiture values guarantee which of the following for the policyowner?

That the cash value will not be lost.

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investment.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage.

All of the following are true about variable products EXCEPT?

The premiums are invested in the insurer's general account.

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

Insurers must screen all marketing plans to ensure that an advertisement does NOT use as the name of any kind of annuity contract any phrase that..

Does not include the word "annuity" unless accompanied by other clear language indicating it is an annuity.

When the insured selects the extended term forfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)

Equity Indexed Annuity

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT?

Erase the incorrect answer and record the correct answer.

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Interest only option

All of the following statements about equity index annuities are correct EXCEPT?

The annuitant receives a fixed amount of return.

Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

The beneficiary will only receive payments of the interest earned on the death benefit.

J applied for a life insurance policy one January. the policy was issued January 31. J's agent was vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides that he does not want the policy. when would J need to return to the insurer in order to receive a full refund of premium paid?

February 28th, or 10 days after the time the policy is delivered

Whenever agents submit applications to insurers, they must also submit statements disclosing whether or not replacement is involved. Who must sign these statements?

Applicant and Agent

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years or until death, whichever occurs first.