ga life insurance

which of the following most accurately describes the basic function of a life insurance policys net premium ?

the net single premium is the amount required to cover the policys promised benefits, without accounting for the insurers policy-ralated expenses

under group insurance coverage, one policy covers a number of ppl. who owns these group policies?

the organization that represents the group and which sponsors the coverage

why would a large manufacturer choose to self-insure rather than buy an insurance policy from an insurance company?

to save insurance premiums by paying relatively minor losses out of company funds

carl is a policy owner who prefers to pay premiums monthly rather than annually. how will carls insurance company adjust his premium to accommodate his request?

the insurer divides the annual premium by 12 and then adds a modest charge

the insurance company function responsible for evaluating the insurable risks and assigning appropriate premium rates?

underwriting division

the requirement that an insurable interest must exist when life insurance is purchased is intended to prevent ppl from doing which of the following?

using life insurance as a speculative investment on another persons life

Alex owns a "home service" life insurance policy, which means he most likely pays his premiums in which of the following ways?

weekly or monthly, often personally to the agent who comes to alexs home

which of the following describes an agents responsibilities?

an agent has to act in the best interests of insureds , applicants , and insurers

ambiguities in an insurance contract are most often interpreted in favor of the policyowner bc insurance contracts are

contracts of adhesion

in order to be grounds for the insurer to void a contract, an applicants statements on an insurance application must involve?

the deliberate withholding of material facts

terry has been licensed in ga as a life and health insurance agent for six years. to maintain his license, how many hours of continuing education must he complete every two years?

24

from an insurance perspective, the term "loss exposure" means?

the extent to which an insurer is subject to a possible loss

with respect to the field of insurance, who are the two parties bound by the law of agency?

the insurance company and the producer

which insurance company function calculates company mortality and morbidity rates as well as the dividends on participating life insurance policies ?

actuarial division

what is not true about the regulation of the sale of variable products?

agents who only sell variable life products and do not sell fixed life products are not required to hold a life insurance license

what describes an authorized insurer

an insurer with a certificate of authority to transact insurance in georgia

which of the following is the actuary's first step in determining the premium charged for a policy?

calculate the net premium

steven is filling out an application for life insurance. the application asked whether he had ever had heart problems. steven deliberately skipped this question even tho he had heart surgery 3 months ago bc he is afraid his application will be denied. what is the term for stevens failure to give his entire medical history?

concealment

an insurance company is developing a new product. which of the following is the actuaries most important responsibility?

determining the basic premium rates for the new product

the contract btw the producer and insurer, setting forth certain acts and duties the producer is specifically authorized to perform, describes the producers..?

express authority

the commissioner can revoke or suspend an agents license for all of the following except?

failing to meet projected sales goals

smith received 20,000 in premiums from his clients and used half of the funds to buy a new entertainment system for his office. what penalties may be imposed for this misconduct?

felony conviction

an insurance company that is incorporated under the laws of alabama is considered what type of insurer in georgia?

foreign

an insurance company that primarily sells life insurance policies designed for burial and last expense purposes, and whose agents typically collect premiums in person, is known as

home service insurance company

joseph is the newly appointed commissioner of insurance for georgia. he has a reputation for being strict of law enforcement and is expected to implement regulations that will benefit consumers. as commissioner, he can be expected to do a lot BUT

impose jail terms upon those who are convicted of violating the law

which of the following most accurately describes "insurable interest" in a life insurance policy?

insurable interest is the financial relationship at the time of application btw the person applying for life insurance and the person whose life in to be insured

which statement describes the purpose of the ga life and health insurance guarranty association?

it protects policy holders against an insurance companys failure to perform its contractual obligations bc of impairment or insolvency

what best describes insurable interest?

it refers to the financial relationship btw the policy owner and the insured person or property

which is an element of an insurable risk?

losses resulting from the insured peril must be potentially catastrophic

during an examination, what are an insurers officers and employees required to do?

make all books, records, and files accessible to the commissioner

from an insurance risk perspective, an applicant engaging in adverse selection is demonstrating which type of hazard?

moral hazard

which of the following persons would not qualify for a temporary agents license in georgia?

part-time agent of a licensed agency

harry and connie each want to buy life insurance that will provide a guaranteed death benefit whenever they die, will generate a guaranteed cash value they can access while living, and evne return excess premiums to them. which of the following would best fit this couples needs?

participating whole life insurance

agent johns started offering potential clients court side tickets to a professional basketball game in exchange for purchasing a life insurance policy. which ethical sales practice has agent johns violated?

rebating

the ga life and health insurance guarranty association does not provide coverage for which of the following types of insurance?

reinsurance policies

statements made on a life insurance application are considered

representations

abby lives in NC, where she is a licensed as an insurance agent. she wants to apply for a nonresident license in GA. what must she satisfy?

she must give the commissioner a certified copy of the license application from her home state

what is not an example of peril and hazards

smoking cigs

in its fiduciary responsibility to its principal, a producer is required to do all the following except?

solicit business that is certain to be profitable to the insurer

life insurance has been purchased by ABC company on the lives of two partners, hugh and danny, and three employees, eileen, vern, and june. which of the following would apply if hugh and june were to leave the business?

the company could keep the life insurance it has on both hugh and june, even though both are no longer with the company