XCEL/Pearson Vue: 200 Question Exam Simulator: Georgia Life and Health
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200 Terms
Who owns a stock company?
Its stockholders
3 multiple choice options
Why would the Commissioner examine an insurer's records?
To determine the solvency of the insurer
3 multiple choice options
With whom may an agent legally share commissions?
Another agent who is licensed in the same line of insurance
3 multiple choice options
An example of unfair discrimination would be
offering different terms of coverage for different policyowners having the same risk classification
3 multiple choice options
All accident and sickness plans MUST provide coverage on newborn children for ___ days.
31
3 multiple choice options
In Georgia, an accident and sickness policy that is paid on a quarterly basis requires a grace period of
31 days
3 multiple choice options
In Georgia, long-term care policies are required to provide benefits for at least
12 months
3 multiple choice options
During the application process, the agent's primary responsibility is to
the insurance company
3 multiple choice options
How often must an insurance agent license be renewed in Georgia?
Every 2 years
3 multiple choice options
Upon reaching the limiting age, a handicapped child can extend their accident and sickness insurance coverage as a dependent
only if the child is incapable of employment and chiefly dependent on the policyowner
3 multiple choice options
When is a group accident and health policy required to provide coverage for a newborn child?
At the moment of birth
3 multiple choice options
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
3 multiple choice options
In Georgia, an example of an alien insurer would be one that is incorporated in
France
3 multiple choice options
In Georgia, most life insurance policies have a contestability period of
2 years
3 multiple choice options
Life insurance replacement regulation protects the interests of
the policyowner
3 multiple choice options
What is the reason for the establishment of Rules Governing Life Insurance and Annuity Replacements?
Lessen the chance for misrepresentation and incomplete disclosure
3 multiple choice options
Which of the following is the MINIMUM age at which an individual can sign a life insurance application?
15
3 multiple choice options
Insurance agent licenses normally must be renewed every ___ years in Georgia.
2
3 multiple choice options
Prior to a hearing that could potentially revoke an agent's license, what is required by the Commissioner?
Giving written notice to the agent
3 multiple choice options
Someone who is appointed by an insurer to engage in insurance transactions is called a(n)
agent
3 multiple choice options
Using an existing life insurance policy's cash value to purchase another policy with the same insurer for the sole purpose of earning additional commissions is called
Churning
3 multiple choice options
What's the requirement for a nonresident agent license applicant?
Being a licensed agent in the agent's home state
3 multiple choice options
A domestic insurance company MUST be examined by the Commissioner every __ years.
5
3 multiple choice options
A person who is required to be a licensed agent would be a(n)
person who places insurance on behalf of anyone seeking insurance
3 multiple choice options
An agent must have ___ hours of ethics per continuing education reporting period.
3
3 multiple choice options
A Key Employee policy is taken out by Company X on its vice president. Ten years later, this employee leaves Company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed?
Company X
3 multiple choice options
What is considered a valid reason for small businesses to insure the lives of its major shareholders?
Fund a but-sell agreement
3 multiple choice options
Which of these factors does NOT influence an applicant's need for life insurance?
Self-maintenance expenses
3 multiple choice options
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
3 multiple choice options
Medicare Part C is:
available to those who are enrolled in Medicare Part A and Part B
3 multiple choice options
Which Long Term Care insurance statement is true?
Pre-existing conditions must be covered after the coverage has been in force for six months
3 multiple choice options
What is the maximum number of employees (earning at least $5,000) that an employer can have in order to start a SIMPLE retirement plan?
100
3 multiple choice options
What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive?
Primary Insurance Amount (PIA)
3 multiple choice options
Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2?
Ordinary income tax and a 10% tax penalty for early withdrawal
3 multiple choice options
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
Social Security
3 multiple choice options
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When producer delivers policy and collects initial premium
3 multiple choice options
A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a:
profit-sharing plan
3 multiple choice options
Which of the following medical expenses does Cancer insurance NOT cover?
Arthritis
3 multiple choice options
B's policy provides coverage on an in-hospital basis only and contains a limited daily room and board benefit. Which of these policies does B have?
Basic Hospital
3 multiple choice options
Comprehensive Major Medical policies usually combine:
Major Medical with Basic Hospital/Surgical coverage
3 multiple choice options
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the:
applicant's physician
3 multiple choice options
What type of insurance offers permanent life coverage with premiums that are payable for life?
Whole Life
3 multiple choice options
All of the following statements about Major Medical benefits are true, EXCEPT:
Benefits have no maximum limit
3 multiple choice options
What type of life insurance are credit policies issued as?
Term
3 multiple choice options
Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?
Conversion
3 multiple choice options
Basic Medical Expense insurance:
has lower benefit limits than Major Medical insurance
3 multiple choice options
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase?
30 Pay Life
3 multiple choice options
K is an insured under a life insurance policy owned by a third party. Which of these statements is true?
K has no ownership rights
3 multiple choice options
A Life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life policy. The interest rate applied to this loan may vary over time. This is referred to as a(n) ________ rate loan.
Variable
3 multiple choice options
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?
59 1/2
3 multiple choice options
A Whole Life insurance policyowner does NOT have the right to
change the grace period
3 multiple choice options
The underwriting process involves all of these, EXCEPT for:
Policy loan
3 multiple choice options
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?
Evidence of insurability is required when the option is exercised
3 multiple choice options
G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?
10 years
3 multiple choice options
This type of deductible provision states that should more than one family member be involved in a common accident, or suffer the same illness, only one individual deductible amount shall be applied.
Common accident deductible
3 multiple choice options
Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary?
Split-dollar plan
3 multiple choice options
Which of the following policies is characterized by a flexible premium and death benefit and allows the policyowner control of the investment aspect of the plan?
Variable universal life
3 multiple choice options
All of these are considered sources of underwriting information about an applicant, EXCEPT:
Rating Services
3 multiple choice options
An insurer may normally delay the payment of a cash value loan or surrender value for up to
6 months
3 multiple choice options
T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?
Renewable
3 multiple choice options
An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager?
Key Person Life Policy
3 multiple choice options
A Cost of Living rider gives the insured
additional death benefits
3 multiple choice options
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
When the conditions of the receipt are met
3 multiple choice options
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
policyowner
3 multiple choice options
Term insurance has which of the following characteristics?
Expires at the end of the policy period
3 multiple choice options
All of these statements concerning Settlement Options are true, EXCEPT:
Only the beneficiary may select
3 multiple choice options
ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has:
waived one of its legal rights
3 multiple choice options
D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive?
The full face amount
3 multiple choice options
Which of the following situations does a Critical Illness plan cover?
Leukemia
3 multiple choice options
Who has the option to renew a Renewable Term policy?
Insured
3 multiple choice options
In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?
Owner's Rights
3 multiple choice options
A 15-year mortgage is best protected by what kind of life policy?
15-year decreasing term
3 multiple choice options
P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?
Family Maintenance policy
3 multiple choice options
Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?
Whole Life policy with an Other Insured Rider
3 multiple choice options
Which of the following consists of an offer, acceptance, and consideration?
Contract
3 multiple choice options
Which of these actions should a producer take when submitting an insurance application to an insurer?
Inform insurer of relevant information not included on the application
3 multiple choice options
What does a Face Amount Plus Cash Value Policy pay upon the insured's death?
Face amount plus the policy's cash value
3 multiple choice options
A qualified profit-sharing plan is designed to:
allow employees to participate in the profits of the company
3 multiple choice options
A life insurance application may be rejected on the basis of all of these factors EXCEPT
Gender
3 multiple choice options
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Life Income
3 multiple choice options
Before a life policy is issued, which of these contract elements is necessary?
A signed application by the prospect
3 multiple choice options
The incontestable clause allows an insurer to:
contest a claim during the Contestable Period
3 multiple choice options
A term life insurance policy matures:
upon the insured's death during the term of the policy
3 multiple choice options
How are policyowner dividends treated in regards to income tax?
Interest on accumulations is taxed
3 multiple choice options
Basic Hospital and Surgical policy benefits are:
lower than the actual expenses incurred
3 multiple choice options
P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?
Accidental Death and Dismemberment clause
3 multiple choice options
An incomplete health insurance application submitted to an insurer will result in which of these actions?
Application will be returned to the writing producer
3 multiple choice options
Before a health insurance policy is issued, which of these components of the contract is required?
Applicant's signature on application
3 multiple choice options
For which of the following expenses does a Basic Hospital policy pay?
Hospital room and board
3 multiple choice options
The part of a life insurance policy guaranteed to be true is called a(n):
warranty
3 multiple choice options
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the:
Policy Loan provision
3 multiple choice options
T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?
Benefits are taxable to T
3 multiple choice options
Generally, how long is a benefit period for a Major Medical Expense Plan?
One year
3 multiple choice options
Which of the following is considered an element of a Variable Life Policy?
Underlying equity investment
3 multiple choice options
An employer that offers a qualified retirement plan to its employees is eligible to:
make tax-deductible contributions to the plan
3 multiple choice options
When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?
Void the policy only if it is discovered during the Contestable period and proven to be material
3 multiple choice options
Which of the following types of permanent life insurance policies offers the highest initial cash value?
Single premium
3 multiple choice options
Which of these is NOT a type of agent authority?
Principal
3 multiple choice options
An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?
$6,000
3 multiple choice options
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, expense charges, and the
cost of insurance
3 multiple choice options