GA Life/Health Insurance Exam 100% VERIFIED ANSWERS 2024/2025 CORRECT STUDY SET, Exams of Organization and Business Administration

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GA Life/Health Insurance

Exam 100% VERIFIED

ANSWERS 2024/

CORRECT STUDY SET

Sudy Attained Age insured's age at the time the policy is issued or renewed. Cash Value A policy's savings element or living benefit. Face Amount The amount of benefit stated in the life insurance policy. Fixed life insurance contracts that offer guaranteed minimum or fixed benefits. Deferred with-held or postponed until a specified time or event in the future. Endow the cash value of a whole life policy has reached the contractual face amount. Level Premium the premium that does not change throughout the life of a policy. Liquidation of an estate

converting a person's net worth into a cash flow. Non-forfeiture values benefits in a life insurance policy that the policy owner cannot lose even if the policy is surrendered or lapses. Policy maturity in life policies, the time when the face value is paid out. Qualified plan a retirement plan that meets IRS guidelines for receiving favorable tax treatment Securities financial instruments that may trade for value (ex: stocks, bonds, options). Suitability a requirement to determine if an insurance product is appropriate for a customer variable life insurance contracts in which the cash values accumulate based upon specific portfolio of stocks without guarantees of performance. Term life is temporary protection because it only provides coverage for a specific period of time. Also known as; provide for the greatest amount of coverage for the lowest premium as compared to any other form of protection. Usually a max age offered. Term Life Provide pure death protection - if the insured dies during the term, the policy pays the death benefit to the beneficiary. Types of Term Life Level, Increasing, Decreasing

C. On the designated effective date. D. On the application date. B. When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health. Individual and group accident and sickness policies that cover what kinds of losses must also provide for newborns, from the moment of birth, with all health insurance benefits applicable to children? A. specified child-related losses. B. Health-related losses for the mother C. Maternity Losses D. Losses that happen to family members. D. Losses that happen to family members until 31 days. Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it? A. Free Look Period B. Grace Period C. Elimination Period D. Probationary Period A. Free Look Period All of the following and dividend options except? A. Reduction of premium B. Paid-up additions C. Fixed-period installments D. Accumulated at interest C. Fixed-period installments An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband name as what type of

beneficiary? A. Primary B. Contingent C. Irrevocable D. Revocable D. Revocable. A father owns a life insurance policy on his 15-year old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disables, what will happen to the life insurance premiums? A. The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums. B. The insured's premiums will be waived until she is 21. C. The premiums will become tax deductible until the insured's 18th birthday. D. Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected. B. The insured's premiums will be waived until she is 21. An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point? A. Approved the application B. Issued the policy C. Neither approved the application nor issued the policy. D. Both approved the application and issued the policy. C. Neither approved the application nor issued the policy. Most LTC plans have which of the following features? A. No elimination period B. Variable premiums

B. Being appointed. C. Completing an initial 8hour training. D. Completing ongoing 4hour training every 24 months A. Obtaining a partnership policy license from the Commissioner. In a life settlement contract, whom does the life settlement broker represent? A. The owner B. The insurer C. The beneficiary D. The life settlement intermediary A. The owner (Life settlement broker is a person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract. Life settlement brokers represent only the policy-owners). The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the A. Consideration clause B. Probationary period C. Insuring clause D. Incontestability clause C. Insuring clause Once an individual is licensed as an insurance producer for life or accident and health insurance, how many hours of training must the producer complete initially to sell long-term care insurance partnership policy? A. 4 hours B. 6 hours C. 8 hours D. 12 hours C. 8 hours

When the insured purchased his health policy he was a window washer. He has since changed occupations and now manages a library. If the insurer is notified of the insured's change of occupation, the insurer should A. Increase the benefit B. Return any unearned premium C. Consider decreasing the premium D. Adjust the benefit in accordance with the decreased risk. D. Adjust the benefit in accordance with the decreased risk. An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do? A. Offer her a secondary policy. B. Ask the applicant to sign a statement that acknowledges that the policy had been delivered C. Collect a late payment fee D. Ask her to sign a statement of good health D. Ask her to sign a statement of good health. How are HMO territories typically divided? A. Type of physician services available B. Community rating system C. By where the HMO can find the least expensive physicians D. Geographic areas D. Geographic areas When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount on the policy? A. It is reduced to the amount of what the cash value would buy as a single premium. B. It is increased when extra premiums are paid

L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay? A. $900 (deductible + 20% of the bill after the deductible [20% of $2,000). B. $500 amount of deductible C. $1000 (deductible + 20% of the entire bill) D. $2500 (the entire bill). A. $900 ($500 deduct + 20% of remaining 2000). If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights? A. Insured B. Policyowner C. The insured and the policyowner D. Beneficiary B. Policyowner - has the ownership rights under the policy, and not the insured or the beneficiary. An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? A. Representation B. Adhension C. Consideration D. Good faith C. Consideration - the binding force in any contract is consideration. Consideration on the part of the insured is the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the event of loss. Which of the following terms means a result of a calculation based on the average number of months the insured is projected to live due to medical history and mortality factors? A. Mortality rate B. Risk exposure

C. Morbidity D. Life expectancy D. Life expectancy Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner? A. Entire Contract Clause B. Proof of Loss C. Payment of Claims D. Change of beneficiary C. Payment of Claims - states the claims must be paid to the policyowner, unless the death proceeds need to be paid to a beneficiary. Once an agent has met the requirements to sell long-term care insurance partnership policies, how often must the agent complete the 4 hours of ongoing training courses? A. Every 6 months B. Every 12 months C. Every 24 months D. Never C. Every 24 months When an insurer combines two periods of disability into one, the insured must have suffered a A. Presumptive disability B. Recurrent disability C. Partial disability D. Residual disability B. Recurrent disability - is the period of time (usually within 3-6 months) during which the recurrence of an injury or illness will be considered as a continuation of a prior period of disability. Which of the following is true regarding inpatient hospital care for HMO members?

C. Never; statements by the applicant are only representations. D. When the application is incomplete. B. If it is intentional and material. The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT a. The beneficiary's life expectancy B. Projected interest rates C. Face amount of the policy D. The insured's age at death D. The insured's age at death. - but the longer the life expectancy of the recipient, the lower the payments will be. At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called A. Supplemental add on B. Cost of living C. Guaranteed insurabilty D. Waiver of cost of insurance C. Guaranteed insurability Which of the following insurers are owned by stockholdrers who have the usual rights of ownership , including the right of voting? A. Reciprocal B. Fraternal C. Stock D. Mutual C. Stock

What are the two components of a universal policy? A. Mortality cost and interest. B. Separate account and policy loans C. Insurance and cash account D. Insurance and investments C. Insurance and cash account - the insurance component of a universal life policy is always annual renewable term insurance; the cash account accumulates on a tax deferred basis each year and earns either the guaranteed contract rate or the current rate, whichever is higher. The main difference between immediate and deferred annuities is A. How the annuity is purchased B. The number of insureds C. The amount of each payment D. When the income payments begin D. When the income payments begin. - immediate annuities will begin payments within the first year, while deferred annuities will not begin payments until sometime after the first year. Which of the following statements is TRUE about a policy assignment? A. It authorizes an agent to modify the policy B. It transfers rights of ownership from the owner to another person C. It is the same as a beneficiary designation D. It permits the beneficiary to designate the person to receive the benefits. B. It transfers rights of ownership from the owner to anther person. If an applicant does not receive a new insurance policy, who would be held responsible? A. The applicant B. The agent C. The state D. The insurer

the excess plan pay? A. $10, B. $7, C. $5, D. $ C. $5,000 (covering the excess). An insured has endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her for medical expenses. What term best describes the condition she has met? A. Out-of-pocket limit B. Maximum Loss Threshold C. Maximum Loss D. Stop-loss Limit D. Stop-loss Limit : A specified dollar amount beyond which the insured no longer participates in the sharing of expenses. Which of the following provisions is mandatory for health insurance policies? A. Physical examination and autopsy B. Illegal Occupation C. Unpaid premiums D. Intoxicants and narcotics A. Physical examination and autopsy is mandatory provision required by law. The other answer choices are optional provisions. What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? A. Revocation of license B. $2,

C. $1,

D. $100 per violation B. $2, Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death? A. A business partner of the insured B. The wife of the deceased insured C. The former wife of the deceased insured D. A minor son of the insured. D. A minor son of the insured. - Because a minor does not have the legal capacity to release the insurer from further obligation, benefits normally have to be passed through guardian or trustee. When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? A. Fixed period B. Life income period certain C. Extended term D. Fixed amount D. Fixed amount What document describes an insured's medical history, including diagnoses and treatments? A. Attending Physician's Statement B. Physician's Review C. Individual Medical Summary D. Comprehensive Medical History A. Attending Physician's Statement (APS) is the best way for an underwriter to evaluate an insured's medical history. The report includes past diagnoses, treatments, length of recovery time, and prognoses.

D. To help the insured understand all aspects of the contract. D. To help the insured understand all aspects of the contract. In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party? A. Insurer to the insured B. Insured to the insurer C. Insurer to the Department of Insurance D. Insured to the the Department of Insurance A. Insurer to the insured - upon receipt of a notice of claim, the company must supply claims forms to the insured within a specified number of days. Which of the following is true regarding health insurance underwriting for a person with HIV? A. The person may only be declined if he/she has symptoms. B. The person may not be declined for medical coverage solely based on HIV status C. A person may be declined for HIV but not AIDS D. The person may be declined. B. The person may not be declined for medical coverage solely based on HIV status. The probationary period is A. The stated amount of time when the benefits may be reduced under a certain conditions B. The number of days that must expire after the onset of an illness before benefits will be earned. C. A specified period of time that a person joining a group has to wait before becoming eligible for coverage.

D. The number of days the insured has to determine if he/she will accept the policy as received. C. A specified period of time that a person joining a group has to wait before becoming eligible for coverage. An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage? A. $ B. $ C. $ D. $25. B. $102 : The employer is permitted to collect a premium from the terminated employee at a rate of no more than 102% of the individual's group premium rate (in this scenario 102% of $100 total premium is $102. The 2% charge is to cover the employer's administrative costs. Which of the following programs expands individual public assistance programs for people with insufficient income and resources? A. Medicare B. Social Security C. Unemployment compensation D. Medicaid D. Medicaid - is a needs tested program administered by the states to provide assistance to persons who are not able to provide for themselves. Life income joint and survivor settlement option guarantees A. Income for 2 or more recipients until they die. B. Payment of interest on death proceeds.