Free Life Insurance Basics Practice Questions
Georgia Life exam (series 12-GA-01) — 137 practice questions.
Subtopics: Human life value, MIB, Field underwriting, Premium factors, STOLI, Consideration, Delivery, Net premium, Valued contract, Insurable interest, Consent of insured, Employer-owned life, Family policy, Representations, Policy effective time, Form approval, Insurable interest parties, Personal uses, Liquidity, Needs approach, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Mortality, Interest assumption, Premium mode, Advertising, Application accuracy, Sources of underwriting, Risk classification, Substandard risk, Effective date, Statement of good health, Backdating, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index, Net amount at risk, Legal reserve, CSO mortality table, Level premium funding, Cash value accumulation, Endowment maturity, Free look period, Policy replacement rules, Twisting, Churning, Rebating, Defamation, Binding receipt, Insuring clause, Consideration clause, Owner vs insured, Stranger-originated life insurance, Suitability, Sales illustration, Producer appointment, Paramedical exam, Inspection report, Nonmedical limit, Split-dollar plan, Section 162 executive bonus, Dependency period need, Social Security blackout period, Capital retention approach, Final expense need, Insurance age, Flat extra premium, Postponed risk, Agent's report, Policy summary, Material misrepresentation, Estate creation, Cash accumulation, Charitable giving, Buy-sell cross purchase, Buy-sell entity purchase, Cross purchase count, Key person beneficiary, Deferred compensation, Split dollar collateral assignment, Executive bonus taxation, Business overhead uses, Information for needs analysis, Group vs individual class, Nonparticipating policy, Fixed vs variable, Variable minimum death benefit, Gross vs net premium, Modal factors, Mortality table use, Gender and mortality, Producer delivery duties, Constructive delivery, Rated policy delivery, Conditional receipt insurability, No premium with application, Application signatures, Application corrections, Insurable interest third party, Self insurable interest, Attending physician statement, MIB adverse decisions, MIB pre-notice, HIV testing consent, Underwriting prohibited factor, Rated policy, Standard risk, Prescription database, Social Security fully insured, Currently insured, Survivor benefits children, Spouse caring for child, Blackout period end, Lump-sum death benefit, Full retirement age, Social Security disability, Social Security as offset, Producer report purpose
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Sample questions & answers
1. The method that estimates a life insurance need from the insured's projected future earnings is the:
Human life value approach
The human life value approach quantifies the economic loss of future earnings to dependents if the insured dies.
2. Insurers commonly share underwriting medical information through which organization?
The Medical Information Bureau
The Medical Information Bureau (MIB) is a membership organization that helps insurers detect and deter underwriting fraud.
3. When a Georgia agent gathers information and completes the application with the applicant, the agent is performing:
Field underwriting
Field underwriting is the agent's role in gathering accurate information and screening risks at the point of sale.
4. The three primary factors used to calculate a life insurance premium are mortality, interest, and:
Expense
Premiums are based on the cost of mortality, the interest the insurer expects to earn, and the expense of doing business.
Practice: Life Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
