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GA: Life Insurance Exam Questions
and Answers 100% Pass
Question 1: Who elects the governing body of a mutual
insurance company?
CORRECT ANSWER: policyholders
Question 2: What year was the McCarran-Ferguson Act
enacted?
CORRECT ANSWER: 1945
Question 3: A nonprofit incorporated society that does not
have capital stock and operates for the sole benefit of its
members is known as:
CORRECT ANSWER: a fraternal benefit society
Question 4: The stated amount or percent of liquid assets
that an insurer must have on hand that will satisfy future
obligations to its policyholders is called:
CORRECT ANSWER: reserves
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Question 5: What is the name of the law that requires
insurers to disclose information gathering practices and where the information was obtained?
CORRECT ANSWER: Fair Credit Reporting Act
Question 6: The part of a life insurance policy guaranteed
to be true is called a:
CORRECT ANSWER: warranty
Question 7: What is the consideration given by an insurer
in the consideration clause of a life policy?
CORRECT ANSWER: promise to pay a death benefit to
a named beneficiary
Question 8: Statements made on an insurance application
that are believed to be true to the best of the applicant's
knowledge are called:
CORRECT ANSWER: representations
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Question 9: Which of the following consists of an offer,
acceptance, and consideration?
CORRECT ANSWER: contract
Question 10: Which of these require an offer, acceptance,
and consideration?
CORRECT ANSWER: contract
Question 11: In regards to representation or warranties,
which of these statements is TRUE?
CORRECT ANSWER: If material to the risk, false
representation will void a policy
Question 12: Insurance policies are offered on a "take it
or leave it" basis, which make them:
CORRECT ANSWER: Contracts of Adhesion
Question 13: A life insurance policy would be considered
a wagering contract WITHOUT:
CORRECT ANSWER: insurable interest
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Question 14: Insurance policies are considered aleatory
contracts because
CORRECT ANSWER: performance is conditioned
upon a future occurance
Question 15: Life and health insurance policies are:
CORRECT ANSWER: Unilateral contracts
Question 16: Who makes the legally enforceable promises
in a unilateral contract?
CORRECT ANSWER: insurance company
Question 17: When must insurable interest be present in
order for a life insurance policy to be valid?
CORRECT ANSWER: when the application is made
Question 18: Which of these is NOT a type of agent
authority