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Life Insurance Study Exam- Georgia

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Life Insurance Study Exam- Georgia An insurance producer selling a Variable Annuity whose cash value depends on the performance of an underlying investment account must be registered with: - ANS - The Financial Industry Regulatory Authority (FINRA, formerly the NASD) A life insurance policy whose cash value will fluctuate depending upon the performance of a separate account is: - ANS - Variable Life John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value will equal the face amount of the policy when he reaches the age of: - ANS - 100 Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources? - ANS - Term Which of the following statements about a Renewable Term policy is true? - ANS - It is renewable at the option of the insured An Annuity is designed to provide which of the following financial features? I. The liquidation of principal and interest II. Favorable tax treatment III. The creation of an estate - ANS - I and II A 45-year old customer who is seeking to supplement his retirement income at age 65 would not buy a: - ANS - Immediate Annuity Which of the following is an example of a Limited-Pay Life policy? - ANS - Life Paid-Up at Age 65 You have a client that is a real estate agent. Which of the following types of permanent protection is best for this type of client? - ANS - Adjustable life Which of the following individual policy conversions is usually permitted without any evidence of insurability? - ANS - Conversion from a Term policy to a Whole Life policy At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer explains that he can pay for the policy in several ways. One method is called 20-Pay Life, and another, Straight Life. Tom wishes to know which plan will accumulate cash value at a faster rate in the early years of the policy. Which of the following would be the producer's most appropriate response? - ANS - "20-Pay Life will accumulate cash value faster." Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-yearamortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? - ANS - A $50,000 Decreasing Term policy for 20 years In order to sell variable life insurance you must be registered with which of the following? - ANS - The NASD Which of the following contracts requires that a series of benefit payments be made at specified intervals? - ANS - Annuity A life insurance policy that covers two parties, but only pays when the last party dies is known as: - ANS - Survivorship Life Most Term Life insurance: - ANS - Is co

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