Evergreen Insurance Prep Life, Health & Property Exam Prep

Georgia Life & Health Insurance License, Practice Exams

Georgia Life, Accident & Sickness producer licensing. General insurance knowledge plus the Georgia Insurance Code (O.C.G.A. Title 33), authored from public-domain statutes.
Content last updated 23 September 2026

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Frequently asked questions

How is the Georgia producer licensing exam structured?

Georgia administers its Life, Accident & Sickness licensing exams through Pearson VUE. The combined Life, Accident & Sickness exam has 125 scored questions and runs 150 minutes; the separate Life and Accident & Sickness exams have 80 scored questions each (plus 20 pretest) and run 120 minutes. Each exam has a national section and a Georgia state-law section, and you need 70% on each section to pass. This bank covers both the general insurance material and the Georgia law for both lines.

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You need 70%. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Georgia Insurance Code (O.C.G.A. Title 33) for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Georgia bank contains 1023 questions (general insurance plus Georgia law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

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Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

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No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

What topics does the Georgia Life & Health Insurance License question bank cover?

It is organised into 13 modules that follow the exam's own content areas: Life: Types of Policies, Life: Provisions, Riders & Options, Life: Underwriting, Premium & Taxation, Annuities & Retirement, Health: Plans, Provisions & Disability, Health: Medicare, Social Insurance & LTC, General Regulation & Ethics, Georgia — Producer Licensing, Appointment & CE, Georgia — Unfair Trade Practices & Claims, Georgia — Life Insurance & Annuity, Georgia — Accident & Health, Georgia — HMO & Managed Care and Georgia — Regulation, Privacy & Guaranty. Each module is drilled and scored separately, so you can see exactly which areas are exam-ready and which still need work.

When was this question bank last updated?

Last updated 23 September 2026. The bank is revised whenever the source material it cites changes, and every question carries the source its explanation is drawn from.

Sample Georgia Life & Health Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

Under § 33-6-35(b), the hearing, cease and desist, penalty, judicial review, and intervenor provisions applicable to violations of the Unfair Claims Settlement Practices article are which of the following?

  1. NAIC model regulations adopted by the federal government
  2. A separate set of hearing and penalty rules promulgated solely for claims practices
  3. The Georgia Administrative Procedure Act, to the exclusion of Title 33
  4. The provisions of Code Sections 33-6-7 through 33-6-11 governing Article 1 violations ✓

Why: O.C.G.A. § 33-6-35(b) provides that the provisions of Code Sections 33-6-7 through 33-6-11 governing Article 1 violations apply to violations of the Unfair Claims Settlement Practices article.

An Explanation of Benefits (EOB) sent to an insured is:

  1. A bill the insured must pay before any care is delivered
  2. A government form used to enroll in a new health plan
  3. A statement showing what the plan paid and what the insured owes ✓
  4. The legally binding insurance contract between the parties

Why: An EOB is not a bill; it itemizes the charge, the plan's allowed amount, what the plan paid, and the patient's remaining responsibility.

The federal Genetic Information Nondiscrimination Act (GINA) generally restricts the use of genetic information in:

  1. Health insurance and employment decisions ✓
  2. Setting state automobile insurance premium rates
  3. Property and casualty insurance underwriting only
  4. Determining eligibility for federal student loans

Why: GINA limits how genetic information may be used in health coverage and employment, prohibiting discrimination based on genetic test results.

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A plan has a $500 deductible, 80/20 coinsurance, and a $2,500 out-of-pocket maximum. On a $25,000 bill, the insured pays:

  1. $2,500 ✓
  2. $5,400
  3. $4,900
  4. $500

Why: Deductible $500 + 20% of $24,500 = $5,400, but the $2,500 out-of-pocket maximum caps the insured's cost at $2,500.

Per the definitions in O.C.G.A. § 33-21-1, a "health maintenance organization" is best described as any person who:

  1. Any person who operates a hospital furnishing only inpatient care
  2. Any person who sells indemnity insurance reimbursing medical costs on a fee-for-service basis
  3. Undertakes to provide or arrange for one or more health benefits plans ✓
  4. Any person who licenses and appoints insurance agents in this state

Why: O.C.G.A. § 33-21-1(6) defines a "health maintenance organization" as any person who undertakes to provide or arrange for one or more health benefits plans.

Per O.C.G.A. § 33-38-2, coverage is expressly NOT provided for a portion of a policy issued to a self-funded or uninsured employer plan. Which arrangement is listed as an example?

  1. An individual deferred annuity contract
  2. A structured settlement annuity for a resident
  3. A multiple employer welfare arrangement ✓
  4. A direct nongroup whole life policy

Why: O.C.G.A. § 33-38-2 lists a multiple employer welfare arrangement as an example of a self-funded or uninsured employer plan for which coverage is not provided.

A central purpose of the coverage rules in O.C.G.A. § 33-38-2 is reflected in its statement that, where a person could otherwise be covered by more than one state's association, the chapter is construed to:

  1. Provide coverage by every association for which the person qualifies
  2. Require the person to elect coverage in writing
  3. Avoid duplicate coverage so the person is covered by only one association ✓
  4. Default coverage to the state where the policy was sold

Why: O.C.G.A. § 33-38-2(b)(5) construes the chapter, where a person could otherwise be covered by more than one state's association, to avoid duplicate coverage so the person is covered by only one association.

A reversionary annuity contract issued in Georgia is in default. Under O.C.G.A. § 33-28-2, it may be reinstated within what period from default, upon evidence of insurability satisfactory to the insurer?

  1. One year
  2. Three years ✓
  3. Two years
  4. Five years

Why: O.C.G.A. § 33-28-2(b)(7) permits reinstatement of a defaulted reversionary annuity within three years from default upon evidence of insurability satisfactory to the insurer.

An insurer's salaried employee whose function relates solely to the processing, adjusting, investigating, or settling of a claim, and who receives no commission on Georgia risks, is:

  1. Required to hold a public adjuster's license for those claims
  2. Required to hold a Georgia agent's license, because settling a claim is treated as negotiating the terms of insurance
  3. Required to be appointed as an agent by the employing insurer
  4. Not required to hold an insurance agent's license under the exemption in Code Section 33-23-4(h) ✓

Why: O.C.G.A. § 33-23-4(h)(2)(A)(ii) exempts an officer, director, or employee whose function relates to underwriting, loss control, inspection, or claims processing/adjusting and who receives no commission on Georgia risks from the agent licensing requirement.

Long-term care policies are generally required to be:

  1. Cancelable by the insurer at any time
  2. Convertible into a life insurance policy on demand
  3. Guaranteed renewable ✓
  4. Renewable only with new medical evidence each year

Why: LTC policies must be at least guaranteed renewable: the insurer must renew, though it may adjust premiums on a class basis.

A temporary insurance license is most commonly issued to:

  1. Anyone who has applied but has not yet passed the state licensing exam
  2. Permit unlimited new sales for a full year without any supervision
  3. Substitute for the continuing-education credits owed at each renewal
  4. Continue the business of a producer who died or became disabled ✓

Why: Temporary licenses (no exam) let someone service an existing book when a producer dies, becomes disabled, or enters military service.

Key person life insurance is purchased to protect a business against:

  1. A decline in the market value of the firm's real-estate holdings
  2. The cost of replacing equipment damaged in a covered accident
  3. The financial loss from the death of an essential employee ✓
  4. The personal estate-tax liability owed by the company's owners

Why: The business owns, pays for, and is beneficiary of a policy on a key employee, offsetting the loss if that person dies.

In a variable annuity, accumulation units measure the contract's value:

  1. During the pay-in phase before income payments begin ✓
  2. Only after the contract has been fully annuitized into a stream of income
  3. While the annuitant is receiving level, guaranteed monthly income payments
  4. According to a fixed interest rate the insurer declares anew each year

Why: Accumulation units track value during the accumulation phase; annuity units are used during the payout phase.

A surplus lines broker licensed and in good standing in the broker's home state shall, under Code Section 33-23-16, receive in Georgia a:

  1. Counselor's license limited to surplus lines advice, not a broker license
  2. Resident agent license for property and casualty
  3. Nonresident surplus lines broker license ✓
  4. Temporary adjuster license pending examination

Why: O.C.G.A. § 33-23-16(d) provides that a person licensed as a surplus lines broker in the home state shall receive a nonresident surplus lines broker license under subsection (a).

Per O.C.G.A. § 33-38-7, with respect to one owner of multiple nongroup life insurance policies, the Association's total obligation may not exceed:

  1. $500,000 in benefits
  2. $1 million in benefits
  3. $5 million in benefits ✓
  4. $300,000 in benefits

Why: O.C.G.A. § 33-38-7(a)(12)(D) provides that the Association's total obligation for one owner of multiple nongroup life policies may not exceed $5 million in benefits.

In an indexed universal life policy, the interest credited to cash value is:

  1. Determined each year solely by the policyowner's own elections
  2. Based entirely on separate-account mutual fund performance and risk
  3. Guaranteed at a fixed rate set for the life of the contract
  4. Tied to a stated market index, subject to a cap and a guaranteed floor ✓

Why: Indexed UL credits interest linked to an external index (e.g., S&P 500) with a cap/participation rate and a guaranteed minimum floor.

A disability buy-sell policy's benefits are used to:

  1. Pay the hospital and rehabilitation bills arising from the owner's injury
  2. Meet the firm's rent, utilities, and staff payroll while the owner recovers
  3. Replace the disabled owner's monthly salary until they return to work
  4. Fund the purchase of a totally disabled owner's business interest ✓

Why: Disability buy-sell provides funds for remaining owners to buy out an owner who becomes totally disabled, separate from income replacement or overhead coverage.

A holder of a temporary license issued under Code Section 33-23-13(a) is authorized to do all of the following EXCEPT:

  1. Sell, solicit, or negotiate new insurance accounts ✓
  2. Perform acts necessary to continue the particular insurance business
  3. Receive and collect premiums
  4. Negotiate renewal policies

Why: O.C.G.A. § 33-23-13(d) authorizes negotiation of renewals, receipt and collection of premiums, and acts necessary to continuance, but expressly does NOT authorize the holder to sell, solicit, or negotiate new insurance accounts.

Under O.C.G.A. § 33-21-13, an HMO files an evidence-of-coverage form and the Commissioner takes no action. What happens at the expiration of 90 days?

  1. The HMO must withdraw the filing and resubmit it from the beginning, at which point a new 90 day review period starts
  2. The form, basic rate, or method of computation is deemed approved unless approved or disapproved before then ✓
  3. The HMO's certificate of authority is suspended until the form is approved
  4. The filing is deemed automatically rejected, and the HMO may not use the form until it files a corrected version

Why: O.C.G.A. § 33-21-13 provides that at the expiration of 90 days a filed form, basic rate, or method of computation is deemed approved unless it is approved or disapproved before then.

For participating Georgia life policies, the insurer must begin to annually ascertain and apportion the divisible surplus no later than the end of which policy year?

  1. The fifth policy year
  2. The second policy year
  3. The first policy year
  4. The third policy year ✓

Why: O.C.G.A. § 33-25-3(a)(4) requires the insurer in participating policies to begin annually ascertaining and apportioning the divisible surplus no later than the end of the third policy year.

An applicant for a large policy must justify the amount with their income and net worth. This is:

  1. Field underwriting
  2. Reinsurance
  3. Medical underwriting
  4. Financial underwriting ✓

Why: Financial underwriting confirms the requested coverage is reasonable relative to the applicant's financial circumstances.

Under ERISA, a Summary Plan Description (SPD) must be provided to participants to:

  1. Guarantee that every properly filed claim is paid in full within 30 days of receipt
  2. Explain the plan's benefits, rights, and obligations in plain language ✓
  3. Substitute for the formal written plan document
  4. Set the premium rates and provider fee schedules the insurer may charge the plan

Why: ERISA requires plans to furnish an SPD describing benefits, eligibility, and participants' rights and procedures.

What is a stated purpose of Georgia's Long-Term Care Insurance chapter?

  1. To eliminate every preexisting condition limitation in LTC policies
  2. To protect applicants from unfair or deceptive sales or enrollment practices ✓
  3. To guarantee insurers a fixed rate of return on invested reserves
  4. To require that LTC policies be sold only by direct mail

Why: O.C.G.A. § 33-42-2 states that a purpose of the Long-Term Care Insurance chapter is to protect applicants from unfair or deceptive sales or enrollment practices.

Under O.C.G.A. § 33-20A-6, a managed care plan must make full and timely payment or reimbursement to providers and hospitals in the same manner and subject to the same penalties as required of insurers for which type of coverage?

  1. Property and casualty policies subject to the prompt payment rules of Chapter 24
  2. Title insurance policies issued under Chapter 7 of Title 33
  3. Group accident and sickness insurance policies under Code Section 33-30-6 ✓
  4. Individual life insurance policies under Chapter 25 of Title 33

Why: O.C.G.A. § 33-20A-6(b) requires a managed care plan to make full and timely payment to providers and hospitals in the same manner and subject to the same penalties as insurers for group accident and sickness policies under 33-30-6(b)(5).

Under the ACA, a 24-year-old who is employed and not a student may remain on a parent's health plan:

  1. No, past age 19 only a child enrolled full time in school may stay covered
  2. Yes, until age 26 regardless of student or marital status ✓
  3. Yes, but only while the adult child still lives in the parent's household
  4. No, dependent eligibility ends at age 19 for any child who is employed

Why: ACA requires plans offering dependent coverage to cover adult children to age 26 regardless of student, residency, or marital status.

A fraternal benefit society provides insurance:

  1. To its members through a lodge or membership system, on a nonprofit basis ✓
  2. To the general public for a profit, distributing earnings to its stockholders
  3. Exclusively through group annuity contracts sold to employers
  4. Only to federal, state, and municipal government employees

Why: Fraternal benefit societies are nonprofit membership organizations providing insurance to members under a lodge system.

Under O.C.G.A. § 33-21-3, what must an HMO do before changing its address?

  1. Obtain the written consent of a majority of its enrollees and file the tally of that vote with the Commissioner of Insurance
  2. Return the certificate of authority to the Commissioner of Insurance, who shall endorse it indicating the change ✓
  3. File a completely new application for a certificate of authority, pay the application fee a second time, and attach a current financial statement
  4. Publish notice of the new address in a newspaper of general circulation in the county for four consecutive weeks before the move

Why: O.C.G.A. § 33-21-3 requires an HMO, before changing its address, to return the certificate of authority to the Commissioner of Insurance, who shall endorse it to indicate the change.

A producer tells a client false negative information about a competing insurer to win the sale. This is:

  1. Twisting
  2. Rebating
  3. Defamation ✓
  4. Coercion

Why: Making false, maligning statements about another insurer is defamation, an unfair trade practice.

Regarding the individual who only enters claim data into an automated claims adjudication system, the exclusion from 'adjuster' applies where no more than how many such persons are supervised by one licensed independent adjuster or licensed agent?

  1. Any number, with no numerical cap
  2. 50 persons
  3. 10 persons
  4. 25 persons ✓

Why: O.C.G.A. § 33-23-1(b)(8) excludes such a data-entry individual provided no more than 25 such persons are under the supervision of one licensed independent adjuster or licensed agent.

Under Georgia's standard annuity provisions, the reinstatement window of within one year from default does NOT apply to which type of contract?

  1. Reversionary annuities ✓
  2. Participating annuities
  3. Single premium deferred annuities
  4. Pure endowment contracts

Why: O.C.G.A. § 33-28-2(b)(6) provides that the one-year reinstatement window does not apply to reversionary annuities.

In a whole life policy, the 'net amount at risk' is the:

  1. Difference between the death benefit and the cash value ✓
  2. Cash value remaining after a policy loan is repaid
  3. Total of all premiums the policyowner has paid to date
  4. Portion of the premium used to cover the insurer's expenses

Why: The net amount at risk is the death benefit minus the accumulated cash value; it shrinks over time as the cash value grows toward the face amount.

Under O.C.G.A. § 33-43-7, every issuer of Medicare supplement insurance in Georgia must, before use, provide a copy of any Medicare supplement advertisement to the Commissioner for:

  1. Forwarding to the federal government
  2. Translation into Spanish
  3. Inclusion in the annual statement
  4. Review and approval ✓

Why: O.C.G.A. § 33-43-7 requires every issuer of Medicare supplement insurance to provide a copy of any Medicare supplement advertisement intended for use in this state to the Commissioner for review and approval.

To be 'fully insured' for Social Security retirement benefits, a worker generally needs:

  1. A minimum of 30 years of continuous full-time employment
  2. Only a single quarter of covered earnings at any point in life
  3. 20 quarters earned within the most recent five-year period
  4. 40 quarters (about 10 years) of covered earnings ✓

Why: Fully insured status requires 40 quarters of coverage (roughly 10 years of work in covered employment).

Under O.C.G.A. § 33-38-2, the Guaranty Association does NOT provide coverage for which of the following types of benefits?

  1. Allocated funding agreements issued by a member insurer
  2. Structured settlement annuity benefits for a Georgia resident payee
  3. Direct group life insurance certificates
  4. Medicare Part C & D or Medicaid health care benefits ✓

Why: O.C.G.A. § 33-38-2 provides that the Guaranty Association does not cover Medicare Part C or D or Medicaid health care benefits.

O.C.G.A. § 33-6-3 establishes the basic prohibition of the article. What does it provide?

  1. No person shall engage in any trade practice defined or determined under the article to be an unfair method of competition or unfair or deceptive act ✓
  2. A trade practice is unfair only when the Commissioner proves that a policyholder suffered an actual monetary loss of $500.00 or more as a direct result of the conduct
  3. Only insurers and agents holding a Georgia license may be penalized for unfair methods of competition, and unlicensed persons fall entirely outside the reach of the article
  4. Every trade practice must be submitted to and approved by the Commissioner in advance, and any practice used before approval is presumed to be an unfair method of competition

Why: O.C.G.A. § 33-6-3 provides that no person shall engage in any trade practice defined or determined under the article to be an unfair method of competition or an unfair or deceptive act or practice.

Under Georgia's Medicare Supplement law, within how many days of delivery may an applicant return a Medicare supplement policy or certificate for a full premium refund if not satisfied for any reason?

  1. 30 days ✓
  2. 10 days
  3. 20 days
  4. 45 days

Why: O.C.G.A. § 33-43-6 permits the applicant to return a Medicare supplement policy or certificate within 30 days of delivery for a full premium refund if not satisfied for any reason.

Which of the following is expressly excluded from the definition of 'member insurer' under O.C.G.A. § 33-38-4?

  1. A health care corporation transacting business in the state
  2. A licensed life insurer whose certificate of authority was later suspended
  3. An HMO holding a certificate of authority
  4. A fraternal benefit society ✓

Why: O.C.G.A. § 33-38-4(15) expressly excludes a fraternal benefit society from the definition of "member insurer."

At death, an insured personally owned the policy on their own life. The death proceeds are:

  1. Included in the insured's gross estate for estate-tax purposes ✓
  2. Never reportable for any tax at all
  3. Subject to income tax in the beneficiary's hands
  4. Excluded from the estate because they go to a beneficiary

Why: Holding incidents of ownership causes the proceeds to be included in the insured's gross estate (though not subject to income tax).

A producer makes untrue statements in a public advertisement about a policy's benefits. This is:

  1. False advertising, an unfair trade practice ✓
  2. Unfair discrimination in policy benefits
  3. Twisting, because the statements induce a policy exchange
  4. Permissible puffery, since opinions about benefits are not statements of fact

Why: Untrue or misleading advertising about insurance is the unfair practice of false advertising/misrepresentation.

Before a proposed rule or regulation of the Georgia Commissioner of Insurance may become effective, for how long must it have been on file as a public record in the Commissioner's office?

  1. At least 10 days ✓
  2. At least five business days
  3. At least 30 days
  4. At least 60 days

Why: O.C.G.A. § 33-2-9(b) provides that a proposed rule, regulation, amendment, or repeal must be on file as a public record in the Commissioner's office for at least ten days before becoming effective.

Under Georgia group A&S law, the preexisting condition limitation does NOT apply to which of the following?

  1. Heart disease
  2. Diabetes
  3. Pregnancies ✓
  4. Cancer

Why: O.C.G.A. § 33-30-15(d) provides that the preexisting condition limitation does not apply to pregnancies.

Under O.C.G.A. § 33-38-6, the board of directors of the Georgia guaranty association shall consist of how many member insurers?

  1. A number fixed solely by the Governor
  2. Exactly five member insurers
  3. Not less than seven nor more than 11 member insurers ✓
  4. Not less than ten nor more than 15 member insurers

Why: O.C.G.A. § 33-38-6(a) provides that the board of directors of the association shall consist of not less than seven nor more than 11 member insurers, selected by the Commissioner from a list provided by the board.

A Georgia long-term care policy may not exclude coverage for a loss resulting from a preexisting condition unless the loss begins within what period after the effective date of coverage?

  1. Six months ✓
  2. Thirty days
  3. Twelve months
  4. Two years

Why: O.C.G.A. § 33-42-6(c)(2) provides that an LTC policy may not exclude a loss resulting from a preexisting condition unless the loss begins within six months after the effective date.

A Medicare Part B late enrollment penalty generally:

  1. Applies as a one-time fee at the first physician visit
  2. Is automatically waived after the first two years of coverage
  3. Blocks the person from ever enrolling in Part B in the future
  4. Permanently raises the monthly Part B premium ✓

Why: Delaying Part B without creditable coverage adds a lifetime surcharge (about 10% per 12 months of delay) to the premium.

Credit life insurance is typically written as:

  1. A variable policy whose benefit rises and falls with interest rates
  2. Whole life insurance with a growing cash value that the borrower may freely access at any time
  3. Decreasing term equal to the outstanding loan balance, payable to the creditor ✓
  4. Level term naming the borrower's family as the primary beneficiary

Why: Credit life is decreasing term tied to the loan balance; if the borrower dies, it pays the remaining debt to the creditor.

Under O.C.G.A. § 33-38-6, members of the guaranty association board of directors may be compensated in what manner for their service?

  1. They are paid a fee for each covered claim they review
  2. They may be reimbursed for reasonable expenses but are not otherwise compensated by the association ✓
  3. They receive an annual salary set by the Commissioner and paid from the association's assessment account
  4. They receive a percentage of the assessments levied on member insurers

Why: O.C.G.A. § 33-38-6(c) provides that board members may be reimbursed from association assets for reasonable expenses incurred in their capacity as board members but shall not otherwise be compensated by the association for their services.

An employee is injured on the job and needs medical care and wage replacement. The coverage that responds is:

  1. Workers' compensation ✓
  2. Medicare Part B
  3. A Medicare Supplement policy
  4. An individual disability income policy only

Why: Workers' compensation is the state-mandated, no-fault coverage for job-related injuries and occupational disease.

For purposes of Georgia's life insurance free-look rule, a person is deemed to have 'received' the policy after the longer of two premium notices being sent or what elapsed period from the effective date?

  1. One year
  2. Nine months
  3. Six months ✓
  4. Three months

Why: O.C.G.A. § 33-25-8(d) deems a person to have received the policy after the longer of six months from the effective date or the sending of two premium notices or statements of policy activity.

Key person disability insurance provides benefits to:

  1. The business, to offset the loss when a key employee is disabled ✓
  2. Every employee of the firm equally, regardless of their role
  3. A lender, to pay off the company's outstanding commercial loans
  4. The disabled employee's family, to replace their lost personal income

Why: Key person disability is owned by and paid to the business to cover losses and the cost of replacing an essential employee who becomes disabled.

Under Georgia group A&S law, the preexisting condition limitation for a group member who enrolls when newly eligible may not exceed how long?

  1. 12 months ✓
  2. 18 months
  3. 6 months
  4. 24 months

Why: O.C.G.A. § 33-30-15(c) provides that the preexisting condition limitation for a member enrolling when newly eligible may not exceed 12 months.

Sharing or paying a commission to an unlicensed individual is generally:

  1. Required by most state laws
  2. Permitted for referrals only
  3. Prohibited ✓
  4. Allowed if the amount is small

Why: Commissions may be paid only to properly licensed persons; paying an unlicensed individual is prohibited (limited nominal referral fees aside).

Under Georgia's definition of insurable interest in personal insurance, an individual has what degree of insurable interest in his or her own life?

  1. An interest only if a beneficiary is named
  2. A limited interest equal to anticipated debts
  3. An unlimited insurable interest ✓
  4. No insurable interest in one's own life

Why: O.C.G.A. § 33-24-3(b) provides that an individual has an unlimited insurable interest in his or her own life, health, and bodily safety.

A payor benefit rider, common on juvenile policies, provides that:

  1. The child's coverage automatically doubles at age 21 with no new evidence of insurability
  2. Premiums are waived if the premium-paying adult dies or becomes disabled ✓
  3. The adult payor receives the policy's face amount as a death benefit if the insured child dies first
  4. The policy pays a cash bonus at college graduation

Why: If the adult paying premiums on a child's policy dies or becomes disabled, the payor benefit rider waives the premiums until the child reaches a stated age.

If an applicant understated their age on a life application, at the insured's death the insurer will:

  1. Pay the amount the premium would have bought at the true age ✓
  2. Treat the policy as void and pay only a refund
  3. Refund the premiums paid and cancel the coverage
  4. Pay the full face amount to the beneficiary with no adjustment whatsoever being made

Why: The misstatement-of-age provision adjusts the benefit to what the premium paid would have bought at the true age.

Under § 33-6-9, before imposing a penalty for violating a cease and desist order, what must occur?

  1. Notice and hearing and an order of the Commissioner ✓
  2. A concurrent resolution adopted by the General Assembly
  3. A criminal indictment returned by a grand jury in Fulton County
  4. An automatic forfeiture of the violator's license by operation of law

Why: O.C.G.A. § 33-6-9 requires notice and hearing and an order of the Commissioner before a penalty may be imposed for violating a cease and desist order.

An endowment policy is distinguished by the fact that it:

  1. Pays the face amount at a set maturity date if the insured is still living ✓
  2. Decreases its face amount steadily over the policy's term
  3. Provides only temporary coverage that expires with no value
  4. Invests the entire premium in the insurer's separate investment accounts chosen by the owner

Why: An endowment pays the face amount either at the insured's death or upon reaching the maturity date while living; modern tax rules limit their use.

A Section 1035 exchange permits a tax-free exchange of:

  1. An annuity for stocks
  2. A life insurance policy for an annuity ✓
  3. A life policy for a mutual fund
  4. An annuity for a life insurance policy

Why: 1035 allows tax-free life-to-life, life-to-annuity, and annuity-to-annuity exchanges, but NOT annuity-to-life.

Credit life insurance is typically structured so that:

  1. The face amount increases over the life of the underlying loan
  2. Coverage continues at the same level long after the loan is repaid
  3. The borrower's family receives the full original loan amount in cash
  4. It is decreasing term with the creditor named as the beneficiary ✓

Why: Credit life is usually decreasing term equal to the outstanding debt, with the lender as beneficiary; it cannot exceed the loan balance.

In a variable annuity, the assumed interest rate (AIR) is used to:

  1. Benchmark whether each payout rises or falls during the annuity period ✓
  2. Set the surrender charge percentage that applies in each year of the withdrawal charge period
  3. Guarantee the separate account a fixed minimum return in every year of the payout period
  4. Determine the commission credited to the selling registered representative each year

Why: The AIR is a benchmark: if separate-account performance exceeds the AIR, the next variable payment rises; if it lags, the payment falls.

Under O.C.G.A. § 33-6-1, Georgia's Unfair Trade Practices article is enacted to regulate trade practices in the business of insurance in accordance with the intent of which federal enactment?

  1. The Dodd-Frank Act of 2010 and its Federal Insurance Office
  2. The Gramm-Leach-Bliley Act of 1999, which governs financial privacy notices
  3. The Sherman Antitrust Act of 1890, applied directly to insurance rate setting
  4. The McCarran-Ferguson Act of March 9, 1945 (Public Law 15, 79th Congress) ✓

Why: O.C.G.A. § 33-6-1 provides that the Unfair Trade Practices article regulates trade practices in accordance with the intent of Congress in the McCarran-Ferguson Act of March 9, 1945 (Public Law 15, 79th Congress).

The 'unpaid premium' provision in a health policy allows the insurer to:

  1. Charge double the missed premium as a late penalty fee
  2. Refuse to process the claim until a new application is filed
  3. Deduct any premium due and unpaid from a claim payment ✓
  4. Cancel the policy retroactively to its original issue date

Why: If a premium is due and unpaid when a claim is payable, the insurer may deduct the amount owed from the claim proceeds.

Under § 33-6-35(a), when the Commissioner believes a person has engaged in an unfair claims settlement practice and a proceeding would be in the public interest, the statement of charges and notice of hearing are served in the same manner as provided in which section?

  1. Code Section 33-6-7 ✓
  2. Code Section 33-6-37
  3. Code Section 33-6-34
  4. Code Section 33-6-1

Why: O.C.G.A. § 33-6-35(a) provides that the statement of charges and notice of hearing are served in the same manner as provided in Code Section 33-6-7.

Georgia's required individual-policy provisions of O.C.G.A. § 33-25-3 generally do NOT apply to which of the following?

  1. Single premium ordinary life
  2. Participating whole life policies
  3. Endowment policies
  4. Credit or group insurance ✓

Why: O.C.G.A. § 33-25-3(b) provides that the required individual-policy provisions do not apply to credit or group insurance.

Withdrawing taxable gains from a deferred annuity before age 59½ generally results in:

  1. No tax consequence of any kind on the withdrawal
  2. A 10% IRS penalty plus ordinary income tax on the gain ✓
  3. Immediate forfeiture of the entire annuity principal balance
  4. Favorable long-term capital-gains tax treatment instead

Why: Pre-59½ distributions of gains are subject to ordinary income tax plus a 10% IRS penalty.

Under O.C.G.A. § 33-6-4(c), a person who violates the Code section by making unlawful, false representations as to the policy sold shall be guilty of what?

  1. A felony
  2. A civil infraction only
  3. No criminal offense
  4. A misdemeanor ✓

Why: O.C.G.A. § 33-6-4(c) provides that a person who violates the section by making unlawful, false representations as to the policy sold shall be guilty of a misdemeanor.

Under O.C.G.A. § 33-20A-5, the list of individual participating providers that an enrollee is entitled to upon request must be updated at least how often?

  1. Only when a provider leaves the network
  2. At least every 30 days ✓
  3. At least once per year
  4. At least every 90 days

Why: O.C.G.A. § 33-20A-5(1) requires that the list of individual participating providers available to an enrollee on request be updated at least every 30 days.

Medicare Part B helps pay for:

  1. Physician services, outpatient care, and preventive services ✓
  2. Inpatient hospital room and board during an admission
  3. Custodial assistance with bathing, dressing, and eating
  4. Only prescription drugs obtained through a private drug plan

Why: Part B covers physician services, outpatient care, durable medical equipment, and preventive services, typically paying 80% after the deductible.

Per O.C.G.A. § 33-38-21, the maximum monetary penalty for a single act or violation of the prohibition on referencing the association in insurance advertisements is:

  1. $1,000 ✓
  2. $10,000
  3. $5,000
  4. $500

Why: O.C.G.A. § 33-38-21(b)(1) sets a monetary penalty of not more than $1,000 for each act or violation of the advertising prohibition.

Under O.C.G.A. § 33-21-9, how long must an HMO maintain records of written complaints concerning health care services?

  1. Five years from the time the complaints are filed ✓
  2. Ten years from the date the complaining enrollee's coverage ends
  3. Three years from the date the HMO resolves the complaint
  4. One year from the date each complaint is filed with the HMO

Why: O.C.G.A. § 33-21-9(b) requires an HMO to maintain records of written complaints for five years from the time the complaints are filed.

Under § 33-6-4(b)(8)(A)(iv)(I), refusing to insure an individual or charging a different rate for the same coverage because of that individual's race, color, or national or ethnic origin is treated as what?

  1. A permissible underwriting distinction if actuarially supported
  2. An unfair and deceptive act constituting unfair discrimination ✓
  3. Lawful so long as it is disclosed in writing
  4. A misdemeanor only

Why: O.C.G.A. § 33-6-4(b)(8)(A)(iv)(I) treats refusing to insure or charging a different rate for the same coverage because of race, color, or national or ethnic origin as an unfair and deceptive act constituting unfair discrimination.

In which policy does the owner bear the investment risk, with cash value fluctuating based on separate-account performance?

  1. Whole life
  2. Term life
  3. Variable life ✓
  4. Universal life

Why: Variable life invests cash value in separate accounts; the owner bears investment risk, so cash value (and sometimes death benefit) can rise or fall. It requires a securities license to sell.

Policy dividends paid on a participating life policy are best described as:

  1. A penalty the insurer pays for poor investment performance during the year
  2. Taxable investment income that the insurer guarantees every single year
  3. A return of premium that was overcharged ✓
  4. Interest credited at a rate set by the state insurance department

Why: Dividends are a non-guaranteed return of overpaid premium and are generally not taxable until they exceed the total premiums paid.

Which of the following must a Georgia insurance license state under Code Section 33-23-11?

  1. The total amount of premium the licensee is authorized to write each year
  2. The licensee's social security number and residence telephone number
  3. The licensee's projected renewal date, the name of every insurer that has appointed the licensee, and the commission rates payable
  4. The name and address of the licensee, the date of issue, and the kind or kinds of insurance covered if not an agency license ✓

Why: O.C.G.A. § 33-23-11(b) provides the license shall state the name and address of the licensee, the date of issue, general conditions on expiration or termination, the kind(s) of insurance covered if not an agency license, and other conditions of licensing.

Which type of life insurance provides lifelong coverage with a level premium and a guaranteed cash value?

  1. Annually renewable term
  2. Whole (ordinary) life ✓
  3. Level term to age 65
  4. Credit life

Why: Whole life is permanent coverage with a level premium and a guaranteed, tax-deferred cash value. Term provides only temporary coverage with no cash value.

In a fixed annuity, the investment risk is borne by:

  1. The annuitant, whose sub-accounts rise and fall with the market
  2. The insurer, which guarantees a minimum interest rate ✓
  3. A federal guaranty fund backing annuity values
  4. The selling producer, under the agency contract

Why: A fixed annuity guarantees principal and a minimum interest rate, so the insurer bears the investment risk.

A Medicare SELECT policy is a type of Medigap that:

  1. Charges a lower premium in exchange for using a provider network ✓
  2. Pays cash directly to enrollees regardless of where they get care
  3. Covers only long-term custodial nursing-home expenses
  4. Replaces both Medicare Part A and Part B entirely

Why: Medicare SELECT is a Medigap policy that requires using network providers (except emergencies) in return for a lower premium.

If a policyowner surrenders a cash-value life policy, the taxable amount is:

  1. The full death benefit that the policy would have paid out
  2. The cash value received that exceeds total premiums paid ✓
  3. Always zero, because life insurance proceeds are never taxable
  4. The entire cash value received, taxed fully as a capital gain

Why: On surrender, the gain (cash value minus the cost basis of premiums paid) is taxed as ordinary income.

Under § 33-6-34(5), compelling insureds or beneficiaries to file suit to recover amounts due is an unfair claims settlement practice when the insurer does what?

  1. Offers substantially less than the amounts ultimately recovered in suits brought by them ✓
  2. Requests an examination under oath that the policy expressly permits
  3. Denies the claim in writing and identifies the policy provision relied upon
  4. Pays the applicable policy limit within 15 days of proof of loss

Why: O.C.G.A. § 33-6-34(5) makes it an unfair practice to compel insureds or beneficiaries to file suit by offering substantially less than the amounts ultimately recovered in suits brought by them.

Under Georgia's insurable interest statute, a qualifying charitable institution has an insurable interest in the life of:

  1. Any board member only
  2. Any donor ✓
  3. Any policyholder of the charity's insurer
  4. Any state resident

Why: O.C.G.A. § 33-24-3 provides that a qualifying charitable institution has an insurable interest in the life of any donor.

A person who willfully violates the licensing requirements of Code Section 33-23-4 is, upon conviction:

  1. Subject to license revocation only, with no criminal exposure
  2. Guilty of a felony punishable by mandatory imprisonment
  3. Liable only for a civil administrative fine set by rule
  4. Guilty of a misdemeanor, punishable as provided in Code Section 17-10-3 ✓

Why: O.C.G.A. § 33-23-4(g) provides that any person who willfully violates the Code section is guilty of a misdemeanor and subject to punishment under Code Section 17-10-3.