Free Georgia Life & Health Insurance Practice Exam 2026

Georgia life and health insurance exam sample questions and answers

6 of the 125 practice questions, one from each topic, with the answer explained.

1. 1. Which statement about the federal income taxation of individually owned life insurance is generally correct?

   • A.Premiums are not deductible; death proceeds are taxable
   • B.Premiums are not deductible; death proceeds are income tax-free
   • C.Premiums are deductible; death proceeds are taxable
   • D.Premiums are deductible; death proceeds are income tax-free

   Answer: B. Personal life insurance premiums are not tax-deductible, and a lump-sum death benefit is received free of income tax. Only interest earned under a settlement option is taxable to the beneficiary.

2. 2. Which statement about long-term care insurance policies is correct?

   • A.Partnership policies block Medicaid eligibility
   • B.They may require a prior hospital stay
   • C.They may be canceled when health declines
   • D.They must be guaranteed renewable

   Answer: D. LTC policies must be at least guaranteed renewable, cannot require prior hospitalization, and must offer inflation protection, which the buyer may reject in writing. Partnership policies protect assets equal to benefits paid if the insured later applies for Medicaid, and longer elimination periods or shorter benefit periods lower the premium.

3. 3. Kim pays her individual disability income premiums with after-tax dollars, and her employer pays her group medical premiums. Which of her benefits are taxable income?

   • A.Neither type of benefit
   • B.Only the disability income benefits
   • C.Only the medical expense benefits
   • D.Both the disability and the medical benefits

   Answer: A. Disability benefits are tax-free when the insured paid the premiums with after-tax dollars, and medical expense benefits are tax-free even when the employer paid the premium. Disability benefits would be taxable only if the employer had paid that premium, while tax-qualified LTC benefits are generally tax-free within limits.

4. 4. Which statement about federal privacy and telemarketing rules affecting insurance producers is accurate?

   • A.Do Not Call rules exempt all insurance telemarketing calls
   • B.GLBA bans insurers from sharing any customer data
   • C.Insurers must provide customers privacy notices
   • D.Registry numbers may be called once per calendar year

   Answer: C. The Gramm-Leach-Bliley Act requires insurers to give privacy notices explaining their information-sharing practices and to let consumers opt out of sharing nonpublic personal information with nonaffiliated third parties. Insurance telemarketers must honor the National Do Not Call Registry, subject to limited exceptions such as an established business relationship.

5. 5. A 28-year-old wants the right to buy more coverage at set ages and at marriage or a child's birth without proving insurability. He needs a:

   • A.Cost of living adjustment rider
   • B.Return of premium rider
   • C.Guaranteed insurability rider
   • D.Spouse term rider

   Answer: C. The guaranteed insurability option lets the insured buy set amounts at specified ages or events with no evidence of insurability. A cost of living rider only adjusts coverage for inflation.

6. 6. A widow, 38, has a son who just turned 16. Her own Social Security survivor benefits stop until she reaches age 60. This gap is called the:

   • A.Blackout period
   • B.Probationary period
   • C.Elimination period
   • D.Waiting period

   Answer: A. A surviving parent's benefits end when the youngest child turns 16 and do not resume until the survivor reaches 60, a gap called the blackout period. An elimination period is the waiting time before disability income benefits begin.