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Georgia Life Insurance Law: Practice Questions

20 free practice questions with explanations. Pick an answer for each, then check your score.

Exam weight: 3 life-only Georgia questions on the exam on the Georgia Life, Accident and Sickness agent exam. Updated 2026-11-05.

Quick study guide

Three scored Georgia questions are life-only, drawn from outline section XI: replacement, advertising and solicitation with the life policy statutes, and insurable interest. Most turn on a number of days or on who owes a duty.

Replacement (Ga. Comp. R. & Regs. r. 120-2-24)

A replacement is any purchase of new life insurance or an annuity where the agent knows or should know that existing life insurance will be lapsed, surrendered, converted to reduced paid-up or extended term, drawn down by policy loans or other values, amended to cut benefits, or reissued with less cash value. The rule does not apply to annuity replacements, credit life, group life or certain qualified-plan coverage.

Who	Duty
Agent	Signed replacement statements; Replacement Notice presented by the time of application, signed by applicant and agent and left with the applicant; list of policies replaced; copies of sales material used
Replacing insurer	Mail the Notice and a written communication to the existing insurer within 3 working days of receiving the application or issuing the policy, whichever is sooner
Existing insurer	Furnish a policy summary within 10 working days if the policyholder asked for one
All insurers	Keep replacement records 3 years or until the next regular examination, whichever is later

The Replacement Notice reminds the buyer of the 10-day free look that every individual life policy carries under O.C.G.A. § 33-25-8.

Advertising and disclosure (r. 120-2-11, r. 120-2-31)

The Buyer's Guide comes before the application is solicited or taken; the Policy Summary before the first premium is accepted, or with the policy if there is a 10-day unconditional refund. Agents identify themselves and their insurer before a presentation. "No medical exam" needs an equally prominent note that issue may depend on health answers, paid endorsements are labelled, and the insurer keeps every ad for 4 years or until its next examination report, whichever is longer.

Policy provisions and group life

Individual policies: grace period of at least 30 days, incontestable after 2 years in force during the insured's lifetime, reinstatement within 3 years of default with interest capped at 6 percent, and a suicide exclusion limited to 2 years from issue (§§ 33-25-3, 33-25-5). Group policies: 31-day grace; a departing member converts within 31 days without evidence of insurability; when the plan itself ends, only members insured 5 years can convert, and the policy may cap the amount at $2,000 (§ 33-27-3). Late notice adds 15 days after notice, never more than 60 days past the period (§ 33-27-5).

Insurable interest (§§ 33-24-3, 33-24-6)

Interest must exist when the contract takes effect, not at death. A policy on another person is void unless payable to the insured, the insured's estate or someone with an insurable interest; the insurer then refunds premiums without interest. An adult must apply or consent in writing, except where one spouse insures the other and a few other listed cases.

Practice questions

An agent recommends that a Georgia client keep her existing whole life policy in force but take a policy loan against its cash value to pay the first-year premium on a new universal life policy from another insurer. Under Ga. Comp. R. & Regs. r. 120-2-24-.03(12), is this a replacement?
1. A.Yes, because the existing policy is reduced in value by the use of a policy loan
2. B.No, because the existing policy will not be lapsed or surrendered
3. C.Yes, but only if the new policy's face amount is larger than the existing policy's
4. D.No, because a replacement exists only when both policies come from the same insurer
Show answer
Answer: A. Rule 120-2-24-.03(12) defines replacement as any transaction in which new life insurance or an annuity is bought and the agent knows or should know that existing life insurance will be lapsed or surrendered, changed to reduced paid-up or extended term, or otherwise reduced in value by the use of nonforfeiture benefits, policy loans or other policy values, amended to reduce benefits or term, or reissued with less cash value. Keeping the old policy in force does not take the sale outside the rule when its values are drawn down to fund the new one. Which insurers are involved and the size of the new policy do not matter.
Source: Georgia outline XI.A: Replacement of life insurance (Reg. 120-2-24; 33-24-6.1); Ga. Comp. R. & Regs. r. 120-2-24-.03
Unless the rule specifically includes it, which of these transactions falls outside Georgia's life insurance replacement rule, Ga. Comp. R. & Regs. r. 120-2-24?
1. A.A new group life plan that an employer buys to replace its existing group life plan
2. B.A new individual term policy replacing an individual whole life policy that will be surrendered
3. C.A new individual whole life policy bought while an existing policy is put on extended term
4. D.A new policy from a direct response insurer replacing an existing individual life policy
Show answer
Answer: A. Rule 120-2-24-.04 says the regulation does not apply, unless otherwise specifically included, to replacement of annuity contracts, credit life insurance, group life insurance and certain life insurance in qualified pension or profit-sharing plans. Surrendering an individual policy or switching it to extended term both fit the definition of replacement in -.03(12). Direct response insurers are covered too: rule -.08 sets out their own replacement duties.
Source: Georgia outline XI.A: Replacement of life insurance (Reg. 120-2-24; 33-24-6.1); Ga. Comp. R. & Regs. r. 120-2-24-.04; Ga. Comp. R. & Regs. r. 120-2-24-.08
A Georgia agent is taking an application for a new life policy that will replace the applicant's existing policy. Under Ga. Comp. R. & Regs. r. 120-2-24-.05(2)(a), what must the agent do with the Replacement Notice?
1. A.Present it no later than when the application is taken, have the applicant and agent sign it, and leave it with the applicant
2. B.Give it only if the applicant asks for it, and record on the application that the notice was explained orally
3. C.Deliver it with the new policy, have only the applicant sign it, and keep the signed original in the agent's own file
4. D.Mail it to the existing insurer within 3 working days after the application is signed, without giving the applicant a copy
Show answer
Answer: A. Rule 120-2-24-.05(2)(a) requires the agent to present the Replacement Notice (Exhibit A or an approved substitute) not later than at the time of taking the application; it must be signed by both the applicant and the agent and left with the applicant. The agent also lists the policies being replaced, leaves copies of any written sales material used, and sends a copy of the Notice to the replacing insurer with the application. Notifying the existing insurer is the replacing insurer's job under rule -.07, not the agent's.
Source: Georgia outline XI.A: Replacement of life insurance (Reg. 120-2-24; 33-24-6.1); Ga. Comp. R. & Regs. r. 120-2-24-.05
A replacing insurer that sells through agents receives an application involving replacement at its regional office. The policy has not been issued yet. Under Ga. Comp. R. & Regs. r. 120-2-24-.07(2)(b), by when must it mail the existing insurer a copy of the Replacement Notice and a written communication about the replacement?
1. A.Within 5 business days after the policy is issued
2. B.Within 30 days after the policy is delivered
3. C.Within 10 working days of receiving the application
4. D.Within 3 working days of receiving the application
Show answer
Answer: D. Rule 120-2-24-.07(2)(b) requires the Replacement Notice and written communication, naming the replacing insurer, the insured and the policies being replaced, to be mailed within three working days of the date the application is received in the home or regional office, or the date the policy is issued, whichever is sooner. Ten working days is the existing insurer's deadline for furnishing a requested policy summary under rule -.06(5). A direct response replacing insurer has the same three-working-day deadline under rule -.08(3) when the applicant names the existing insurer.
Source: Georgia outline XI.A: Replacement of life insurance (Reg. 120-2-24; 33-24-6.1); Ga. Comp. R. & Regs. r. 120-2-24-.07
An insurer receives a Replacement Notice and written communication saying one of its life policies may be replaced. The policyholder checked the box on the Notice asking for a policy summary statement. Under Ga. Comp. R. & Regs. r. 120-2-24-.06(5), the existing insurer must furnish it within:
1. A.30 days after receipt
2. B.3 working days after receipt
3. C.10 working days after receipt
4. D.20 days after receipt
Show answer
Answer: C. Rule 120-2-24-.06(5) says an insurer that receives a Replacement Notice and written communication that its insurance may be replaced must, within ten working days after receipt, furnish a policy summary statement to its policyholder if so indicated or requested. The Notice itself tells the applicant that Georgia law gives the right to a policy summary statement from the existing insurer at any time. Three working days is the replacing insurer's deadline for mailing the Notice, not the existing insurer's.
Source: Georgia outline XI.A: Replacement of life insurance (Reg. 120-2-24; 33-24-6.1); Ga. Comp. R. & Regs. r. 120-2-24-.06; Ga. Comp. R. & Regs. r. 120-2-24-.08 (Exhibit A, Replacement Notice)
Under O.C.G.A. § 33-25-8, how long after receiving a new individual life policy (other than credit life) does the owner have to return it and get the premium refunded?
1. A.30 days
2. B.20 days
3. C.10 days
4. D.No return right exists once the application has been signed
Show answer
Answer: C. Section 33-25-8(a) requires every individual life policy issued for delivery in Georgia, except credit policies, to carry a notice that the owner may return it within ten days after receiving it and have the premium refunded; under § 33-25-8(b) a returned policy is void from the beginning. The Replacement Notice in Exhibit A to rule 120-2-24-.08 reminds applicants who are replacing coverage of this ten-day right. Signing the application does not waive it.
Source: Georgia outline XI.B: Life insurance policy provisions (33-25-1 through 12); O.C.G.A. § 33-25-8; Ga. Comp. R. & Regs. r. 120-2-24-.08 (Exhibit A, Replacement Notice)
Under Ga. Comp. R. & Regs. r. 120-2-31-.05(1), when must the insurer give a prospective purchaser of an individual whole life policy the Life Insurance Buyer's Guide?
1. A.Only when the prospective purchaser asks for one
2. B.Within 10 days after the policy has been delivered
3. C.Before accepting the first premium, or with the policy if there is a 10-day refund right
4. D.Before soliciting, procuring or receiving the application
Show answer
Answer: D. Rule 120-2-31-.05(1) requires the insurer to provide a Buyer's Guide to all prospective purchasers prior to soliciting, procuring or receiving an application. The second option describes the timing of the Policy Summary: before the initial premium is accepted, or with or before policy delivery if there is an unconditional refund provision of at least ten days. Both documents must also be provided on request under -.05(2), but delivery of the Buyer's Guide does not wait for a request.
Source: Georgia outline XI.B: Life insurance advertisements and solicitation (Reg. 120-2-31); Ga. Comp. R. & Regs. r. 120-2-31-.05
Before beginning a life insurance sales presentation in Georgia, what must an agent tell the prospective purchaser under Ga. Comp. R. & Regs. r. 120-2-31-.06(2)?
1. A.The commission he will earn on the policy he is about to present
2. B.The insurer's financial strength rating from a commercial rating service
3. C.That his sales presentation has been approved by the Georgia Insurance Department
4. D.That he is acting as a life insurance agent, and the full name of the insurer he represents
Show answer
Answer: D. Rule 120-2-31-.06(2) requires an agent, before commencing a life insurance sales presentation, to say that he is acting as a life insurance agent and to give the full name of the insurance company he is representing; where no agent is involved, the insurer identifies its full name. The rule does not require commission or rating disclosures. Claiming department approval would be prohibited: rule 120-2-11-.10(1)(b) bars implying that illustrative or advertising material has been approved or sanctioned by the Georgia Insurance Department.
Source: Georgia outline XI.B: Life insurance advertisements and solicitation (Reg. 120-2-11; 120-2-31); Ga. Comp. R. & Regs. r. 120-2-31-.06; Ga. Comp. R. & Regs. r. 120-2-11-.10
A Georgia newspaper advertisement for a life policy says "No Medical Examination Required," but the insurer can still decline applicants based on their health answers. Under Ga. Comp. R. & Regs. r. 120-2-11-.06(3), what must the advertisement include?
1. A.A disclosure of equal prominence, next to that phrase, that issuance may depend on the application's health answers
2. B.A footnote anywhere in the advertisement stating that every applicant is guaranteed to be issued a policy
3. C.Nothing more, as long as no applicant is ever actually asked to take a physical examination
4. D.The insurer's toll-free telephone number for questions about its medical underwriting standards
Show answer
Answer: A. Rule 120-2-11-.06(3) says that when an advertisement uses "Non-Medical," "No Medical Examination Required" or similar terms where issuance is not guaranteed, the terms must be accompanied by a further disclosure of equal prominence, placed in juxtaposition, that issuance of the policy may depend on the answers to the health questions in the application. Claiming guaranteed issue would be false here, and a phone number does not cure the omission. The rule turns on whether issue is guaranteed, not on whether a physical exam is ever given.
Source: Georgia outline XI.B: Life insurance advertisements and solicitation (Reg. 120-2-11); Ga. Comp. R. & Regs. r. 120-2-11-.06
A retired athlete with no ownership or employment ties to a life insurer is paid a fee to appear in its Georgia television ad praising its policies. Under Ga. Comp. R. & Regs. r. 120-2-11-.06(11)(b), what must the advertisement disclose?
1. A.Nothing, since the athlete has no financial interest in the insurer
2. B.Only the athlete's name and city of residence
3. C."THIS IS A PAID ENDORSEMENT," or substantially similar words
4. D.The exact dollar amount the insurer paid the athlete
Show answer
Answer: C. Rule 120-2-11-.06(11)(b) requires that if a person making a testimonial receives any benefit, directly or indirectly, other than required union scale wages, the fact must be clearly and prominently disclosed in language identical or substantially similar to "THIS IS A PAID ENDORSEMENT." A financial interest such as being a stockholder, director, officer or employee is a separate disclosure; lacking one does not excuse the paid-endorsement statement. The rule does not require the fee amount, and under (11)(a) the insurer adopts every statement in the testimonial as its own.
Source: Georgia outline XI.B: Life insurance advertisements and solicitation (Reg. 120-2-11); Ga. Comp. R. & Regs. r. 120-2-11-.06
Under Ga. Comp. R. & Regs. r. 120-2-11-.11(1), how long must a life insurer keep a specimen copy of each printed or published advertisement of its individual policies disseminated in Georgia?
1. A.3 years after the date the advertisement was last used
2. B.Until the policy form being advertised is withdrawn from sale
3. C.5 years from the date the advertisement was first used
4. D.4 years, or until the next regular examination report is filed, whichever is longer
Show answer
Answer: D. Rule 120-2-11-.11(1) requires each insurer to keep at its home or principal office a file with a specimen copy of every printed, published or prepared advertisement of its individual policies, noting how widely it was distributed, for either four years or until the next regular report on the examination of the insurer is filed, whichever is longer. Under -.11(2) the insurer also files a certificate of compliance with its Annual Statement. Three years is a different retention period: the solicitation rule, 120-2-31-.06(1), keeps disclosure forms three years after their last authorized use.
Source: Georgia outline XI.B: Life insurance advertisements and solicitation (Reg. 120-2-11); Ga. Comp. R. & Regs. r. 120-2-11-.11; Ga. Comp. R. & Regs. r. 120-2-31-.06
The quarterly premium on a Georgia individual whole life policy, in its third year, was due on 1 June and has not been paid. Under O.C.G.A. § 33-25-3(a)(1), what is the minimum grace period the policy must give, and what happens if the insured dies during it?
1. A.At least 60 days; the full face amount is paid with no deduction
2. B.10 days; the beneficiary receives only the policy's cash value
3. C.31 days; the claim is denied because the premium is still unpaid
4. D.At least 30 days; coverage continues, and the premium may be deducted
Show answer
Answer: D. Section 33-25-3(a)(1) requires every individual life policy to give a grace period of not less than 30 days for paying any premium after the first, during which the policy continues in force; if a claim arises during the grace period, any premium due or overdue may be deducted from the settlement. The 31-day figure is the minimum grace period for group life policies under § 33-27-3(a)(1). Ten days is the free look under § 33-25-8, which has nothing to do with late premiums.
Source: Georgia outline XI.B: Life insurance policy provisions (33-25-1 through 12); O.C.G.A. § 33-25-3; O.C.G.A. § 33-27-3
A Georgia individual life policy was issued on 1 May 2023, and the insured dies on 15 August 2025. The insurer then finds that the insured left a past hospital stay off the application. Under O.C.G.A. §§ 33-25-3(a)(2) and 33-25-7, which statement is correct?
1. A.The policy is incontestable after being in force during the insured's lifetime for two years from issue
2. B.The policy is incontestable, and that also stops the insurer from relying on any exclusion in the policy
3. C.The insurer may still contest the policy, because the contestable period in Georgia is three years
4. D.The insurer may contest the policy, because application misstatements can be raised at any time
Show answer
Answer: A. Section 33-25-3(a)(2) requires a provision that the policy, apart from disability and accidental death benefits, is incontestable except for nonpayment of premiums after it has been in force during the insured's lifetime for two years from its date of issue; this policy passed that point in May 2025. Section 33-25-7 adds that an incontestable clause bars only a contest of the policy's validity: the insurer can still rely at any time on provisions that exclude or restrict coverage. Georgia's statutory period is two years, not three.
Source: Georgia outline XI.B: Life insurance policy provisions (33-25-1 through 12); O.C.G.A. § 33-25-3; O.C.G.A. § 33-25-7
A Georgia whole life policy went into default for nonpayment 26 months ago. It has not been surrendered, its cash value has not been exhausted, and it is not on paid-up term that has expired. Under O.C.G.A. § 33-25-3(a)(8), what does the reinstatement provision require of the owner?
1. A.Written application, insurability evidence, and arrears and debt paid with interest of no more than 6 percent a year
2. B.Payment of the overdue premiums only, because no evidence of insurability is needed within five years of default
3. C.Nothing can be done, because Georgia's right to reinstate ends two years after the default
4. D.A new application only, with the overdue premiums waived in exchange for a fresh contestable period
Show answer
Answer: A. Section 33-25-3(a)(8) requires a provision that, unless the policy has been surrendered, its cash value exhausted or its paid-up term expired, it will be reinstated at any time within three years from the date of premium default on written application, evidence of insurability satisfactory to the insurer, and payment of all premiums in arrears and other policy indebtedness, with interest not exceeding 6 percent a year compounded annually. At 26 months the owner is inside the three years, but arrears are not waived. Under § 33-25-12 the reinstated policy can be contested for fraud or misrepresentation in the reinstatement only for the same period, and on the same terms, as after original issue.
Source: Georgia outline XI.B: Life insurance policy provisions (33-25-1 through 12); O.C.G.A. § 33-25-3; O.C.G.A. § 33-25-12
An employee insured for $80,000 under a Georgia group life policy quits her job, and her group coverage ends. Under O.C.G.A. § 33-27-3(a)(8), which statement about her conversion right is correct?
1. A.She may convert only if she was insured under the group plan for at least five years before leaving
2. B.She may buy an individual term policy only, by applying within 60 days and showing evidence of insurability
3. C.Within 31 days she may buy any customary individual form except term, without evidence of insurability
4. D.She may convert within 31 days, with the premium based on her age when she first joined the group plan
Show answer
Answer: C. Section 33-27-3(a)(8) lets a person whose group life coverage ends with employment obtain an individual policy without evidence of insurability if she applies and pays the first premium within 31 days; the policy may be any form the insurer customarily issues except term, for no more than the amount that ceased. The premium is the insurer's customary rate for her class of risk and her attained age, not her age at entry. The five-year requirement applies only when the group policy itself terminates, under (a)(9), and under (a)(10) her death within the 31 days is paid as a group claim.
Source: Georgia outline XI.B: Group life insurance (33-27-1 through 9); O.C.G.A. § 33-27-3
An employer cancels its Georgia group life policy. Ana has been insured under it for 7 years with $50,000 of coverage; Ben has been insured for 3 years. Neither becomes eligible for other group life coverage. If the policy uses the limit that O.C.G.A. § 33-27-3(a)(9) allows, what conversion rights do they have?
1. A.Neither may convert, because conversion rights apply only when employment ends
2. B.Both may convert their full coverage, because ending the plan gives everyone the right
3. C.Ana may convert up to $10,000, and Ben may convert up to $2,000 of his coverage
4. D.Ana may convert, but her individual policy may be limited to $2,000; Ben has no right
Show answer
Answer: D. Section 33-27-3(a)(9) gives a conversion right when the group policy terminates only to people who were insured under it for at least five years before the termination date. The group policy may limit the individual policy to the smaller of the coverage ending (less any group life the person becomes eligible for within 31 days) and $2,000. Ben, with three years, has no right under this paragraph, and $10,000 is not the Georgia figure.
Source: Georgia outline XI.B: Group life insurance (33-27-1 through 9); O.C.G.A. § 33-27-3
Marcus's Georgia group life coverage ends when he leaves his employer, which starts a 31-day conversion period. His certificate did not describe the conversion privilege, and he is first given written notice of it 25 days after his coverage ended. Under O.C.G.A. § 33-27-5, until when can he convert?
1. A.Until 31 days after he is given notice, here day 56 after coverage ended
2. B.Until 60 days after he is given notice, here day 85 after coverage ended
3. C.Only until the end of the original 31-day conversion period
4. D.Until 15 days after he is given notice, here day 40 after coverage ended
Show answer
Answer: D. Section 33-27-5(a) says that if a person entitled to convert is not given notice of the right at least 15 days before the conversion period expires, he gets an additional period that ends 15 days after notice is given, but never more than 60 days after the original period expires. Notice on day 25 came only six days before expiry, so the right runs to day 40, well inside the 60-day cap. The extension does not continue the insurance itself, and under (d) a statement of the privilege in his certificate would have counted as notice.
Source: Georgia outline XI.B: Group life insurance (33-27-1 through 9); O.C.G.A. § 33-27-5
Under O.C.G.A. § 33-24-6(a), which of these individual life insurance contracts may be made in Georgia without the adult insured applying for it or consenting in writing?
1. A.An adult daughter buying a policy on her father's life
2. B.A lender buying a policy on a borrower's life
3. C.A wife buying a policy on her husband's life
4. D.A business partner buying a policy on a co-owner's life
Show answer
Answer: C. Section 33-24-6(a) bars an individual life contract unless the insured, having legal capacity, applies for it or consents in writing, with listed exceptions: a spouse may insure the other spouse; a person with an insurable interest in a minor may insure the minor; either parent, a stepparent or a spouse may sign for a family policy; and certain corporations may insure employees, though § 33-24-6(b) then requires each employee's written consent. A daughter, partner or lender may have an insurable interest under § 33-24-3, but that does not replace the insured's written consent. When one spouse insures the other, § 33-24-6(b) generally requires the insurer to send the insured written notice of the policy.
Source: Georgia outline XI.C: Insurable interest (33-24-6); O.C.G.A. § 33-24-6
A Georgia corporation buys a policy on the life of a key employee, with the employee's written consent, and names itself beneficiary. The employee resigns a year later, the corporation keeps paying premiums, and the former employee dies two years after that. Under O.C.G.A. § 33-24-3(h), does the lost employment relationship defeat the corporation's claim?
1. A.Yes, because the corporation's insurable interest ended on resignation, which voided the policy
2. B.Partly, because the corporation can recover only the premiums it paid after the resignation
3. C.No, because the insurable interest had to exist when the policy took effect, not when the loss occurred
4. D.Only if the corporation failed to re-establish its insurable interest on each policy anniversary
Show answer
Answer: C. Section 33-24-3(h) says an insurable interest must exist at the time a contract of personal insurance becomes effective but need not exist at the time the loss occurs. Under § 33-24-3(d) a corporation has an insurable interest in its employees and in anyone whose death might cause it financial loss, so the interest existed when the policy began. Georgia law does not require the interest to be re-established each year or limit recovery to premiums.
Source: Georgia outline XI.C: Insurable interest (33-24-6); O.C.G.A. § 33-24-3
Ray signs a consent form, but an acquaintance with no insurable interest in Ray applies for, owns and pays for a policy on Ray's life and names himself beneficiary. Under O.C.G.A. § 33-24-3(i), what is the result?
1. A.The contract is void; the insurer is not liable on it but must repay the premiums without interest
2. B.The contract is valid, because Ray gave his written consent before the policy was issued
3. C.The contract is void, and the insurer may keep all of the premiums paid as a penalty
4. D.The contract is valid, but the death benefit must be paid to Ray's estate instead
Show answer
Answer: A. Section 33-24-3(i) makes any personal insurance contract procured upon another individual void unless its benefits are payable to the insured, the insured's personal representative, or a person who had an insurable interest in the insured when the contract was made. For a void contract the insurer is not liable on the policy but must repay all premiums, without interest, to whoever paid them. Ray's consent satisfies § 33-24-6 but does not create an insurable interest for the acquaintance; only a person insuring his own life may name any beneficiary he likes, under § 33-24-3(b).
Source: Georgia outline XI.C: Insurable interest (33-24-6); O.C.G.A. § 33-24-3; O.C.G.A. § 33-24-6

Where these questions come from: Georgia content outline (Pearson VUE #121102, effective 22 Oct 2024), Life, Accident and Sickness agent, section XI.A–C: Georgia rules and codes pertinent to life insurance only (replacement of life insurance; life insurance advertisements and solicitation; insurable interest). See how we write questions.