10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The GALAS exam has 135 questions and runs 2 hours 30 minutes.
These 10 free GALAS questions are organized by exam domain, so you can see how each part of the Georgia Life, Accident & Sickness Agent Exam blueprint is tested. Reveal the answer and explanation under each question.
A 42-year-old client wants permanent life insurance with flexible premium payments and cash value allocated among owner-selected investment subaccounts. The client accepts market risk and understands that the separate-account cash value is not guaranteed. Which policy best matches these objectives?
Correct answer: C - Variable universal life
An indexed annuity defines its annual index credit as the lesser of the index gain multiplied by a 75% participation rate or a 6% cap, with a 0% floor. The linked index rises 10%, and the owner asks whether the floor also eliminates a surrender charge if the contract is cashed out this year. Which explanation is accurate?
Correct answer: A - The credit is 6%; the 0% floor does not eliminate a contractual surrender charge
A life policyowner named an irrevocable beneficiary several years ago. The owner now requests a policy loan large enough to materially impair that beneficiary's interest. Whose consent is needed before the insurer proceeds?
Correct answer: D - The irrevocable beneficiary's consent
After deciding to stop paying premiums on a whole life policy, the owner wants to preserve the policy's original net death benefit for as long as the cash value will support it. The owner accepts that coverage will eventually end. Which nonforfeiture election accomplishes this?
Correct answer: B - Extended term insurance
An applicant submits a completed life application, pays the initial premium, completes the required examination that day, and receives an insurability-type conditional receipt. The receipt states that coverage is effective from the application or examination date if the applicant was insurable as applied on that date. The applicant dies six days later, before policy issue, and underwriting confirms standard insurability on the receipt date. When did coverage take effect, if at all?
Correct answer: D - Coverage applies under the receipt from the stated date
During a permanent-life application, an applicant asks to split a large premium into several smaller cashier's checks to avoid scrutiny and offers one check from an unrelated friend without explaining the source. How should the proposed funding be handled?
Correct answer: B - Do not facilitate the split; use the insurer's source-of-funds and AML escalation procedures
A 47-year-old policyowner has a modified endowment contract with a $70,000 cost basis and a $100,000 cash value. The owner withdraws $20,000 and no statutory exception applies. What is the federal income-tax result?
Correct answer: A - $20,000 is taxable gain and generally subject to a 10% additional tax
An enrollee in an ACA-compliant HMO develops signs of a stroke and is taken by ambulance to the nearest emergency department, which is outside the HMO network. While the ambulance is en route, the enrollee's spouse calls the HMO. What coverage instruction should the spouse receive?
Correct answer: C - Network status alone cannot trigger prior authorization for emergency evaluation
An in-network PPO claim shows a $10,000 billed charge and a $7,500 allowed amount. The member has $1,500 of deductible remaining, after which the plan pays 80% of the allowed amount. There is no copay or noncovered charge, and the provider accepts the allowed amount. How should the allowed amount be allocated?
Correct answer: B - Member $2,700; plan $4,800
A licensed practitioner certifies that an insured needs substantial assistance with bathing and transferring because of functional loss expected to last six months. The insured is cognitively intact. Does the certification satisfy the tax-qualified benefit trigger?
Correct answer: D - The functional trigger is met because two ADLs are impaired for at least 90 days
The GALAS exam also covers these domains. Drill them in the full free practice test:
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