Final Exam - Tennessee Life and Health Questions and
Answers Already Graded A+
Insurance policies are offered on a "take it or leave it" basis, which make
them
a.Conditional Contracts
b.Aleatory Contracts
c. Unilateral Contracts
d.Contracts of Adhesion - Answer✅ d. Contracts of Adhesion
All of these statements about Equity Indexed Life Insurance are correct
EXCEPT
a. Cash value has a minimum rate of accumulation
b. If the gain on the index goes beyond the policy's minimum rate of return,
the cash value will
mirror that of the
index
c. The premiums can be lowered or raised, based on investment performance
d. Tied to an equity index such as the S&P 500 - Answer✅ c. The premiums
can be lowered or
raised, based on investment
performance
P is the insured on a participating life policy. Which statement is true if P's
premiums are waived
due to a
disability?
a.P cannot borrow against the policy's cash value while disabled
b.P will have to pay income taxes on the amount of premiums waived
c. P will still receive declared dividends
d. P cannot assign ownership of the policy while premiums are being
waived - Answer✅ c. P
Final Exam - Tennessee Life and Health Questions and Answers Already Graded A+
,will still receive declared
dividends
Which of the following actions require a policyowner to provide proof of
insurability in an
Adjustable Life
policy?
a.increase face amount
b.decrease face amount
c. increase premium-paying period
d.decrease premium payment - Answer✅ a. increase face amount
Which provision prevents an insurer from changing the terms of the
contract with the
policyowner by referring to documents not found within
the policy itself?
a.Policy Exclusion
b.Incontestable
c. Entire Contract Provision
d.Assignment - Answer✅ c. Entire Contract Provision
K pays on a $20,000 20-Year Endowment policy for 10 years and dies
from an automobile
accident. How much will the insurance company pay
the beneficiary?
a.Return of premiums paid
b.Cash value plus interest
c. $20,000 death benefit
d.Face amount plus interest - Answer✅ c. $20,000 death benefit
Final Exam - Tennessee Life and Health Questions and Answers Already Graded A+
, Which of the following types of organizations are prepaid group health plans,
where members pay in advance for the services of participating physicians
and hospitals that have agreements?
a.PPO
b.HMO
c. MEWA
d.POS - Answer✅ b. HMO
Which of the following characteristics is CORRECT about Interest Sensitive
Whole Life?
a.There is a flexible premium payment
b.There are no guaranteed minimum interest rates
c. Mortality charges do not impact the investment amount
d.Interest rates determine cash values - Answer✅ a. There is a flexible
premium payment
K failed to pay a renewal premium within the time granted by the insurer. K
then sends in a payment which the insurer subsequently accepts. Which
policy provision specifies that coverage may be restored in this situation?
a.Free-look
b.Reinstatement
c. Grace Period
d.Consideration - Answer✅ b. Reinstatement
Which of the following is an important underwriting principle of group life
insurance?
a.Physical examinations are required
b.Everyone must be covered in the group
c. Employer must pay for the entire premium
Final Exam - Tennessee Life and Health Questions and Answers Already Graded A+
Answers Already Graded A+
Insurance policies are offered on a "take it or leave it" basis, which make
them
a.Conditional Contracts
b.Aleatory Contracts
c. Unilateral Contracts
d.Contracts of Adhesion - Answer✅ d. Contracts of Adhesion
All of these statements about Equity Indexed Life Insurance are correct
EXCEPT
a. Cash value has a minimum rate of accumulation
b. If the gain on the index goes beyond the policy's minimum rate of return,
the cash value will
mirror that of the
index
c. The premiums can be lowered or raised, based on investment performance
d. Tied to an equity index such as the S&P 500 - Answer✅ c. The premiums
can be lowered or
raised, based on investment
performance
P is the insured on a participating life policy. Which statement is true if P's
premiums are waived
due to a
disability?
a.P cannot borrow against the policy's cash value while disabled
b.P will have to pay income taxes on the amount of premiums waived
c. P will still receive declared dividends
d. P cannot assign ownership of the policy while premiums are being
waived - Answer✅ c. P
Final Exam - Tennessee Life and Health Questions and Answers Already Graded A+
,will still receive declared
dividends
Which of the following actions require a policyowner to provide proof of
insurability in an
Adjustable Life
policy?
a.increase face amount
b.decrease face amount
c. increase premium-paying period
d.decrease premium payment - Answer✅ a. increase face amount
Which provision prevents an insurer from changing the terms of the
contract with the
policyowner by referring to documents not found within
the policy itself?
a.Policy Exclusion
b.Incontestable
c. Entire Contract Provision
d.Assignment - Answer✅ c. Entire Contract Provision
K pays on a $20,000 20-Year Endowment policy for 10 years and dies
from an automobile
accident. How much will the insurance company pay
the beneficiary?
a.Return of premiums paid
b.Cash value plus interest
c. $20,000 death benefit
d.Face amount plus interest - Answer✅ c. $20,000 death benefit
Final Exam - Tennessee Life and Health Questions and Answers Already Graded A+
, Which of the following types of organizations are prepaid group health plans,
where members pay in advance for the services of participating physicians
and hospitals that have agreements?
a.PPO
b.HMO
c. MEWA
d.POS - Answer✅ b. HMO
Which of the following characteristics is CORRECT about Interest Sensitive
Whole Life?
a.There is a flexible premium payment
b.There are no guaranteed minimum interest rates
c. Mortality charges do not impact the investment amount
d.Interest rates determine cash values - Answer✅ a. There is a flexible
premium payment
K failed to pay a renewal premium within the time granted by the insurer. K
then sends in a payment which the insurer subsequently accepts. Which
policy provision specifies that coverage may be restored in this situation?
a.Free-look
b.Reinstatement
c. Grace Period
d.Consideration - Answer✅ b. Reinstatement
Which of the following is an important underwriting principle of group life
insurance?
a.Physical examinations are required
b.Everyone must be covered in the group
c. Employer must pay for the entire premium
Final Exam - Tennessee Life and Health Questions and Answers Already Graded A+
