FINAL EXAM – TENNESSEE LIFE AND
HEALTH | COMPREHENSIVE EXAM PREP,
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AND STUDY GUIDE
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Updated 2026 Questions and Answers
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,Insurance policies are offered on a "take it or leave it" basis, d. Contracts of Adhesion
which make them
a. Conditional Contracts
b. Aleatory Contracts
c. Unilateral Contracts
d. Contracts of Adhesion
All of these statements about Equity Indexed Life Insurance c. The premiums can be lowered or raised, based on investment performance
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
P is the insured on a participating life policy. Which statement c. P will still receive declared dividends
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
Which of the following actions require a policyowner to a. increase face amount
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
, Which provision prevents an insurer from changing the terms c. Entire Contract Provision
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
K pays on a $20,000 20-Year Endowment policy for 10 years c. $20,000 death benefit
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
Which of the following types of organizations are prepaid b. HMO
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
Which of the following characteristics is CORRECT about a. There is a flexible premium payment
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
HEALTH | COMPREHENSIVE EXAM PREP,
PRACTICE QUESTIONS, CORRECT ANSWERS
AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Insurance policies are offered on a "take it or leave it" basis, d. Contracts of Adhesion
which make them
a. Conditional Contracts
b. Aleatory Contracts
c. Unilateral Contracts
d. Contracts of Adhesion
All of these statements about Equity Indexed Life Insurance c. The premiums can be lowered or raised, based on investment performance
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
P is the insured on a participating life policy. Which statement c. P will still receive declared dividends
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
Which of the following actions require a policyowner to a. increase face amount
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
, Which provision prevents an insurer from changing the terms c. Entire Contract Provision
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
K pays on a $20,000 20-Year Endowment policy for 10 years c. $20,000 death benefit
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
Which of the following types of organizations are prepaid b. HMO
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
Which of the following characteristics is CORRECT about a. There is a flexible premium payment
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
