TN Health State Exam Simulator
Questions and Answers
A catastrophic illness would be best covered by which of the following health insurance
plans? - ANSWER-major medical
A Disability Income policyowner recently submitted a claim for a chronic neck problem
that has now resulted in total disability. The original neck injury occurred before
application was taken 5 years prior. The neck injury was never disclosed to the insurer
at the time of application. How will the insurer handle this claim? - ANSWER-Claim will
be paid and coverage will remain in force
A licensed producer can be BEST described as a(n) - ANSWER-Individual who places
insurance on behalf of anyone seeking insurance
A life insurance arrangement which circumvents insurable interest statutes is called: -
ANSWER-Investor-Originated Life Insurance
A Long-Term Care policy sold in Tennessee MUST be - ANSWER-Guaranteed
renewable
A producer may apply for one or more of the following licenses: - ANSWER-All of the
above
A provision that the policy, application, and all attachments shall constitute the _
between the parties. - ANSWER-Entire Contract
A(n) _ of benefits of a Health Policy transfers payments to someone other than the
policyowner - ANSWER-assignment
All of these are considered a producer's breach of fiduciary duty EXCEPT - ANSWER-
Allowing premiums to be submitted electronically
All of these are powers of the Commissioner EXCEPT - ANSWER-incarcerate a
producer
All of these insurance subjects qualify for continuing education credits in Tennessee
EXCEPT: - ANSWER-Motivating producers
All of these statements regarding referrals are true EXCEPT - ANSWER-Referral fees
must be filed and approved with the Commissioner of Insurance
An individual Disability Income insurance applicant may be required to submit all of the
following information EXCEPT - ANSWER-spouse's occupation
, An individual health insurance policy is REQUIRED to contain a(n) - ANSWER-Payment
of Claims provision
An insurance company normally has 2 years to contest information provided on an
accident and Health application. This 2 year period begins on the date that the: -
ANSWER-insurer dates the policy
An insurance producer could be found guilty of rebating by - ANSWER-sharing
commissions with a client who has purchased insurance
An insured covered by a group Major Medical plan is hospitalized after sustaining
injuries that resulted from an automobile accident. Assuming the plan had a $1,000
deductible and an 80/20 Coinsurance clause, how much will the INSURED be
responsible to pay with $11,000 in covered medical expenses? - ANSWER-$3,000
An insured must notify an insurer of a medical claim within how many days after an
accident? - ANSWER-20
B is an insurance producer who occasionally engages in financial planning. If B sells an
insurance policy during the course of a financial planning seminar, B must disclose to
the client - ANSWER-that a commission will be earned in addition to any fee charged for
financial planning
Before a health insurance policy is issued, which of these components of the contract is
required? - ANSWER-Applicant's signature on application
Bo's policy provides coverage on an in-hospital basis only and contains a limited daily
room and board benefit. Which of these policies does B have? - ANSWER-Basic
Hospital
C is the policy owner of a Comprehensive individual Major Medical policy. C pays an
annual premium which is due September 1. If C forget to pay the premium and is
hospitalized September 10, how will the insurer handle the claim? - ANSWER-Pay the
claim in full minus the premium due
(Because the grace period is 31 days for Individual Accident and Health policies paid
annually, this claim will be paid minus the premium due)
Comprehensive Major Medical policies usually combine: - ANSWER-Major Medical with
Basic Hospital/Surgical coverage
D is an architect receiving Disability Income benefits who is not able to return to work
full time, but can work on a part-time basis. Which of these features would allow D to
continue receiving benefits? - ANSWER-Residual Benefit clause
Questions and Answers
A catastrophic illness would be best covered by which of the following health insurance
plans? - ANSWER-major medical
A Disability Income policyowner recently submitted a claim for a chronic neck problem
that has now resulted in total disability. The original neck injury occurred before
application was taken 5 years prior. The neck injury was never disclosed to the insurer
at the time of application. How will the insurer handle this claim? - ANSWER-Claim will
be paid and coverage will remain in force
A licensed producer can be BEST described as a(n) - ANSWER-Individual who places
insurance on behalf of anyone seeking insurance
A life insurance arrangement which circumvents insurable interest statutes is called: -
ANSWER-Investor-Originated Life Insurance
A Long-Term Care policy sold in Tennessee MUST be - ANSWER-Guaranteed
renewable
A producer may apply for one or more of the following licenses: - ANSWER-All of the
above
A provision that the policy, application, and all attachments shall constitute the _
between the parties. - ANSWER-Entire Contract
A(n) _ of benefits of a Health Policy transfers payments to someone other than the
policyowner - ANSWER-assignment
All of these are considered a producer's breach of fiduciary duty EXCEPT - ANSWER-
Allowing premiums to be submitted electronically
All of these are powers of the Commissioner EXCEPT - ANSWER-incarcerate a
producer
All of these insurance subjects qualify for continuing education credits in Tennessee
EXCEPT: - ANSWER-Motivating producers
All of these statements regarding referrals are true EXCEPT - ANSWER-Referral fees
must be filed and approved with the Commissioner of Insurance
An individual Disability Income insurance applicant may be required to submit all of the
following information EXCEPT - ANSWER-spouse's occupation
, An individual health insurance policy is REQUIRED to contain a(n) - ANSWER-Payment
of Claims provision
An insurance company normally has 2 years to contest information provided on an
accident and Health application. This 2 year period begins on the date that the: -
ANSWER-insurer dates the policy
An insurance producer could be found guilty of rebating by - ANSWER-sharing
commissions with a client who has purchased insurance
An insured covered by a group Major Medical plan is hospitalized after sustaining
injuries that resulted from an automobile accident. Assuming the plan had a $1,000
deductible and an 80/20 Coinsurance clause, how much will the INSURED be
responsible to pay with $11,000 in covered medical expenses? - ANSWER-$3,000
An insured must notify an insurer of a medical claim within how many days after an
accident? - ANSWER-20
B is an insurance producer who occasionally engages in financial planning. If B sells an
insurance policy during the course of a financial planning seminar, B must disclose to
the client - ANSWER-that a commission will be earned in addition to any fee charged for
financial planning
Before a health insurance policy is issued, which of these components of the contract is
required? - ANSWER-Applicant's signature on application
Bo's policy provides coverage on an in-hospital basis only and contains a limited daily
room and board benefit. Which of these policies does B have? - ANSWER-Basic
Hospital
C is the policy owner of a Comprehensive individual Major Medical policy. C pays an
annual premium which is due September 1. If C forget to pay the premium and is
hospitalized September 10, how will the insurer handle the claim? - ANSWER-Pay the
claim in full minus the premium due
(Because the grace period is 31 days for Individual Accident and Health policies paid
annually, this claim will be paid minus the premium due)
Comprehensive Major Medical policies usually combine: - ANSWER-Major Medical with
Basic Hospital/Surgical coverage
D is an architect receiving Disability Income benefits who is not able to return to work
full time, but can work on a part-time basis. Which of these features would allow D to
continue receiving benefits? - ANSWER-Residual Benefit clause
