AFLAC Cram Exam with Complete
Solutions
Which of the following statements describes what an Accident and Health policyowner may
NOT do?
a. File a covered claim
b. Assign ownership
c. Cancel the coverage
d. Adjust the premium payments Correct Ans-d. Adjust the premium payments
Which of the following statements is CORRECT about the Tennessee Life and Health Insurance
Guaranty Association?
a. It is governed by the National Association of Insurance Commissioners (NAIC)
b. It is an agency of the state government
c. It is a voluntary association of admitted Tennessee insurance companies
d. It protects Tennessee insurance policyowners in the event an insurance company becomes
insolvent Correct Ans-d. It protects Tennessee insurance policyowners in the event an
insurance company becomes insolvent
Insurance policies are considered aleatory contracts because
,a. they are "take it or leave it" contracts
b. both parties consent to the contract
c. performance is conditioned upon a future occurrence
d. the contract is voidable upon proof of fraud Correct Ans-c. performance is conditioned
upon a future occurrence
In Tennessee, a Long-Term Care policy must be renewable in which of the following ways?
a. Conditionally renewable
b. Optionally renewable
c. Guaranteed renewable
d. Noncancellable Correct Ans-c. Guaranteed renewable
If an insurance producer is engaging in financial planning they must identify
a. that they have completed continuing education in the area of financial planning
b. how long they have held a producer's license
c. how old they were when they obtained their producer's license
d. that they will earn a commission for the sale of an insurance product in addition to a fee for
financial planning, if that is the case Correct Ans-d. that they will earn a commission for the
sale of an insurance product in addition to a fee for financial planning, if that is the case
,T is covered by two health insurance plans: a group plan through his employer and his spouse's
plan as a dependent. Under the Model Group Coordination of Benefits provision, when T files a
claim, his employer's plan is considered the
a. Principal carrier
b. Surplus carrier
c. Primary carrier
d. Secondary carrier Correct Ans-c. Primary carrier
Tennessee insurance law specifically allows the Commissioner to issue a temporary license to
which of the following individuals?
a. A nonresident producer who has relocated to Tennessee
b. A resident producer whose license has lapsed
c. A newly appointed officer of an insurance agency who is actively completing prelicensing
requirements
d. A surviving spouse of a deceased producer Correct Ans-d. A surviving spouse of a
deceased producer
The individual most likely to buy a Medicare Supplement policy would be a(n)
a. unemployed 64-year old female
b. 62-year old male covered by Medicaid
, c. 68-year old male covered by Medicare
d. uninsured 60-year old male Correct Ans-c. 68-year old male covered by Medicare
The Commissioner must examine each domestic insurance company AT LEAST every
a. year
b. three years
c. four years
d.five years Correct Ans-b. three years
Which of the following health insurance policy provisions specifies the health care services a
policy will provide?
a.Insuring clause
b. Usual, Customary, and Reasonable clause
c. Consideration clause
d. Benefit clause Correct Ans-a.Insuring clause
All of these are considered sources of underwriting information about an applicant EXCEPT
a. Inspection Report
b. Credit Report
Solutions
Which of the following statements describes what an Accident and Health policyowner may
NOT do?
a. File a covered claim
b. Assign ownership
c. Cancel the coverage
d. Adjust the premium payments Correct Ans-d. Adjust the premium payments
Which of the following statements is CORRECT about the Tennessee Life and Health Insurance
Guaranty Association?
a. It is governed by the National Association of Insurance Commissioners (NAIC)
b. It is an agency of the state government
c. It is a voluntary association of admitted Tennessee insurance companies
d. It protects Tennessee insurance policyowners in the event an insurance company becomes
insolvent Correct Ans-d. It protects Tennessee insurance policyowners in the event an
insurance company becomes insolvent
Insurance policies are considered aleatory contracts because
,a. they are "take it or leave it" contracts
b. both parties consent to the contract
c. performance is conditioned upon a future occurrence
d. the contract is voidable upon proof of fraud Correct Ans-c. performance is conditioned
upon a future occurrence
In Tennessee, a Long-Term Care policy must be renewable in which of the following ways?
a. Conditionally renewable
b. Optionally renewable
c. Guaranteed renewable
d. Noncancellable Correct Ans-c. Guaranteed renewable
If an insurance producer is engaging in financial planning they must identify
a. that they have completed continuing education in the area of financial planning
b. how long they have held a producer's license
c. how old they were when they obtained their producer's license
d. that they will earn a commission for the sale of an insurance product in addition to a fee for
financial planning, if that is the case Correct Ans-d. that they will earn a commission for the
sale of an insurance product in addition to a fee for financial planning, if that is the case
,T is covered by two health insurance plans: a group plan through his employer and his spouse's
plan as a dependent. Under the Model Group Coordination of Benefits provision, when T files a
claim, his employer's plan is considered the
a. Principal carrier
b. Surplus carrier
c. Primary carrier
d. Secondary carrier Correct Ans-c. Primary carrier
Tennessee insurance law specifically allows the Commissioner to issue a temporary license to
which of the following individuals?
a. A nonresident producer who has relocated to Tennessee
b. A resident producer whose license has lapsed
c. A newly appointed officer of an insurance agency who is actively completing prelicensing
requirements
d. A surviving spouse of a deceased producer Correct Ans-d. A surviving spouse of a
deceased producer
The individual most likely to buy a Medicare Supplement policy would be a(n)
a. unemployed 64-year old female
b. 62-year old male covered by Medicaid
, c. 68-year old male covered by Medicare
d. uninsured 60-year old male Correct Ans-c. 68-year old male covered by Medicare
The Commissioner must examine each domestic insurance company AT LEAST every
a. year
b. three years
c. four years
d.five years Correct Ans-b. three years
Which of the following health insurance policy provisions specifies the health care services a
policy will provide?
a.Insuring clause
b. Usual, Customary, and Reasonable clause
c. Consideration clause
d. Benefit clause Correct Ans-a.Insuring clause
All of these are considered sources of underwriting information about an applicant EXCEPT
a. Inspection Report
b. Credit Report
