TENNESSEE LIFE INSUARANCE EXAM QUESTIONS AND CORRECT ANSWERS//ALREADY GRADED A+ LATEST UPDATE

TENNESSEE LIFE INSUARANCE EXAM QUESTIONS AND CORRECT ANSWERS//ALREADY GRADED A+ LATEST UPDATE Which of the following medical expenses does Cancer insurance not cover? chemotherapy radiation treatment physician visit arthritis - ANSWER-arthritis A potential client, age 40, would like to purchase a whole life insurance policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by producers would be correct? - ANSWER-20-Pay Life accumulates cash value faster than Straight Life what is the maximum social security disability benefit amount an insured can receive - ANSWER-100% of the insured's primary insurance amount (PIA) In Georgia, an accident and sickness policy that is paid on a quarterly basis requires a grace period of - ANSWER-31 days The individual most likely to buy a Medicare Supplement policy would be a(n) - ANSWER-68-year old male covered by medicare Which premium schedule results in the lowest cost to the policy owner? - ANSWERannual Which of the following is considered an element of Variable Life Policy - ANSWERunderlying equity investment the Life and Health Insurance Guaranty Association - ANSWER-funded by admitted insurance companies through assessments A(n)______ annuity pays benefits based on units rather than standard dollar amounts - ANSWER-variable A(n)____ of benefits of Health Policy transfers payments to someone other than the policy owner - ANSWER-allocation A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if the ability to increase his policy benefit as his practice and income grow - ANSWER-Guaranteed Insurability Option rider Which of these characteristics is consistent with a Straight Life policy? - ANSWERpremiums are payable for as long for as long there is insurance coverage in force A Disability Income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the 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 This type of deductible provision waives the deductible for all family members after some of them have satisfied individual deductibles within the same year: - ANSWERFamily maximum deductible which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party - ANSWER-subrogation The health insurance program, which is administered by each state and funded by both the federal and state governments called: - ANSWER-Medicaid before an insurance company can pay commissions to an agent , the agent must be - ANSWER-licensed and appointed The amount of coverage on a group credit life policy is limited to - ANSWER-the insured's total loan value J was reviewing her Health Insurance policy and noticed the phrase "This policy will only pay for a semi-private room". This phrase is considered to be a(n) - ANSWERinternal limit some types of expenses may have limits placed on the dollar amount of certain services or on the type of service provided Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements? - ANSWER-legal prupose (insurable intrest) A STOLI arrangement is used to circumvent state insurable interest statues The type of annuity that can be purchased with one monetary deposit is called a(n): - ANSWER-immediate annuity When is a group accident and health policy required to provide coverage for a newborn child? - ANSWER-at the moment of birth P has recently signed an application for insurance. The insurer MUST advise her in writing that an investigative consumer report may be conducted according to the - ANSWER-fair credit reporting act "a producer does not have the authority to change a policy or waive any of its provisions." The health provision that best describes this statement is called the: - ANSWER-entire contract Basic Hospital and Surgical policy benefits are - ANSWER-lower than the actual expenses incurred all accident and sickness plans MUST provide coverage on newborn children for - ANSWER-31 day which of these statements concerning an individual Straight Life annuity is accurate - ANSWER-payments are made to an annuitant for life which of the following types of permanent life insurance policies offer high initial cash value - ANSWER-single premium S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase? - ANSWER-equity index insurance yields greater gains than bonds but will still protect the principal with a min. risk a(n)______ term life policy is normally used when covering an insured's mortgage balance - ANSWER-decreasing Which statement is correct regarding the payment schedule for whole-life policies - ANSWER-Premiums are payable throughout the insured's lifetime/ coverage lasts until the death of the insured what is one of the roles of the commissioner - ANSWER-administering insurance laws A life policy with a death benefit and cash value that can fluctuate according to the performance of its underlying investment portfolio is referred to as: - ANSWER-variable life which of the following health insurance policy provisions specifies the health care services a policy will provide? - ANSWER-insuring clause T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called - ANSWER-Time Limit on Certain Defense Insurers may request a hearing within ___ if their policy is rejected - ANSWER-20 days J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy? - ANSWER-$25,000 a policy of adhesion can only be modified by whom? - ANSWER-The insurance company. (A policy of adhesion is best described as a policy which only the insurance company can modify.) The Legal Actions Provisions of an insurance contract is designed to do all except: provide the insurer adequate time to research claim protect the insured from having claim research delayed protect producer give the insured guidelines for pursuing legal action against an insurer - ANSWERprotect the producer If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses? - ANSWER-medicare supplement provides subscriber best coverage for excess charges