Tennessee Life and Health Exam Real Exam Questions With Correct Answers A+ Solution Guide

Tennessee Life and Health Exam Real Exam Questions With Correct Answers A+ Solution Guide 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 - Answers - 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 - Answers - 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 - Answers - c. P 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 - Answers - 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 - Answers - 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 - Answers - c. $20,000 death benefit 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 - Answers - 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 - Answers - 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 - Answers - 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 d. The group must be formed for the purpose of getting affordable insurance - Answers - b. Everyone must be covered in the group Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? a. Guaranteed insurability rider b. Additional coverage rider c. Paid-up option rider d. Extended insurability rider - Answers - a. Guaranteed insurability rider The sections of an insurance contract which limit coverage are called a. waivers b. riders c. exclusions d. limitations - Answers - c. exclusions