TENNESSEE LIFE INSURANCE STATE EXAM
SIMULATOR 2026 FULL QUESTIONS AND
CORRECT SOLUTIONS
◉ If an existing Accident and Health policy is being replaced with a
new policy, the decision to replace should not be based on?
Waiting Periods
Commissions to be Paid
Exclusion and Limitations
Underwriting Requirements. Answer: Commissions to be Paid
◉ A domestic insurance company in Indiana must?
Be organized under Indiana insurance laws
Own real estate in Indiana
Write insurance on risks located only in Indiana
Honor the charter of the NAIC. Answer: Be organized under Indiana
insurance laws
,◉ Which of the following is a requirement to obtain a nonresident
producer license in Indiana?
The producer must be at least 21 years of age
The producer's state of residence must have reciprocity with Indiana
The producer must be bonded in the producer's state of domicile
The producer must pass a special examination for nonresident
producers. Answer: The producer's state of residence must have
reciprocity with Indiana
◉ What is Indianas definition of Life insurance replacement?
A transaction in which coverage on an existing policy is increased
A transaction in which group life coverage is converted to an
individual policy
A transaction in which a new policy is bought and an old policy is
terminated
,A transaction in which a policyowner reinstates a lapsed policy.
Answer: A transaction in which a new policy is bought and an old
policy is terminated
◉ Upon reaching the limiting age, a handicapped child can extend
their health insurance coverage as a dependent?
Only if the child is incapable of employment and chiefly dependent
on the policyowner
For up to an additional 10 years only
Only physically disabled
Only if mentally disabled. Answer: Only if the child is incapable of
employment and chiefly dependent on the policyowner
◉ Which of the following is not a valid reason for the insurance
commissioner to suspend or revoke a producers license?
Producer returns part of a commission to client in exchange for a
sale
, Producer represents more than one insurance company
Producer engages in false advertising
Producer commingles premiums collected with a personal account.
Answer: Producer represents more than one insurance company
◉ A producers license may be denied, suspended, or revoked if the
licensee?
Engages in replacement of an existing policy
Is found guilty of misrepresentation in obtaining the license
Files for bankruptcy
Does not meet a sales quota. Answer: Is found guilty of
misrepresentation in obtaining the license
◉ During the course of an insurance business transaction, who does
the producer legally represent?
Producer
SIMULATOR 2026 FULL QUESTIONS AND
CORRECT SOLUTIONS
◉ If an existing Accident and Health policy is being replaced with a
new policy, the decision to replace should not be based on?
Waiting Periods
Commissions to be Paid
Exclusion and Limitations
Underwriting Requirements. Answer: Commissions to be Paid
◉ A domestic insurance company in Indiana must?
Be organized under Indiana insurance laws
Own real estate in Indiana
Write insurance on risks located only in Indiana
Honor the charter of the NAIC. Answer: Be organized under Indiana
insurance laws
,◉ Which of the following is a requirement to obtain a nonresident
producer license in Indiana?
The producer must be at least 21 years of age
The producer's state of residence must have reciprocity with Indiana
The producer must be bonded in the producer's state of domicile
The producer must pass a special examination for nonresident
producers. Answer: The producer's state of residence must have
reciprocity with Indiana
◉ What is Indianas definition of Life insurance replacement?
A transaction in which coverage on an existing policy is increased
A transaction in which group life coverage is converted to an
individual policy
A transaction in which a new policy is bought and an old policy is
terminated
,A transaction in which a policyowner reinstates a lapsed policy.
Answer: A transaction in which a new policy is bought and an old
policy is terminated
◉ Upon reaching the limiting age, a handicapped child can extend
their health insurance coverage as a dependent?
Only if the child is incapable of employment and chiefly dependent
on the policyowner
For up to an additional 10 years only
Only physically disabled
Only if mentally disabled. Answer: Only if the child is incapable of
employment and chiefly dependent on the policyowner
◉ Which of the following is not a valid reason for the insurance
commissioner to suspend or revoke a producers license?
Producer returns part of a commission to client in exchange for a
sale
, Producer represents more than one insurance company
Producer engages in false advertising
Producer commingles premiums collected with a personal account.
Answer: Producer represents more than one insurance company
◉ A producers license may be denied, suspended, or revoked if the
licensee?
Engages in replacement of an existing policy
Is found guilty of misrepresentation in obtaining the license
Files for bankruptcy
Does not meet a sales quota. Answer: Is found guilty of
misrepresentation in obtaining the license
◉ During the course of an insurance business transaction, who does
the producer legally represent?
Producer
