Tennessee Life and Health Insurance LIfe Insurance Portion
State Exam Simulator Questions and Guide Answers
100% Verified Graded A+
1. In a Life insurance contract, an insurance company's promise to pay stated
benefits is called the Insuring Clause
2. All of these are powers of the Commissioner except
A. Hold hearings
B. Enforce insurance laws
C. Incarcerate a producer
D. Issue subpoenas
Answer: C
3. An employee with $25,000 group term life coverage was recently fired. This
employee's group coverage may be converted to a
Answer: $25,000 individual whole life policy
4. The amount of monthly disablility benefits payable under social security is
affected by which of the following factors?
,A. Insured's tax bracket
B. Amount of the benefits available from other sources
C. Nature of the Disability
D. Insured's education level
Answer: B
5. A rider may be used to include coverage for children under their
parents' life insurance policy
Answer: Term
6. What group term life feature permits an individual to depart from the group
and continue to be covered without providing evidence of insurability?
Answer: Conver- sion
7. Which of the following types of policies pays a benefit if the insured goes
blind?
A. Universal life
B. AD&D
C. Endowment
D. Adjustable life
, Answer: B
8. When a life insurance application is completed, a policy summary must be
given to the applicant. The policy summary must include...
Answer: the premium cost for basic coverage applied for
9. A business entity can be defined as a
Answer: an association or a limited liability company
10. Which of the following features of a group Term LIfe policy enables an indi-
vidual to leave the group and continue his or her insurance without providing
evidence of insurability?
A. Owner's Rights clause
B. Incontestable Period
C. Insuring Agreement
D. Conversion privilege
Answer: D
11. A cost of living rider gives the insured
Answer: additional death benefits
12. Which of these is a valid Tennessee regulation for referral fees?
, A. Referral fees can be unlimited in amount
B. If the referral sale involves replacement, the notice regarding replacement
form is not required
C. Referral fees may only be paid in the event a policy is purchased
D. The Commissioner may establish by rule a maximum amount for each
referral
Answer: D
13. Which of these actions should a producer take when submitting an insur-
ance application to an insurer?
A. Issue a binding receipt to applicant if no initial premium is submitted
B. Disclose to the applicant the amount of commissions to be earned on this
transaction
C. Inform insurer of relevant information not included on the application
D. Arrange for a copy of the attending physician statement (APS) to be sent to
the producer.
Answer: C
14. When an insurer issues a policy that refuses to cover certain risks, this is
referred to as a
State Exam Simulator Questions and Guide Answers
100% Verified Graded A+
1. In a Life insurance contract, an insurance company's promise to pay stated
benefits is called the Insuring Clause
2. All of these are powers of the Commissioner except
A. Hold hearings
B. Enforce insurance laws
C. Incarcerate a producer
D. Issue subpoenas
Answer: C
3. An employee with $25,000 group term life coverage was recently fired. This
employee's group coverage may be converted to a
Answer: $25,000 individual whole life policy
4. The amount of monthly disablility benefits payable under social security is
affected by which of the following factors?
,A. Insured's tax bracket
B. Amount of the benefits available from other sources
C. Nature of the Disability
D. Insured's education level
Answer: B
5. A rider may be used to include coverage for children under their
parents' life insurance policy
Answer: Term
6. What group term life feature permits an individual to depart from the group
and continue to be covered without providing evidence of insurability?
Answer: Conver- sion
7. Which of the following types of policies pays a benefit if the insured goes
blind?
A. Universal life
B. AD&D
C. Endowment
D. Adjustable life
, Answer: B
8. When a life insurance application is completed, a policy summary must be
given to the applicant. The policy summary must include...
Answer: the premium cost for basic coverage applied for
9. A business entity can be defined as a
Answer: an association or a limited liability company
10. Which of the following features of a group Term LIfe policy enables an indi-
vidual to leave the group and continue his or her insurance without providing
evidence of insurability?
A. Owner's Rights clause
B. Incontestable Period
C. Insuring Agreement
D. Conversion privilege
Answer: D
11. A cost of living rider gives the insured
Answer: additional death benefits
12. Which of these is a valid Tennessee regulation for referral fees?
, A. Referral fees can be unlimited in amount
B. If the referral sale involves replacement, the notice regarding replacement
form is not required
C. Referral fees may only be paid in the event a policy is purchased
D. The Commissioner may establish by rule a maximum amount for each
referral
Answer: D
13. Which of these actions should a producer take when submitting an insur-
ance application to an insurer?
A. Issue a binding receipt to applicant if no initial premium is submitted
B. Disclose to the applicant the amount of commissions to be earned on this
transaction
C. Inform insurer of relevant information not included on the application
D. Arrange for a copy of the attending physician statement (APS) to be sent to
the producer.
Answer: C
14. When an insurer issues a policy that refuses to cover certain risks, this is
referred to as a
