Tennessee life and health Exam Prep Questions And Answers (202472025)
Confidential information shared by the producer to the insurer and does not become part of the
policy is the __________. - ✔✔Agent's Report
An agent's report is a personal statement submitted by the producer to the insurer about
information the agent would like to share with the insurer on a confidential basis that they may
have learned during the application process while at the applicant's home or place of business.
What happens to a spouse or child rider just prior to it expiring? - ✔✔The spouse or child has a
conversion option
If the Commissioner denies a license application for failure to pay child support, the
Commissioner must notify the applicant of such denial within ______ days. - ✔✔30
Concerning the Paid-Up Additions Dividend Option, all of the following are true, except: -
✔✔Eventually, no more premiums will be due on the policy
The Paid-Up Additions purchased under this Option have their own values and do not change the
face amount of the original policy. Each additional segment of insurance contains both a death
benefit and increasing cash surrender value, and by purchasing paid-up additions, larger
dividends may be paid in the future. Paid up additions do not eliminate need to pay premiums on
the original policy.
The _________ clause states what each party exchanges in the contract. - ✔✔Consideration
Whose signature is not required on a life insurance application? - ✔✔Beneficiary
The ___________ branch writes and passes state insurance laws, or statutes, to protect the
insuring public. - ✔✔The legislative branch
,The owner of a Variable Life Policy may allocate the premium into a sub-account which is
owned by the insurer, this sub-account is a part of what is also known as the: - ✔✔Separate
Account
An insured has a $175,000 permanent life insurance policy and is having difficulty keeping up
with the premium payments. Which Nonforfeiture Option would allow him to forego the
premiums and retain the same face amount until the cash surrender value is exhausted? -
✔✔Extended Term
How is a Variable Universal Life Insurance policy different from a Universal Life Insurance
policy? - ✔✔The ability to invest the cash values in various separate accounts
What is the primary purpose of an annuity? - ✔✔To protect against outliving one's income
When can a policy-owner make a change in the policy's coverage or other benefits if an
irrevocable beneficiary has been named? - ✔✔After the irrevocable beneficiary dies
**The policy-owner may not change an irrevocable beneficiary unless the beneficiary dies or
provides written consent for the change. If an irrevocable beneficiary is named, the owner may
not make changes to the policy that affect the coverage or benefits without consent of the
beneficiary
When are LTC premiums deductible for an employer? - ✔✔Any time premiums for employee
policies are paid by the employer
Victor's AGI is $100,000. His disability income policy premium was $3,500, his LTC premium
was $4,000, and he had $5,500 in unreimbursed medical expenses. Based on this information,
Victor may deduct: - ✔✔zero
An insurable interest must exist between the _______ and the ________ at the time of
application for life insurance to be valid. - ✔✔Applicant/Insured
, If a life insurance policy lapses due to nonpayment of premium, then reinstatement requires: -
✔✔The payment of back premiums, plus interest, and proof of insurability
A producer gathers information about the applicant for the insurer in order to avoid adverse
selection. This is considered to be: - ✔✔Field underwriting
When an individual qualifies for a lower premium or rate than standard risks, the insured is
considered a: - ✔✔Preferred risk
In all cases upon the insured's death, the beneficiary receives which of the following? - ✔✔The
face amount of the policy
Which of the following should be put in place by two business partners who want to be assured
that the business will not be lost should either one of them become disabled? - ✔✔A Business
Disability Buyout Policy
Which of the following riders can be used to cover the life of an additional insured who is an
unrelated business partner? - ✔✔Non-family rider
- A Non-family Rider covers an additional insured with an insurable interest, such as a business
partner.
If after notice and a hearing, the Commissioner finds that a person has violated the insurance
code, he or she may take all of the following actions, except: - ✔✔Impose a fine of up to $2,500
per violation if it was knowingly committed
Why should a producer collect a premium at the time the application is completed? - ✔✔Without
it, coverage cannot go into effect, as there would be a lack of consideration
How is the funding for Social Security provided? - ✔✔Through FICA taxes that are paid by both
employers and employees
Confidential information shared by the producer to the insurer and does not become part of the
policy is the __________. - ✔✔Agent's Report
An agent's report is a personal statement submitted by the producer to the insurer about
information the agent would like to share with the insurer on a confidential basis that they may
have learned during the application process while at the applicant's home or place of business.
What happens to a spouse or child rider just prior to it expiring? - ✔✔The spouse or child has a
conversion option
If the Commissioner denies a license application for failure to pay child support, the
Commissioner must notify the applicant of such denial within ______ days. - ✔✔30
Concerning the Paid-Up Additions Dividend Option, all of the following are true, except: -
✔✔Eventually, no more premiums will be due on the policy
The Paid-Up Additions purchased under this Option have their own values and do not change the
face amount of the original policy. Each additional segment of insurance contains both a death
benefit and increasing cash surrender value, and by purchasing paid-up additions, larger
dividends may be paid in the future. Paid up additions do not eliminate need to pay premiums on
the original policy.
The _________ clause states what each party exchanges in the contract. - ✔✔Consideration
Whose signature is not required on a life insurance application? - ✔✔Beneficiary
The ___________ branch writes and passes state insurance laws, or statutes, to protect the
insuring public. - ✔✔The legislative branch
,The owner of a Variable Life Policy may allocate the premium into a sub-account which is
owned by the insurer, this sub-account is a part of what is also known as the: - ✔✔Separate
Account
An insured has a $175,000 permanent life insurance policy and is having difficulty keeping up
with the premium payments. Which Nonforfeiture Option would allow him to forego the
premiums and retain the same face amount until the cash surrender value is exhausted? -
✔✔Extended Term
How is a Variable Universal Life Insurance policy different from a Universal Life Insurance
policy? - ✔✔The ability to invest the cash values in various separate accounts
What is the primary purpose of an annuity? - ✔✔To protect against outliving one's income
When can a policy-owner make a change in the policy's coverage or other benefits if an
irrevocable beneficiary has been named? - ✔✔After the irrevocable beneficiary dies
**The policy-owner may not change an irrevocable beneficiary unless the beneficiary dies or
provides written consent for the change. If an irrevocable beneficiary is named, the owner may
not make changes to the policy that affect the coverage or benefits without consent of the
beneficiary
When are LTC premiums deductible for an employer? - ✔✔Any time premiums for employee
policies are paid by the employer
Victor's AGI is $100,000. His disability income policy premium was $3,500, his LTC premium
was $4,000, and he had $5,500 in unreimbursed medical expenses. Based on this information,
Victor may deduct: - ✔✔zero
An insurable interest must exist between the _______ and the ________ at the time of
application for life insurance to be valid. - ✔✔Applicant/Insured
, If a life insurance policy lapses due to nonpayment of premium, then reinstatement requires: -
✔✔The payment of back premiums, plus interest, and proof of insurability
A producer gathers information about the applicant for the insurer in order to avoid adverse
selection. This is considered to be: - ✔✔Field underwriting
When an individual qualifies for a lower premium or rate than standard risks, the insured is
considered a: - ✔✔Preferred risk
In all cases upon the insured's death, the beneficiary receives which of the following? - ✔✔The
face amount of the policy
Which of the following should be put in place by two business partners who want to be assured
that the business will not be lost should either one of them become disabled? - ✔✔A Business
Disability Buyout Policy
Which of the following riders can be used to cover the life of an additional insured who is an
unrelated business partner? - ✔✔Non-family rider
- A Non-family Rider covers an additional insured with an insurable interest, such as a business
partner.
If after notice and a hearing, the Commissioner finds that a person has violated the insurance
code, he or she may take all of the following actions, except: - ✔✔Impose a fine of up to $2,500
per violation if it was knowingly committed
Why should a producer collect a premium at the time the application is completed? - ✔✔Without
it, coverage cannot go into effect, as there would be a lack of consideration
How is the funding for Social Security provided? - ✔✔Through FICA taxes that are paid by both
employers and employees
