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Tennessee Life and Health Insurance Exam
Study Guide/ 134 Q&A.
Charging different rates ti insureds of the same class or hazard company is considered which of
the following unfair trade practices?
A. Boycotting
B. Unfair discrimination
C. Rebating
D. Defamation - Answer: B. Unfair discrimination
If a bank will not grant a loan unless the borrower buys insurance from a specific company, the
bank and insurer are guilty of which of the following unfair trade practices?
A. Defamation
B. Unfair discrimination
C. Rebating
D. Boycott, coercion and intimidation - Answer: D. Boycott, coercion and intimidation
What unfair and prohibited practice involves the offer of a special premium or favor as an
incentive to purchase insurance?
,A. Coercion
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B. Unfair discrimination
C. Rebating
D. Boycott, coercion and intimidation - Answer: C. Rebating
A producer tells an applicant for insurance that a competitor insurer is in dire financial straits,
and may not be able to honor its claims obligations. Which unfair trade practice has the
producer committed?
A. Defamation
B. Unfair discrimination
C. Rebating
D. Boycott, coercion and intimidation - Answer: A. Defamation
It is an unfair claim settlement practice to knowingly:
A. Promptly settle claims
B. Pay claims without conducting a reasonable investigation
C. Provide an accurate explanation for claim details
D. Misrepresenting material facts or provisions relating to coverage at issue - Answer: D.
Misrepresenting material facts or provisions relating to coverage at issue
It is an unfair trade practice to:
A. File a material misstatement about a person's financial condition or business
B. Keep a complete record of all complaints received since an insurer's last examination date
C. Illegally replace a life policy
D. Filing with the Commissioner the policy and certificate for the sale of LTC insurance - Answer:
C. Illegally replace a life policy
The Tennessee Life and Health Guaranty Association will pay up to how much in death benefits
for one life?
, A. $200,000
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B. $300,000
C. $400,000
D. $500,000 - Answer: B. $300,000
The average annual guaranteed death benefit over the life of the policy is the definition of:
A. Cash dividend
B. Equivalent Level Death Benefit
C. Generic Name
D. Life Insurance Net Payment Cost Index - Answer: B. Equivalent Level Death Benefit
For replacement life policies, the free look period must be at least _____ days.
A. 7
B. 10
C. 20
D. 30 - Answer: C. 20
Death benefits must be paid within _____ days after the insurer receives the proof of death.
A. 30
B. 31
C. 45
D. 60 - Answer: D. 60
The insurer is not liable of the insured, whether sane or insane, commits suicide within the first
_____ years the policy is in force.
A. 2
B. 3
C. 4
D. 5 - Answer: A. 2
Tennessee Life and Health Insurance Exam
Study Guide/ 134 Q&A.
Charging different rates ti insureds of the same class or hazard company is considered which of
the following unfair trade practices?
A. Boycotting
B. Unfair discrimination
C. Rebating
D. Defamation - Answer: B. Unfair discrimination
If a bank will not grant a loan unless the borrower buys insurance from a specific company, the
bank and insurer are guilty of which of the following unfair trade practices?
A. Defamation
B. Unfair discrimination
C. Rebating
D. Boycott, coercion and intimidation - Answer: D. Boycott, coercion and intimidation
What unfair and prohibited practice involves the offer of a special premium or favor as an
incentive to purchase insurance?
,A. Coercion
2
B. Unfair discrimination
C. Rebating
D. Boycott, coercion and intimidation - Answer: C. Rebating
A producer tells an applicant for insurance that a competitor insurer is in dire financial straits,
and may not be able to honor its claims obligations. Which unfair trade practice has the
producer committed?
A. Defamation
B. Unfair discrimination
C. Rebating
D. Boycott, coercion and intimidation - Answer: A. Defamation
It is an unfair claim settlement practice to knowingly:
A. Promptly settle claims
B. Pay claims without conducting a reasonable investigation
C. Provide an accurate explanation for claim details
D. Misrepresenting material facts or provisions relating to coverage at issue - Answer: D.
Misrepresenting material facts or provisions relating to coverage at issue
It is an unfair trade practice to:
A. File a material misstatement about a person's financial condition or business
B. Keep a complete record of all complaints received since an insurer's last examination date
C. Illegally replace a life policy
D. Filing with the Commissioner the policy and certificate for the sale of LTC insurance - Answer:
C. Illegally replace a life policy
The Tennessee Life and Health Guaranty Association will pay up to how much in death benefits
for one life?
, A. $200,000
3
B. $300,000
C. $400,000
D. $500,000 - Answer: B. $300,000
The average annual guaranteed death benefit over the life of the policy is the definition of:
A. Cash dividend
B. Equivalent Level Death Benefit
C. Generic Name
D. Life Insurance Net Payment Cost Index - Answer: B. Equivalent Level Death Benefit
For replacement life policies, the free look period must be at least _____ days.
A. 7
B. 10
C. 20
D. 30 - Answer: C. 20
Death benefits must be paid within _____ days after the insurer receives the proof of death.
A. 30
B. 31
C. 45
D. 60 - Answer: D. 60
The insurer is not liable of the insured, whether sane or insane, commits suicide within the first
_____ years the policy is in force.
A. 2
B. 3
C. 4
D. 5 - Answer: A. 2
