TN LIFE PRODUCER FINAL EXAM
QUESTIONS AND ANSWERS 2025
The automatic Premium Loan Provision is designed to:
-Provide a source of revenue to the insurance company
-Avoid a policy lapse
-Allow a policyowner to request a policy loan
-allow a policyowner to take out additional coverage without evidence of insurability -
✅✅-Avoid a policy lapse
All of these are considered a producers breach of fiduciary duty EXCEPT:
Misappropriation of premiums
Conversion of premiums
Improper withholding of premiums
Allowing premiums to be submitted electronically - ✅✅-Allowing premiums to be
submitted electronically
A(n) _______ ________ Life policy combines investment choices with a form of Term
coverage:
Straight Whole
Variable Universal
Variable Term
Adjustable Universal - ✅✅-Variable Universal
When engaged in an insurance transaction in Tennessee, the producer represents the:
insured
Commissioner
beneficiary
insurer - ✅✅-Insurer
What is the maximum number of employees (earning at least $5,000) that an employer
can have in order to start a SIMPLE retirement plan?
25
50
100
250 - ✅✅-100
Who has the right to change a revocable beneficiary?
Beneficiary
Agent
Insurance Agency
Policyowner - ✅✅-Policyowner
,An architecture firm would stand to lose a lot of money in the event of the death of its
project manager. Which type of policy should the firm purchase on its project manager?
Universal Life insurance
Key Person insurance
Graded insurance
Executive insurance - ✅✅-Key Person insurance
What benefit does the Payor clause on a Juvenile Life policy provide?
-Allows payor to assign ownership in the event payor becomes disabled
-Allows payor to increase face amount without providing evidence of insurability
-Premiums are waived if juvenile becomes disabled
-Premiums are waived if payor becomes disabled - ✅✅-Premiums are waived if the
payor becomes disabled
All of the following are considered to be typical characteristics describing the nature of
an insurance contract, EXCEPT:
Bilateral
Unilateral
Aleatory
Adhesion - ✅✅-Bilateral
Typically a life insurance death benefit is paid as a lump-sum payment. A(n) _________
option is a method of distributing a Life Insurance policy's death benefit OTHER than by
a lump sum payment.
Settlement
Dividend
Conversion
Aleatory - ✅✅-Settlement
Which of the following statements is CORRECT about accelerated death benefits?
-The full face amount is available as an accelerated benefit
-Those on Social Security disability automatically qualify for this benefit
-This provision is usually provided with an increase in premium
-Must have a terminal illness to qualify - ✅✅-Must have a terminal illness to qualify
A life insurance policy would be considered a wagering contract WITHOUT
insurable interest
premium payment
agent solicitation
constructive delivery - ✅✅-insurable interest
Which of the following combination plans is designed to protect an insured from an
unpaid mortgage balance upon premature death?
Survivorship Life
Family Plan
Joint Life
, Whole life and Level Term Rider - ✅✅-Joint life
Which rider provides coverage for a child under a parent's life insurance policy?
Spouse term rider
Base insured rider
Payor benefit rider
Child term rider - ✅✅-Child term rider
Which of the following consists of an offer, acceptance, and consideration?
Warranty
Estoppel
Contract
Representation - ✅✅-Contract
Which of these types of policies may NOT have the Automatic Premium Loan provision
attached to it?
Modified Whole Life
20-Pay Life
Decreasing Term
Endowment - ✅✅-Decreasing Term
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life
Annuity. What will this transaction provide?
Income for a fixed period stated in the contract
Income that cannot be outlived by the owner
Inflation protection
Tax-free income - ✅✅-Income that cannot be outlived by the owner
An insured is past due on his life insurance premium, but is still within the Grace Period.
What will the beneficiary receive if the insured dies during this Grace Period?
Refund of all premiums paid, plus interest
Refund of all premiums paid
Full face amount minus any past due premiums
Full face amount - ✅✅-Full face amount minus any past due premiums
In Tennessee, an insurer that is incorporated in New Jersey and conducts business in
Tennessee is called a(n)
Alien insurer
Foreign insurer
Dual insurer
Domestic insurer - ✅✅-Foreign insurer
B is an insurance producer who occassionally engages in financial planning. If B sells
an insurance policy during the course of a financial planning seminar, B must disclose
to the client:
QUESTIONS AND ANSWERS 2025
The automatic Premium Loan Provision is designed to:
-Provide a source of revenue to the insurance company
-Avoid a policy lapse
-Allow a policyowner to request a policy loan
-allow a policyowner to take out additional coverage without evidence of insurability -
✅✅-Avoid a policy lapse
All of these are considered a producers breach of fiduciary duty EXCEPT:
Misappropriation of premiums
Conversion of premiums
Improper withholding of premiums
Allowing premiums to be submitted electronically - ✅✅-Allowing premiums to be
submitted electronically
A(n) _______ ________ Life policy combines investment choices with a form of Term
coverage:
Straight Whole
Variable Universal
Variable Term
Adjustable Universal - ✅✅-Variable Universal
When engaged in an insurance transaction in Tennessee, the producer represents the:
insured
Commissioner
beneficiary
insurer - ✅✅-Insurer
What is the maximum number of employees (earning at least $5,000) that an employer
can have in order to start a SIMPLE retirement plan?
25
50
100
250 - ✅✅-100
Who has the right to change a revocable beneficiary?
Beneficiary
Agent
Insurance Agency
Policyowner - ✅✅-Policyowner
,An architecture firm would stand to lose a lot of money in the event of the death of its
project manager. Which type of policy should the firm purchase on its project manager?
Universal Life insurance
Key Person insurance
Graded insurance
Executive insurance - ✅✅-Key Person insurance
What benefit does the Payor clause on a Juvenile Life policy provide?
-Allows payor to assign ownership in the event payor becomes disabled
-Allows payor to increase face amount without providing evidence of insurability
-Premiums are waived if juvenile becomes disabled
-Premiums are waived if payor becomes disabled - ✅✅-Premiums are waived if the
payor becomes disabled
All of the following are considered to be typical characteristics describing the nature of
an insurance contract, EXCEPT:
Bilateral
Unilateral
Aleatory
Adhesion - ✅✅-Bilateral
Typically a life insurance death benefit is paid as a lump-sum payment. A(n) _________
option is a method of distributing a Life Insurance policy's death benefit OTHER than by
a lump sum payment.
Settlement
Dividend
Conversion
Aleatory - ✅✅-Settlement
Which of the following statements is CORRECT about accelerated death benefits?
-The full face amount is available as an accelerated benefit
-Those on Social Security disability automatically qualify for this benefit
-This provision is usually provided with an increase in premium
-Must have a terminal illness to qualify - ✅✅-Must have a terminal illness to qualify
A life insurance policy would be considered a wagering contract WITHOUT
insurable interest
premium payment
agent solicitation
constructive delivery - ✅✅-insurable interest
Which of the following combination plans is designed to protect an insured from an
unpaid mortgage balance upon premature death?
Survivorship Life
Family Plan
Joint Life
, Whole life and Level Term Rider - ✅✅-Joint life
Which rider provides coverage for a child under a parent's life insurance policy?
Spouse term rider
Base insured rider
Payor benefit rider
Child term rider - ✅✅-Child term rider
Which of the following consists of an offer, acceptance, and consideration?
Warranty
Estoppel
Contract
Representation - ✅✅-Contract
Which of these types of policies may NOT have the Automatic Premium Loan provision
attached to it?
Modified Whole Life
20-Pay Life
Decreasing Term
Endowment - ✅✅-Decreasing Term
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life
Annuity. What will this transaction provide?
Income for a fixed period stated in the contract
Income that cannot be outlived by the owner
Inflation protection
Tax-free income - ✅✅-Income that cannot be outlived by the owner
An insured is past due on his life insurance premium, but is still within the Grace Period.
What will the beneficiary receive if the insured dies during this Grace Period?
Refund of all premiums paid, plus interest
Refund of all premiums paid
Full face amount minus any past due premiums
Full face amount - ✅✅-Full face amount minus any past due premiums
In Tennessee, an insurer that is incorporated in New Jersey and conducts business in
Tennessee is called a(n)
Alien insurer
Foreign insurer
Dual insurer
Domestic insurer - ✅✅-Foreign insurer
B is an insurance producer who occassionally engages in financial planning. If B sells
an insurance policy during the course of a financial planning seminar, B must disclose
to the client:
