Tennessee Life Insurance EXAM 2026-2027 LATEST
VERSION QUESTIONS AND VERIFIED CORRECT
ANSWERS JUST RELEASED
A universal life plan differs from a whole life plan in all of the following ways EXCEPT:
= A whole life plan displays a detailed list of all mortality, expense and interest payments
in the premium calculation.
= A universal life plan may have features that are not guaranteed.
= The cost of life insurance may vary from year to year on a universal life contract.
= The administrative expenses are a listed charge in universal life. - answer>>>=A whole
life plan displays a detailed list of all mortality, expense and interest payments in the
premium calculation.
The cash value in a whole life policy is held in the insurance company's? -
answer>>>General account
An agent wants to qualify to sell variable life plans. He must: - answer>>>be licensed from
both the state and Financial Industry Regulatory Authority (FINRA) formally (NASD),
because variable plans are regulated as securities. Failure to do either could result in
some very harsh penalties.
Matthew has recently purchased a variable life insurance policy. In reading his prospectus,
he sees that the various accounts have the same managers as some of the mutual funds
he owns. Matthew should understand_____ - answer>>>The insurance company
maintains separate accounts for each investment and they are not co-mingled with other
assets.
Universal life policies are similar to whole life in that they ___________________. -
answer>>>both provide death protection and cash value
,-
Universal life policies offer flexibility, but benefits are not fixed and guaranteed as they
are in the whole life policies. Whole life policies do not treat cash withdrawals as partial
surrenders.
A variable life plan must be a type of universal life because _______ - answer>>>The
accumulation accounts must be separated from general company assets.
All of the following are true concerning Interest Sensitive Whole Life (ISWL) EXCEPT:
= The death benefit is guaranteed as long as premiums are paid.
= Policy loans are available.
= The policyholder will always know the amount of cash value available.
= The cash account accumulates tax free inside the policy. - answer>>>= The policyholder
will always know the amount of cash value available.
One of the most common types of life insurance is the whole life insurance policy. What
are typical characteristic of a whole life policy? - answer>>>= The premiums remain level
for the entire period that the policy is in force.
= Whole life policies have a guaranteed cash value.
= The face amount of the policy does not change while the policy is in force.
A family maintenance policy uses a _________ rider, rather than a ____________ rider,
which is used in a family income policy. - answer>>>level term, decreasing term
When constructing an adjustable life policy, which of the following is used as the base
policy? - answer>>>Whole life
An adjustable life policy is a whole life base with a term rider.
The_____life policy takes 30 years to pay, and it endows at the age of 100. - answer>>>30
year limited pay
,What type of policy does Shelly have if the cash value in Shelly's policy increased to a
point where the corridor was applied? - answer>>>Universal life option 1
What policy is sold in proportioned units to cover an insured, as well as the insured's
spouse and children? - answer>>>Family plan
Which of the following is a business plan where each of the partners agree to buy the
interest of a deceased partner? - answer>>>Cross purchase plan
Difference between entity plan and cross purchase plan? - answer>>>In an entity plan,
the partnership itself agrees to buy the deceased partner's share of the business.
With a cross purchase plan, each partner agrees to buy out the others interest in the
business.
With a universal life policy, which of the following is NOT a true statement?
= The death benefit can be modified.
= Cash values can be allotted toward premium payments.
= Premiums can be increased or decreased.
= With changes, a new policy needs to be issued immediately. - answer>>>= With
changes, a new policy needs to be issued immediately.
is a conversion permitted in an industrial life insurance policy? - answer>>>Of two or
more policies into a single ordinary policy
Clark has a universal life policy. What are the reserves usually invested in with this type of
policy? - answer>>>Long-term securities
Harriet owns a 30-pay life policy that she purchased at the age of 30. When will the cash
value equal the face amount of the policy? - answer>>>When Harriet turns 100
Which policy has premiums payable for 60 years, insurance protection for 60 years and
endows at age 100? - answer>>>Straight whole life policy issued at age 40.
, -
A variable life insurance policy has what characteristics? - answer>>>Provides permanent
protection; it has fixed level premiums and a guaranteed minimum death benefit just like
ordinary whole life, but differs in that it offers higher interest rates, defending the
policyowner against the effects of inflation. Premiums are paid at regular intervals. If the
policyowner does not pay a premium after the policy grace period, the policy will lapse.
The policy cash value is not guaranteed.
True regarding a graded premium whole life policy - answer>>>Premiums start low,
increasing each year during the early years of the contract and then remain constant for
life.
True about level term? - answer>>>= Level term remains at a level face amount.
= The premiums increase at renewal.
= There is no requirement to prove insurability at renewal.
_______insurance policies involve premiums that are paid until age 100, followed by
payment of the face amount as an endowment upon reaching 100. - answer>>>Straight
whole life
What is the main difference between traditional life insurance and variable? -
answer>>>Cash values
With traditional life insurance, cash values are located in the company general account.
With variable life policy, the cash values are in a "separate account" which requires a
securities license to sell.
Universal life policies are different from other whole life insurance policies because? -
answer>>>Premium schedules
In a universal life policy, premium schedules can be flexible.
VERSION QUESTIONS AND VERIFIED CORRECT
ANSWERS JUST RELEASED
A universal life plan differs from a whole life plan in all of the following ways EXCEPT:
= A whole life plan displays a detailed list of all mortality, expense and interest payments
in the premium calculation.
= A universal life plan may have features that are not guaranteed.
= The cost of life insurance may vary from year to year on a universal life contract.
= The administrative expenses are a listed charge in universal life. - answer>>>=A whole
life plan displays a detailed list of all mortality, expense and interest payments in the
premium calculation.
The cash value in a whole life policy is held in the insurance company's? -
answer>>>General account
An agent wants to qualify to sell variable life plans. He must: - answer>>>be licensed from
both the state and Financial Industry Regulatory Authority (FINRA) formally (NASD),
because variable plans are regulated as securities. Failure to do either could result in
some very harsh penalties.
Matthew has recently purchased a variable life insurance policy. In reading his prospectus,
he sees that the various accounts have the same managers as some of the mutual funds
he owns. Matthew should understand_____ - answer>>>The insurance company
maintains separate accounts for each investment and they are not co-mingled with other
assets.
Universal life policies are similar to whole life in that they ___________________. -
answer>>>both provide death protection and cash value
,-
Universal life policies offer flexibility, but benefits are not fixed and guaranteed as they
are in the whole life policies. Whole life policies do not treat cash withdrawals as partial
surrenders.
A variable life plan must be a type of universal life because _______ - answer>>>The
accumulation accounts must be separated from general company assets.
All of the following are true concerning Interest Sensitive Whole Life (ISWL) EXCEPT:
= The death benefit is guaranteed as long as premiums are paid.
= Policy loans are available.
= The policyholder will always know the amount of cash value available.
= The cash account accumulates tax free inside the policy. - answer>>>= The policyholder
will always know the amount of cash value available.
One of the most common types of life insurance is the whole life insurance policy. What
are typical characteristic of a whole life policy? - answer>>>= The premiums remain level
for the entire period that the policy is in force.
= Whole life policies have a guaranteed cash value.
= The face amount of the policy does not change while the policy is in force.
A family maintenance policy uses a _________ rider, rather than a ____________ rider,
which is used in a family income policy. - answer>>>level term, decreasing term
When constructing an adjustable life policy, which of the following is used as the base
policy? - answer>>>Whole life
An adjustable life policy is a whole life base with a term rider.
The_____life policy takes 30 years to pay, and it endows at the age of 100. - answer>>>30
year limited pay
,What type of policy does Shelly have if the cash value in Shelly's policy increased to a
point where the corridor was applied? - answer>>>Universal life option 1
What policy is sold in proportioned units to cover an insured, as well as the insured's
spouse and children? - answer>>>Family plan
Which of the following is a business plan where each of the partners agree to buy the
interest of a deceased partner? - answer>>>Cross purchase plan
Difference between entity plan and cross purchase plan? - answer>>>In an entity plan,
the partnership itself agrees to buy the deceased partner's share of the business.
With a cross purchase plan, each partner agrees to buy out the others interest in the
business.
With a universal life policy, which of the following is NOT a true statement?
= The death benefit can be modified.
= Cash values can be allotted toward premium payments.
= Premiums can be increased or decreased.
= With changes, a new policy needs to be issued immediately. - answer>>>= With
changes, a new policy needs to be issued immediately.
is a conversion permitted in an industrial life insurance policy? - answer>>>Of two or
more policies into a single ordinary policy
Clark has a universal life policy. What are the reserves usually invested in with this type of
policy? - answer>>>Long-term securities
Harriet owns a 30-pay life policy that she purchased at the age of 30. When will the cash
value equal the face amount of the policy? - answer>>>When Harriet turns 100
Which policy has premiums payable for 60 years, insurance protection for 60 years and
endows at age 100? - answer>>>Straight whole life policy issued at age 40.
, -
A variable life insurance policy has what characteristics? - answer>>>Provides permanent
protection; it has fixed level premiums and a guaranteed minimum death benefit just like
ordinary whole life, but differs in that it offers higher interest rates, defending the
policyowner against the effects of inflation. Premiums are paid at regular intervals. If the
policyowner does not pay a premium after the policy grace period, the policy will lapse.
The policy cash value is not guaranteed.
True regarding a graded premium whole life policy - answer>>>Premiums start low,
increasing each year during the early years of the contract and then remain constant for
life.
True about level term? - answer>>>= Level term remains at a level face amount.
= The premiums increase at renewal.
= There is no requirement to prove insurability at renewal.
_______insurance policies involve premiums that are paid until age 100, followed by
payment of the face amount as an endowment upon reaching 100. - answer>>>Straight
whole life
What is the main difference between traditional life insurance and variable? -
answer>>>Cash values
With traditional life insurance, cash values are located in the company general account.
With variable life policy, the cash values are in a "separate account" which requires a
securities license to sell.
Universal life policies are different from other whole life insurance policies because? -
answer>>>Premium schedules
In a universal life policy, premium schedules can be flexible.
