Tennessee Life Insurance Exam Prep Questions And Answers (202472025)
An insured purchased a Life Insurance policy. The agent told him that depending upon the
company's investments and expense factors, the cash values could change from those shown in
the policy at issue time. The policy is a/an - ✔✔interest-sensitive whole life
Which of the following is NOT true of life settlements? - ✔✔the seller must be terminally ill
The paid-up addition option uses the dividend - ✔✔To purchase a smaller amount of the same
type of insurance as the original policy.
Any person acting as an insurance producer without a valid license may be fined up to -
✔✔$1000 for each violation
An insured purchased a 10-year level term life policy that is guaranteed renewable and
convertible. What happens at the end of the 10-year term? - ✔✔The insured may renew the
policy for another 10 years, but at a higher premium rate.
Which of the following is another term for the accumulation period of an annuity? - ✔✔pay-in
period
Unless revoked or suspended, how long does a producer's license remain in effect in Tennessee?
- ✔✔24 months
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which
of the following insurance principles has the insurer violated? - ✔✔consideration
A temporary insurance License may be issued without examination in all of the following
instances EXCEPT - ✔✔To an applicant who fails to pass an insurance producer's examination.
Which of the following named beneficiaries would NOT be able to receive the death benefit
directly from the insurer in the event of the insureds' death? - ✔✔A minor son of the insured
,Which of the following determines the cash value of a variable life policy? - ✔✔The
performance of the policy portfolio
Which of the following allows the insurer to relieve a minor insured from premium payments if
the minor's parents have died or become disabled? - ✔✔payor benefit
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is -
✔✔a modified endowment contract
All of the following are dividend options EXCEPT - ✔✔fixed period installments
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death
of the insured, and to whom the benefits will be paid? - ✔✔insuring clause
An insurance producer may not act as an agent for an insurer unless he/she has become which of
the following? - ✔✔appointed
What is the purpose of a fixed-period settlement option? - ✔✔To provide a guaranteed income
for a certain amount of time
Which of the following types of risk will result in the highest premium? - ✔✔substandard risk
The Ownership provision entitles the policyowner to do all of the following EXCEPT - ✔✔set
premium rates
As a condition for renewal of their licenses, how many hours of continuing education are
required for all resident and nonresident insurance producers? - ✔✔24
, All of the following are true regarding the guaranteed insurability rider EXCEPT - ✔✔This rider
is available to all insureds with no additional premium.
Which of the following will be included in a policy summary? - ✔✔premium amounts and
surrender values
What is a definition of a unilateral contract? - ✔✔One-sided; only one party makes an
enforceable promise
Assuming that a policy does not contain an unconditional refund provision of at least 10 days,
when must a Buyer's Guide and policy summary be provided? - ✔✔before accepting the initial
premium
All of the following entities regulate variable life policies EXCEPT - ✔✔Guaranty Association
Which of the following are NOT fundable by annuities? - ✔✔death benefits
At the time the insured purchased her life insurance policy, she added a rider that will allow her
to purchase additional insurance in the future without having to prove insurability. This rider is
called - ✔✔guaranteed insurability
Which of the following terms describes making false statements about the financial condition of
any insurer that are intended to injure any person engaged in the business of insurance? -
✔✔defamation
All other factors being equal, the least expensive first-year premium payment is found in -
✔✔annually renewable term
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but
also specifies a guaranteed period, during which, if the original recipient dies, the payments will
continue to a designated beneficiary? - ✔✔life income with period certain
An insured purchased a Life Insurance policy. The agent told him that depending upon the
company's investments and expense factors, the cash values could change from those shown in
the policy at issue time. The policy is a/an - ✔✔interest-sensitive whole life
Which of the following is NOT true of life settlements? - ✔✔the seller must be terminally ill
The paid-up addition option uses the dividend - ✔✔To purchase a smaller amount of the same
type of insurance as the original policy.
Any person acting as an insurance producer without a valid license may be fined up to -
✔✔$1000 for each violation
An insured purchased a 10-year level term life policy that is guaranteed renewable and
convertible. What happens at the end of the 10-year term? - ✔✔The insured may renew the
policy for another 10 years, but at a higher premium rate.
Which of the following is another term for the accumulation period of an annuity? - ✔✔pay-in
period
Unless revoked or suspended, how long does a producer's license remain in effect in Tennessee?
- ✔✔24 months
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which
of the following insurance principles has the insurer violated? - ✔✔consideration
A temporary insurance License may be issued without examination in all of the following
instances EXCEPT - ✔✔To an applicant who fails to pass an insurance producer's examination.
Which of the following named beneficiaries would NOT be able to receive the death benefit
directly from the insurer in the event of the insureds' death? - ✔✔A minor son of the insured
,Which of the following determines the cash value of a variable life policy? - ✔✔The
performance of the policy portfolio
Which of the following allows the insurer to relieve a minor insured from premium payments if
the minor's parents have died or become disabled? - ✔✔payor benefit
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is -
✔✔a modified endowment contract
All of the following are dividend options EXCEPT - ✔✔fixed period installments
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death
of the insured, and to whom the benefits will be paid? - ✔✔insuring clause
An insurance producer may not act as an agent for an insurer unless he/she has become which of
the following? - ✔✔appointed
What is the purpose of a fixed-period settlement option? - ✔✔To provide a guaranteed income
for a certain amount of time
Which of the following types of risk will result in the highest premium? - ✔✔substandard risk
The Ownership provision entitles the policyowner to do all of the following EXCEPT - ✔✔set
premium rates
As a condition for renewal of their licenses, how many hours of continuing education are
required for all resident and nonresident insurance producers? - ✔✔24
, All of the following are true regarding the guaranteed insurability rider EXCEPT - ✔✔This rider
is available to all insureds with no additional premium.
Which of the following will be included in a policy summary? - ✔✔premium amounts and
surrender values
What is a definition of a unilateral contract? - ✔✔One-sided; only one party makes an
enforceable promise
Assuming that a policy does not contain an unconditional refund provision of at least 10 days,
when must a Buyer's Guide and policy summary be provided? - ✔✔before accepting the initial
premium
All of the following entities regulate variable life policies EXCEPT - ✔✔Guaranty Association
Which of the following are NOT fundable by annuities? - ✔✔death benefits
At the time the insured purchased her life insurance policy, she added a rider that will allow her
to purchase additional insurance in the future without having to prove insurability. This rider is
called - ✔✔guaranteed insurability
Which of the following terms describes making false statements about the financial condition of
any insurer that are intended to injure any person engaged in the business of insurance? -
✔✔defamation
All other factors being equal, the least expensive first-year premium payment is found in -
✔✔annually renewable term
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but
also specifies a guaranteed period, during which, if the original recipient dies, the payments will
continue to a designated beneficiary? - ✔✔life income with period certain
