TN Health and Life Insurance Exam Questions and
Answers Rated A+
Which of the following reimburses its insureds for covered medical expenses?
- health maintenance organizations
- preferred provider organizations
- commercial insurers
- service providers -Answer✅ COMMERCIAL INSURERS
- Commercial insurance companies function on the reimbursement approach.
Policyowners obtain medical treatment from whatever source they feel is
most appropriate and submit their charges to their insurer for
reimbursement
A business entity can be defined as a(n)
- agency that must only operate outside of TN
- agency that must only operate inside of TN
- association or a limited liability company
- business that requires approval by the Attorney General to transact
business -Answer✅
ASSOCIATION OR A LIMITED LIABILITY
COMPANY
- The definition of a business entity includes an association or limited liability
company
Which of the following health insurance policy provisions specifies the
health care services a
policy will
provide?
- insuring clause
- usual, customary, and reasonable clause
- consideration clause
- benefit clause -Answer✅ INSURING CLAUSE
- The insuring clause identifies the specific type of health care services that
are covered by that
TN Health and Life Insurance Exam Questions and Answers Rated A+
,polic
y
A Disability Income policy that only the policyowner can terminate and
which the rates will
never go up is
considered to be
- optionally renewable
- noncancellable
- cancellable
- guaranteed renewable -Answer✅ NONCANCELLABLE
- A disability income policy that only the policyowner can terminate and on
which the rates will
never increase is a
noncancellable policy
A producer may apply for one or more of the following licenses:
- life insurance
- personal lines property
- accident and health or sickness insurance
- all of the above -Answer✅ ALL OF THE ABOVE
A provision in a life insurance policy that pays the policyowner an amount
that does not surpass
the guaranteed cash value is
called the:
- policy loan provision
- automatic premium loan provision
- accelerated benefits provision
- consideration clause -Answer✅ POLICY LOAN PROVISION
- a policy loan will pay the policyowner an amount that, with interest,
does NOT exceed the
guaranteed cash
value
Long Term Care policies will usually pay for eligible benefits using
which of the following
TN Health and Life Insurance Exam Questions and Answers Rated A+
,method
s?
- Delayed
- fee for service
- expense incurred
- respite -Answer✅ EXPENSE INCURRED
- Most long term care policies pay on a reimbursement (or expense-incurred)
basis, up to policy
limit
s
Which of the following is NOT a limited benefit plan?
- Dental policy
- life insurance policy
- critical illness policy
- cancer policy -Answer✅ LIFE INSURANCE POLICY
- is not a limited benefit plan
In TN, the definition of "individual" may include which of the following?
- The individual's children
- the individual's business associates
- the individuals legal representative
- the individuals financial accounts -Answer✅ THE INDIVIDUALS LEGAL
REPRESENTATIVE
- The term "individual" can be associated with an individuals legal
representative
What is the purpose of the Time of Payment Claims Provision?
- Requires the insured to wait 60 days after submitting Proof of Loss before
filing a lawsuit
- prevents delayed claim payments made by the insurer
- requires a probation period for each claim filed by the insured
- protects the insurer from frivolous lawsuits -Answer✅ PREVENTS DELAYED
TN Health and Life Insurance Exam Questions and Answers Rated A+
, CLAIM PAYMENTS
MADE BY THE
INSURER
- The purpose of the Time of Payment of Claims provision is to prevent the
insurance company
from delaying claim
payments
What is considered to be a characteristic of an immediate annuity?
- Benefit payments start within one payment period of purchase
- benefit payments start within 5 years of initial purchase
- normally tied to a specific equity or stock index
- periodical contributions begin immediately -Answer✅ BENEFIT
PAYMENTS START WITHIN
ONE PAYMENT PERIOD OF
PURCHASE
- an immediate annuity is designed to make its first benefit payment to
the annuitant at one
payment interval from the date of
purchase
A licensed producer can be BEST described as a(n)
- someone who places insurance advertisements in a newspaper
- underwriting officer of an insurance company
- individual who places insurance on behalf of anyone seeking insurance
- administrator answering calls for an insurance agency -Answer✅
INDIVIDUAL WHO PLACES
INSURANCE ON BEHALF OF ANYONE SEEKING
INSURANCE
- A person who places insurance on behalf of anyone seeking insurance
must be licensed as a
produc
er
What is the max fine that can be imposed by the Commissioner to a
producer who violates an
insurance
law?
TN Health and Life Insurance Exam Questions and Answers Rated A+
Answers Rated A+
Which of the following reimburses its insureds for covered medical expenses?
- health maintenance organizations
- preferred provider organizations
- commercial insurers
- service providers -Answer✅ COMMERCIAL INSURERS
- Commercial insurance companies function on the reimbursement approach.
Policyowners obtain medical treatment from whatever source they feel is
most appropriate and submit their charges to their insurer for
reimbursement
A business entity can be defined as a(n)
- agency that must only operate outside of TN
- agency that must only operate inside of TN
- association or a limited liability company
- business that requires approval by the Attorney General to transact
business -Answer✅
ASSOCIATION OR A LIMITED LIABILITY
COMPANY
- The definition of a business entity includes an association or limited liability
company
Which of the following health insurance policy provisions specifies the
health care services a
policy will
provide?
- insuring clause
- usual, customary, and reasonable clause
- consideration clause
- benefit clause -Answer✅ INSURING CLAUSE
- The insuring clause identifies the specific type of health care services that
are covered by that
TN Health and Life Insurance Exam Questions and Answers Rated A+
,polic
y
A Disability Income policy that only the policyowner can terminate and
which the rates will
never go up is
considered to be
- optionally renewable
- noncancellable
- cancellable
- guaranteed renewable -Answer✅ NONCANCELLABLE
- A disability income policy that only the policyowner can terminate and on
which the rates will
never increase is a
noncancellable policy
A producer may apply for one or more of the following licenses:
- life insurance
- personal lines property
- accident and health or sickness insurance
- all of the above -Answer✅ ALL OF THE ABOVE
A provision in a life insurance policy that pays the policyowner an amount
that does not surpass
the guaranteed cash value is
called the:
- policy loan provision
- automatic premium loan provision
- accelerated benefits provision
- consideration clause -Answer✅ POLICY LOAN PROVISION
- a policy loan will pay the policyowner an amount that, with interest,
does NOT exceed the
guaranteed cash
value
Long Term Care policies will usually pay for eligible benefits using
which of the following
TN Health and Life Insurance Exam Questions and Answers Rated A+
,method
s?
- Delayed
- fee for service
- expense incurred
- respite -Answer✅ EXPENSE INCURRED
- Most long term care policies pay on a reimbursement (or expense-incurred)
basis, up to policy
limit
s
Which of the following is NOT a limited benefit plan?
- Dental policy
- life insurance policy
- critical illness policy
- cancer policy -Answer✅ LIFE INSURANCE POLICY
- is not a limited benefit plan
In TN, the definition of "individual" may include which of the following?
- The individual's children
- the individual's business associates
- the individuals legal representative
- the individuals financial accounts -Answer✅ THE INDIVIDUALS LEGAL
REPRESENTATIVE
- The term "individual" can be associated with an individuals legal
representative
What is the purpose of the Time of Payment Claims Provision?
- Requires the insured to wait 60 days after submitting Proof of Loss before
filing a lawsuit
- prevents delayed claim payments made by the insurer
- requires a probation period for each claim filed by the insured
- protects the insurer from frivolous lawsuits -Answer✅ PREVENTS DELAYED
TN Health and Life Insurance Exam Questions and Answers Rated A+
, CLAIM PAYMENTS
MADE BY THE
INSURER
- The purpose of the Time of Payment of Claims provision is to prevent the
insurance company
from delaying claim
payments
What is considered to be a characteristic of an immediate annuity?
- Benefit payments start within one payment period of purchase
- benefit payments start within 5 years of initial purchase
- normally tied to a specific equity or stock index
- periodical contributions begin immediately -Answer✅ BENEFIT
PAYMENTS START WITHIN
ONE PAYMENT PERIOD OF
PURCHASE
- an immediate annuity is designed to make its first benefit payment to
the annuitant at one
payment interval from the date of
purchase
A licensed producer can be BEST described as a(n)
- someone who places insurance advertisements in a newspaper
- underwriting officer of an insurance company
- individual who places insurance on behalf of anyone seeking insurance
- administrator answering calls for an insurance agency -Answer✅
INDIVIDUAL WHO PLACES
INSURANCE ON BEHALF OF ANYONE SEEKING
INSURANCE
- A person who places insurance on behalf of anyone seeking insurance
must be licensed as a
produc
er
What is the max fine that can be imposed by the Commissioner to a
producer who violates an
insurance
law?
TN Health and Life Insurance Exam Questions and Answers Rated A+
