TENNESSEE LIFE AND HEALTH INSURANCE EXAM SCRIPT 2025
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔In comparison to consumer reports, which of the following describes a unique
characteristic of investigative consumer reports?
a. The customer has no knowledge of this action
b. The customer's associates, friends, and neighbors provide the report's data
c. They provide additional information from an outside source about a particular risk
d. They provide information about a customer's character and reputation - ✔✔b. The
customer's associates, friends, and neighbors provide the report's data
✔✔When the appointment of an individual agent is terminated, the insurer must notify
the Office of the Commissioner with appropriate forms within how many days after the
termination date?
a. 20
b. 30
c. 10
d. 15 - ✔✔b. 30
✔✔All of the following are considered unfair trade practices in the business of insurance
EXCEPT
a. Rebating
b. Defamation
c. Sharing commissions
d. Boycott - ✔✔c. Sharing commissions
✔✔All of the following could be considered rebates if offered to an insured in the sale of
insurance EXCEPT
a. An offer of employment
b. Stocks, securities, or bonds
c. An offer to share in commissions generated by sale
d. Dividends from a mutual insurer - ✔✔d. Dividends from a mutual insurer
✔✔When an insurer is given an order of liquidation, which of the following will protect
the insureds' unpaid claims?
a. The Wisconsin Insurers Association
b. A reinsurance company
c. The Wisconsin Insurance Security Fund
d. The office of the Commissioner of Insurance - ✔✔c. The Wisconsin Insurance
Security Fund
✔✔Which of the following is true regarding state regulations for recorded maintenance?
a. Any records except for checks may be maintained electronically
b. Insurer's records must be maintained both electronically and in paper form
c. Insurer's records may be maintained electronically
,d. Insurer's records must be maintained as hard copies of original records - ✔✔c.
Insurer's records may be maintained electronically
✔✔The policy owner of an adjustable life policy wants to increase the death benefit.
Which of the following statements is correct regarding this change?
a. The death benefit can be increased only when the policy has developed a cash value
b. The death benefit can be increased only by exchanging the existing policy for a new
one
c. The death benefit can be increased by providing evidence of insurability
d. The death benefit cannot be increased - ✔✔c. The death benefit an be increased by
providing evidence of insurability
✔✔A policy will pay the death benefit if the insured dies during the 20-year premium-
paying period, and nothing if death occurs after the 20-year period. What type of policy
is this?
a. Level term
b. Term to specified age
c. Ordinary life policy
d. Limited pay whole life - ✔✔a. Level term
✔✔Which of the following policies would be classified as a traditional level premium
contract?
a. Variable Universal Life
b. Straight Life
c. Adjustable Life
d. Universal Life - ✔✔b. Straight life
✔✔A Straight Life policy has what type of premium?
a. An increasing annual premium for the life of the insured
b. A decreasing annual premium for the life of the insured
c. A variable annual premium for the life of the insured
d. A level annual premium for the life of the insured - ✔✔d. A level annual premium for
the life of the insured
✔✔Which of the following best describes annually renewable term insurance?
a. It is level term insurance
b. It requires proof of insurability at each renewal
c. Neither the premium nor the death benefit is affected by the insured's age
d. It provides an annually increasing death benefit - ✔✔a. It is level term insurance
✔✔When would a 20-pay whole life policy endow?
a. At the insured's age 65
b. After 20 payments
c. In 20 years
, d. When the insured reaches age 100 - ✔✔d. When the insured reaches age 100
✔✔All of the following are characteristics of group life insurance EXCEPT
a. Individuals covered under the policy receive a certificate of insurance
b. Certificate holders may convert coverage to an individual policy without evidence of
insurability
c. Premiums are determined by the age, sex, and occupation of each individual
certificate holder
d. Amount of coverage is determined according to nondiscriminatory rules - ✔✔c.
Premiums are determined by the age, sex, and occupation of each individual certificate
holder
✔✔Which of the following types of policies allows the policy owner to skip premium
payments, provided that there is enough cash value in the policy to cover the premium
amount?
a. Universal life
b. Flexible life
c. Variable life
d. Adjustable life - ✔✔a. Universal life
✔✔The death benefit under the Universal Life Option B
a. Gradually increases each year by the amount that the cash value increases
b. Decreased by the amount that the cash value increases
c. Increases for the first few years of the policy, and then levels off
d. Remains level - ✔✔a. Gradually increases each year by the amount that the cash
value increases
✔✔What is the purpose of establishing the target premium for a universal life policy?
a. To cover all policy expenses
b. To keep the policy in force
c. To accumulate cash value faster
d. To pay up the policy faster - ✔✔b. To keep the policy in force
✔✔Level term insurance provides a level death benefit and a level premium during the
policy term. If the policy renews at the end of a specified period of time. the policy
premium will be
a. Determined by the health of the insured
b. Based on the issue age of the insured
c. Discounted
d. Adjusted to the insured's age at the time of renewal - ✔✔d. Adjusted to the insureds
age at the time of renewal
✔✔Which of the following employees insured under a group life plan would be allowed
to convert to individual insurance of the same coverage once the plan is terminated?
a. Those who have no history of claims
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔In comparison to consumer reports, which of the following describes a unique
characteristic of investigative consumer reports?
a. The customer has no knowledge of this action
b. The customer's associates, friends, and neighbors provide the report's data
c. They provide additional information from an outside source about a particular risk
d. They provide information about a customer's character and reputation - ✔✔b. The
customer's associates, friends, and neighbors provide the report's data
✔✔When the appointment of an individual agent is terminated, the insurer must notify
the Office of the Commissioner with appropriate forms within how many days after the
termination date?
a. 20
b. 30
c. 10
d. 15 - ✔✔b. 30
✔✔All of the following are considered unfair trade practices in the business of insurance
EXCEPT
a. Rebating
b. Defamation
c. Sharing commissions
d. Boycott - ✔✔c. Sharing commissions
✔✔All of the following could be considered rebates if offered to an insured in the sale of
insurance EXCEPT
a. An offer of employment
b. Stocks, securities, or bonds
c. An offer to share in commissions generated by sale
d. Dividends from a mutual insurer - ✔✔d. Dividends from a mutual insurer
✔✔When an insurer is given an order of liquidation, which of the following will protect
the insureds' unpaid claims?
a. The Wisconsin Insurers Association
b. A reinsurance company
c. The Wisconsin Insurance Security Fund
d. The office of the Commissioner of Insurance - ✔✔c. The Wisconsin Insurance
Security Fund
✔✔Which of the following is true regarding state regulations for recorded maintenance?
a. Any records except for checks may be maintained electronically
b. Insurer's records must be maintained both electronically and in paper form
c. Insurer's records may be maintained electronically
,d. Insurer's records must be maintained as hard copies of original records - ✔✔c.
Insurer's records may be maintained electronically
✔✔The policy owner of an adjustable life policy wants to increase the death benefit.
Which of the following statements is correct regarding this change?
a. The death benefit can be increased only when the policy has developed a cash value
b. The death benefit can be increased only by exchanging the existing policy for a new
one
c. The death benefit can be increased by providing evidence of insurability
d. The death benefit cannot be increased - ✔✔c. The death benefit an be increased by
providing evidence of insurability
✔✔A policy will pay the death benefit if the insured dies during the 20-year premium-
paying period, and nothing if death occurs after the 20-year period. What type of policy
is this?
a. Level term
b. Term to specified age
c. Ordinary life policy
d. Limited pay whole life - ✔✔a. Level term
✔✔Which of the following policies would be classified as a traditional level premium
contract?
a. Variable Universal Life
b. Straight Life
c. Adjustable Life
d. Universal Life - ✔✔b. Straight life
✔✔A Straight Life policy has what type of premium?
a. An increasing annual premium for the life of the insured
b. A decreasing annual premium for the life of the insured
c. A variable annual premium for the life of the insured
d. A level annual premium for the life of the insured - ✔✔d. A level annual premium for
the life of the insured
✔✔Which of the following best describes annually renewable term insurance?
a. It is level term insurance
b. It requires proof of insurability at each renewal
c. Neither the premium nor the death benefit is affected by the insured's age
d. It provides an annually increasing death benefit - ✔✔a. It is level term insurance
✔✔When would a 20-pay whole life policy endow?
a. At the insured's age 65
b. After 20 payments
c. In 20 years
, d. When the insured reaches age 100 - ✔✔d. When the insured reaches age 100
✔✔All of the following are characteristics of group life insurance EXCEPT
a. Individuals covered under the policy receive a certificate of insurance
b. Certificate holders may convert coverage to an individual policy without evidence of
insurability
c. Premiums are determined by the age, sex, and occupation of each individual
certificate holder
d. Amount of coverage is determined according to nondiscriminatory rules - ✔✔c.
Premiums are determined by the age, sex, and occupation of each individual certificate
holder
✔✔Which of the following types of policies allows the policy owner to skip premium
payments, provided that there is enough cash value in the policy to cover the premium
amount?
a. Universal life
b. Flexible life
c. Variable life
d. Adjustable life - ✔✔a. Universal life
✔✔The death benefit under the Universal Life Option B
a. Gradually increases each year by the amount that the cash value increases
b. Decreased by the amount that the cash value increases
c. Increases for the first few years of the policy, and then levels off
d. Remains level - ✔✔a. Gradually increases each year by the amount that the cash
value increases
✔✔What is the purpose of establishing the target premium for a universal life policy?
a. To cover all policy expenses
b. To keep the policy in force
c. To accumulate cash value faster
d. To pay up the policy faster - ✔✔b. To keep the policy in force
✔✔Level term insurance provides a level death benefit and a level premium during the
policy term. If the policy renews at the end of a specified period of time. the policy
premium will be
a. Determined by the health of the insured
b. Based on the issue age of the insured
c. Discounted
d. Adjusted to the insured's age at the time of renewal - ✔✔d. Adjusted to the insureds
age at the time of renewal
✔✔Which of the following employees insured under a group life plan would be allowed
to convert to individual insurance of the same coverage once the plan is terminated?
a. Those who have no history of claims
