TENNESSEE LIFE AND HEALTH INSURANCE LICENSE TEST PAPER
2025 QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔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
✔✔What is the name of the insured who enters into a viatical settlement? - ✔✔viator
✔✔When would a misrepresentation on the insurance application be considered fraud?
- ✔✔intentional and material
✔✔Which of the following statements regarding HIV testing for insurance purposes is
NOT true? - ✔✔insurers are barred from requesting HIV testing
✔✔The insured had his wife named as the beneficiary of his life insurance policy. To
ensure that his wife had income for life after the insured's death, he chose the life
income settlement option. The amount of payments will be determined by taking into
account all of the following EXCEPT - ✔✔insured's age at death
✔✔What does "liquidity" refer to in a life insurance policy? - ✔✔cash values can be
borrowed at any time
✔✔If an insurer issued a policy based on the application that had unanswered
questions, which of the following will be TRUE? - ✔✔The policy will be interpreted as if
the insurer waived its right to have an answer on the application.
✔✔All of the following are TRUE regarding the convertibility option under a term life
insurance policy EXCEPT - ✔✔Upon conversion, the death benefit of the permanent
policy will be reduced by 50%.
✔✔When a life insurance policy is cancelled and the insured has selected the extended
term nonforfeiture option, the cash value will be used to purchase term insurance that
has a face amount - ✔✔Equal to the original policy for as long a period of time that the
cash values will purchase.
✔✔Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?
- ✔✔employer
✔✔All of the following are characteristics of a Universal Life policy EXCEPT - ✔✔The
planned premium pays for mortality charges and expenses and any excess is returned
to the policyowner.
, ✔✔Unless revoked or suspended, how long does a producer's license remain in effect
in Tennessee? - ✔✔24 months
✔✔Which of the following would be deducted from the death benefit paid to a
beneficiary, if a partial accelerated death benefit had been paid while the insured was
still alive? - ✔✔Amount paid with the accelerated benefit, plus the earnings lost by the
insurance company in interest income from the accelerated benefit
✔✔The life insurance policy clause that prevents an insurance company from denying
payment of a death claim after a specified period of time is known as the -
✔✔incontestability clause
✔✔The insured undder a $100,000 life insurance policy with a triple indemnity rider for
accidental death was killed in a car accident. It was determined that the accident was
his fault. The triple indemnity rider in the policy specifies that the death must not be
contributed to by the insured in any manner. In this case, what will the policy beneficiary
receive? - ✔✔$100000
✔✔An insured under a life insurance policy has been diagnosed with a terminal illness
and has 6 months to live. The insured knows that his financial state will worsen even
more with the upcoming medical expenses. What option could the insured utilize? -
✔✔viatical settlement
✔✔Under the Fair Credit Reporting Act, if the consumer challenges the correctness of
the information contained in his/her report, the reporting agency must - ✔✔respond to
the consumers complaint
✔✔An insured receives an annual life insurance dividend check. What term best
describes this arrangement? - ✔✔cash option
✔✔A man decided to purchase a $100,000 Annually Renewable Term Life policy to
provide additional protection until his children finished college. He discovered that his
policy - ✔✔required a premium increase each renewal
✔✔Which of the following is INCORRECT regarding a $100,000 20-year level term
policy? - ✔✔At the end of 20 years, the policy's cash value will equal $100,000.
✔✔Which of the following information will be stated in the consideration clause of a life
insurance policy? - ✔✔amount of premium payment
✔✔SIMPLE Plans require all of the following EXCEPT - ✔✔at least 1000 employees
2025 QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔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
✔✔What is the name of the insured who enters into a viatical settlement? - ✔✔viator
✔✔When would a misrepresentation on the insurance application be considered fraud?
- ✔✔intentional and material
✔✔Which of the following statements regarding HIV testing for insurance purposes is
NOT true? - ✔✔insurers are barred from requesting HIV testing
✔✔The insured had his wife named as the beneficiary of his life insurance policy. To
ensure that his wife had income for life after the insured's death, he chose the life
income settlement option. The amount of payments will be determined by taking into
account all of the following EXCEPT - ✔✔insured's age at death
✔✔What does "liquidity" refer to in a life insurance policy? - ✔✔cash values can be
borrowed at any time
✔✔If an insurer issued a policy based on the application that had unanswered
questions, which of the following will be TRUE? - ✔✔The policy will be interpreted as if
the insurer waived its right to have an answer on the application.
✔✔All of the following are TRUE regarding the convertibility option under a term life
insurance policy EXCEPT - ✔✔Upon conversion, the death benefit of the permanent
policy will be reduced by 50%.
✔✔When a life insurance policy is cancelled and the insured has selected the extended
term nonforfeiture option, the cash value will be used to purchase term insurance that
has a face amount - ✔✔Equal to the original policy for as long a period of time that the
cash values will purchase.
✔✔Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?
- ✔✔employer
✔✔All of the following are characteristics of a Universal Life policy EXCEPT - ✔✔The
planned premium pays for mortality charges and expenses and any excess is returned
to the policyowner.
, ✔✔Unless revoked or suspended, how long does a producer's license remain in effect
in Tennessee? - ✔✔24 months
✔✔Which of the following would be deducted from the death benefit paid to a
beneficiary, if a partial accelerated death benefit had been paid while the insured was
still alive? - ✔✔Amount paid with the accelerated benefit, plus the earnings lost by the
insurance company in interest income from the accelerated benefit
✔✔The life insurance policy clause that prevents an insurance company from denying
payment of a death claim after a specified period of time is known as the -
✔✔incontestability clause
✔✔The insured undder a $100,000 life insurance policy with a triple indemnity rider for
accidental death was killed in a car accident. It was determined that the accident was
his fault. The triple indemnity rider in the policy specifies that the death must not be
contributed to by the insured in any manner. In this case, what will the policy beneficiary
receive? - ✔✔$100000
✔✔An insured under a life insurance policy has been diagnosed with a terminal illness
and has 6 months to live. The insured knows that his financial state will worsen even
more with the upcoming medical expenses. What option could the insured utilize? -
✔✔viatical settlement
✔✔Under the Fair Credit Reporting Act, if the consumer challenges the correctness of
the information contained in his/her report, the reporting agency must - ✔✔respond to
the consumers complaint
✔✔An insured receives an annual life insurance dividend check. What term best
describes this arrangement? - ✔✔cash option
✔✔A man decided to purchase a $100,000 Annually Renewable Term Life policy to
provide additional protection until his children finished college. He discovered that his
policy - ✔✔required a premium increase each renewal
✔✔Which of the following is INCORRECT regarding a $100,000 20-year level term
policy? - ✔✔At the end of 20 years, the policy's cash value will equal $100,000.
✔✔Which of the following information will be stated in the consideration clause of a life
insurance policy? - ✔✔amount of premium payment
✔✔SIMPLE Plans require all of the following EXCEPT - ✔✔at least 1000 employees
