Tennessee Life and Health Final exam Questions with Answers
1. An insurer may normally delay the payment of a cash value loan or surren- der value
for up to: 6 months
2. In Tennessee, an insurer that is incorporated in New Jersey and conducts business in
Tennessee is call a(n): Foreign insurer
3. Which of the following statements describes what an Accident and Health policy owner may
not do?: Adjust the premium payments. Because the owner of an Accident and Health policy may not change the premium
amount.
4. T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive?: $0
5. A provision that the policy, application, and all attachments shall constitute the
between the parties.: Entire Contract
6. An insurance producer could be found guilty of rebating by: sharing commissions with a client
who has purchased insurance
7. Which of the following statements about the classification of applicant is
INCORRECT?
a. Substandard applicants are never declined by underwriters.
b. Substandard applicants are occasionally declined by underwriters.
c. Preferred risk applicants typically have better premium rates than standard risk
applicants.
,d. An applicant can be classified as substandard risk because of a hazardous job.: a.
Substandard applicants are never declined by underwriters.
8. J applies for an insurance policy. What BEST describes the particular terms of this
policy?: Policy Summary
9. A licensed producer can be Best described as a(n): Individual who places insurance on behalf of anyone
seeking insurance
10. J has a Disability Income policy that does NOT provide benefits for losses occurring
as the result of his employment. What kind of coverage is this?: - Nonoccupational coverage
11. P loses an arm in a farm accident and is paid $10,000 from his Accidental
Death and Dismemberment policy. This benefit is known as the: Capital Sum
12. An insurance company receives E's application for an individual health policy. E
did not complete all of the medical history questions because she could not remember the
exact dates. E signed the policy and submitted it to the insurance company anyway. A
few weeks later, E suffers a heart attack and is hospitalized without completing the
medical history questions and paying the initial premium. E is not insured. Which of the
following clauses details the conditions that E did not meet?: Consideration clause
13. Which of the following is the purpose of the Tennessee Guaranty Associa- tion?
• Avoid excessive delay in payment
•Avoid a loss to policyholders and claimant due to the insolvency of an insurer
• Charged to distribute the costs of protection to all insurers
• All of the above: • All of the above
14. An insured pays premiums on an annual basis for an individual health insurance
, policy. What is the MINIMUM number of days for the Grace Period provision?: 31 days
15. When a Medicare Supplement policy is delivered to a policyholder, which of the
following MUST accompany the policy?: Outline of Coverage
16. The sections of an insurance contract which limit coverage are called:: Exclu- sions
17. The common Disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true?: This clause
provides the payment of proceeds to the insured's estate
18. Tom has a qualified retirement plan with his employer that is currently
considered to be 80% "vested". How can this be interpreted?: If Tom's employment is terminated, 20%
of the funds would be forfeited
19. Which of the following reimburses its insureds for covered medical expens- es?:
Commercial insurers
20. A life insurance application must be signed by all of these, EXPECT:: beneficiary
21. With Optionally Renewable Health policies, the insurer may: review the policy
annually and determine whether or not to renew it
22. If an insurance producer applicant is required to pass a written examina- tion,
what is also required?: A fingerprint-based criminal background check
23. The option that provides an additional death benefit for a limited amount of
time at the lowest possible cost is called a(n): Accidental Death and Dismemberment rider (AD&D)
24. The policy provision that entitles the insurer to establish conditions the
insured mistakenly meet while a claim is pending is:: Time Limit on Certain Defenses
25. Medicaid was designed to assist individuals who are: below a specific income limit
1. An insurer may normally delay the payment of a cash value loan or surren- der value
for up to: 6 months
2. In Tennessee, an insurer that is incorporated in New Jersey and conducts business in
Tennessee is call a(n): Foreign insurer
3. Which of the following statements describes what an Accident and Health policy owner may
not do?: Adjust the premium payments. Because the owner of an Accident and Health policy may not change the premium
amount.
4. T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive?: $0
5. A provision that the policy, application, and all attachments shall constitute the
between the parties.: Entire Contract
6. An insurance producer could be found guilty of rebating by: sharing commissions with a client
who has purchased insurance
7. Which of the following statements about the classification of applicant is
INCORRECT?
a. Substandard applicants are never declined by underwriters.
b. Substandard applicants are occasionally declined by underwriters.
c. Preferred risk applicants typically have better premium rates than standard risk
applicants.
,d. An applicant can be classified as substandard risk because of a hazardous job.: a.
Substandard applicants are never declined by underwriters.
8. J applies for an insurance policy. What BEST describes the particular terms of this
policy?: Policy Summary
9. A licensed producer can be Best described as a(n): Individual who places insurance on behalf of anyone
seeking insurance
10. J has a Disability Income policy that does NOT provide benefits for losses occurring
as the result of his employment. What kind of coverage is this?: - Nonoccupational coverage
11. P loses an arm in a farm accident and is paid $10,000 from his Accidental
Death and Dismemberment policy. This benefit is known as the: Capital Sum
12. An insurance company receives E's application for an individual health policy. E
did not complete all of the medical history questions because she could not remember the
exact dates. E signed the policy and submitted it to the insurance company anyway. A
few weeks later, E suffers a heart attack and is hospitalized without completing the
medical history questions and paying the initial premium. E is not insured. Which of the
following clauses details the conditions that E did not meet?: Consideration clause
13. Which of the following is the purpose of the Tennessee Guaranty Associa- tion?
• Avoid excessive delay in payment
•Avoid a loss to policyholders and claimant due to the insolvency of an insurer
• Charged to distribute the costs of protection to all insurers
• All of the above: • All of the above
14. An insured pays premiums on an annual basis for an individual health insurance
, policy. What is the MINIMUM number of days for the Grace Period provision?: 31 days
15. When a Medicare Supplement policy is delivered to a policyholder, which of the
following MUST accompany the policy?: Outline of Coverage
16. The sections of an insurance contract which limit coverage are called:: Exclu- sions
17. The common Disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true?: This clause
provides the payment of proceeds to the insured's estate
18. Tom has a qualified retirement plan with his employer that is currently
considered to be 80% "vested". How can this be interpreted?: If Tom's employment is terminated, 20%
of the funds would be forfeited
19. Which of the following reimburses its insureds for covered medical expens- es?:
Commercial insurers
20. A life insurance application must be signed by all of these, EXPECT:: beneficiary
21. With Optionally Renewable Health policies, the insurer may: review the policy
annually and determine whether or not to renew it
22. If an insurance producer applicant is required to pass a written examina- tion,
what is also required?: A fingerprint-based criminal background check
23. The option that provides an additional death benefit for a limited amount of
time at the lowest possible cost is called a(n): Accidental Death and Dismemberment rider (AD&D)
24. The policy provision that entitles the insurer to establish conditions the
insured mistakenly meet while a claim is pending is:: Time Limit on Certain Defenses
25. Medicaid was designed to assist individuals who are: below a specific income limit
