TENNESSEE LIFE INSURANCE
CERTIFICATION EXAM QUESTIONS
AND VERIFIED ANSWERS 2026
▶ Which of the following is NOT true of life settlements?? Answer: the
seller must be terminally ill
▶ The paid-up addition option uses the dividend? Answer: 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? Answer: $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??
Answer: 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?? Answer: pay-in period
▶ Unless revoked or suspended, how long does a producer's license
remain in effect in Tennessee?? Answer: 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?? Answer: consideration
▶ A temporary insurance License may be issued without examination in all
of the following instances EXCEPT? Answer: 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?? Answer: A minor son of the insured
▶ Which of the following determines the cash value of a variable life
policy?? Answer: 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??
Answer: payor benefit
▶ If a life insurance policy develops cash value faster than a seven-pay
whole life contract, it is? Answer: a modified endowment contract
▶ All of the following are dividend options EXCEPT? Answer: 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?? Answer: insuring clause
▶ An insurance producer may not act as an agent for an insurer unless
he/she has become which of the following?? Answer: appointed
▶ What is the purpose of a fixed-period settlement option?? Answer: To
provide a guaranteed income for a certain amount of time
▶ Which of the following types of risk will result in the highest premium??
Answer: substandard risk
▶ The Ownership provision entitles the policyowner to do all of the
following EXCEPT? Answer: 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?? Answer: 24
▶ All of the following are true regarding the guaranteed insurability rider
EXCEPT? Answer: This rider is available to all insureds with no additional
premium.
, ▶ Which of the following will be included in a policy summary?? Answer:
premium amounts and surrender values
▶ What is a definition of a unilateral contract?? Answer: 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?? Answer: before accepting the initial premium
▶ All of the following entities regulate variable life policies EXCEPT?
Answer: Guaranty Association
▶ Which of the following are NOT fundable by annuities?? Answer: 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? Answer:
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?? Answer: defamation
▶ All other factors being equal, the least expensive first-year premium
payment is found in? Answer: 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?? Answer: life income with period certain
▶ What is the name of the insured who enters into a viatical settlement??
Answer: viator
▶ When would a misrepresentation on the insurance application be
considered fraud?? Answer: intentional and material
CERTIFICATION EXAM QUESTIONS
AND VERIFIED ANSWERS 2026
▶ Which of the following is NOT true of life settlements?? Answer: the
seller must be terminally ill
▶ The paid-up addition option uses the dividend? Answer: 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? Answer: $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??
Answer: 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?? Answer: pay-in period
▶ Unless revoked or suspended, how long does a producer's license
remain in effect in Tennessee?? Answer: 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?? Answer: consideration
▶ A temporary insurance License may be issued without examination in all
of the following instances EXCEPT? Answer: 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?? Answer: A minor son of the insured
▶ Which of the following determines the cash value of a variable life
policy?? Answer: 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??
Answer: payor benefit
▶ If a life insurance policy develops cash value faster than a seven-pay
whole life contract, it is? Answer: a modified endowment contract
▶ All of the following are dividend options EXCEPT? Answer: 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?? Answer: insuring clause
▶ An insurance producer may not act as an agent for an insurer unless
he/she has become which of the following?? Answer: appointed
▶ What is the purpose of a fixed-period settlement option?? Answer: To
provide a guaranteed income for a certain amount of time
▶ Which of the following types of risk will result in the highest premium??
Answer: substandard risk
▶ The Ownership provision entitles the policyowner to do all of the
following EXCEPT? Answer: 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?? Answer: 24
▶ All of the following are true regarding the guaranteed insurability rider
EXCEPT? Answer: This rider is available to all insureds with no additional
premium.
, ▶ Which of the following will be included in a policy summary?? Answer:
premium amounts and surrender values
▶ What is a definition of a unilateral contract?? Answer: 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?? Answer: before accepting the initial premium
▶ All of the following entities regulate variable life policies EXCEPT?
Answer: Guaranty Association
▶ Which of the following are NOT fundable by annuities?? Answer: 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? Answer:
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?? Answer: defamation
▶ All other factors being equal, the least expensive first-year premium
payment is found in? Answer: 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?? Answer: life income with period certain
▶ What is the name of the insured who enters into a viatical settlement??
Answer: viator
▶ When would a misrepresentation on the insurance application be
considered fraud?? Answer: intentional and material
