TENNESSEE LIFE INSURANCE EXAM
REVIEW QUESTIONS WITH
ACCURATE SOLUTIONS 2026
▶ Upon receipt of notice of appointment, the Commissioner must verify the
insurance producer is eligible for appointment within how many days??
Answer: 30 days-The Commissioner must verify eligibility within 30 days.
▶ Which of the following protects the insured from an unintentional policy
lapse due to a nonpayment of premium?? Answer: automatic premium
loan-Automatic premium loan provision is not required, but is commonly
added to contracts with a cash value at no additional charge. This is a
special type of loan that prevents the unintentional lapse of a policy due to
nonpayment of the premium.
▶ All of the following could be considered rebates if offered to an insured in
the sale of insurance EXCEPT? Answer: dividends from a mutual insurer-
Dividends paid to policyholders of a mutual insurer are not considered to be
a rebate because the policy specifies that they might be paid.
▶ Which is NOT true about beneficiary designations?? Answer: The
beneficiary must have insurable interest in the insured.-A beneficiary is the
person or interest to whom the policy proceeds will be paid upon the death
of the insured. Beneficiaries do not have to have an insurable interest in the
policyholder.
▶ Which of the following activities is NOT performed by an insurance
producer?? Answer: issuing the policy-Any activity that falls within the
definition of transacting insurance requires that the person be licensed as
an insurance producer. Insurance policies are issued by insurers and not
producers.
▶ What percentage of a company's employees must take part in a
noncontributory group life plan?? Answer: 100%-If the employer pays all of
the premium, all employees must be covered to avoid adverse selection.
, ▶ A Limited Insurance Representative is an individual, other than an
insurance producer, who may solicit or negotiate contracts for certain types
of insurance which includes all of the following EXCEPT? Answer:
automobile physical damage insurance-A Property Insurance license is
required to write automobile physical damage coverage.
▶ All of the following are TRUE regarding the convertibility option under a
term life insurance policy EXCEPT? Answer: Upon conversion, the death
benefit of the permanent policy will be reduced by 50%.-Convertible term
insurance is convertible without proof of insurability up to the full term death
benefit. However, upon conversion, the premium for the permanent policy
will be based on the insured's attained age.
▶ Which of the following types of insurance policies would perform the
function of cash accumulation?? Answer: whole life-Life insurance is
unique from other types of insurance in that it could perform the function of
cash accumulation. Cash values are available in whole life policies.
▶ What is the purpose of establishing the target premium for a universal
life policy?? Answer: to keep the policy in force-The target premium is a
recommended amount that should be paid on a policy in order to cover the
cost of insurance protection and to keep the policy in force throughout its
lifetime.
▶ An employee quits her job where she has a balance of $10,000 in her
qualified plan. If she decides to do a direct transfer from her plan to a
Traditional IRA, how much will be transferred from one plan administrator
to another and what is the tax consequence of a direct transfer?? Answer:
$10000, no tax consequence-During an IRA direct transfer (or direct
rollover), the full amount gets reinvested from one plan to the other.
▶ 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-The
insurer must provide, to all prospective purchasers, a Buyer's Guide and a
Policy Summary prior to accepting the applicant's initial premium. This is
not required if the policy contains an unconditional refund provision of at
least 10 days, or if the Policy Summary contains an unconditional refund
REVIEW QUESTIONS WITH
ACCURATE SOLUTIONS 2026
▶ Upon receipt of notice of appointment, the Commissioner must verify the
insurance producer is eligible for appointment within how many days??
Answer: 30 days-The Commissioner must verify eligibility within 30 days.
▶ Which of the following protects the insured from an unintentional policy
lapse due to a nonpayment of premium?? Answer: automatic premium
loan-Automatic premium loan provision is not required, but is commonly
added to contracts with a cash value at no additional charge. This is a
special type of loan that prevents the unintentional lapse of a policy due to
nonpayment of the premium.
▶ All of the following could be considered rebates if offered to an insured in
the sale of insurance EXCEPT? Answer: dividends from a mutual insurer-
Dividends paid to policyholders of a mutual insurer are not considered to be
a rebate because the policy specifies that they might be paid.
▶ Which is NOT true about beneficiary designations?? Answer: The
beneficiary must have insurable interest in the insured.-A beneficiary is the
person or interest to whom the policy proceeds will be paid upon the death
of the insured. Beneficiaries do not have to have an insurable interest in the
policyholder.
▶ Which of the following activities is NOT performed by an insurance
producer?? Answer: issuing the policy-Any activity that falls within the
definition of transacting insurance requires that the person be licensed as
an insurance producer. Insurance policies are issued by insurers and not
producers.
▶ What percentage of a company's employees must take part in a
noncontributory group life plan?? Answer: 100%-If the employer pays all of
the premium, all employees must be covered to avoid adverse selection.
, ▶ A Limited Insurance Representative is an individual, other than an
insurance producer, who may solicit or negotiate contracts for certain types
of insurance which includes all of the following EXCEPT? Answer:
automobile physical damage insurance-A Property Insurance license is
required to write automobile physical damage coverage.
▶ All of the following are TRUE regarding the convertibility option under a
term life insurance policy EXCEPT? Answer: Upon conversion, the death
benefit of the permanent policy will be reduced by 50%.-Convertible term
insurance is convertible without proof of insurability up to the full term death
benefit. However, upon conversion, the premium for the permanent policy
will be based on the insured's attained age.
▶ Which of the following types of insurance policies would perform the
function of cash accumulation?? Answer: whole life-Life insurance is
unique from other types of insurance in that it could perform the function of
cash accumulation. Cash values are available in whole life policies.
▶ What is the purpose of establishing the target premium for a universal
life policy?? Answer: to keep the policy in force-The target premium is a
recommended amount that should be paid on a policy in order to cover the
cost of insurance protection and to keep the policy in force throughout its
lifetime.
▶ An employee quits her job where she has a balance of $10,000 in her
qualified plan. If she decides to do a direct transfer from her plan to a
Traditional IRA, how much will be transferred from one plan administrator
to another and what is the tax consequence of a direct transfer?? Answer:
$10000, no tax consequence-During an IRA direct transfer (or direct
rollover), the full amount gets reinvested from one plan to the other.
▶ 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-The
insurer must provide, to all prospective purchasers, a Buyer's Guide and a
Policy Summary prior to accepting the applicant's initial premium. This is
not required if the policy contains an unconditional refund provision of at
least 10 days, or if the Policy Summary contains an unconditional refund
