TENNESSEE LIFE INSURANCE
PRACTICE EXAM QUESTIONS AND
DETAILED SOLUTIONS 2026
▶ 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
▶ Which of the following statements regarding HIV testing for insurance
purposes is NOT true?? Answer: 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? Answer:
insured's age at death
▶ What does "liquidity" refer to in a life insurance policy?? Answer: 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?? Answer: 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? Answer: 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? Answer: 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?? Answer: employer
▶ All of the following are characteristics of a Universal Life policy
EXCEPT? Answer: 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?? Answer: 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?? Answer: 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? Answer: incontestability clause
PRACTICE EXAM QUESTIONS AND
DETAILED SOLUTIONS 2026
▶ 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
▶ Which of the following statements regarding HIV testing for insurance
purposes is NOT true?? Answer: 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? Answer:
insured's age at death
▶ What does "liquidity" refer to in a life insurance policy?? Answer: 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?? Answer: 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? Answer: 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? Answer: 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?? Answer: employer
▶ All of the following are characteristics of a Universal Life policy
EXCEPT? Answer: 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?? Answer: 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?? Answer: 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? Answer: incontestability clause
