TENNESSEE LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS | 2026
UPDATE | 100% CORRECT.
Accelerated Benefits - ANS Riders attached to life insurance policies that allow deaths
benefits to be used to cover nursing or convalescent home expenses
Accidental Death Benefits - ANS A policy rider that states that the cause of death will be
analyzed to determine if it complies with the policy description of accidental death.
Accidental Death Insurance - ANS An insurance policy that provides payment if the insured'
death is the result of an accident
Accumulation period - ANS The time before an annuitant's retirement during which the
annuitant is making payments or investments in an annuity
Actual Cash Value ACV - ANS The required amount to pay damages or the property loss. This
amount is calculated based on the property's current replacement value minus depreciation.
Adhesion - ANS A contract offered on a "take it or leave it" basis by an insurer, in which the
insured's only option is to either accept or reject the contract. Any ambiguities in the contract
will be settled in favor of the insured.
Adjustable Life - ANS Life insurance that permits changes in the face amount, premium
amount, period of protection, and the duration of the premium payment period.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 20
,Adjuster - ANS A representative of an insurance company who investigates and acts on the
behalf of the company to obtain agreements for the amount of the insurance claim.
Administrator - ANS An individual appointed by a court as a fiduciary to settle the financial
affairs and estate of a deceased person.
Admitted (Authorized) Insurer - ANS An insurance company authorized and licensed to
transact business in a particular state.
Adverse Selection - ANS The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability.
Agency - ANS An insurance sales office or company
Agent - ANS An agent who is licensed to sell, negotiate, or effect insurance contracts on
behalf of the insurer.
Agent Appointment - ANS The authorization of an agent to act for or represent an insurer.
Agent's Authority - ANS Special powers granted to an agent by his or her agency contract.
Aleatory - ANS A contract in which participating parties exchange unequal amount. Insurance
contracts are aleatory in that the amount the insured will pay in premiums in unequal to the
amount the insurer will pay in the event of a loss.
Alien Insurer - ANS An insurance company that is incorporated outside the United States.
Annual Statement - ANS A detailed financial report that an insurance company must submit
every year to the insurance department of state (s) in which it conducts business.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 20
, Annuity - ANS A contrast that provides income for a specified period of years or for life.
Apparent Authority - ANS The appearance of the assumption of authority based on the
actions, words,or deeds of the principal or because of circumstances the principal created.
Applicant - ANS A person making application for or offering himself, herself or another to be
insured under an insurance contract.
Application - ANS A document that provides information for underwriting purposes. After the
policy is issued, any unanswered questions are considered waived by the insurer.
Assignment - ANS The transfer of ownership rights of a life insurance policy from one person
to another.
Attained Age - ANS The age of the insured at a determined date.
Authorized (Admitted) Insurer - ANS An insurance company authorized and licensed to
transact business in a particular state.
Avoidance - ANS A method of dealing with risk by deliberately keeping away from it. Ex: a
person who fears a plane crash, does not fly.
Basic Illustration - ANS A ledger or proposal used in the sale of a life insurance policy that
shows both guaranteed and nonguaranteed elements.
Beneficiary - ANS The person who receives the proceeds from the policy when the insured
dies.
Birthday Rule - ANS The method of determining primary coverage for a dependent child,
under which the plan of the parent whose birthday occurs first in the calendar year is
designated as primary.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 20
QUESTIONS AND ANSWERS | 2026
UPDATE | 100% CORRECT.
Accelerated Benefits - ANS Riders attached to life insurance policies that allow deaths
benefits to be used to cover nursing or convalescent home expenses
Accidental Death Benefits - ANS A policy rider that states that the cause of death will be
analyzed to determine if it complies with the policy description of accidental death.
Accidental Death Insurance - ANS An insurance policy that provides payment if the insured'
death is the result of an accident
Accumulation period - ANS The time before an annuitant's retirement during which the
annuitant is making payments or investments in an annuity
Actual Cash Value ACV - ANS The required amount to pay damages or the property loss. This
amount is calculated based on the property's current replacement value minus depreciation.
Adhesion - ANS A contract offered on a "take it or leave it" basis by an insurer, in which the
insured's only option is to either accept or reject the contract. Any ambiguities in the contract
will be settled in favor of the insured.
Adjustable Life - ANS Life insurance that permits changes in the face amount, premium
amount, period of protection, and the duration of the premium payment period.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 20
,Adjuster - ANS A representative of an insurance company who investigates and acts on the
behalf of the company to obtain agreements for the amount of the insurance claim.
Administrator - ANS An individual appointed by a court as a fiduciary to settle the financial
affairs and estate of a deceased person.
Admitted (Authorized) Insurer - ANS An insurance company authorized and licensed to
transact business in a particular state.
Adverse Selection - ANS The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability.
Agency - ANS An insurance sales office or company
Agent - ANS An agent who is licensed to sell, negotiate, or effect insurance contracts on
behalf of the insurer.
Agent Appointment - ANS The authorization of an agent to act for or represent an insurer.
Agent's Authority - ANS Special powers granted to an agent by his or her agency contract.
Aleatory - ANS A contract in which participating parties exchange unequal amount. Insurance
contracts are aleatory in that the amount the insured will pay in premiums in unequal to the
amount the insurer will pay in the event of a loss.
Alien Insurer - ANS An insurance company that is incorporated outside the United States.
Annual Statement - ANS A detailed financial report that an insurance company must submit
every year to the insurance department of state (s) in which it conducts business.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 20
, Annuity - ANS A contrast that provides income for a specified period of years or for life.
Apparent Authority - ANS The appearance of the assumption of authority based on the
actions, words,or deeds of the principal or because of circumstances the principal created.
Applicant - ANS A person making application for or offering himself, herself or another to be
insured under an insurance contract.
Application - ANS A document that provides information for underwriting purposes. After the
policy is issued, any unanswered questions are considered waived by the insurer.
Assignment - ANS The transfer of ownership rights of a life insurance policy from one person
to another.
Attained Age - ANS The age of the insured at a determined date.
Authorized (Admitted) Insurer - ANS An insurance company authorized and licensed to
transact business in a particular state.
Avoidance - ANS A method of dealing with risk by deliberately keeping away from it. Ex: a
person who fears a plane crash, does not fly.
Basic Illustration - ANS A ledger or proposal used in the sale of a life insurance policy that
shows both guaranteed and nonguaranteed elements.
Beneficiary - ANS The person who receives the proceeds from the policy when the insured
dies.
Birthday Rule - ANS The method of determining primary coverage for a dependent child,
under which the plan of the parent whose birthday occurs first in the calendar year is
designated as primary.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 20
