INSURANCE LIFE STATE Questions and Answers
2024
1. Which state regarding the Change of Beneficiary provision is true?: The policyowner can
change the beneficiary
2. Which of the following is an example of defamation?: Circulating brochures that falsely
denounce the financial condition of an insurer
3. The Consideration clause in a life insurance policy indicates that a poli- cyowner's consideration
consists of a completed application and: The initial premium
4. The Automatic Premium Loan provision is designed to:: Avoid a policy lapse
5. Variable annuities may invest premiums in each of the following, EXCEPT:-
: Insurer's corporate business account
6. K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like to
reinstate the policy. All of these statements are correct about the policy's reinstatement EXCEPT: K
will forfeit the right to use the automatic loan provision upon reinstatement
7. C is trying to determine whether to convert her convertible term life policy to whole life insurance
using her original age or attained age. What factor would affect her decision the most?: The cost
8. A company that owns a life insurance policy on one of its key employees may do all of the
following EXCEPT: Change the policy's interest rate
9. Dividends paid from a life insurance policy are: Issued by the insurer
10.B recently died and was insured with a life insurance policy for over five years. During the
claims process, the insurer discovered that B had
understated his age by 5 years at the time of application. In this situation, the insurer will: Pay the
amount that the premium would have purchased at the correct age
11.A variable insurance policy:: Does not guarantee a return on its investment accounts
12.Any changes made on an insurance application requires the initials of whom?: Applicant
13.Q is severely injured in an automobile accident and becomes totally dis- abled. How many
months must Q be disabled before being able to apply for Social Security disability benefits?: 5
14.The Tennessee Insurance Guaranty Association: Protects Tennessee insur- ance policyowners
in the event an insurance company becomes insolvent
15.The incontestable clause allows an insurer to:: Contest a claim during the contestable
period
16.A producer MUST leave a buyer's guide with an applicant for which type of policy?: Universal
Life insurance
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, INSURANCE LIFE STATE Questions and Answers
2024
17.A statement made by an insured in an insurance application that must be true to the best of one's
knowledge and which becomes a part of the contract is known as: A representation
18.Which of the following statements is CORRECT about accelerated death benefits?: Must have
a terminal illness to qualify
19.Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to
the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is
TRUE?: Each partner owns a
$500,000 policy on their partner's life
20.Which of these types of life insurance allows the policyowner to have level premiums and to also
choose from a selection of investment options?: Vari- able Life
21.K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile
accident. How much will the insurance company pay the beneficiary?: $20,000 death benefit
22.Which of the following are Equity Indexed annuities typically invested in?: S&P 500
23.A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner
can see the interest earned, expense charges, and the: Cost of insurance
24.What is the basic function of an annuity?: The systematic liquidation of accumulated
funds
25.All of these are considered a producer's breach of fiduciary duty EXCEPT-
: Allowing premiums to be submitted electronically
26.In a life insurance policy, which provision states who may select policy op- tions, designate and
name a beneficiary, and be the recipient of any financial benefits from the policy?: Owner's Rights
27.Which of these is NOT considered to be an element of an insurance contract?:
Negotiating
28.A life insurance policy would be considered a wagering contract WITH- OUT:: Insurable
interest
29.In Tennessee, an insurer that is incorporated in New Jersey and conducts business in Tennessee
is called a(n): Foreign insurer
30.What is the maximum fine that can be imposed by the Commissioner to a producer who violates
an insurance law?: $1,000 per violation
31.All of these insurance subjects qualify for continuing education credits in Tennessee EXCEPT::
Motivating producers
32.Whose life is covered on a life insurance policy that contains a payor benefit clause?: Child
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2024
1. Which state regarding the Change of Beneficiary provision is true?: The policyowner can
change the beneficiary
2. Which of the following is an example of defamation?: Circulating brochures that falsely
denounce the financial condition of an insurer
3. The Consideration clause in a life insurance policy indicates that a poli- cyowner's consideration
consists of a completed application and: The initial premium
4. The Automatic Premium Loan provision is designed to:: Avoid a policy lapse
5. Variable annuities may invest premiums in each of the following, EXCEPT:-
: Insurer's corporate business account
6. K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like to
reinstate the policy. All of these statements are correct about the policy's reinstatement EXCEPT: K
will forfeit the right to use the automatic loan provision upon reinstatement
7. C is trying to determine whether to convert her convertible term life policy to whole life insurance
using her original age or attained age. What factor would affect her decision the most?: The cost
8. A company that owns a life insurance policy on one of its key employees may do all of the
following EXCEPT: Change the policy's interest rate
9. Dividends paid from a life insurance policy are: Issued by the insurer
10.B recently died and was insured with a life insurance policy for over five years. During the
claims process, the insurer discovered that B had
understated his age by 5 years at the time of application. In this situation, the insurer will: Pay the
amount that the premium would have purchased at the correct age
11.A variable insurance policy:: Does not guarantee a return on its investment accounts
12.Any changes made on an insurance application requires the initials of whom?: Applicant
13.Q is severely injured in an automobile accident and becomes totally dis- abled. How many
months must Q be disabled before being able to apply for Social Security disability benefits?: 5
14.The Tennessee Insurance Guaranty Association: Protects Tennessee insur- ance policyowners
in the event an insurance company becomes insolvent
15.The incontestable clause allows an insurer to:: Contest a claim during the contestable
period
16.A producer MUST leave a buyer's guide with an applicant for which type of policy?: Universal
Life insurance
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, INSURANCE LIFE STATE Questions and Answers
2024
17.A statement made by an insured in an insurance application that must be true to the best of one's
knowledge and which becomes a part of the contract is known as: A representation
18.Which of the following statements is CORRECT about accelerated death benefits?: Must have
a terminal illness to qualify
19.Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to
the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is
TRUE?: Each partner owns a
$500,000 policy on their partner's life
20.Which of these types of life insurance allows the policyowner to have level premiums and to also
choose from a selection of investment options?: Vari- able Life
21.K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile
accident. How much will the insurance company pay the beneficiary?: $20,000 death benefit
22.Which of the following are Equity Indexed annuities typically invested in?: S&P 500
23.A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner
can see the interest earned, expense charges, and the: Cost of insurance
24.What is the basic function of an annuity?: The systematic liquidation of accumulated
funds
25.All of these are considered a producer's breach of fiduciary duty EXCEPT-
: Allowing premiums to be submitted electronically
26.In a life insurance policy, which provision states who may select policy op- tions, designate and
name a beneficiary, and be the recipient of any financial benefits from the policy?: Owner's Rights
27.Which of these is NOT considered to be an element of an insurance contract?:
Negotiating
28.A life insurance policy would be considered a wagering contract WITH- OUT:: Insurable
interest
29.In Tennessee, an insurer that is incorporated in New Jersey and conducts business in Tennessee
is called a(n): Foreign insurer
30.What is the maximum fine that can be imposed by the Commissioner to a producer who violates
an insurance law?: $1,000 per violation
31.All of these insurance subjects qualify for continuing education credits in Tennessee EXCEPT::
Motivating producers
32.Whose life is covered on a life insurance policy that contains a payor benefit clause?: Child
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