Tennessee Life and Health Insurance Practice Exam

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• How often must you renew your insurance license?
• When does a unilateral contract become enforceable?
• Which insurance type typically has a higher premium due to its increasing cash value?
• What is the main function of the Commissioner in the insurance field?
• In a continuous pay whole life policy, what happens at age 100?
• How many hours of continuing education are required to renew your license, and how many of those need to be in Ethics?
• What is the amount paid to the beneficiary upon the insured's death known as?
• Under what condition might an applicant not be informed of the reason for rejection in life insurance?
• What type of disability insurance pays benefits for loss of income if the insured is unable to earn as much as before?
• What term describes the act of transferring ownership of an insurance policy?
• Which policy insures two individuals (husband and wife) and pays off at the death of the first insured?
• Medicaid is a federal-state program primarily for which of the following groups?
• What is a collateral assignment?
• Which of the following describes a life income policy?
• What best defines the job of an underwriter in insurance?
• Which report may interview friends or co-workers about the applicant?
• Which type of beneficiary designation allows the policy owner to change the beneficiary at any time?
• What does a multiple indemnity rider do regarding policy benefits?
• What is a key characteristic of recurrent disability?
• What type of life insurance can you convert your group life into upon termination of employment?
• Which method requires the policy to be sent back to the insurer along with a letter for beneficiary changes?
• What method involves sending a letter with the new beneficiary's name to change the beneficiary?
• In the context of insurance, what does the term "adhesion" refer to?
• When must the insurer pay benefits on a claim?
• Which term applied to damaging statements about an insurer could lead to legal repercussions?
• Which rider allows you to add non-related individuals to an insurance policy?
• Which term refers to the current dividend that can be applied to the premium?
• Which of the following best describes the term "residual disability"?
• What is the term for the one-time waiting period before health benefits become effective?
• What ensures that consumer information is protected from unauthorized access?
• How long may an insurer defer a loan request from a policyholder?
• What type of life insurance invests premiums in the stock market to hedge against inflation?
• Which federal health insurance program is designed for individuals aged 65 or older?
• What term describes writing insurance on oneself, one's family, or employer?
• Which statement accurately describes a representation in an insurance application?
• What is a common feature of scheduled premium variable life insurance?
• What allows an insured individual to select any healthcare provider without restriction?
• Which type of insurance allows borrowing against cash value?
• In the context of accidental death policies, what term refers to the maximum amount payable in the case of accidental death?
• What type of benefit allows insured individuals to access part of their death benefit if diagnosed with a terminal illness?
• What is the potential penalty amount for a Cease and Desist Order issued by the Commissioner?
• Which insurance policy primarily invests premiums in a cash value account that earns competitive interest?
• What is the focus of basic insurance in terms of coverage?
• What rider pays an additional amount equal to all premiums paid upon the policyholder's death?
• What act mandates that insurers must guarantee issue health plans to individuals who lose prior group health coverage?
• What two pieces of information must you know to advise a client on the length of the elimination period?
• What type of policy provides periodic income to an individual who is totally disabled from accident or illness?
• Who does the insurance producer represent?
• What does it mean when a beneficiary is classified as revocable?
• What term is used for a condition that returns before the insured has been back to work for six months following total disability?
• What term describes giving something of value not specified in the insurance contract?
• What type of rider provides additional benefits to the insured when they have a pre-existing handicap?
• What type of policy would typically provide coverage for persons injured on the job?
• What part of Medicare is hospital insurance given to everyone?
• Which federal regulation aims to protect the privacy and security of health information?
• What is an unauthorized insurer?
• Which of the following best defines the act of "rebating" in insurance?
• Where can the face value for a life insurance policy typically be found?
• How long does the insured have to send in notice of claim forms?
• What benefit does a return of premium rider offer to the insured?
• What statement accurately reflects the purpose of policy exclusions?
• Which term describes a person covered under a health insurance policy?
• Which form of assistance is provided during Total Disability?
• Which type of rider specifically adds benefits for the insured's family members?
• What is the purpose of the grace period in life insurance policies?
• What type of life insurance is paid up at age 65?
• What does the carry over provision allow insured individuals to do?
• Which policy pays for business overhead expenses to keep it operational if the owner becomes disabled?
• What insurance policy starts with a low premium and then gradually increases over 5-10 years before stabilizing?
• Which type of variable life insurance guarantees minimum death payment and allows borrowing against cash value?
• Which type of health insurance plan often emphasizes preventive care and wellness?
• How long must an insurer keep the file of sales materials used by their producers?
• What term is used for a person who sells, solicits, or negotiates insurance?
• What does Medicare Part C refer to in the Medicare system?
• How many hours of education are required to obtain a life insurance license?
• Who is designated to receive life insurance proceeds upon the insured's death?
• What is the term for the payment method where reimbursement goes directly to the insured?
• What is referred to as a formal or sworn statement about the loss to the insurer?
• What type of insurance pays off existing loans upon the death of the insured?
• Which type of life insurance allows the policyholder to keep the coverage regardless of changes in health status?
• What type of policy provides coverage for two insured individuals (husband and wife) and pays benefits after the last insured dies?
• What term describes a statement that is guaranteed to be true in an insurance application?
• What is the implication of a level premium payment?
• Which term refers to the fixed schedule of payments made for an insurance policy?
• What is the term for the period granted to pay the premium after its due date without the policy lapsing?
• What type of life insurance does NOT require a medical examination?
• What is the maximum timeframe allowed for submitting proof of loss to an insurer?
• Which type of report provides comprehensive information about the financial and moral background of an insurance applicant?
• Which term describes the policyholder's right to switch from term coverage to permanent coverage?
• How many days prior to the expiration date are you typically sent a notice of expiration of your license?
• What type of insurance arrangement typically involves a life insurance policy purchased for each partner in a business?
• Which policy provides coverage by focusing on investment in cash value and using the remainder for term insurance needs?
• How much insurance coverage does a substandard risk have if they pay the same premium as a normal risk with a $20,000 coverage?
• What type of disability allows an insured to receive benefits after returning to work?
• What type of coverage is typically provided under a family maintenance policy?
• Upon suspension, revocation, or termination of your license, what must you do with your license?
• What feature differentiates interest-sensitive whole life insurance?
• Which of the following statements is true regarding Medicare Part D?
• Which of the following describes a life insurance policy that has the lowest premium?
• What can exclude coverage under a life insurance policy?
• What is referred to as paid-up insurance?
• Which type of policy ensures that the insurer cannot cancel the policy or increase the premium?
• If a group term life policy is converted, how many days does the insured have post-employment to make the conversion?
• Which federal law requires employers with 20 or more employees to provide continuation of group health insurance coverage for terminated employees?
• What term describes an annuity payment that is made as a single lump sum?
• What is the maximum amount of group life insurance coverage an employer can provide without incurring a tax for the employee?
• What is the primary characteristic of graded premium whole life insurance?
• In the case of a $75,000 group life insurance policy, how much would be taxable to the beneficiary?
• Which term best describes a policy that provides level term and whole life coverage while maintaining an income for dependents?
• What components make up the entire contract of a life insurance policy?
• What is the primary purpose of an underwriter?
• What document provides a summary of the benefits and exclusions of your policy?
• Which term describes an insured whose condition is so severe they do not need to perform periodic exams?
• Which of the following terms refers to a promissory act in an insurance contract?
• What type of disability insurance is commonly available as a group plan?
• Which type of insurance pays off the balance of a loan at the insured's death?
• After how many months do you receive your first Social Security Disability check?
• What type of policy covers all family members, giving the breadwinner whole life and term coverage for the spouse and children?
• How long does an individual have to convert a group term life policy upon termination of employment?
• Which term describes the inability to perform one or more, but not all, of the duties of your occupation?
• What type of insurance is typically designed for coverage off the job?
• Which type of premium payment allows for varying amounts to be paid based on the policyholder’s intention?
• Within the context of dismemberment, what term is used to denote the amount paid for the dismemberment of an insured?
• What is required for reinstatement of a lapsed insurance policy?
• Under which condition can an insurer cancel an optionally renewable policy?
• What type of renewal clause allows insurer cancellation based on specified conditions?
• How long do you have to notify the Commissioner of a change of residency?
• What defines the amount paid for a loss due to dismemberment in insurance terms?
• What type of policy expires each year but can be renewed with increasing premiums?
• What happens to an insurance policy if the insured commits suicide six months after purchasing it?
• How long is a temporary insurance license valid?
• What are the benefits defined in a life insurance policy commonly referred to as?
• Which policy enables the premium to be paid up over a period of 20 years?
• If your address changes, what should you do within the specified time frame?
• Which type of insurance requires premiums to be paid up before age 100, usually resulting in a higher cash value?
• What approach does a service insurer typically take in handling payments?
• What type of insurance is a policy that has changed to provide coverage with a reduced face amount after the conversion?
• What type of insurance pays off if the insured is killed from accidental bodily injury or faces specified losses from an accident?
• What type of policy allows the insurer to raise premiums only on a class basis, but not cancel the policy?
• What is the main purpose of Medicare Advantage plans?
• Which type of life insurance is typically provided by an employer to employees?
• What type of life insurance is taken out to buy out a deceased partner's spouse or family?
• What does residual disability insurance do for the insured?
• If an applicant signs up for a policy and dies in an accident before the policy is issued, what will the insurance company pay if they were a normal risk?
• What is the role of a limited insurance producer?
• What type of policy provides whole life and level term coverage on income benefits for the breadwinner's family?
• Which of the following policies is likely to pay a sum to surviving children after both parents have died?
• What is typically the structure of coinsurance in health insurance?
• What is the type of term life insurance where the face amount and the premium remain the same throughout the policy period?
• What does total disability refer to?
• Which insurance policy provides whole life and decreasing term coverage for the breadwinner to support a surviving family?
• What defines modified whole life insurance among other policies?
• What action should be taken if your license has been revoked?
• What indicates a policy owner's right to reinstate a lapsed policy?
• Equity index annuities offer what main benefit?
• What must a producer explain to a prospect when meeting for the first time?
• What is the term used for conditions or circumstances that are not covered by a health or disability policy?
• Which of the following is a characteristic of guaranteed renewable insurance?
• What type of beneficiary receives money only if the primary beneficiary is deceased when the insured dies?
• When do payments typically begin with an immediate annuity?
• What is the type of term insurance that starts at zero value and increases over time?
• What is the term for benefits that allow an insured to receive part of their death benefit before they die due to a terminal illness?
• What is a key feature of a group disability income policy?
• What is the primary purpose of workers compensation insurance?
• Which type of beneficiary is considered not legally competent to receive life insurance proceeds without a trustee appointed?
• What is the standard coverage for a normal risk individual if the premium for a substandard risk is the same?
• Which part of Medicare provides coverage for outpatient services?
• What is a common characteristic of a term life insurance policy?
• What type of medical policy combines both basic and major medical coverage?
• What is a publication that describes and compares different insurance policies called?
• What feature of a life insurance policy allows the death benefit to increase in relation to the cost of living index?
• What does illegal compensation refer to in the context of insurance?
• If an insurance company is authorized to do business in a state, it is referred to as what?
• How many days do you have to notify the Commissioner of a change of address?
• How many hours of continuing education in Ethics are required for license renewal?
• What benefit does basic surgical coverage provide?
• What type of entity is a corporation, association, partnership, or LLC in the act of selling insurance?
• An annuity that guarantees a lifetime income to the recipient is known as what?
• If a life insurance application is rejected based on an investigative report, what must the applicant be provided?
• What characteristic is associated with flexible premium variable life insurance?
• What benefit is provided under a provision that waives the child's premium when a parent becomes disabled or deceased?
• What type of Medicare plan includes both Part A and Part B?
• Which statement accurately describes a beneficiary in an insurance policy?
• What percentage of prelicensing education must be in the classroom?
• Which type of policy allows the insured to adjust the premium, face amount, and term?
• How long does an individual must wait before they can file a lawsuit against an insurer?
• What term describes an annuity where payments start later than one year?
• Term life insurance policies are typically known for what characteristic?
• In decreasing term insurance, what happens to the face amount over time?
• A contract requiring both parties to meet certain conditions to remain valid is known as what type of contract?
• Which policy provides periodic income to the insured while they are disabled from a covered accident or illness in a group setting?
• Which of the following policies allows changes in life insurance coverage based on life events such as marriage or childbearing?
• Which of the following provides financial support for specified loss from an accident?
• How many hours of education are necessary for obtaining an accident and health insurance license?
• Which type of assignment allows the policyholder to retain some rights while giving others temporarily?
• The medical expenses that are not compensated by health insurance fall under which term?
• What does Medicare Part B primarily cover?
• Which account is designed for individuals to pay medical expenses not covered by insurance, including savings components?
• What period follows a covered accident or illness when no benefits are provided to the insured?
• Which type of insurance plan allows for contributions that can be used to pay for non-reimbursed medical expenses?
• Which factor does NOT typically affect life insurance premium rates?
• What part of Medicare is optional medical insurance?
• What does the term boycotting typically mean in an insurance context?
• What happens if the policyholder misses a premium payment, according to the automatic premium loan provision?
• A variable annuity differs from a fixed annuity primarily by what feature?
• Which insurance term refers to a situation where the insured cannot work for a limited period but retains their job?
• What is the term for making untrue, deceptive, or misleading statements about an insurer or agent?
• What is the insuring clause in a life insurance policy?
• Which type of insurance pays high dollar amounts after the insured meets the deductible?
• What kind of investment strategy requires considerable investment experience?
• Which of the following scenarios does not typically represent an insurable interest?
• Which benefit allows the insured to add additional life insurance at specific ages or milestones?
• What is the name of the account where both employee and employer contributions can be utilized for uncovered medical expenses?
• What is the action of creating a monopoly or restricting fair trade in insurance transactions called?
• What term is used to describe the limit on the total amount the insured will have to pay out of pocket after the deductible has been met?
• Which type of group insurance plan has the employer covering 100% of the premium?
• Which provision states that if multiple family members are in a common accident, only one deductible will be applied?
• Which Medicare part is specifically associated with prescription drug coverage?
• What is the benefit that waives premium payments when the insured has been totally disabled for a specified period?
• What is the term for a life insurance policy that provides temporary coverage?
• Which of the following describes a policy providing a defined income until the insured's death, with no benefits payable after death?
• In a life insurance policy, what does the principal sum refer to?
• If an insured reduces the number of payments on their insurance policy, what happens to the annual premium?
• Which organization is responsible for notifying of license suspensions or revocations?
• For which type of term insurance does the face amount decrease over the life of the policy?
• Who notifies the National Association of Insurance Commissioners (NAIC) of any suspensions, revocations, or terminations of licenses?
• Which life insurance policy is known for its flexibility in adjusting terms and premiums?
• What is the right of the policyholder to renew their term life insurance policy at the end of the term called?
• What information is essential for determining the appropriate elimination period for a client?
• How long must you wait to reapply for your license once it has been revoked?
• What does it mean if an insured must adhere to the terms of a policy?
• What type of policy allows the insurer to cancel at any time with written notice?
• Which of the following describes a policy that uses borrowed cash value to pay missed premiums automatically?
• What is the latest time the policy summary and buyer's guide must be given to a client?
• How does Presumptive Disability differ from other types of disability?
• What provision allows insured individuals to continue coverage in the event of a common accident?
• What can be a drawback of term life insurance compared to whole life insurance?
• What term refers to a condition that the insured had sought advice or treatment for before the policy issue date?
• What type of life insurance provision guarantees payment after death for a specified period of time to a beneficiary?
• What is the clause that requires the owner of a policy to pay a premium in exchange for benefits?
• What term refers to the out-of-pocket expense the insured must pay before the insurer will cover the remaining costs?
• What is meant by insurable interest?
• What is the primary purpose of key employee life insurance?
• Which of the following is an example of a common policy exclusion in life insurance?
• Which insurance policy begins with a very low premium, eventually raising it after 3-5 years to a constant rate for life?
• What is the term for the cash value that a policyholder receives upon surrendering their policy?
• In what way is an irrevocable beneficiary different from a revocable one?
• What type of insurance policy helps cover some or all of Medicare's deductibles and copayments?
• What is the minimum amount of time that an insurer must keep records of a policyholder's claims history?
• What type of life insurance policy allows the premium to be paid in a single payment?
• What happens to the coverage of a term life insurance policy if it is not renewed?
• What stipulation is included for the distribution of life insurance proceeds if the primary beneficiary dies shortly after the insured?
• Which term refers to the insurance policy that promises payout after the insured reaches a certain age?
• What type of coverage includes both work-related and non-work-related injuries?
• What type of policy would be used to buy out a permanently disabled partner who can no longer contribute to the partnership?
• If a policyholder cannot determine the order of death, who receives the policy benefits?
• What do you call false or maliciously critical statements about the financial condition of any insurer?
• Which life insurance policy covers the insured for their whole life, generally up to age 100?
• What does the term "cash value" refer to in life insurance policies?
• Who is appointed by the governor for a term that lasts four years?
• What organization collects medical data specifically for life and health insurance companies?
• Which health plan emphasizes preventive care and offers prepaid doctor and hospital services?
• If your license expires, how long do you have to renew and reinstate it?
• What is considered a deceptive practice in the context of insurance?
• What is a rider that allows you to add family members to your insurance policy called?
• What type of managed care plan allows insured individuals the choice to go in or out of the network?