Exam Study Guide Questions and

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Tennessee Life and Health Insurance Exam Study Guide Questions and Answers Latest Version Rated A+

Who regulates insurance companies in Tennessee?

• Tennessee Department of Revenue
• Tennessee Department of Insurance, Financial Institutions and Professional Registration

✔✔ C. Tennessee Department of Commerce and Insurance

• Federal Insurance Office

What is the purpose of a life insurance policy’s incontestability clause?

• Allows insurer to deny claims anytime
• Extends coverage for 5 years

✔✔ C. Prevents insurer from contesting claims after 2 years

• Voids the policy after 1 year

Which type of life insurance policy provides coverage for a specific period only?✔✔ A. Term life

• Whole life 1 / 4

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• Universal life
• Variable life

In Tennessee, what is the standard grace period for life insurance policies?

• 10 days
• 15 days

✔✔ C. 31 days

• 60 days

What is the primary benefit of a waiver of premium rider?

• Pays dividends
• Lowers premiums

✔✔ C. Waives premiums if the insured becomes disabled

• Increases death benefit

Which of the following is NOT a required element of a valid insurance contract?

• Offer and acceptance
• Consideration 2 / 4

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• Legal purpose

✔✔ D. Physical exam

How long must Tennessee insurance producers keep records of transactions?

• 2 years

✔✔ B. 5 years

• 10 years
• 1 year

Which of these health insurance policies typically requires the insured to select a primary care physician?✔✔ A. Health Maintenance Organization (HMO)

• Preferred Provider Organization (PPO)
• Indemnity Plan
• Medicare Supplement

What type of policy allows the policyholder to adjust the death benefit and premiums?

• Whole life 3 / 4

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✔✔ B. Universal life

• Term life
• Accidental death only

What does the Tennessee Life and Health Insurance Guaranty Association protect?

• Premium payments

✔✔ B. Policyholders if the insurer becomes insolvent

• Agents’ commissions
• Investment portfolios

Which of the following best describes a limited health insurance policy?

• Covers all medical expenses

✔✔ B. Covers only specific illnesses or accidents

• Includes dental and vision
• Has no deductible

What must an agent do before selling a replacement life insurance policy in Tennessee?

• Cancel the old policy immediately
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