TN Life and Health State Exam Simulator Latest Update

pg. 1 TN Life and Health State Exam Simulator Latest Update

Answers/ Graded A+

Which of these is NOT a fair marketing practice when an existing insurance policy is being replaced - Correct Answer - reduce the cost by lowering the commission

J applies for an insurance policy. What BEST describes the particular terms of this policy? - Correct Answer - Policy summary

Which mode of payment is NOT used by health insurance policies? - Correct Answer - Single Premium

Who determines the education credits needed for a producer's continuing education? - Correct Answer - Commissioner of Commerce and insurance

Dental care coverage is designed to cover the costs of all of the following EXCEPT: - Correct Answer - loss of income

P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax? - Correct Answer - $0

Which of the following types of health coverage frequently uses a deductible? - Correct Answer - Major Medical policy

P is a producer who notices 5 questions on a life application were not answered. What actions should P take? - Correct Answer - Set up a meeting with the applicant to answer the remaining questions 1 / 4

pg. 2 When a Medicare Supplement policy is delivered to a policyholder, which of the following MUST accompany the policy? - Correct Answer - Outline of Coverage

What is the maximum fine that can be imposed by the Commissioner to a producer who violates an insurance law? - Correct Answer - $1,000 per violation

Which of the following BEST describes a warranty? - Correct Answer - Statement guaranteed to be true

Which of these actions should a producer take when submitting an insurance application to an insurer? - Correct Answer - Inform insurer of relevant information not included on the application

Which statement is TRUE regarding a group accident & health policy issued to an employer? - Correct Answer - The employer receives the policy and each employee is issued a certificate

B is an insurance producer who occasionally engages in financial planning. If B sells an insurance policy during the course of a financial planning seminar, B must disclose to the client - Correct Answer - that a commission will be earned in addition to any fee charged for financial planning

All of these are powers of the Commissioner EXCEPT - Correct Answer - incarcerate a producer

Which of the following is NOT a limited benefit plan? - Correct Answer - life insurance policy

Which statement is true regarding a minor beneficiary - Correct Answer - Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

Which of these is NOT a legitimate insurance marketing practice for obtaining business from a competitor? - Correct Answer - Reducing commissions in order to make a sale 2 / 4

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An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses? - Correct Answer -

$3,000

XYZ Corp was issued a group Accident and Health policy for its employees. Under this plan a - Correct Answer - policy must be issued to XYZ, and a certificate must be issued to each employee

Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? - Correct Answer - Premiums normally increase at time of renewal

In Tennessee, the MAXIMUM fine that the Commissioner can impose on a producer is _ per violation - Correct Answer - $1,000

What authority does the Commissioner have over Tennessee producers? - Correct Answer - the commissioner may establish guidelines for continuing education as a part of the producer license renewal procedure

C is the policy owner of a Comprehensive individual Major Medical policy. C pays an annual premium which is due September 1. If C forget to pay the premium and is hospitalized September 10, how will the insurer handle the claim? - Correct Answer - Pay the claim in full minus the premium due (Because the grace period is 31 days for Individual Accident and Health policies paid annually, this claim will be paid minus the premium due)

What is the initial requirement for an insured to become eligible for benefits under the Waiver of Premium provision? - Correct Answer - Insured must be under a physician's care

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pg. 4 Medicare Part C is: - Correct Answer - Available to those who are enrolled in Medicare part A and B

A(n) _ of benefits of a Health Policy transfers payments to someone other than the policyowner - Correct Answer - assignment

Insurance contracts may be sold, solicited, or negotiated by an insurance producer ONLY upon - Correct Answer - becoming an appointed producer of an insurer

Before a health insurance policy is issued, which of these components of the contract is required? - Correct Answer - Applicant's signature on application

Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy? - Correct Answer - Issue the policy with an altered Time of Payment of Claims provision

The insurance Commissioner is REQUIRED to do which of the following before holding a hearing that could lead to the suspension of a producers license. - Correct Answer - give written notice to the producer

In Tennessee, the definition of "individual" may include which of the following? - Correct Answer - The Individual's legal representative

P's individual health policy is now in the Grace Period. P's coverage will remain in force if - Correct Answer - The premium is paid

A producer may apply for one or more of the following licenses: - Correct Answer - All of the above

An insured must notify an insurer of a medical claim within how many days after an accident? - Correct Answer - 20

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