TENNESSEE LIFE AND HEALTH INSURANCE EXAM STUDY

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TENNESSEE LIFE AND HEALTH INSURANCE EXAM STUDY

GUIDE Qs and Ans - Expert- Explanation - ing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: D. Boycott, coercion and intimidation

Answer:

If a bank will not grant a loan unless the borrower buys insurance from a specific company, the bank and insurer are guilty of which of the following unfair trade practices?

• Defamation

• Unfair discrimination

• Rebating

• Boycott, coercion and intimidation

Question 2: 1. Ordinary Whole Life

• Permanent protection, age 100
• Builds cash, loan, non-forfeiture values
• Cash Value = Face Value at maturity
• Level premium and face amount
• Owner may borrow from cash value
• Settlement options available upon death or maturity

• The shorter the premium paying period the higher the premium
• Riders may be added

Answer:

Characteristics of Whole Life

Question 3: ? Premiums waived

? Insured receives a monthly income

Answer:

Waiver of premium/disability income

Question 4: A. 2

Answer:

The insurer is not liable of the insured, whether sane or insane, commits suicide within the first _____ years the policy is in force.

• 2

• 3

• 4

• 5

Question 5: Contract of Adhesion

Answer:

One party (insurer) prepares the contract and it is not negotiable.

Question 6: Fixed

Answer:

Specified amount of coverage, benefits and premium with no inflation protection. Cash value growth has a guarantee

Question 7: ? Total disability, waive premiums

? Cash value, dividends and protection continue as usual

Answer:

Waiver of Premium

Question 8: Rider

Answer:

Added benefit attached to the policy for a small additional premium

Question 9: C. Variable Universal and Variable

Answer:

Which combination of life insurance products requires both a life and securities license to sell?

a) Adjustable and Universal

b) Universal and Fixed

c) Variable Universal and Variable

d) Fixed and Adjustable

Question 10: 1. Covers two or more lives

• Death benefit paid upon first death
• Premiums based upon joint age
• Written on a Whole Life Policy

Answer:

Joint Life (first to die)

Question 11: Term

Answer:

Lowest premium outlay, temporary coverage for short term need , no cash value, and the benefit can be level, increasing or decreasing Question 12: ? Waives deduction of monthly cost and expenses associated with Universal Life

Answer:

Waiver of Cost of Insurance

Question 13: Viatical Settlement Contract

Answer:

Written agreement between provider and viator and establishes the terms of the agreement

Question 14: Group

Answer:

Master policy issued to plan sponsor and typically written as annual renewable term. Makes up 40% of all insurance

Question 15: D. 31

Answer:

Newborn coverage begins at birth and will continue for at least how many days?

• 7

• 14

• 21

D.31 Question 16: B. A person whose Medicare Supplement benefits under an employee welfare benefit plan area still in effect

Answer:

Which of the following is not eligible for a Medicare Supplement Policy?

• A person whose enrollment ceases under circumstances that permit cessation of the individual's right

to elect coverage.

• A person whose Medicare Supplement benefits under an employee welfare benefit plan area still in

effect.

• A person enrolled under a Medicare+ Choice plan if the coverage is terminated or discontinued, or

the organization providing coverage is terminated.

• A person whose enrollment under a Medicare Supplement policy terminates, and whose subsequent

coverage under a Medicare+Choice policy terminates within 12 months of enrollment.