TN insurance

the benefit is received tax free

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

annually renewable term

All other factors being equal, the least expensive first year premium payment is found in

ask her to sign a statement of good health

An agent is ready to deliver a policy to an applicant but had not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?

Illegal under any circumstances

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professional unstable.

authorized insurer

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an

An unfair trade practice

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

the completed application is submitted

In insurance, an offer is usually made when

Funding against general company financial loss

The following are legitimate uses of insurance in a business setting EXCEPT

a non qualified annuity plan

The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is...

payor benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

notice regarding replacement

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

the application given to a prospective insured

Which of the following is NOT the consideration in a policy?

a person who negotiates insurance contracts

Which of the following persons is required to hold a producer license?

automatic premium loan

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?

whole life

Which of the following types of insurance policies would perform the function of cash accumulation?

replacement rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

coercion

a banker is ready to close on a customer's loan. the bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. this is an example of

costs of training a replacement

a key person insurance policy can pay for which of the following?

insurable interest and consent

a life insurance policy has a legal purpose if both of which of the following elements exist?

other-insured rider

a rider etched to a life insurance policy that provides coverage on the insured's family members is called the

a copy of the original application for insurance

according to the entire contract provision, a policy must contain...

The interest is not taxable since it remains inside the insurance policy

all of the following are TRUE statements regarding the accumulation at interstate's option EXCEPT

fixed-period installments

all of the following are dividend options except?

an insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

all of the following are examples of third party ownership of a life insurance policy except...

beneficiary's age

all of the following information about a customer must be used in determining annuity suitability EXEPT

the insured may choose to convert to term or permanent individual coverage

an employee is insured under her employer's group life plan. if she terminates her group coverage which of the following statements is incorrect?

sexual orientation

an insurance application cannot ask about which of the following information about an applicant?

limited-pay life

an insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. what kind of policy is it?

interest-sensitive whole life

an insured purchased a life insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. this policy is a/an

manual

an insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

illegal

an insurer devises an intimidation strategy in order to corner a large portion of the insurance market. which of the following best describes this practice?

3

an insurer must keep a copy of each authorized form it uses until how many years after the date of its last authorized use?

10

an insurer must present a buyer's guide and policy summary prior to accepting the applicant's initial premium, unless the policy contains an unconditional refund provision lasting at least how many days?

$1000 for each violation

any person acting as an insurance producer without a valid license may be fined up to

conditions

because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements except:

The agent should ask the customer to sign a statement acknowledging that he is aware of the change

before a customer's agent delivers his policy, the insurer makes a last-minute change to the policy. the agent informs the customer of this change, and he accepts it. what must the agent do now?

term

children's riders attached to whole life policies are usually issued as what type of insurance

obtain a list of all life insurance policies that will be replaced

during replacement of the insurance, a replacing insurer must do which of the following?

seek higher returns

equity indexed annuities...

make testimony and documents available to the public

for the purpose of making an investigation the commissioner does NOT have the power to do which of the following?

make testimony and documents available to the public

for the purpose of making an investigation, the commissioner does NOT have the power to do which of the following

3

how any hours of continuing education must be completed in ethics each licensing period?

3 years following the date of its lost authorized use

how long must an insurer keep a copy of an authorized form in its records?

every 2 years

how often are insurance producers in this state required to fulfill continuing education requirement?

2 months

how soon must the insurer pay a death benefit claim after receiving the proof of death?

5 days

if a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

30 days

if a resident insurance producer moves from Tennessee to another state, he/she must file a change of address and provide certification from the new resident state within how many days of the change of legal residence?

ancestry

if an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process and if a notice of insurance information practices has been provided, the report may contain all of the following information except the applicant's

unilateral

if only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

the insurer

in any controversy between the insured or the insured's beneficiary and the insurer that arises from the application for insurance or any policy issued in connection with the application, the producer is considered to be the agent of which of the following?

grow tax deferred

in life insurance policies, cash value increases

if the insured lives to age 100

in which of the following cases will the insured be able to receive the full face amount from a whole life policy?

Risk

insurance is the transfer of

adhesion

insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. what contract characteristics does the this describe?

2

life insurance cost indexes are only useful when comparing a minimum of how many similar policies?

the spouse of the policy owners

on a health insurance application, a signature is required from all of the following individuals except

group life insurance

rules of replacement apply to all of the following EXCEPT

the guaranteed dividend rate

the guaranteed dividend rate

100

the insured is also the policy owner of a whole life policy. what age must the insured attain in order to receive the policy cash/face value amount?

the policy contains sufficient cash value to cover the cost of insurance

the policy owner of a universal life policy may skip paying the premium and the policy will not lapse as long as

the death benefit can be increased by providing evidence of insurability

the policy owner of an adjustable lie policy wants to increase the death benefit. which of the following statements Is correct regarding this change?

the original policy is allowed to lapse

the protocol for replacement applies to which of the following situations?

the state

the regulation of the insurance industry primarily rests with

all the time of application

to comply with fair credit reporting act when must a producer modify an applicant that a credit report may be requested?

For 20 years or until death, whichever occurs first

under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid...

24 months

unless revoked or suspended, how long does a producer's license remain in effect in Tennessee?

signed waiver of premium

upon policy delivery, the producer may be required to obtain any of the following

it has the highest amount of insurance protection

what is the benefit of choosing extended term as a nonforfeiture option?

viator

what is the name of the insured who enters into a vatical settlement?

to lessen the risk of financial loss because of the death of a key employee

what is the purpose of key person insurance?

grace period

what provision in an insurance policy extends coverage beyond the premium due date?

consideration

when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

conditional

when both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

collect payment at time of delivery

when delivering a policy, which of the following is an agent's responsibility?

coverage until death or age 100

which characteristic makes whole life permanent protection?

the policy owner of the life insurance policy

which of the following best defines the "owner" as its pertains to life settlement contracts?

selection, classification, and rating of risks

which of the following best describes the underwriting process for life insurance?

the amount of premium payment

which of the following information will be stated in the consideration clause of a life insurance policy?

misstatement of age

which of the following is NOT a mandatory policy provision in life insurance policies issued in this state?

the seller must be terminally ill

which of the following is NOT true of life settlements?

the annuitant cannot be the same person as the annuity owners

which of the following is NOT true regarding the annuitant?

life paid-up at age 65

which of the following is an example of a limited pay life policy?

at the end of 20 years, the police's cash value will equal $100,000

which of the following is incorrect regarding a $100,000 20 year level term policy

it remains the same no matter how many children are added to the policy

which of the following is true about the premium on the children's rider in a life insurance policy?

the premium is level

which of the following is true regarding the premium in term policies?

a minor son of the insured

which of the following need beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death?

term life

which of the following policies would NOT have a policy loans provision

policy loan

which of the following provisions would NOT be found in term life insurance?

it will pay double or triple the face amount

which of the following statements isTRUE concerning the accidental death rider?

life expectancy

which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors

term rider

which of the following when attached to a permanent life insurance policy allows the Policyowner to customize the policy to provide an additional amount of temporary insurance on the insured or allows amounts of temporary insurance to cover other family members?

premium amounts and surrender values

which of the following will be included in a policy summary?

controlled business

which of the following would NOT be considered an unfair and deceptive practice?

the medical information bureau

which of the following would provide an underwriter with information concerning an applicant's health history?

face amount

which policy component decreases in decreasing term insurance?

policy owner

who can request changes in premium payments, face value, loans, and policy plans?

a policy owner who is not the insured

who is a third party owner?

the employer is the owner and the beneficiary

who is the owner and who is the beneficiary of a key person life insurance policy?

insurers

who makes up the medical information bureau?

3 days

within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?