Tennessee Law Supplement Practice Exam
what is another name for medical and nonmedical services provided to ill, disabled, or infirm persons in their residence? a. long-term care b. adult day care c. acute care d. home health care
d
within how long after receiving proof of an insured's death must an insurer pay a death benefit? a) 2 weeks b) 1 month c) 6 weeks d) 2 months
d
Replacing insurers must do all of the following EXCEPT a) make a conservation effort b) maintain evidence, for at least 5 years, of the notice regarding replacement, the Policy Summary, and any ledger statements used c) send each existing insurer a written communication advising of the proposed replacement d) provide an unconditional refund offer of at least 20 days from the date of policy delivery
A
To obtain a license to sell insurance in Tennessee, an individual must meet all of the following requirements EXCEPT A) be at least 21 years old B) complete required prelicensing education C) pay the required fee D) pass the licensing exam
A
all of life insurance policies issued in Tennessee must provide a grace period of at least a) 30 days b) 60 days c) 90 days d) 180 days
A
An insurer appointing a producer as its agent must file a notice of the appointment with the commissioner within how many days after the date the agency contract is executed or the first insurance application is submitted? A) 15 B) 30 C) 45 D) 60
A) 15
who administers all laws that relate to insurance in Tennessee? A) Department of Commerce and Insurance B) Insurance producers C) Federal Insurance Association D)Tennessee Legislature
A) Department of Commerce and Insurance
If a producer were to write an insurance contract with a company that was not authorized to do business in Tennessee, he would A) be held personally liable for all premiums and claims B) be guilty of a felony C) be required to forfeit his commission D) have his license suspended without a hearing
A) be held personally liable for all premiums and claims
At least how many hours of prelicensing education must be completed by an applicant for a life insurance producer's license? a) 10 b) 20 c) 25 d) 40
B
Who is an authorized insurer? A) A producer authorized by the Commissioner to transact business in Tennessee B) A company authorized by the Commissioner to transact insurance business in Tennessee C) A producer who has the authority to represent an insurance company D) A policyholder who has a legal contract with an insurance company
B
a medicare supplement policy cannot deny claims for losses occurring more than now long after the effective date of coverage because of a preexisting condition? a. 3 months b. 6 months c. 1 year d. 2 years
B
which of the following is an example of replacement that requires notice and a policy cancellation? a) a new policy issued by the same insurer b) a new policy that causes an existing life insurance policy to be surrendered c) a credit life insurance policy that causes an existing credit life insurance policy to be forfeited d) an employer chances its group life insurance carrier
B
An insurance company's license to do business in Tennessee is called A) a notice of risk assignment B) a certificate of authority C) a mutual benefit card D) a license to solicit registration
B)
Applicants can receive limited insurance representative licenses, without examination, in all of the following lines of insurance EXCEPT A) credit life and health B) group life and health C) mortgage guaranty insurance D) crop hail insurance
B)
Which of the following individuals must pass the state's producer licensing examination? A) a salaried officer of an insurance company B) applicants who apply for life and accident and sickness insurance licenses C) an individual who wants to reinstate a license that lapsed within the past 12 months D) nonresident producers who apply for a reciprocal license within 90 days of moving to Tennessee
B)
Within how many days of a change of address must a producer notify the commissioner of the change a) 10 b) 30 c) 45 d) 60
B)
at least how many of a producer's continuing education hours must be on the subject of ethics? A) 2 B) 3 C) 4 D) 5
B)
which of the following would be considered an unfair claims practice? A) splitting commissions with a client B) failing to affirm or deny coverage within a reasonable time following proof of loss C) convincing a policyowner to lapse or surrender a current policy and purchase a new policy D) making oral or written statements that are false, maliciously critical, or calculated to injure a competing producer
B)
Which of the following does an appointed insurance producer represent in an insurance transaction? A) Policy owner B) Insurer C) State of Tennessee D) Broker
B) Insurer
Duties of the Tennessee Commissioner of Insurance include all of the following Except A) oversee licensing of insurers and producers B) pass legislation pertaining to insurance C) impose appropriate penalties for violations of insurance law D) conduct hearings and investigations into insurance matters
B) Pass legislation pertaining to insurance
which of the following statements about long term care insurance is CORRECT? a. a long-term care policy may require prior hospitalization before the policyowner qualifies for benefits in a skilled nursing facility b. all long-term care policies must contain a 10-day free look period c. a long-term care policy may provide coverage for home health benefits, including medical and nonmedical benefits d. insurers may cancel or decline to renew long-term care policies because of the insured's age or mental health
C
A licensed non resident producer who moves to Tennessee and applies within 90 days of arrival to become a resident producer is exempt from A) all license fees for the first renewal period only B) all continuing education requirements for the first 2 renewal periods C) the insurance licensing examination D) all license application requirements
C)
Bud was found guilty of a single instance of knowingly violating an insurance law. The Commissioner could order Bud to pay a penalty of up to what amount? A) $5,000 B) $10,000 C) $25,000 D) $75,000
C)
The Commissioner may deny, suspend, or revoke an agent's insurance license for all of the following reasons EXCEPT A) violating any Tennessee insurance law B) making a false statement in the license application C) being convicted of a misdemeanor D) misusing fund belonging to insurers or policyholders
C)
The commissioner may issue all of the following penalties to producers who engage in unfair or deceptive practices EXCEPT A) order violators to cease and desist from the prohibited practice B) order payment of a $1,000 fine for each nonwillful violation C) order a 2-year prison term for willful violators D) suspend willful violator's licenses
C)
which of the following statements about a non-resident producer's license is CORRECT? A) A non resident cannot sell insurance in Tennessee B) a producer who lives in another state can obtain a non resident Tennessee license even if the producer's home state will not license Tennessee producers as non residents C) a producer who lives in Georgia can obtain a nonresident Tennessee license only if his Georgia license is in good standing D) a maximum of 25% of a producer's sales can come from nonresident states
C)
If an insurance producer refunds a portion of an insured's premium, the producer may be guilty of A) misrepresentation B) churning C) rebating D) defamation
C) rebating
a producer must complete how many hours of approved continuing education very 2 years after licensure? A) 10 B) 12 C) 18 D) 24
D
temporary licenses are issued for a term of A) 1 month, renewable B) 1 month, nonrenewable C) 180 days, renewable D) 180 days, nonrenewable
D)
which of the following is NOT an unfair practice? A) rebating premiums B) discriminating against a blind applicant for insurance C) issuing company stock to induce people to purchase insurance D) readjusting the rate of premium for group insurance policies based on the insurer's expense experience
D)
which of the following people could NOT be granted a temporary producer's license? A) widow of a deceased producer B) designee of a licensed producer who is entering active service in the US armed forces C) employee of a licensed producer who becomes disabled D) an insurance client of a deceased producer
D)
A business entity may become licensed as a producer if A) it becomes a registered corporation in Tennessee B) the insurance commissioner is granted power of attorney to act on behalf of the business C) it posts a $10,000 surety bond D) it designates a licensed producer who will be responsible for the entity's compliance with state laws and regulations
D) it designates a licensed producer who will he responsible for the entity's compliance with state laws and regulations
The Commissioner of Insurance has the authority to do all of the following EXCEPT A) revoke a producer's license or a company's certificate of authority B) subpoena witnesses and question them under oath C) order persons to cease from engaging in unlawful insurance activity D) propose and enact state legislation related to insurance
D) propose and enact state legislation related to insurance
a medicare supplement policy must meet all of the following requirements EXCEPT? a. it may indemnify against losses resulting from sickness on a different basis than losses resulting from accidents b. benefits must be adjusted automatically to coincide with changes in medicare deductibles and copayments c. it must be a guaranteed renewable d. it cannot cancel or refuse to renew a policy for any reason other than material misrepresentation or nonpayment of premiums
a
a producer must provide all prospective life insurance purchasers with buyer's guide and a policy statement before the initial premium is accepted unless a. the policy contains an unconditional refund provision of at least 10 days b. the policy is a variable contract falling under FINRA regulations c. the policy is a whole life contract d. the prospective policyowner signs a waiver
a
the medicare supplement insurance open enrollment period extends for how many months beginning with the month an insured is both age 65 or older and first enrolled in medicare part b? a. 6 b. 9 c. 12 d. 18
a
all of the following statements are true about group insurance that covers dependent children EXCEPT a. no additional premium may be charged for newborn children b. health benefits must be payable for newborn children from the moment of birth c. policies must cover newborn health screenings d. policies must cover the treatment of medically diagnosed congenital defects and birth abnormalities
aall of
a policy summary must constitute a document separate from the policy that includes all of the following information EXCEPT a. the generic name of the policy b. a notice of replacement c. the policy loan interest rate d. the equivalent level annual dividend
b
long-term care policies can limit or exclude coverage for all of the following EXCEPT a. preexisting conditions or diseases b. family history of heart condition c. treatment provided in a government facility; not required by law d, intentionally self-inflicted injury
b
on a participating life insurance policy, dividends must become payable no later than the end of what policy year? a. 2 b. 3 c. 5 d. 6
b
when a life insurance policy replacement occurs, a producer must do all of the following EXCEPT a, submit a signed policy comparison form b. forward a copy of all communications used in the replacement to the existing insurer c. submit a list of all existing life insurance policies to be replaced d. submit a signed notice regarding replacement
b
a purchaser of a medicare supplement policy has the right to review the policy and return it within how many days of its delivery? a. 10 b. 20 c. 30 d. 60
c
accident and health insurance policies that are paid for with monthly premiums must have a grace period of at least how many days? a. 5 b. 7 c. 10 d. 12
c
any reference to policy dividends must include a statement that they are a. available in cash b. subject to the insurer's profitability c. not guaranteed d. subject to income taxation
c
within how many years after default may a lapsed life insurance policy be reinstated? a) 1 b) 2 c) 3 d) 4
c
a producer's tennessee insurance license will remain valid for how long after the date of issue? A) 1 year B) 18 months C) 2 years D) 3 years
c)
a long-term care policy can exclude or limit coverage for all of the following EXCEPT a. mental disorders b. alcoholism c. illnesses resulting from war d. Alzheimer's disease
d
all of the following statements about blanket accident and sickness insurance policies are correct EXCEPT a. they are issued to groups such as common carriers and educational institutions b. individual applications are not required c. the insurer does not need to furnish each person with a certificate d. group accident and health insurance policies can exclude or reduce benefits of persons also covered by a blanket or a franchise school accident policy
d
the life insurance net payment cost index is calculated the same as the life insurance surrender cost index that the cash surrender value and any terminal dividend are set at a. the 10-year level b. the 20-year level c. the level when the contract endows d. zero
d
the regulations governing the replacement of a life insurance policy do not apply to any of the following EXCEPT a. credit life insurance b. a group life insurance policy c. a group annuity contract d. a variable life insurance policy
d
