TLAHI - Tennessee Life and Accident and Health Insurance Exam

Question 1: A Nashville applicant wants permanent life coverage with a level premium, a guaranteed death benefit, and a cash value that builds over time on a guaranteed basis. A producer explains which traditional policy fits this description. Which type of life insurance is being described?

Whole life insurance

Annually renewable term

Decreasing term insurance

A single-premium immediate annuity

Question 2: A young Memphis couple wants the largest possible death benefit for the lowest current premium to protect their children during their working years, accepting that the coverage is temporary and builds no cash value. Which type of life insurance best fits their stated goal?

Whole life insurance

A variable universal life policy

Term life insurance

A fixed deferred annuity

Question 3: A Knoxville policyowner wants permanent coverage that lets him raise or lower the premium and adjust the death benefit over time, with cash value that earns interest at a rate the insurer declares. A producer names the flexible-premium permanent policy that allows this. Which policy is described?

Level term insurance

Universal life insurance

Ordinary whole life insurance

A modified endowment contract

Question 4: A Chattanooga client wants a permanent policy in which the cash value can be allocated to separate-account subaccounts of stocks and bonds, placing both the investment risk and the potential growth squarely on the policyowner. Which policy puts cash value in securities subaccounts the owner selects?

Indexed universal life

Ordinary whole life

Interest-sensitive whole life

Variable universal life

Question 5: A Nashville professional wants a whole life policy that becomes completely paid up after twenty years of premiums, even though the coverage itself continues for her entire life. A producer identifies the arrangement that concentrates payments into a set number of years. Which arrangement is described?

Limited-pay whole life

Annually renewable term

A single-premium immediate annuity

Increasing term insurance

Question 6: An insured buys temporary coverage for a fixed number of years during which both the premium and the death benefit stay the same, with nothing paid if the insured survives the term. A producer names this common form of term insurance. Which form is being described?

Decreasing term insurance

Return of premium term

Level term insurance

Annually renewable term

Question 7: A Memphis homeowner wants term coverage whose death benefit shrinks over the years to roughly track the falling balance of a mortgage, so the protection matches the debt. A producer identifies the term form built for this purpose. Which term form is described?

Level term insurance

Return of premium term

Increasing term insurance

Decreasing term insurance

Question 8: A term policyowner in Chattanooga wants the right to continue the coverage for another term when it ends without having to prove she is still in good health. A producer points to the term feature that guarantees this. Which feature is being described?

The convertible feature

The renewable feature

The waiver of premium rider

The nonforfeiture provision

Question 9: A Nashville insured with level term wants the option to exchange the policy for permanent coverage later without a new medical exam, even if his health worsens in the meantime. A producer names the term feature that permits this exchange. Which feature is described?

The convertible feature

The renewable feature

An accelerated death benefit

A guaranteed insurability rider

Question 10: A cost-conscious insured buys term coverage that promises to refund all the premiums he paid if he is still living when the term ends, in exchange for a higher premium along the way. A producer names this term variation. Which variation is being described?

Decreasing term insurance

Annually renewable term

Return of premium term

Level term insurance

Question 11: A whole life policyowner in Knoxville needs cash during her lifetime and learns she can access a living value that has built up inside her permanent policy over the years. A producer explains what that accessible value is called. What is being described?

The face amount

The paid-up additions

The dividend accumulation

The cash value

Question 12: A Nashville buyer wants to fund a permanent life policy completely with one large payment at the outset, so no further premiums are ever due. A producer identifies the whole life arrangement built around a single payment. Which arrangement is being described?

Single-premium whole life

Twenty-pay whole life

Annually renewable term

Ordinary straight whole life

Question 13: A Memphis client wants a universal life policy whose interest crediting is linked to the performance of a stock market index, but with a floor that prevents losses and a cap that limits gains. A producer names this design. Which policy is being described?

Variable universal life

Ordinary whole life

Indexed universal life

Annually renewable term

Question 14: A policyowner compares two permanent policies. One credits a changing interest rate the insurer declares based on current earnings, yet keeps the cash value in the general account with a guaranteed minimum. Which policy design does this describe most precisely?

Variable universal life

Interest-sensitive whole life

Decreasing term insurance

A single-premium immediate annuity

Question 15: A new producer studies what most clearly separates permanent life insurance from term life insurance, setting aside premium differences. An instructor points to one structural feature that permanent policies have and pure term policies do not. Which feature marks that difference?

A named beneficiary

A death benefit

A grace period

A cash value

Question 16: A Nashville policyowner is told that the written policy plus the attached application together form the complete agreement, and that nothing outside those documents can be used against him. A producer names the provision creating this rule. Which provision is described?

The entire contract provision

The incontestability clause

The consideration clause

The reinstatement provision

Question 17: A policy contains a statement, usually near the beginning, in which the insurer sets out its basic promise to pay the death benefit to the beneficiary upon the insured's death. A producer names this core statement. Which provision is being described?

The free look provision

The owner's rights provision

The insuring clause

The entire contract provision

Question 18: A producer explains that the insured provides two things to make the life insurance contract binding, namely the application containing the statements made and the initial premium payment. A provision spells out this exchange. Which provision is being described?

The insuring clause

The incontestability clause

The ownership provision

The consideration clause

Question 19: After receiving a new life policy, a Memphis buyer wants a short period to read it over and, if dissatisfied, return it for a full refund of premium. A producer names the provision granting this right. Which provision is being described?

The grace period

The free look provision

The reinstatement provision

The incontestability clause

Question 20: A Nashville policyowner who is not the insured wants to name and change beneficiaries, take policy loans, and assign the policy, and asks who holds these powers. A producer explains where such control resides. Who holds these rights under the policy?

The policyowner

The insured only

The primary beneficiary

The insurer's underwriter

TLAHI Tennessee Life and Accident and Health Insurance Exam - Set 2 - Part 1

Question 1: A Nashville applicant wants permanent life coverage with a level premium, a guaranteed death benefit, and a cash value that builds over time on a guaranteed basis. A producer explains which traditional policy fits this description. Which type of life insurance is being described?

Question 2: A young Memphis couple wants the largest possible death benefit for the lowest current premium to protect their children during their working years, accepting that the coverage is temporary and builds no cash value. Which type of life insurance best fits their stated goal?

Question 6: An insured buys temporary coverage for a fixed number of years during which both the premium and the death benefit stay the same, with nothing paid if the insured survives the term. A producer names this common form of term insurance. Which form is being described?

Question 7: A Memphis homeowner wants term coverage whose death benefit shrinks over the years to roughly track the falling balance of a mortgage, so the protection matches the debt. A producer identifies the term form built for this purpose. Which term form is described?

Question 8: A term policyowner in Chattanooga wants the right to continue the coverage for another term when it ends without having to prove she is still in good health. A producer points to the term feature that guarantees this. Which feature is being described?

Question 9: A Nashville insured with level term wants the option to exchange the policy for permanent coverage later without a new medical exam, even if his health worsens in the meantime. A producer names the term feature that permits this exchange. Which feature is described?

Question 10: A cost-conscious insured buys term coverage that promises to refund all the premiums he paid if he is still living when the term ends, in exchange for a higher premium along the way. A producer names this term variation. Which variation is being described?

Question 11: A whole life policyowner in Knoxville needs cash during her lifetime and learns she can access a living value that has built up inside her permanent policy over the years. A producer explains what that accessible value is called. What is being described?

Question 12: A Nashville buyer wants to fund a permanent life policy completely with one large payment at the outset, so no further premiums are ever due. A producer identifies the whole life arrangement built around a single payment. Which arrangement is being described?

Question 13: A Memphis client wants a universal life policy whose interest crediting is linked to the performance of a stock market index, but with a floor that prevents losses and a cap that limits gains. A producer names this design. Which policy is being described?

Question 14: A policyowner compares two permanent policies. One credits a changing interest rate the insurer declares based on current earnings, yet keeps the cash value in the general account with a guaranteed minimum. Which policy design does this describe most precisely?

Question 15: A new producer studies what most clearly separates permanent life insurance from term life insurance, setting aside premium differences. An instructor points to one structural feature that permanent policies have and pure term policies do not. Which feature marks that difference?

Question 16: A Nashville policyowner is told that the written policy plus the attached application together form the complete agreement, and that nothing outside those documents can be used against him. A producer names the provision creating this rule. Which provision is described?

Question 17: A policy contains a statement, usually near the beginning, in which the insurer sets out its basic promise to pay the death benefit to the beneficiary upon the insured's death. A producer names this core statement. Which provision is being described?

Question 18: A producer explains that the insured provides two things to make the life insurance contract binding, namely the application containing the statements made and the initial premium payment. A provision spells out this exchange. Which provision is being described?

Question 19: After receiving a new life policy, a Memphis buyer wants a short period to read it over and, if dissatisfied, return it for a full refund of premium. A producer names the provision granting this right. Which provision is being described?

Question 20: A Nashville policyowner who is not the insured wants to name and change beneficiaries, take policy loans, and assign the policy, and asks who holds these powers. A producer explains where such control resides. Who holds these rights under the policy?

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