TLAHI - Tennessee Life and Accident and Health Insurance Exam

Question 21: A policyowner names one person to receive the death benefit first, and a second person to receive it only if the first has already died. A producer explains what the second person is called in this arrangement. What is that second person called?

The irrevocable beneficiary

The assignee

The contingent beneficiary

The primary beneficiary

Question 22: A Knoxville policyowner named a beneficiary in a way that prevents her from changing that designation later without the beneficiary's written consent. A producer explains what kind of beneficiary this is. Which type of beneficiary is being described?

A contingent beneficiary

A tertiary beneficiary

A revocable beneficiary

An irrevocable beneficiary

Question 23: An insured and the primary beneficiary die in the same car accident, and it cannot be determined who died first. A policy provision decides how the death benefit is handled in this situation. Which provision addresses this uncertainty?

The common disaster provision

The spendthrift clause

The entire contract provision

The reinstatement provision

Question 24: A Nashville policyowner wants to name his young grandchild as beneficiary but learns an insurer will not pay proceeds directly to a minor child. A producer explains the usual way this is handled. How are proceeds for a minor typically arranged?

The insurer keeps the proceeds indefinitely

Through a guardian or trust arrangement

The minor must wait until age sixty-five

The proceeds are automatically forfeited

Question 25: A policyowner wants the death benefit split among all of her children as a group, so that if one child predeceases her, that child's share passes to that child's own descendants. A producer names this style of designation. Which designation is described?

A per capita designation

A revocable designation

A per stirpes designation

A collateral assignment

Question 26: A Memphis policyowner forgets to pay a premium by its due date, but the policy gives him a short additional period during which coverage stays in force and he can still pay. A producer names this period. Which provision is being described?

The reinstatement period

The elimination period

The free look period

The grace period

Question 27: A whole life policyowner who sometimes forgets payments wants the policy to automatically borrow from its own cash value to cover an unpaid premium and prevent a lapse. A producer names the provision that does this. Which provision is being described?

The automatic premium loan provision

The waiver of premium rider

The extended term option

The paid-up additions option

Question 28: A policy lapsed several months ago, and the former policyowner now wants it back in force, expecting to pay the missed premiums with interest and prove she is still insurable. A producer names the provision governing this. Which provision applies here?

The grace period

The free look provision

The reinstatement provision

The incontestability clause

Question 29: A policyowner reviews how often she may pay her life premium and sees choices such as annual, semiannual, quarterly, and monthly, noting that paying more often slightly increases the total cost. A producer explains what these choices are called. What are they called?

Nonforfeiture options

Settlement options

Dividend options

Premium payment modes

Question 30: A policyowner reinstates a policy that lapsed two years ago and dies eight months later, and the insurer wants to examine whether statements on the reinstatement were truthful. A producer explains the rule on contesting a reinstated policy. Which statement is accurate?

Reinstatement can never be contested

A new contestable period applies to reinstatement

The original issue date always controls

The suicide clause is permanently waived

Question 31: A whole life policyowner decides to surrender the policy and simply take the accumulated cash value in a single payment, ending the coverage for good. A producer names this standard nonforfeiture choice. Which nonforfeiture option is being described?

The cash surrender option

The reduced paid-up option

The extended term option

The automatic premium loan

Question 32: A policyowner can no longer afford premiums but wants to keep some permanent coverage with no further payments, using the existing cash value to buy a smaller fully paid policy. A producer names this nonforfeiture choice. Which option is described?

The cash surrender option

The extended term option

The automatic premium loan

The reduced paid-up option

Question 33: A lapsing policyowner wants to keep the full original death benefit for as long as the cash value can support it, accepting that the coverage becomes temporary. A producer names the nonforfeiture choice that does this. Which option is being described?

The reduced paid-up option

The cash surrender option

The extended term option

A policy dividend option

Question 34: A Chattanooga whole life owner needs money and borrows against the policy's cash value directly from the insurer, planning to repay it, and understands that an unpaid balance would reduce the death benefit. A producer names this feature. Which feature is being used?

A policy loan

A cash surrender

An accelerated death benefit

A collateral assignment

Question 35: A participating whole life policyowner in Nashville receives an annual dividend and may choose how to use it, such as taking cash, reducing premiums, or buying additional coverage. A producer explains what these choices are called. What are they called?

Nonforfeiture options

Settlement options

Premium modes

Dividend options

Question 36: After a policy has been in force for a set number of years, the insurer generally can no longer challenge it based on misstatements in the application, even material ones. A producer names the provision creating this cutoff. Which provision is being described?

The suicide clause

The incontestability clause

The consideration clause

The reinstatement provision

Question 37: A life policy provides that if the insured dies by suicide within the first two years, the insurer will refund the premiums paid rather than pay the full death benefit. A producer names the provision creating this limit. Which provision is described?

The incontestability clause

The reinstatement provision

The suicide clause

The free look provision

Question 38: After an insured dies, the insurer discovers his age was understated on the application, so the premiums paid were too low for his true age. A provision tells the insurer how to respond. How does the insurer typically handle this?

It adjusts the benefit for true age

It voids the policy and pays nothing

It doubles the death benefit

It refers the matter to law enforcement

Question 39: A policyowner wants to transfer all rights in her life policy permanently to another person, giving them complete ownership going forward. A producer names the type of transfer that conveys full ownership rather than a limited interest. Which transfer is being described?

A collateral assignment

A revocable designation

A settlement option

An absolute assignment

Question 40: An insured dies three years after issue, and the insurer finds a material misrepresentation on the original application, but the policy has passed its two-year contestable period. A producer explains the usual result. What is the typical outcome here?

The insurer may still void it anytime

The benefit is automatically doubled

The insurer generally must pay the claim

The premiums are simply refunded

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

Question 21: A policyowner names one person to receive the death benefit first, and a second person to receive it only if the first has already died. A producer explains what the second person is called in this arrangement. What is that second person called?

Question 22: A Knoxville policyowner named a beneficiary in a way that prevents her from changing that designation later without the beneficiary's written consent. A producer explains what kind of beneficiary this is. Which type of beneficiary is being described?

Question 23: An insured and the primary beneficiary die in the same car accident, and it cannot be determined who died first. A policy provision decides how the death benefit is handled in this situation. Which provision addresses this uncertainty?

Question 24: A Nashville policyowner wants to name his young grandchild as beneficiary but learns an insurer will not pay proceeds directly to a minor child. A producer explains the usual way this is handled. How are proceeds for a minor typically arranged?

Question 25: A policyowner wants the death benefit split among all of her children as a group, so that if one child predeceases her, that child's share passes to that child's own descendants. A producer names this style of designation. Which designation is described?

Question 26: A Memphis policyowner forgets to pay a premium by its due date, but the policy gives him a short additional period during which coverage stays in force and he can still pay. A producer names this period. Which provision is being described?

Question 27: A whole life policyowner who sometimes forgets payments wants the policy to automatically borrow from its own cash value to cover an unpaid premium and prevent a lapse. A producer names the provision that does this. Which provision is being described?

Question 28: A policy lapsed several months ago, and the former policyowner now wants it back in force, expecting to pay the missed premiums with interest and prove she is still insurable. A producer names the provision governing this. Which provision applies here?

Question 29: A policyowner reviews how often she may pay her life premium and sees choices such as annual, semiannual, quarterly, and monthly, noting that paying more often slightly increases the total cost. A producer explains what these choices are called. What are they called?

Question 30: A policyowner reinstates a policy that lapsed two years ago and dies eight months later, and the insurer wants to examine whether statements on the reinstatement were truthful. A producer explains the rule on contesting a reinstated policy. Which statement is accurate?

Question 31: A whole life policyowner decides to surrender the policy and simply take the accumulated cash value in a single payment, ending the coverage for good. A producer names this standard nonforfeiture choice. Which nonforfeiture option is being described?

Question 32: A policyowner can no longer afford premiums but wants to keep some permanent coverage with no further payments, using the existing cash value to buy a smaller fully paid policy. A producer names this nonforfeiture choice. Which option is described?

Question 33: A lapsing policyowner wants to keep the full original death benefit for as long as the cash value can support it, accepting that the coverage becomes temporary. A producer names the nonforfeiture choice that does this. Which option is being described?

Question 34: A Chattanooga whole life owner needs money and borrows against the policy's cash value directly from the insurer, planning to repay it, and understands that an unpaid balance would reduce the death benefit. A producer names this feature. Which feature is being used?

Question 35: A participating whole life policyowner in Nashville receives an annual dividend and may choose how to use it, such as taking cash, reducing premiums, or buying additional coverage. A producer explains what these choices are called. What are they called?

Question 36: After a policy has been in force for a set number of years, the insurer generally can no longer challenge it based on misstatements in the application, even material ones. A producer names the provision creating this cutoff. Which provision is being described?

Question 37: A life policy provides that if the insured dies by suicide within the first two years, the insurer will refund the premiums paid rather than pay the full death benefit. A producer names the provision creating this limit. Which provision is described?

Question 38: After an insured dies, the insurer discovers his age was understated on the application, so the premiums paid were too low for his true age. A provision tells the insurer how to respond. How does the insurer typically handle this?

Question 39: A policyowner wants to transfer all rights in her life policy permanently to another person, giving them complete ownership going forward. A producer names the type of transfer that conveys full ownership rather than a limited interest. Which transfer is being described?

Question 40: An insured dies three years after issue, and the insurer finds a material misrepresentation on the original application, but the policy has passed its two-year contestable period. A producer explains the usual result. What is the typical outcome here?

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