Tennessee Life and Health Final Exam -

Tennessee Life and Health Final Exam - Questions With Complete Solutions Insurance policies are offered on a "take it or leave it" basis, which make them

• Conditional Contracts
• Aleatory Contracts
• Unilateral Contracts
• Contracts of Adhesion - Correct Answers ✅d. Contracts

of Adhesion All of these statements about Equity Indexed Life Insurance are correct EXCEPT

• Cash value has a minimum rate of accumulation
• If the gain on the index goes beyond the policy's minimum

rate of return, the cash value will mirror that of the index

• The premiums can be lowered or raised, based on

investment performance

• Tied to an equity index such as the S&P 500 - Correct

Answers ✅c. The premiums can be lowered or raised, based on investment performance P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? 1 / 3

Tennessee Life and Health Final Exam - Questions With Complete Solutions

• P cannot borrow against the policy's cash value while

disabled

• P will have to pay income taxes on the amount of

premiums waived

• P will still receive declared dividends
• P cannot assign ownership of the policy while premiums

are being waived - Correct Answers ✅c. P will still receive declared dividends Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?

• increase face amount
• decrease face amount
• increase premium-paying period
• decrease premium payment - Correct Answers ✅a.

increase face amount Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself?

• Policy Exclusion
• Incontestable
• Entire Contract Provision 2 / 3

Tennessee Life and Health Final Exam - Questions With Complete Solutions

• Assignment - Correct Answers ✅c. Entire Contract

Provision K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

• Return of premiums paid
• Cash value plus interest
• $20,000 death benefit
• Face amount plus interest - Correct Answers ✅c.

$20,000 death benefit Which of the following types of organizations are prepaid group health plans, where members pay in advance for the services of participating physicians and hospitals that have agreements?

• PPO
• HMO
• MEWA
• POS - Correct Answers ✅b. HMO

Which of the following characteristics is CORRECT about Interest Sensitive Whole Life?

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