TN LIFE PRODUCER EXAM | QUESTIONS
AND CORRECT ANSWERS | ALREADY
GRADED A+ | LATEST VERSION (JUST
RELEASED)
Which of the following statements about accumulated interest earned on
dividends from an insurance policy is TRUE?
Partially taxable
Tax Deductible
Nontaxable
Taxed as ordinary income ------CORRECT ANSWER---------------Taxed as
ordinary income
Which of the following is an example of defamation?
-Making statements that encourage the purchase of term life insurance
over whole life insurance
-Publishing a newsletter that makes reference to reputable brokers in the
area
-Circulation brochures that falsely denounce the financial condition of an
insurer
-Issuing pamphlets containing false information about term life insurance ---
---CORRECT ANSWER---------------Circulating brochures that falsely
denounce the financial condition of an insurer
D is the policyowner and insured for a $50,000 life insurance policy. The
beneficiary is D's wife. D and his wife divorce and D remarries, transferring
ownership of his policy to his new wife. If D dies without making any further
changes, to whom will the policy proceeds be paid to?
Ex-wife
Current wife
Estate
Split equally between the ex-wife and current wife ------CORRECT
ANSWER---------------Ex-wife
,Term Life Policies that have the ability to be converted to permanent
coverage may do so during a specified time period. This conversion period
may be altered by the policyowner
is controlled by the NAIC
is the same in all contracts
varies according to the contract ------CORRECT ANSWER---------------
Varies according to contract
The combination of Whole Life and _____ Term insurance is referred to as
a Family Income Policy
Decreasing
Universal
Variable
Level ------CORRECT ANSWER---------------Decreasing
A policy that becomes a Modified Endowment Contract (MEC):
will no longer allow for policy loans
must be placed in an irrevocable trust
can never be reinstated after a lapse
will lose many of its tax advantages ------CORRECT ANSWER---------------
Will lose many of its tax advantages
A business entity can be defined as a(n)
-agency that must only operate outside of Tennessee
-agency that must only operate inside of Tennessee
-association or a limited liability company
-business that requires approval by the Attorney General to transact
business ------CORRECT ANSWER---------------Association or a limited
liability company
, Which of these is NOT a legitimate insurance marketing practice for
obtaining business from a competitor?
-Offering better customer service
-Raising the deductible to secure a lower premium as long as the insured is
informed
-Reducing commissions in order to make a sale
-Offering the same coverage at a lower premium ------CORRECT
ANSWER---------------Reducing commissions in order to make a sale6
An employee of 20 years recently retired at age 59 1/2. This employee's
group life contract can be:
converted to an individual permanent policy at an individual rate
converted to an individual permanent policy at a group rate
continued at an individual rate
continued at a group rate ------CORRECT ANSWER---------------Converted
to an individual permanent policy at an individual rate
All of these statements regarding referrals are true EXCEPT
-The Commissioner may establish by rule a maximum amount for each
referral
-The person making the referral may not discuss the specific policy terms
and conditions
-Referral fees may not be tied to the purchase of a policy
-Referral fees must be filed and approved with the Commissioner of
Insurance ------CORRECT ANSWER---------------Referral fees must be filed
and approved with the Commissioner of Insurance
The Commissioner would like to hold a hearing against a producer. Before
the hearing is held, a notice:
-Must be sent by registered or certified mail to the producer's address on
file
-Must be sent to the insurer's home office
-Must be delivered in person
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