Life Insurance Exam For Tn: How Many Questions?

The number of questions on the Tennessee life insurance exam is 77 in total, comprising 68 scored questions and 9 pretest questions. The exam must be completed within 1 hour and 45 minutes, and a score of 70% or higher is required to pass. The exam is administered by Pearson VUE and consists of multiple-choice questions covering both general insurance knowledge and Tennessee-specific insurance regulations. It is recommended that candidates complete pre-license education and practice exams to prepare for the Tennessee life insurance exam effectively.

The number of questions

The Tennessee Life and Health Insurance Agent Exam is divided into two parts: the Life General Knowledge Content Outline and the Life Tennessee-Specific Content Outline. The former comprises 50 scorable questions plus 10 pretest questions, while the latter includes 18 scorable questions and 4 pretest questions.

The Life, Accident, and Health exam is another examination that falls under the insurance agent licensing program in Tennessee. This exam consists of 68 questions in total, with 50 general questions and 18 state-specific questions. The time allotted for this exam is 105 minutes.

It is important to note that each licensing examination has multiple versions, known as forms, which may differ in difficulty. To ensure fairness, a statistical procedure called equating is used to account for differences in form difficulty. This means that the passing score may vary, but it is generally required to obtain a scaled score of 70% or higher to pass an insurance license exam in Tennessee.

Types of policies

The Tennessee Life and Health Insurance Agent Exam covers several topics, with one of the main sections focusing on the types of policies. This section includes questions on the following types of policies:

Traditional Whole Life Products

Whole life insurance is a type of permanent life insurance that provides coverage for the insured's entire lifetime, as long as premium payments are maintained. It also includes a savings component, allowing policyholders or their heirs to access accumulated cash value under certain conditions. Whole life insurance policies typically have higher premiums than term life policies due to their lifelong coverage and cash value features.

Interest/Market-Sensitive/Adjustable Life Products

These policies are designed to be sensitive to market conditions or interest rates, which can impact the cash value or benefits associated with the policy. The interest rate for the cash value may not be fixed and can fluctuate based on market performance.

Term Life

Term life insurance is purchased for a specified period, such as 1, 5, 10, or 30 years. It provides coverage for a limited time, and the payout occurs only if the insured's death occurs during the specified term. Term life policies generally have lower premiums than whole life policies because they do not build cash value and provide coverage for a shorter duration.

Annuities

Annuities are financial products that provide a steady income during retirement. They are often used as a way to generate consistent cash flow after retirement, with the insurance company making regular payments to the annuitant.

Combination Plans and Variations

This category includes a mix of different types of policies, such as traditional whole life, universal life, variable life, and variable-universal life. These plans offer a combination of features from different types of policies, allowing for customization to meet specific needs.

Policy riders, provisions, options, and exclusions

The Tennessee Life and Health Insurance Agent Exam is made up of 50 scoreable questions, plus 10 pretest questions. The second section of the exam, which is dedicated to policy riders, provisions, options, and exclusions, contains 19 questions.

Policy riders are written modifications attached to a policy that provide benefits not found in the original policy. They help tailor a policy to the specific needs of the insured. For example, a waiver of premium rider waives the premium for the policy if the insured becomes totally disabled. Coverage remains in force until the insured is able to return to work. If the insured is never able to return to work, the premiums will continue to be waived.

Policy provisions are fairly universal from one policy to the next. They define the characteristics of an insurance contract. The entire contract provision, for instance, stipulates that the policy, a copy of the application, and any riders or endorsements constitute the entire contract. The insurance declaration page is like a quick guide to the insurance policy, providing all of the basic information the policyholder needs to know.

Policy options are the methods used to pay the death benefits to a beneficiary upon the insured's death, or to pay the endowment benefit if the insured lives to the endowment date. Settlement options are triggered by the insured's death or age. Upon the death of the insured, the contract is designed to pay the proceeds in cash, called a lump sum, unless the recipient chooses a different mode of settlement.

Policy exclusions are types of risks the policy will not cover. The most common found in life insurance policies are hazardous occupations, aviation, disability, and war and military service. If the insured is engaged in a hazardous occupation or participates in hazardous sports (such as skydiving or auto racing), death that results from these activities may be excluded from coverage. A higher premium may be charged instead.

Application, underwriting, and delivery

The application, underwriting, and delivery of a life insurance policy are crucial steps in the process of obtaining life insurance. This section will outline the procedures involved in these steps, providing a detailed guide for individuals seeking to purchase life insurance in Tennessee.

Application

The first step in obtaining life insurance is completing the application process. This typically involves providing personal information, such as age, residency status, and contact details. In Tennessee, individuals must be at least 18 years old and residents of the state to apply for a life insurance license. It is recommended to review the Tennessee Insurance Licensing Candidate Handbook and pay close attention to the content outlines available on the Pearson VUE website before initiating the application process. Online reservations, through the Pearson VUE website or by phone, are the most efficient way to schedule an examination.

Underwriting

Underwriting is a critical aspect of the life insurance process. It involves evaluating the risks associated with insuring an individual and determining the appropriate terms and conditions for the policy. Underwriters assess factors such as age, health, lifestyle, and medical history to calculate premiums and decide whether to offer coverage. In Tennessee, the Life, Accident & Health exam plays a pivotal role in the underwriting process, with the state-specific content outline ensuring that candidates have a comprehensive understanding of the applicable regulations.

Delivery

Once the application and underwriting processes are complete, the life insurance policy is delivered to the client. This step involves providing the insured individual with the necessary documents and explaining the policy's provisions, riders, exclusions, and ratings. It is essential to ensure that the client understands the coverage they are purchasing and the benefits they are entitled to. The delivery process may also include guidance on maintaining the policy and making any necessary payments to keep it in force.

The application, underwriting, and delivery stages of a life insurance policy are integral to ensuring a smooth and comprehensive process for both the insurer and the insured. By following the outlined procedures, individuals in Tennessee can be confident in their understanding of the policy and its associated benefits, providing financial protection for themselves and their loved ones.

Taxes, retirement, and other concepts

Taxes, Retirement, and Other Insurance Concepts

The "Taxes, retirement, and other insurance concepts" section of the Tennessee Life and Health Insurance Agent Exam covers a range of topics related to taxation, retirement planning, and insurance concepts beyond those specifically mentioned in the previous sections. This section aims to test your understanding of how these concepts interact with life insurance policies and their implications for clients.

• Third-party ownership: This involves understanding the rights and responsibilities of third-party owners of life insurance policies, such as trusts or businesses.
• Viatical settlements: Candidates should know about viatical settlements, which are agreements where a terminally ill policyholder sells their life insurance policy to a third party for a percentage of the death benefit.
• Life settlements: Similar to viatical settlements, life settlements involve the sale of a life insurance policy by the policyholder, but they are not limited to those with terminal illnesses.
• Group life insurance: This refers to life insurance policies offered through an employer or other entity, covering a group of people under a single contract.
• Retirement plans: Candidates should understand the different types of retirement plans, such as 401(k)s and IRAs, and how they interact with life insurance planning.
• Life insurance needs analysis/suitability: This involves assessing a client's financial situation, goals, and risks to determine the appropriate type and amount of life insurance coverage.
• Social Security benefits: Understanding how Social Security benefits can impact retirement planning and life insurance needs is essential.
• Tax treatment of insurance premiums, proceeds, and dividends: Candidates should know how different types of insurance premiums, proceeds, and dividends are taxed to provide effective advice to clients.

This section of the exam consists of eight questions, and a thorough understanding of these concepts will help candidates make informed recommendations to their clients regarding life insurance and retirement planning.

Frequently asked questions