OpenExamsFREE PRACTICE — ANY EXAM

Free Life Agent Practice Questions

143 free questions · Answer explanations · No signup required

View examination details, outline and sources

Loading selected examination banks…

Sample Practice Questions

Try these 10 sample questions from the Life Agent practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A client wants lifetime coverage with premiums that normally stay level throughout life. Which policy design best fits?

    1. A. Universal life
    2. B. Ordinary whole life
    3. C. Limited-pay whole life
    4. D. Single-premium whole life

    Answer: B

    Explanation: "Premiums stay the same throughout the insured’s life" describes ordinary level-premium whole life. Limited-pay ends scheduled premiums earlier; single-premium is paid at purchase; universal life generally allows flexible premiums.

    Reference: NAIC Life Insurance — Whole Life Insurance, ordinary level premium whole life insurance

  2. 2What is Tennessee's ordinary free-look period after purchase of a life policy, as described by the Department?

    1. A. 5 days
    2. B. 10 days
    3. C. 20 days
    4. D. 30 days

    Answer: B

    Explanation: The Department states, there is a free-look period of 10 days after the purchase of a life insurance policy. A replacement policy has a separate 20-day rule. The controlling text states, "10 days after the purchase of a life insurance policy".

    Reference: Tennessee Department of Commerce & Insurance Reminds Consumers to Focus on the Future During Life Insurance Awareness Month — Life Insurance Awareness Month; 10-day free-look guidance

  3. 3An applicant is about to sign a life application. Which review directly addresses the risk that the insurer receives incomplete or inaccurate application answers?

    1. A. Review premium mode for planned periodic billings.
    2. B. Review recorded answers for complete and accurate responses.
    3. C. Review policy illustration for nonguaranteed values.
    4. D. Review beneficiary contact details for future claims.

    Answer: B

    Explanation: "Do not sign an application until you review it carefully to be sure the answers are complete and accurate." The applicant should check the recorded responses before signing; the other reviews concern separate policy-planning tasks.

    Reference: NAIC Life Insurance Consumer Guide — Tips on Buying Life Insurance, application review

  4. 4A policyowner transfers an existing life policy to an outside buyer for compensation below its expected death benefit. What transaction is this?

    1. A. Policy surrender
    2. B. Life settlement
    3. C. Collateral assignment
    4. D. Policy loan

    Answer: B

    Explanation: "Life Settlements" are agreements in which a policyholder sells or transfers policy ownership to a third party for compensation below expected death benefit. Surrender is with the insurer; loan and collateral assignment do not describe this sale.

    Reference: NAIC Glossary of Insurance Terms — L, Life Settlements

  5. 5After Tennessee denies a producer-license application, what is the stated deadline for requesting the Department's informal appeal process?

    1. A. Within 30 days
    2. B. Within 90 days
    3. C. Within one year
    4. D. Before the next renewal

    Answer: C

    Explanation: The Department states, You must request an informal appeal within one (1) year of the date of the denial. Therefore one year is the controlling deadline. The controlling text states, "within one (1) year".

    Reference: (FontSet/CFFDejaVuSerif) — Appeal Process for the Denial of an Insurance Producer License Application

  6. 6How long must a Tennessee insurer retain authorized life-insurance solicitation forms after their last authorized use?

    1. A. 18 months
    2. B. 2 years
    3. C. 3 years
    4. D. 4 years

    Answer: C

    Explanation: Rule 0780-1-40-.05 requires a copy of each authorized form for three years following the date of its last authorized use. The controlling text states, "three years following the date of its last authorized use".

    Reference: Rule 0780 01 40 — Rule 0780-1-40-.05(1)

  7. 7A policyholder wants lifetime whole-life protection but wants the scheduled premium payments to end after a limited period. Which design fits?

    1. A. Ordinary whole life
    2. B. Indexed universal life
    3. C. Single-premium whole life
    4. D. Limited-pay whole life

    Answer: D

    Explanation: "Premiums are paid over a shorter time, but coverage lasts a lifetime." That is limited-pay whole life; single-premium requires one initial payment, while ordinary whole life normally continues premiums.

    Reference: NAIC Life Insurance — Whole Life Insurance, limited payment whole life insurance

  8. 8What grace period for a missed life-insurance premium does the Tennessee Department describe?

    1. A. 10 days
    2. B. 20 days
    3. C. 30 days
    4. D. 60 days

    Answer: C

    Explanation: The Department states, There is a grace period of 30 days for missed payments in Tennessee. Coverage continues during that period under the stated rule. The controlling text states, "grace period of 30 days".

    Reference: Tennessee Department of Commerce & Insurance Reminds Consumers to Focus on the Future During Life Insurance Awareness Month — Life Insurance Awareness Month; 30-day grace-period guidance

  9. 9A life applicant pays the first premium and receives a conditional premium receipt. The applicant asks whether payment alone starts coverage. What determines when coverage becomes effective under this receipt?

    1. A. The applicant signs the completed life application.
    2. B. The insurer deposits the applicant's initial premium.
    3. C. The insurer prints the policy for later delivery.
    4. D. The condition stated in the receipt is satisfied.

    Answer: D

    Explanation: "makes a life and health insurance policy effective only if or when a specified condition is met" describes a conditional receipt. Signature, premium deposit, and printing alone do not establish that the receipt condition has been satisfied.

    Reference: Tennessee Department of Commerce and Insurance Glossary — C, Conditional receipt

  10. 10An employer holds the master contract for a group life plan. What document does a covered employee generally receive to show the employee's coverage?

    1. A. The group master policy
    2. B. An individual policy schedule
    3. C. A policyholder ownership form
    4. D. A certificate of insurance

    Answer: D

    Explanation: "the business will be issued a master policy and each person in the group will receive a certificate of insurance." The employee receives the certificate; the sponsor holds the master contract.

    Reference: Tennessee Department of Commerce and Insurance Glossary — G, Group life insurance

Topics in this practice bank

These topics describe the available practice for Life Agent. Review the examination outline and its sources for scope and allocation details.

  • I. TYPES OF POLICIES
    • A. Traditional whole life products
    • A. Traditional whole life products / 1. Ordinary whole life
    • A. Traditional whole life products / 2. Limited-pay and single-premium life
    • B. Interest/market-sensitive/adjustable life products
    • B. Interest/market-sensitive/adjustable life products / 1. Universal life
    • B. Interest/market-sensitive/adjustable life products / 2. Variable whole life
    • B. Interest/market-sensitive/adjustable life products / 3. Variable universal life
    • B. Interest/market-sensitive/adjustable life products / 4. Interest-sensitive whole life
    • B. Interest/market-sensitive/adjustable life products / 5. Indexed life
    • C. Term life
    • C. Term life / 1. Types
    • C. Term life / 1. Types / a. Level
    • C. Term life / 1. Types / b. Decreasing
    • C. Term life / 1. Types / c. Return of premium
    • C. Term life / 1. Types / d. Annually renewable
    • C. Term life / 2. Special features
    • C. Term life / 2. Special features / a. Renewable
    • C. Term life / 2. Special features / b. Convertible
    • D. Annuities
    • D. Annuities / 1. Single and flexible premium
    • D. Annuities / 2. Immediate and deferred
    • D. Annuities / 3. Fixed and variable
    • D. Annuities / 4. Indexed
    • D. Annuities / 5. Accumulation and Annuity Periods
    • D. Annuities / 6. Payout options
    • E. Combination plans and variations
    • E. Combination plans and variations / 1. Joint life (first to die)
    • E. Combination plans and variations / 2. Survivorship life (second to die)
  • II. POLICY RIDERS, PROVISIONS, OPTIONS, AND EXCLUSIONS
    • A. Policy riders
    • A. Policy riders / 1. Waiver of premium and waiver of monthly deduction
    • A. Policy riders / 2. Guaranteed insurability
    • A. Policy riders / 3. Payor benefit
    • A. Policy riders / 4. Accidental death and/or accidental death and dismemberment
    • A. Policy riders / 5. Term riders
    • A. Policy riders / 6. Other insureds
    • A. Policy riders / 7. Long term care
    • A. Policy riders / 8. Return of premium
    • A. Policy riders / 9. Disability
    • A. Policy riders / 10. Cost of Living
    • B. Policy provisions and options
    • B. Policy provisions and options / 1. Entire contract
    • B. Policy provisions and options / 2. Insuring clause
    • B. Policy provisions and options / 3. Free look
    • B. Policy provisions and options / 4. Consideration
    • B. Policy provisions and options / 5. Owner’s rights
    • B. Policy provisions and options / 6. Beneficiary designations
    • B. Policy provisions and options / 6. Beneficiary designations / a. Primary and contingent
    • B. Policy provisions and options / 6. Beneficiary designations / b. Revocable and irrevocable
    • B. Policy provisions and options / 6. Beneficiary designations / c. Common disaster
    • B. Policy provisions and options / 6. Beneficiary designations / d. Minor beneficiaries
    • B. Policy provisions and options / 6. Beneficiary designations / e. Designation by class
    • B. Policy provisions and options / 7. Premium Payment
    • B. Policy provisions and options / 7. Premium Payment / a. Modes
    • B. Policy provisions and options / 7. Premium Payment / b. Grace period
    • B. Policy provisions and options / 7. Premium Payment / c. Automatic premium loan
    • B. Policy provisions and options / 7. Premium Payment / d. Level or flexible
    • B. Policy provisions and options / 8. Reinstatement
    • B. Policy provisions and options / 9. Policy loans, withdrawals, partial surrenders
    • B. Policy provisions and options / 10. Non-forfeiture options
    • B. Policy provisions and options / 11. Dividends and dividend options (e.g., participating, non-participating)
    • B. Policy provisions and options / 12. Incontestability
    • B. Policy provisions and options / 13. Assignments
    • B. Policy provisions and options / 14. Suicide
    • B. Policy provisions and options / 15. Misstatement of age and gender
    • B. Policy provisions and options / 16. Settlement options
    • B. Policy provisions and options / 17. Accelerated death benefits
    • C. Policy exclusions
    • C. Policy exclusions / 1. War
    • C. Policy exclusions / 2. Aviation
    • C. Policy exclusions / 3. Dangerous Occupation
  • III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE POLICES
    • A. Completing the application
    • A. Completing the application / 1. Required signatures
    • A. Completing the application / 2. Changes in the application
    • A. Completing the application / 3. Consequences of incomplete applications
    • A. Completing the application / 4. Warranties and representations
    • A. Completing the application / 5. Collecting the initial premium and issuing the receipt
    • A. Completing the application / 6. Replacement
    • A. Completing the application / 7. Disclosures at point of sale (e.g., HIPAA, HIV consent)
    • A. Completing the application / 8. USA PATRIOT Act/anti-money laundering
    • A. Completing the application / 9. Gramm-Leach-Bliley Act (GLBA) Privacy
    • B. Underwriting
    • B. Underwriting / 1. Insurable interest
    • B. Underwriting / 2. Medical information and consumer reports
    • B. Underwriting / 3. Fair Credit Reporting Act
    • B. Underwriting / 4. Risk classification
    • B. Underwriting / 5. Stranger/Investor-owned life insurance (STOLI/IOLI)
    • C. Delivering the policy
    • C. Delivering the policy / 1. When coverage begins
    • C. Delivering the policy / 2. Explaining the policy and its provisions, riders, exclusions, and ratings to the client
    • D. Contract law
    • D. Contract law / 1. Elements of a contract
    • D. Contract law / 1. Elements of a contract / a. Consideration
    • D. Contract law / 1. Elements of a contract / b. Offer and Acceptance
    • D. Contract law / 1. Elements of a contract / c. Competent parties
    • D. Contract law / 1. Elements of a contract / d. Legal purpose
    • D. Contract law / 2. Unique aspects of the insurance contract
    • D. Contract law / 2. Unique aspects of the insurance contract / a. Conditional
    • D. Contract law / 2. Unique aspects of the insurance contract / b. Unilateral
    • D. Contract law / 2. Unique aspects of the insurance contract / c. Adhesion
    • D. Contract law / 2. Unique aspects of the insurance contract / d. Aleatory
  • IV. RETIREMENT AND OTHER INSURANCE CONCEPTS
    • A. Third-party ownership
    • B. Life Settlements
    • C. Group life insurance
    • C. Group life insurance / 1. Conversion privilege
    • C. Group life insurance / 2. Contributory vs. noncontributory
    • D. Retirement plans
    • D. Retirement plans / 1. Qualified plans
    • D. Retirement plans / 2. Nonqualified plans
    • E. Life insurance needs analysis/suitability
    • E. Life insurance needs analysis/suitability / 1. Personal insurance needs
    • E. Life insurance needs analysis/suitability / 2. Business insurance needs
    • E. Life insurance needs analysis/suitability / 2. Business insurance needs / a. Key person
    • E. Life insurance needs analysis/suitability / 2. Business insurance needs / b. Buy sell
    • F. Social Security benefits
    • G. Tax treatment of insurance premiums, proceeds, and dividends
    • G. Tax treatment of insurance premiums, proceeds, and dividends / 1. Individual life
    • G. Tax treatment of insurance premiums, proceeds, and dividends / 2. Group life
    • G. Tax treatment of insurance premiums, proceeds, and dividends / 3. Modified Endowment Contracts (MECs)
  • V. TENNESSEE LAWS, AND DEPARTMENTAL RULES COMMON TO LIFE, ACCIDENT AND HEALTH, PROPERTY AND CASUALTY INSURANCE
    • A. Powers of Commissioner
    • A. Powers of Commissioner / 1. Hearings and judicial review
    • A. Powers of Commissioner / 2. Investigations
    • A. Powers of Commissioner / 3. Regulatory authority
    • A. Powers of Commissioner / 4. Penalties
    • B. Definitions
    • B. Definitions / 1. Insurance Producer
    • B. Definitions / 2. Business Entity
    • B. Definitions / 3. Limited Lines Producer
    • B. Definitions / 4. Unauthorized insurer
    • B. Definitions / 5. Compensation and referrals
    • B. Definitions / 6. Fiduciary
    • B. Definitions / 7. Domestic and Foreign Insurance Companies
    • C. License Requirements
    • C. License Requirements / 1. Insurance Producer
    • C. License Requirements / 2. Agency Appointments/Termination
    • C. License Requirements / 3. Resident/nonresident
    • C. License Requirements / 4. Exceptions
    • C. License Requirements / 4. Exceptions / a. Licenses
    • C. License Requirements / 4. Exceptions / b. Examination
    • C. License Requirements / 5. Temporary license
    • C. License Requirements / 6. License renewal
    • C. License Requirements / 7. General requirements
    • C. License Requirements / 8. Continuing Education
    • D. License Suspension/Revocation
    • D. License Suspension/Revocation / 1. General provisions
    • D. License Suspension/Revocation / 2. Notice
    • E. Unfair Practices
    • E. Unfair Practices / 1. False advertising
    • E. Unfair Practices / 2. Defamation
    • E. Unfair Practices / 3. Boycotting, coercion, and intimidation
    • E. Unfair Practices / 4. Unfair Discrimination
    • E. Unfair Practices / 5. Rebating
    • E. Unfair Practices / 6. Unfair claims settlement practices
    • E. Unfair Practices / 7. Other topics
    • F. Life and Health Guaranty Association
  • VI. TENNESSEE LAWS AND DEPARTMENTAL RULES PERTINENT TO LIFE INSURANCE ONLY
    • A. Required Provisions
    • B. Definitions
    • C. Disclosure requirements
    • D. General rules
    • E. Replacement
    • E. Replacement / 1. Exemptions
    • E. Replacement / 2. Duties of producers
    • E. Replacement / 3. Definitions
    • F. Annuities
    • F. Annuities / 1. Licensing
    • F. Annuities / 2. Suitability

How to use these free practice questions

Choose an answer, check the explanation, and review your progress by chapter. Practice questions and explanations are free to access without signing up.

These are independent study questions, not actual examination items. For examination requirements and official information, view Life Agent details.