TENNESSEE LIFE INSURANCE EXAM
NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND DETAILED ANSWERS
GRADED A | BRAND NEW!!!
Which nonforfeiture option has the highest amount of
insurance protection? - ✔✔✔ Correct Answer > Extended Term
The purchase of an insurance policy before its maturity date by
an investor for a percentage of its face value. Often the
policyholder is terminally ill. - ✔✔✔ Correct Answer > Viatical
Settlement
with an immediate annuity, - ✔✔✔ Correct Answer >
distribution starts within one year of purchase
typically receive a percentage of the policies face value from
the person who purchases the policy - ✔✔✔ Correct Answer >
viators
,When the policyowner specifies a dollar amount in which
installments are to be paid, he/she has chosen which
settlement option? - ✔✔✔ Correct Answer > fixed amount
what is the name of the insured who answers into a viatical
settlement? - ✔✔✔ Correct Answer > viator
If a beneficiary wants a guarantee that benefits paid from
principal and interest would be paid for a period of 10 years
before being exhausted, what settlement option should the
beneficiary select? - ✔✔✔ Correct Answer > Fixed Period
all of the following entities require variable Life policies except -
✔✔✔ Correct Answer > the guarantee association
means the owner of a life insurance policy who enters into or
seeks to enter into a viatical settlement contract - ✔✔✔
Correct Answer > viator
If a beneficiary wanted a guarantee that benefits paid from
principal and interest would be paid for a period of 10 years
before being exhausted, what option would a beneficiary
select? - ✔✔✔ Correct Answer > Fixed Period
,Which of the following is NOT a term for the period of time
during which the annuitant or the beneficiary receives income?
- ✔✔✔ Correct Answer > Depreciation Period
the policy proceeds are paid to a beneficiary over some fixed
period of time - ✔✔✔ Correct Answer > Fixed Period Option
- If lease transfers ownership, depreciate asset over the
economic life of the asset.
- If the lease does not transfer ownership, depreciate over the
term of the lease. - ✔✔✔ Correct Answer > Depreciation Period
who is the third party owner? - ✔✔✔ Correct Answer > a policy
owner who is not the insured
Annuity is payable for life, or for a specified period of time,
whichever is longer. If the annuitant lives beyond the stated
period, benefits continue for life of the annuitant. If the
annuitant dies prior to the end of the period, certain a
beneficiary receives the balance of the payments for the
remaining time period. - ✔✔✔ Correct Answer > Life Income
Period Certain
, The number of years the equipment is owned - ✔✔✔ Correct
Answer > Depreciation Period
which of the following statements concerning buy sell
agreements is true? - ✔✔✔ Correct Answer > buy sell
agreements are normally funded with a life insurance policy
A life insurance contract which pays policy proceeds only upon
the death of the last of two or more insureds covered by a
combination plan. - ✔✔✔ Correct Answer > survivorship life
Life insurance is used to help fund it
Based on legal contracts that set a value on each person's
portion of ownership in the business
Another person must purchase the deceased owner's interest
in the business (funded through insurance)
Can be used for any form of business:
1) Sole Proprietorship
2) Partnership
3) Corporation
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