10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The TN-LH exam has 154 questions and runs 3 hours 30 minutes.
These 10 free TN-LH questions are organized by exam domain, so you can see how each part of the Tennessee Life & Health Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
An indexed universal life policy applies an 80% participation rate and then a 7% cap. The measured index gain for the segment is 12%, and monthly policy charges are deducted after interest is credited. Which result is correct?
Correct answer: A - A 7% credit applies before charges, which can still reduce account value
An insured's health deteriorates in year 9 of a 10-year term policy that is both renewable and convertible. The insured wants permanent life insurance and is still within the conversion period. Which right permits the change without new evidence of insurability?
Correct answer: C - The conversion privilege
A whole life policy has lapsed after its grace period, and the owner will not resume premium payments. The owner wants the original face amount preserved for the longest period the cash value can buy. Which nonforfeiture option fits this objective?
Correct answer: B - Extended-term insurance
Jordan owns a life insurance policy and named Morgan as the irrevocable beneficiary. Jordan now wants a policy loan that would reduce Morgan's vested interest. What must occur before the insurer can process the loan?
Correct answer: D - Morgan must consent to the transaction
An underwriter receives an MIB code suggesting prior cardiac testing that the applicant did not disclose. No medical records have been obtained yet. What is the appropriate next step?
Correct answer: C - Verify the discrepancy through authorized underwriting sources
On June 1, an applicant submits a $400,000 life application and the first premium. The conditional receipt limits temporary coverage to $250,000 and makes it effective on the later of the application date or required medical examination, provided the applicant was then insurable as applied. The exam occurs June 4; the insurer later determines the applicant was fully insurable as applied on that date, and the applicant dies June 10 before issue. What death benefit is payable under the receipt?
Correct answer: A - Pay $250,000 because the stated conditions were met on June 4
A 52-year-old policyowner borrows $18,000 from a life policy classified as a modified endowment contract. The contract has at least $18,000 of gain, and no penalty exception applies. How is the loan generally treated for federal income-tax purposes?
Correct answer: B - As taxable gain under LIFO, generally with a 10% additional tax
To persuade a client to replace an existing whole life policy, a producer falsely states that the policy's cash value will disappear at the next anniversary. The statement causes the client to lapse the policy. Which unfair practice is most directly shown?
Correct answer: D - Twisting
A Tennessee agency pays an unlicensed receptionist $20 for each prospective customer's name and telephone number. Payment is made whether or not a sale occurs, and the receptionist never discusses insurance terms. How should this arrangement be classified?
Correct answer: A - A permitted fixed referral arrangement
A Tennessee consumer exchanged an annuity 48 months ago. A proposed new exchange would add a valuable guaranteed-income feature but impose a new surrender period and higher annual charges. Before recommending the exchange, which action best satisfies the producer's annuity best-interest duties?
Correct answer: C - Compare and document the new benefits, costs, liquidity effects, and prior exchange
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