Tennessee Insurance Practice Exam

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Prepare for the Tennessee Insurance Exam with engaging quizzes featuring detailed flashcards, multiple-choice questions, hints, and explanations, ensuring readiness for test day.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is a common feature of a Waiver of Premium rider?

It covers accidental deaths only
It ensures coverage remains inactive during the insured's disability
It reduces premiums if the insured becomes disabled
It ensures death benefits are paid out directly to the policyholder's estate

The correct answer is: It ensures coverage remains inactive during the insured's disability

The Waiver of Premium rider is specifically designed to provide financial protection in the event that the insured becomes disabled. When this rider is in place, if the insured is unable to work due to a disability, they are excused from paying premium payments while still maintaining active coverage. This means that the insurance policy remains in force, ensuring that the insured has continual protection and benefits during a time when they may be facing financial difficulties due to their inability to work. In contrast, the other choices do not accurately describe the function of a Waiver of Premium rider. While some options mention coverage or benefits, they do not align with the core purpose of the rider, which is to alleviate the burden of premium payments in case of disability.