17 Free Tennessee Accident & Health Exam Practice Questions (2026)
How to Use This Accident and Health Question Set
Tennessee's Accident and Health Agent exam is one of two separate Pearson VUE exams required for a Life & Health license — the other being the Life Agent exam. It delivers 68 scored questions (50 general-knowledge items plus 18 Tennessee-specific items) and 9 unscored pretest questions mixed in without being labeled, for 77 items per sitting. Passing is a scaled score of 70, not a raw percentage, and the fee is $55 per attempt at a test center.
Content outline #124301, effective October 7, 2026, splits the 68 scored items as: Types of Policies (16), Policy Provisions, Clauses and Riders (15), Social Insurance (6), Other Insurance Concepts (5), Field Underwriting Procedures (8), the same 14-item Tennessee law section shared with the Life Agent exam, and 4 items of Tennessee Laws and Departmental Rules Pertinent to Accident and Health Insurance Only. Policy types alone is close to a quarter of the exam.
These 17 questions come from chapters 4, 5 and 6 of LanePrep's Tennessee Life, Accident & Health quiz bank, in roughly that proportion: six on accident and health policy types (chapter 4), six on policy provisions and social insurance (chapter 5), and five on other A&H concepts, field underwriting and Tennessee A&H law (chapter 6). Each question shows its chapter, so a miss tells you exactly which audio lesson to replay.
Tennessee does not currently require a pre-licensing course for Accident and Health Agent candidates. This exam is the tougher of Tennessee's two producer exams by the numbers: the NAIC's 2025 compiled pass-rate report puts the first-time Accident and Health pass rate at 64%, against 71% for the Life Agent exam — a little under two in three candidates clearing it on the first attempt.
Work them before you read the answer. Every question has the explanation folded underneath it. Guessing and then reading is worth more than reading and then agreeing.
Practice Questions 1-6: Accident and Health Policy Types
This is the largest single section of the exam, and it leans on business-use disability products, accidental death and dismemberment benefit structures, and the managed-care and account-based plans built around routine medical coverage. These six move through a business overhead expense policy, a disability buy-sell arrangement, AD&D capital-sum math, PPO versus HMO network rules, HSA eligibility, and hospital indemnity's fixed daily payout.
Question 1 (Chapter 4)
Sarah is the sole proprietor of a boutique in Nashville. She purchases a Business Overhead Expense (BOE) policy to protect her business if she becomes disabled. If Sarah is unable to work for two months due to a covered injury, which of the following expenses would the policy most likely cover?
- A) Sarah's personal mortgage payment
- B) The lost net profits of the boutique
- C) Sarah's personal income taxes
- D) The salary of Sarah's store manager
Show answer & explanation
Answer: D
Business Overhead Expense (BOE) insurance is designed to cover the actual overhead expenses of a business, such as rent, utilities, and employee salaries, to keep the business running while the owner is disabled. It does not cover the owner's personal income, mortgage, or the business's lost profits.
Question 2 (Chapter 4)
A law firm with three partners enters into a Disability Buy-Sell agreement. They purchase disability insurance to fund the agreement. If one partner becomes permanently disabled, how is the policy benefit typically structured?
- A) Monthly indemnity payments to the disabled partner for life
- B) Reimbursement of the firm's office rent and utilities
- C) A death benefit paid to the disabled partner's named beneficiary
- D) A lump sum payment to the business or non-disabled partners to purchase the disabled partner's interest
Show answer & explanation
Answer: D
Disability Buy-Sell (or Buyout) policies are specifically designed to provide the funds necessary for the remaining partners or the business entity to buy out the ownership interest of a totally and permanently disabled partner. These are often paid in a lump sum after a long elimination period (e.g., one or two years).
Question 3 (Chapter 4)
An insured has an Accidental Death and Dismemberment (AD&D) policy with a $100,000 Principal Sum. The insured loses one leg in a covered accident. What is the most likely benefit the insured will receive?
- A) The Principal Sum of $100,000
- B) Nothing, as AD&D only pays for death
- C) A monthly disability income benefit for 12 months
- D) The Capital Sum, which is typically 50% of the Principal Sum ($50,000)
Show answer & explanation
Answer: D
In AD&D insurance, the Principal Sum is paid for accidental death or the loss of two limbs/eyesight. The Capital Sum (usually 50% of the Principal Sum) is paid for the loss of a single limb or the sight in one eye.
Question 4 (Chapter 4)
A Preferred Provider Organization (PPO) plan differs from a traditional HMO in which of the following ways?
- A) PPOs never allow the insured to see a doctor outside of the network
- B) PPOs are only available to government employees
- C) PPOs do not charge premiums, only deductibles
- D) PPOs typically provide more flexibility to see out-of-network providers, though at a higher out-of-pocket cost
Show answer & explanation
Answer: D
PPOs offer a network of 'preferred' providers. Unlike most HMOs, PPOs allow members to seek care from out-of-network providers, but the member will usually have to pay a higher deductible or coinsurance for doing so.
Question 5 (Chapter 4)
An individual wants to open a Health Savings Account (HSA) to save for future medical expenses. Which of the following is a requirement for eligibility?
- A) The individual must be covered by a High Deductible Health Plan (HDHP)
- B) The individual must be over age 65
- C) The individual must have no other form of income
- D) The individual must be enrolled in Medicaid
Show answer & explanation
Answer: A
To be eligible to contribute to an HSA, an individual must be covered by a qualified High Deductible Health Plan (HDHP) and cannot be covered by other non-HDHP health insurance (with some exceptions) or be enrolled in Medicare.
Question 6 (Chapter 4)
A 'Hospital Indemnity' policy is best described as a policy that:
- A) Reimburses the hospital for all surgical costs
- B) Covers only the first $500 of any hospital stay
- C) Is only available to those who do not have other health insurance
- D) Pays a fixed dollar amount for each day the insured is confined to a hospital
Show answer & explanation
Answer: D
Hospital Indemnity (or Hospital Fixed Indemnity) policies pay a specific daily, weekly, or monthly amount while the insured is hospitalized. The benefit is paid directly to the insured and is independent of the actual medical expenses incurred.
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Practice Questions 7-12: Policy Provisions and Social Insurance
Twenty-one of the 68 items on this exam split between the provisions that sit inside an individual accident and health policy (15) and the social insurance programs layered on top of private coverage (6). These six move through the entire-contract provision, the notice-of-claim and legal-actions mandatory provisions, the elimination period, a group plan's probationary period, and what Medicare Part A covers.
Question 7 (Chapter 5)
An insurance producer tells a prospective client in Nashville that a specific health policy will cover all cosmetic surgeries, even though the written policy explicitly excludes them. If the client purchases the policy and later submits a claim for elective rhinoplasty, which provision will the insurer use to deny the claim?
- A) The Incontestable Clause
- B) The Consideration Clause
- C) The Insuring Clause
- D) The Entire Contract Provision
Show answer & explanation
Answer: D
The Entire Contract provision states that the policy, including the application and any attached riders, constitutes the entire agreement. Verbal statements by a producer cannot change the written terms of the contract. This protects the insurer from unauthorized promises made by agents.
Question 8 (Chapter 5)
A Tennessee resident is injured in a car accident. According to the Mandatory Uniform Provisions, within how many days should the insured ideally provide a written notice of claim to the insurer?
- A) 10 days
- B) 60 days
- C) 90 days
- D) 20 days
Show answer & explanation
Answer: D
The Notice of Claim provision requires the insured to notify the insurer of a loss within 20 days, or as soon as reasonably possible.
Question 9 (Chapter 5)
Which of the following best describes the 'Elimination Period' in a disability income policy?
- A) A period at the start of a policy where no benefits are paid for any reason.
- B) The time limit the insurer has to contest the validity of the application.
- C) The period during which the insurer can cancel the policy for any reason.
- D) A period of time during which the insured must be disabled before benefits begin to be paid.
Show answer & explanation
Answer: D
The Elimination Period acts like a time-based deductible. It is the period of time immediately following the start of a disability during which no benefits are paid. Longer elimination periods result in lower premiums.
Question 10 (Chapter 5)
An insured wants to file a lawsuit against their insurance company because a claim was denied. According to the 'Legal Actions' mandatory provision, what is the earliest and latest the insured can take this action?
- A) Earliest: 60 days after proof of loss; Latest: 3 years.
- B) Earliest: 20 days after proof of loss; Latest: 1 year.
- C) Earliest: 90 days after proof of loss; Latest: 2 years.
- D) Earliest: Immediately; Latest: 5 years.
Show answer & explanation
Answer: A
The Legal Actions provision states that an insured must wait at least 60 days after submitting written proof of loss before filing a lawsuit, to give the insurer time to investigate. The lawsuit must be initiated within 3 years from the time proof of loss was required.
Question 11 (Chapter 5)
A company implements a new group health plan for its employees. New hires are told they must work for 90 days before they are eligible to enroll in the plan. This 90-day period is known as the:
- A) Probationary Period.
- B) Elimination Period.
- C) Grace Period.
- D) Incontestable Period.
Show answer & explanation
Answer: A
A Probationary Period is a period of time that must expire before a new employee is eligible to enroll in a group health insurance plan. This is different from an elimination period, which is the 'waiting period' after a disability occurs before benefits begin.
Question 12 (Chapter 5)
A 66-year-old Tennessee retiree is enrolled in Medicare Part A and Part B. They are hospitalized for 10 days. Which part of Medicare will primarily cover the semi-private room and board and hospital nursing care?
- A) Medicare Part B
- B) Medicare Part D
- C) Medicaid
- D) Medicare Part A
Show answer & explanation
Answer: D
Medicare Part A is Hospital Insurance. It covers inpatient hospital care, skilled nursing facility care, hospice, and some home health care. Part B covers doctor visits and outpatient services.
Practice Questions 13-17: Other Concepts, Field Underwriting and Tennessee Law
The closing items split between other A&H concepts and field underwriting procedures (13 combined) and a flat 4 items of Tennessee's own A&H-specific law, on top of the 14-item section shared with the Life Agent exam. These five move through the federal dependent-coverage age, Tennessee's required renewal provisions for individual policies, the fee an insurer must assess when no commission is paid, blanket and franchise school accident insurance, and Tennessee's external review process.
Question 13 (Chapter 6)
A health insurer offers dependent children coverage under a group policy. Which of the following ages is the maximum for a dependent child to remain covered under the policy, according to typical Tennessee group health plan provisions?
- A) 26 years, regardless of student status
- B) 21 years, regardless of student status
- C) 23 years, if the child is a full‑time student
- D) 18 years, unless the child is disabled
Show answer & explanation
Answer: A
Tennessee group health plans generally follow the federal rule allowing dependent coverage up to age 26, irrespective of student status. The other age limits (B, B, D) are not consistent with current practice.
Question 14 (Chapter 6)
John is the policyowner of a group health plan but is not the insured. He wishes to change the primary beneficiary from his spouse to his adult child. Under Tennessee law, which of the following statements is correct?
- A) John may change the beneficiary only if the insured consents in writing.
- B) John must obtain a court order before making any beneficiary change.
- C) John may change the beneficiary only if the insurer approves the change in writing.
- D) John can change the beneficiary without the insured’s consent because the policyowner has that right.
Show answer & explanation
Answer: D
The policyowner has the contractual right to name or change beneficiaries, even if they are not the insured, per standard owner’s rights. Consent from the insured (A) is not required. A court order (B) is unnecessary. While the insurer must be notified, the insurer’s written approval (C) is not a prerequisite to the owner’s right to change beneficiaries.
Question 15 (Chapter 6)
An individual purchases a major medical policy on the ACA marketplace in Tennessee. The insurer does not pay any commission to the producer. Under Tenn. Code Ann. §56-6-125(b), what fee, if any, must the insurer assess to the insured?
- A) Assess a fee to the insured in an amount equal to the commission that would otherwise have been paid.
- B) Take no action; no fee may ever be charged to the insured.
- C) Refund a portion of the premium to the insured.
- D) Report the policy to the Tennessee Department of Commerce and Insurance.
Show answer & explanation
Answer: A
Tenn. Code Ann. §56-6-125(b) allows the insurer to assess a fee to the insured, in an amount equal to the commission that would have been paid, when no commission is paid to the producer. Option B is incorrect because the statute does permit such a fee. Option C is incorrect; there is no refund requirement. Option D is incorrect; there is no such reporting requirement under this provision.
Question 16 (Chapter 6)
Which of the following statements about Blanket or Franchise School Insurance in Tennessee is correct under Tenn. Code Ann. §§56-7-2323 and 56-7-2324?
- A) It provides accident insurance coverage to all students of a school or college for injuries sustained during school-sponsored activities, under a single master policy.
- B) It provides individual health insurance policies to students and their families, similar to dependent coverage under a parent's plan.
- C) It is a type of Medicare Supplement policy sold exclusively to retired school employees.
- D) It covers only faculty and staff for occupational injuries, not students.
Show answer & explanation
Answer: A
Blanket or Franchise School Insurance in Tennessee, as defined by Tenn. Code Ann. §§56-7-2323 and 56-7-2324, provides accident insurance coverage to a defined group (e.g., all students of a school or college) for injuries occurring during school-sponsored activities, under a single master policy issued to the institution. It is not individual health insurance for families (Option B), not related to Medicare (Option C), and not limited to faculty/staff (Option D).
Question 17 (Chapter 6)
Under Tennessee law, which of the following statements is true regarding the external review process for adverse benefit determinations under Tenn. Code Ann. §§56-61-113 and 56-61-116?
- A) The insured must exhaust the insurer's internal appeals process before requesting an external review.
- B) External review is available only for denials of experimental or investigational treatments.
- C) The insurer selects the independent review organization (IRO) that conducts the external review.
- D) External review decisions are not binding on the insurer.
Show answer & explanation
Answer: A
Tennessee's external review process, as outlined in Tenn. Code Ann. §§56-61-113 and 56-61-116, requires the insured to first exhaust the insurer's internal appeals process before being eligible to request an external review by an independent review organization (IRO). This ensures the insurer has a full opportunity to review the claim. Option B is incorrect; external review applies to adverse benefit determinations involving medical necessity, appropriateness, or experimental/investigational treatments, but is not limited to only experimental/investigational treatments. Option C is false; the IRO is selected by a neutral entity (e.g., the state or a contracted administrator), not the insurer, to ensure independence. Option D is false; external review decisions are binding on the insurer.
The Accident and Health Mistakes That Cost Marks
Mixing up business overhead expense, disability buy-sell and key-employee disability coverage. These business-use disability products differ by who is insured, who owns the policy, and what the benefit is meant to fund — office overhead, a buyout of an owner's share, or the cost of replacing a key employee. Reading one product's purpose into another is a common distractor.
Confusing the AD&D principal sum with the capital sum. The principal sum pays for accidental death or the loss of two limbs or both eyes; the capital sum, typically half the principal sum, pays for the loss of a single limb or the sight in one eye. Losing track of which loss triggers which amount costs an otherwise straightforward math question.
Treating PPO and HMO out-of-network rules as interchangeable, and HSA eligibility as automatic. A PPO allows out-of-network care at a higher cost; a traditional HMO generally does not outside an emergency. Separately, an HSA requires enrollment in a qualifying high-deductible health plan — it is not available simply because someone wants to save for medical expenses.
Forgetting that hospital indemnity pays a fixed amount regardless of the actual bill. It is a narrow, supplemental benefit, not a substitute for major medical coverage. Separately, the entire-contract provision is what keeps a producer's spoken promise from overriding the written policy — the written terms control, not what was said at the point of sale.
Mixing up the elimination period with the probationary period, and misreading the claim-timing windows. An elimination period is the wait after a disability begins before benefits start; a probationary period is the wait after hire before a new employee can enroll in a group plan at all. On timing, notice of claim is due within about 20 days of a loss, while a lawsuit over a denied claim generally cannot start before 60 days after proof of loss, nor after 3 years.
Treating Tennessee's own A&H rules as optional extras rather than tested law. The fee an insurer must assess when no commission is paid, and the requirement to exhaust an insurer's internal appeal before an external review, are both Tennessee-specific obligations layered on top of the federal rule that lets a dependent stay covered to age 26 — three separate rules, not one.
Chapters 4, 5 and 6 of the LanePrep Tennessee course cover exactly this material as audio lessons, each with its own chapter quiz; chapter 1 previews free, no signup. For the Life Agent exam, see the Life Agent question set; for a 25-question sample across both exams, see the free practice set.
Your Next Step
How did you score?
14 or more correct (82%+): You are comfortably above the scaled-70 target. Book the Accident and Health Agent exam, then read how to pass the Tennessee Life & Health exam on the first try for the week-by-week plan covering both exams.
11-13 correct: You are in range but close to the line. Note which chapter your misses fell in and re-listen to that chapter's audio lesson before retesting.
Under 11 correct: This is the harder of Tennessee's two exams by the numbers — a 64% first-time pass rate in 2025, against 71% for the Life Agent exam — so this is not a set to guess through. Start with chapter 4 of the course and work forward.
Chapters of the LanePrep Tennessee course covering accident and health are included with the full course; chapter 1 previews free, no signup. For the full cost picture, see how much a Tennessee L&H license costs.
Exam structure and fees from the Pearson VUE Tennessee Insurance Licensing Candidate Handbook #124300 (10/2026). Question counts and content weighting from Pearson VUE content outline #124301 (effective October 7, 2026). Pass rates from the NAIC 2025 compiled pass-rate report. Read October 2026.
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