17 Free Tennessee Life Agent Exam Practice Questions (2026)

17 min read|Updated 2026-10-17

How to Use This Life Agent Question Set

Tennessee's Life Agent exam is one of two separate Pearson VUE exams required for a Life & Health license — the other being the Accident and Health 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 (15), Policy Riders, Provisions, Options and Exclusions (15), Completing the Application, Underwriting and Delivering the Policies (12), Retirement and Other Insurance Concepts (8), Tennessee Laws and Departmental Rules Common to Life, Accident and Health, Property and Casualty Insurance (14), and Tennessee Laws and Departmental Rules Pertinent to Life Insurance Only (4). Add the two Tennessee sections together and more than a quarter of this exam — 18 of 68 scored items — is Tennessee law, not generic policy knowledge.

These 17 questions come from chapters 1, 2, 3 and 8 of LanePrep's Tennessee Life, Accident & Health quiz bank, in roughly that proportion: six on types of life insurance policies (chapter 1), six on policy riders and provisions together with the application, underwriting and retirement concepts tested alongside them (chapters 2 and 3), and five on Tennessee law pertinent to life insurance only (chapter 8). 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 Life Agent candidates, and this is the stronger-performing of Tennessee's two producer exams by the numbers: the NAIC's 2025 compiled pass-rate report puts the first-time Life Agent pass rate at 71%, against 64% for the Accident and Health Agent exam. A solid majority still means close to three in ten first-time candidates did not pass in 2025, so this is not a set to guess through.

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: Types of Life Insurance Policies

The largest single section of the Life Agent exam is policy types: term variations, permanent products, premium structures and the features that change how coverage behaves over time. These six move through limited-pay and single-premium whole life, variable whole life, survivorship life, convertibility and level term.

Question 1 (Chapter 1)

Sarah, a 35-year-old professional in Tennessee, wants permanent life insurance coverage but prefers to pay off her premiums within her working years. She purchases a policy that requires her to pay premiums for 20 years, after which no further payments are necessary, but the coverage continues for her entire life, and the cash value continues to grow. Which type of policy did Sarah purchase?

A) Single-premium life
B) 20-pay whole life
C) Level term life
D) Annually renewable term

Show answer & explanation

Answer: B

A 20-pay whole life policy is a type of limited-pay whole life, where premiums are paid for a specified period (20 years in this case), but the coverage remains in force for the insured's entire life. Single-premium life involves one lump sum payment. Level term life provides coverage for a specific term without building cash value. Annually renewable term renews each year, typically with increasing premiums.

Question 2 (Chapter 1)

After receiving a substantial inheritance, Michael, a Tennessee resident, decides to purchase a life insurance policy for his adult children. He wants to make one large payment upfront and have the policy immediately paid in full, providing a guaranteed death benefit for life and instant cash value growth. What type of policy would best suit Michael's needs?

A) Flexible premium universal life
B) Ordinary whole life
C) Indexed universal life
D) Single-premium whole life

Show answer & explanation

Answer: D

Single-premium whole life requires one lump sum payment upfront, after which the policy is fully paid, providing immediate cash value and lifetime coverage. Flexible premium universal life allows for varying premium payments. Ordinary whole life requires ongoing level premiums throughout life. Indexed universal life ties cash value growth to an index but still typically involves ongoing premiums.

Question 3 (Chapter 1)

A Tennessee client is interested in a permanent life insurance policy where the cash value can be invested in a separate account, offering potential for higher returns but also carrying investment risk. The client understands that the death benefit may fluctuate, and they are comfortable with market fluctuations. What type of policy is being described?

A) Interest-sensitive whole life
B) Universal life
C) Indexed life
D) Variable whole life

Show answer & explanation

Answer: D

Variable whole life insurance allows the policyowner to invest the cash value in a separate account, offering potential for higher returns but also exposing the policyowner to investment risk. The death benefit can fluctuate based on investment performance. Interest-sensitive whole life's cash value is tied to current interest rates, not market investments. Universal life offers flexibility but typically guarantees a minimum interest rate. Indexed life's cash value is tied to an equity index, usually with a floor, but does not involve direct investment in a separate account.

Question 4 (Chapter 1)

A Tennessee couple, preparing for retirement, wants a life insurance policy that will provide coverage for both of them, but only pay out the death benefit upon the death of the second spouse. This policy is primarily intended to cover estate taxes and other final expenses, ensuring their children receive the maximum inheritance. Which type of policy should they consider?

A) Survivorship life (second-to-die)
B) Joint life (first-to-die)
C) Two separate ordinary whole life policies
D) Decreasing term life

Show answer & explanation

Answer: A

Survivorship life, also known as second-to-die life insurance, covers two or more lives and pays out the death benefit only upon the death of the last insured. This is commonly used for estate planning purposes. Joint life (first-to-die) pays out upon the first death. Two separate ordinary whole life policies would pay out on each individual's death. Decreasing term life would not provide permanent coverage or be ideal for estate planning.

Question 5 (Chapter 1)

A Tennessee policyholder has a 10-year level term life insurance policy. Five years into the policy, their financial situation improves, and they decide they want permanent coverage without having to prove their insurability again. Their current term policy allows them to switch to a whole life policy. What feature must their term policy possess for this to be possible?

A) Renewability
B) Return of premium
C) Guaranteed insurability
D) Convertibility

Show answer & explanation

Answer: D

A convertible term policy allows the policyowner to convert their term policy into a permanent policy (like whole life) without providing evidence of insurability. Renewability allows the policy to be renewed at the end of the term, typically at a higher premium, but does not convert it to permanent. Return of premium term returns premiums if the insured outlives the term. Guaranteed insurability is a rider that allows purchasing additional coverage at specified future dates without evidence of insurability, but it's not the feature that converts the policy type itself.

Question 6 (Chapter 1)

A Tennessee resident, Ms. Evans, needs life insurance coverage for a specific period of 15 years, during which her children will be financially dependent. She wants the death benefit to remain constant throughout this entire period. She is not interested in building cash value. Which type of policy would best suit her needs?

A) Level Term Life
B) Universal Life
C) Whole Life
D) Variable Universal Life

Show answer & explanation

Answer: A

Level Term Life insurance provides a death benefit that remains constant (level) for a specified period, typically 10, 15, 20, or 30 years. It is temporary coverage and does not build cash value, aligning with Ms. Evans' requirements. Universal Life, Whole Life, and Variable Universal Life are all types of permanent insurance that build cash value.

Get the 25-question sample set by email

Want a full-exam practice set to study offline? Drop your email — we'll send 25 questions across every content area, each with the answer and explanation.

Exam already booked? Add the date and the reminders count down to it (optional):

No spam. Just the questions and one optional follow-up.

Practice Questions 7-12: Riders, Provisions, Application and Retirement Concepts

Thirty-five of the 68 Life Agent items sit across policy riders and provisions (15) and the application, underwriting, delivery and retirement concepts tested alongside them (20). These six move through a guaranteed insurability rider, a payor benefit rider, the free-look provision, correcting an application error, an early IRA distribution, and the human life value approach to sizing a policy.

Question 7 (Chapter 2)

A 25-year-old policyowner in Nashville adds a Guaranteed Insurability Rider (GIR) to her whole life policy. She wants to increase her coverage at age 30 after being diagnosed with a chronic but manageable health condition. Which of the following is true?

A) She must provide evidence of insurability because of her new health condition.
B) She can purchase the additional coverage at her original age 25 premium rate.
C) The rider is automatically cancelled once a chronic condition is diagnosed.
D) She can purchase the additional coverage without a medical exam at her attained age 30 rate.

Show answer & explanation

Answer: D

The Guaranteed Insurability Rider allows the insured to purchase additional amounts of insurance at specified ages or life events without proving insurability (no medical exam). However, the premium for the additional coverage is based on the insured's attained age at the time the option is exercised.

Question 8 (Chapter 2)

Robert purchases a juvenile life insurance policy for his 10-year-old daughter and includes a Payor Benefit rider. If Robert dies when his daughter is 15, what happens to the policy premiums?

A) The daughter must begin paying premiums immediately from her inheritance.
B) The premiums are waived until the daughter reaches a specified age, such as 21 or 25.
C) The policy is converted to a paid-up term policy with a reduced face amount.
D) The policy is automatically surrendered for its cash value to provide for the daughter.

Show answer & explanation

Answer: B

The Payor Benefit rider functions like a waiver of premium for juvenile policies. If the payor (usually a parent) dies or becomes disabled, the insurer waives the premiums until the child reaches a certain age (often 21 or 25), at which point the child takes over the payments.

Question 9 (Chapter 2)

A Tennessee resident receives their new life insurance policy on June 1st. They decide on June 8th that the policy does not meet their needs and want a full refund. Which provision allows this?

A) The Consideration Clause
B) The Grace Period
C) The Reinstatement Provision
D) The Free Look Provision

Show answer & explanation

Answer: D

The Free Look provision (Right to Examine) allows the policyowner a specified number of days after policy delivery to return the policy for a full refund of all premiums paid if they are dissatisfied for any reason.

Question 10 (Chapter 3)

An applicant in Nashville is completing a life insurance application and realizes they accidentally wrote their birth year as 1985 instead of 1988. What is the correct procedure for the producer to follow?

A) Use correction fluid to cover the error and write the correct date over it.
B) Cross out the incorrect date, write the correct date, and have the applicant initial the change.
C) Note the error in the producer's report section and sign for the applicant.
D) Submit the application as is and call the home office later to correct the file.

Show answer & explanation

Answer: B

To maintain the integrity of the legal document, any changes to an insurance application must be initialed by the applicant. Erasing or using correction fluid is prohibited because it obscures the original entry and could lead to disputes over whether the change was authorized.

Question 11 (Chapter 3)

A 40-year-old individual in Chattanooga takes a $10,000 distribution from their traditional IRA to pay for a luxury vacation. Which of the following best describes the tax consequence?

A) The distribution is subject to ordinary income tax plus a 10% penalty
B) The distribution is tax-free because it is the individual's money
C) The distribution is subject to ordinary income tax only
D) The distribution is subject to a 50% excise tax

Show answer & explanation

Answer: A

Distributions from a traditional IRA before age 59 1/2 are generally subject to ordinary income tax and a 10% federal premature distribution penalty, unless an exception (like first-time homebuyer or disability) applies.

Question 12 (Chapter 3)

An individual in Franklin wants to determine how much life insurance they need by calculating the present value of their future earnings to provide for their family. This approach is known as the:

A) Human Life Value Approach
B) Needs Approach
C) Estate Liquidity Approach
D) Capital Conservation Approach

Show answer & explanation

Answer: A

The Human Life Value approach focuses on the individual's economic value by calculating the present value of their future income. The Needs Approach, by contrast, focuses on specific financial obligations like mortgages, final expenses, and education.

Practice Questions 13-17: Tennessee Life Law

Four of the 68 Life Agent items are Tennessee's own life-specific statutes and regulations, on top of the 14-item section shared with the Accident and Health Agent exam. Generic national study material does not cover this chapter. These five questions move through the statutory grace period, the incontestability clause, the entire-contract provision, annuity suitability, and the discount rule inside Tennessee's military sales practices regulation.

Question 13 (Chapter 8)

A 45‑year‑old applicant purchases a term life policy that requires monthly premiums due on the 1st of each month. He misses the payment on June 1, but the insurer continues coverage through June 30 and pays the death benefit when he dies on June 28. Which Tennessee statutory provision most directly explains why the policy remained in force?

A) §56-7-2307 (Incontestability clause)
B) §56-7-2308 (Entire contract provision)
C) Dept. Rule 0780‑1‑40‑.04 (Disclosure requirements)
D) §56-7-2305 (Grace period provision)

Show answer & explanation

Answer: D

Section 56‑7‑2305 mandates a statutory grace period during which the policy stays in force despite non‑payment, and the death benefit is payable less any unpaid premium. The incontestability clause (56‑7‑2307) and entire contract provision (56‑7‑2308) address other issues, and Rule 0780‑1‑40‑.04 deals with disclosures, not premium grace periods.

Question 14 (Chapter 8)

A producer receives a request to determine whether a document titled "Policy Summary" qualifies as a "policy" under Tennessee law. Which rule provides the definition that the producer should cite?

A) Dept. Rule 0780‑1‑40‑.03
B) Dept. Rule 0780‑1‑40‑.04
C) Dept. Rule 0780‑1‑40‑.05
D) Dept. Rule 0780‑1‑40‑.02

Show answer & explanation

Answer: D

Dept. Rule 0780‑1‑40‑.02 defines "policy" for life insurance purposes. Rule .03 defines "insured," .04 addresses disclosure, and .05 sets general rules.

Question 15 (Chapter 8)

During a policy review, a producer tells a client that a handwritten note from a previous meeting modifies the death benefit amount. The client later disputes the change. Which Tennessee provision controls the enforceability of that handwritten note?

A) §56-7-2305 (Grace period)
B) §56-7-2307 (Incontestability)
C) Dept. Rule 0780‑1‑40‑.04 (Disclosure)
D) §56-7-2308 (Entire contract provision)

Show answer & explanation

Answer: D

Section 56‑7‑2308 declares that the policy, together with the application, constitutes the entire contract, preventing external documents or oral statements from altering the contract. The other provisions are unrelated to contract completeness.

Question 16 (Chapter 8)

An elderly client with limited net worth wants to purchase a variable annuity. Which rule requires the producer to determine the suitability of this product for the client?

A) Dept. Rule 0780‑01‑58‑.14(2)
B) Dept. Rule 0780‑1‑24‑.05
C) Dept. Rule 0780‑1‑40‑.04
D) Dept. Rule 0780‑01‑86

Show answer & explanation

Answer: A

Dept. Rule 0780-01-58-.14(2) specifically addresses suitability requirements for annuity transactions, mandating that the producer assess the client's financial situation and needs. Rule 0780-01-86 relates to annuity licensing, not suitability. The other rules cover replacement duties and disclosure.

Question 17 (Chapter 8)

A veteran client asks whether the insurer can require proof of military service before offering a discounted premium. Under Tennessee's military sales practices rule, is this permissible?

A) Yes, a producer may require satisfactory proof of the service member's status before applying a military-based discount.
B) No, producers may never request proof of military status.
C) Yes, but only the Commissioner may verify military status, not the producer.
D) No, military status may never be used as a basis for any premium difference.

Show answer & explanation

Answer: A

Dept. Rule 0780-1-89, Tennessee's military sales practices rule, allows a producer to require satisfactory proof of a service member's status before applying a military-based discount. Options B and D are incorrect because the rule does not prohibit verifying status or offering such discounts outright. Option C is incorrect because the producer, not only the Commissioner, handles this verification.

The Life Agent Mistakes That Cost Marks

Mixing up limited-pay, single-premium and ordinary whole life. All three are permanent insurance with level death benefits and growing cash value; what changes is how the premium is funded — over a set number of years, in one lump sum, or for life. The exam trades on which funding pattern a scenario describes.

Treating variable whole life and universal life as the same flexibility. Variable whole life keeps a fixed premium while exposing the cash value to market risk in a separate account. Universal life keeps the premium flexible and typically guarantees a minimum interest rate instead of market exposure. Reading one policy's feature set into the other is a common distractor.

Reversing survivorship (second-to-die) and joint (first-to-die) life, and confusing a term policy's convertibility with its renewability. A survivorship policy pays on the second death; a joint policy pays on the first and then terminates. Separately, convertibility lets a term policy become permanent without new evidence of insurability, while renewability only extends the term itself at a higher premium.

Forgetting that a guaranteed insurability rider prices new coverage at the attained age, not the original age. The rider waives the medical exam, not the age-based premium increase. A payor benefit rider works differently again: it waives premiums on a juvenile policy until the child reaches a specified age, rather than changing who owns the policy.

Rushing the application-correction and retirement-math questions. An error on a signed application gets crossed out, corrected and initialed by the applicant — never erased or corrected by the producer alone. A traditional IRA distribution taken before age 59½ is ordinary income plus a 10% penalty, not just one or the other, and the human life value approach prices a policy off future income, not off a list of specific financial obligations the way the needs approach does.

Keeping Tennessee's three required life provisions straight. The grace period keeps a policy in force for a set window after a missed payment; the incontestability clause limits how long the insurer can contest a misstatement; the entire-contract provision keeps anything outside the policy and application from changing its terms. Annuity suitability and the military sales practices rule are two further, separate Tennessee obligations — one about matching a product to a client's situation, the other about how a sale to a service member is conducted.

Chapters 1, 2, 3 and 8 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 a 25-question sample across both exams, see the free practice set; for the Accident and Health Agent exam, see the Accident and Health question set.

Your Next Step

How did you score?

14 or more correct (82%+): You are comfortably above the scaled-70 target. Book the Life 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: Tennessee's own 2025 numbers put the Life Agent first-time pass rate at 71% — solid, but still close to three in ten candidates short of it. Start with chapter 1 of the course and work forward rather than guessing through another set.

Chapter 1 of the LanePrep Tennessee course is free at /tn/l-and-h/preview — full audio and the chapter quiz, 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.

Free: 25 Tennessee L&H practice questions

Liked this article? Get 25 exam-style questions emailed to you — with full answer explanations, no credit card. Closest thing to studying offline.

Exam already booked? Add the date and the reminders count down to it (optional):

No spam. Just the questions and one optional follow-up.