Tennessee Insurance Practice Exam

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Prepare for the Tennessee Insurance Exam with engaging flashcards and comprehensive multiple-choice questions. Understand hints and receive detailed explanations for each query. Ace your test with confidence!

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An insurer may normally delay the payment of a cash value loan or surrender value for what maximum period of time?

3 months
6 months
1 year
2 years

The correct answer is: 6 months

The maximum period of time that an insurer may delay the payment of a cash value loan or surrender value is typically up to six months. This rule is designed to protect the insurer's financial stability while also ensuring that policyholders are not left waiting indefinitely to access their funds. Insurers may need this time to process administrative tasks associated with a loan or surrender request, such as verifying information related to the policyholder's account or ensuring proper documentation is in place. This six-month time frame aligns with regulatory standards that aim to provide a balance between the insurer's operational requirements and the policyholder's rights. Understanding this limit is essential for both policyholders and agents, as it enables them to manage expectations regarding the accessibility of the investment portion of their insurance policies.