Tennessee Insurance Practice Exam 2026 – All-in-One Resource for Exam Success!

The correct answer highlights the necessity of having the initial premium paid for the life insurance policy to take effect. In the context of life insurance, the free-look period allows the policyholder a specified time to review the policy after it is issued. If the premium was not paid by the applicant, the coverage would not commence, and therefore, the policy would not be active.

The other options do not ensure that the policy goes into effect without the payment of the initial premium. The application's approval means that underwriting and health assessments could have been completed, but without the premium payment, the coverage is not enforceable. The verification of the applicant's health is part of the application process but does not directly impact policy activation if the initial premium remains unpaid. Completion of underwriting is critical, but like the other options, it is insubstantial in the absence of the initial premium payment for the policy to be effective.