Tennessee Life and Health Insurance Practice Exam 2026 – All-in-One Guide to Ensure Your Exam Success!

If the insured commits suicide within a specific period after purchasing the policy, commonly known as the suicide clause, the typical outcome is that the insurer does not pay the death benefit. Instead, the policy usually states that premiums paid will be refunded, which aligns with the rationale behind option C.

Insurance companies implement a suicide clause to mitigate risk. Generally, this clause is activated when a death by suicide occurs within the first two years of coverage. However, since the scenario described mentions a timeframe of six months, the policy would likely adhere to the standard provisions related to suicide. As a result, the insurer may opt to refund the premiums to the beneficiary rather than pay out the face amount of the policy. The intent is to prevent individuals from purchasing a life insurance policy with the intent to commit suicide shortly thereafter to financially benefit others.

Therefore, in this scenario, the correct outcome aligns with option C, providing a refund of premiums paid while not extending the benefit of the insurance coverage.