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MN life insurance exam With 128 Test Exam
Questions
What type of policy best fits an individual with a 30 year mortgage? - Correct Answer โ โ Decreasing term
When are the applicant and the policy owner required to sign the application: -Correct Answer โ โ When the insured is other than the policy owner
What type of policy will cover both husband and wife as the insured but will pay out the face amount on the death of the last surviving spouse? -Correct Answer โ โ Joint Survivorship
How long will a temporary license be issued to an agent's spouse/next of kin/employee, upon the agent's death or disabling event: -Correct Answer โ โ 180 days
If a teacher wants to purchase a retirement plan, what type of plan will he qualify for? -Correct Answer โ โ 403 (b)
If the Commissioner believes a person has or shall violate an insurance law, the
Commissioner may: -Correct Answer โ โ Issue a Cease and Desist Order
Once Commissioner has issued a Cease and Desist Order, within how many days hearing must be held after the Commissioner receives the request: -Correct Answer โ โ 10 days
How much can the Commissioner fine -Correct Answer โ โ $1, per violation fine a person for violation of any law, rule, or order related to the Commissioner's duties and responsibilities
A business that has been authorized by the Commissioner to do business in Minnesota, is issued a: -Correct Answer โ โ Certificate of Authority
An agent licensed in the same state he / she lives, is considered a/n: - Correct Answer โ โ domestic
When can the applicant change the beneficiary? -Correct Answer โ
โ The insured can change the revocable beneficiary whenever
Which premium mode is the most expensive? -Correct Answer โ โ Monthly
The act of inducing a person to terminate an existing policy and purchase a new policy is: -Correct Answer โ โ Twisting
All of the following are examples of third party ownership EXCEPT: - Correct Answer โ โ Primary Beneficiary
When an individual replaces a life insurance policy, who initials the replacement of the life insurance policy form? -Correct Answer โ โ Both the applicant and the insurance producer
A false written or oral statement made by a producer for the purpose of replacing an existing policy to the document of insurance is: - Correct Answer โ โ Defamation
John has a life insurance policy with XYZ Company; his premium payment is due on the first of each month. Due to illness, John failed to pay on June 1st a premium of $210. On June 20th, John died.
Which of the following would be a provision in John's policy that would come into play so that the beneficiary would be paid? -Correct Answer โ โ Grace period provision
Which of the following statements regarding the concept of insurable interest as related to the life insurance contract is TRUE? -Correct Answer โ โ Individual related closely by blood have an insurable interest based on love and affection
When the structure and flexibility of a universal life policy are combined with investment, choice is: -Correct Answer โ โ Variable Universal Life Policy
If the initial premium is paid at the time of the application on May 1st, the company issues the policy as a standard issue on May 30th, and
What is Mn's require grace period for a life insurance contract? - Correct Answer โ โ 1 month
The main purpose of the spendthrift clause curtained in a settlement option is to: -Correct Answer โ โ Protect the death benefit from the creditor of the beneficiary
When does coverage begin when a life insurance application and the initial premium are submitted together? -Correct Answer โ โ The application date or the date of the medical examination, whichever is faster
Generally, what are the tax options of life insurance as it pertains to the beneficiary? -Correct Answer โ โ Tax free at the time of the insured's death
Which of the following types of insurance is designed to provide life insurance protection only for a limited of time? -Correct Answer โ โ Term Life insurance
A life insurance policy will become incontestable no later than how long after its effective date. -Correct Answer โ โ 2 years
Which of the following beneficiary designations prohibits the policy owner from making any changes to the policy without the beneficiary written consent? -Correct Answer โ โ Irrevocable beneficiary
A reason for using individual reporting agencies to gather informing about an insurance applicant is: -Correct Answer โ โ An evaluation of the applicant by a disinterest source not related to the insurer
Who performs the functions of risk selection in determining an individual's insurability for policy issue? -Correct Answer โ โ Underwriter
A rider on a whole life policy that adds temporary coverage for a spouse and children is: -Correct Answer โ โ A family term rider
EXCEPT: -Correct Answer โ โ Reinstate the policy within 3 years from the date of premium default
If an insured was in debt at the time of his/her death, the proceeds of his/her life insurance policy will be paid to -Correct Answer โ โ The beneficiary on record with the insurer
Which form of insurance has shareholders? -Correct Answer โ โ Stock company
When can a producer share commission with another producer? - Correct Answer โ โ When either producer is licensed in the same line of insurance
Which of the following is an example of an unfair claim settlement practice? -Correct Answer โ โ Failure to provide a reasonable basis for the denial claim upon request
An accidental death benefit: -Correct Answer โ โ Pays only in the event of an accident resulting in death
Generally, if the application in not prepaid, the effective date of the policy is when: -Correct Answer โ โ Producer delivered the policy and collect the premium
To sell long term care, how many hours do you need? -Correct Answer โ โ 8 hours training course follow by 4 hr of ongoing training every 2 yrs thereafter to sell any LTC policy
The proposed insured's statement on a life insurance application are considered to be truth. -Correct Answer โ โ Representation
Which of the following transaction would not be subjected to income tax under a Modified Endowment
Contract (MEC)? -Correct Answer โ โ The Death Benefit
An immediate annuity making payment after the: -Correct Answer โ โ Policy has been in force for one year
The Department of Commerce is empowered to: -Correct Answer โ โ Enforce the state laws
To sell the variable, the agent must pass? -Correct Answer โ โ Life license and a Security license
How many years to renew your license? -Correct Answer โ โ 2 year
When does your license expire? -Correct Answer โ โ Your birthday or Oct. 31st
Which of the following provisions allows a person to temporarily give up a portion of their right to secure? -Correct Answer โ โ Collateral Assignment
In addition to the actual policy, an entire contract includes which of the following? -Correct Answer โ โ The application
Which of the following is true regarding suitability of a long term care insurance policy? -Correct Answer โ โ The agent must have reasonable grounds for believing that the recommendation is suitable for the customer
What is the minimum amount of protection for the claim under the MN life and health company? -Correct Answer โ โ 1,000,
If the insured and the primary beneficiary are killed in the same accident, the policy proceeds will pay the death benefit to: -Correct Answer โ โ Contingent Beneficiary
Which type of life insurance is written under a single contract for both the spouse in which it is payable upon the 1st death? -Correct Answer โ โ Joint
Prior to annuity ration, what is the non-forfeiture value of an annuity? -Correct Answer โ โ Premium plus interest
At the time of initial contact and before a personal solicitation, a producer must state: -Correct Answer โ โ The name of the person making contact, the name of the producer in the business to sell life insurance
The following refers to which type of clause? If the proposed insured dies while the policy is in forced the company will pay the death benefit to the beneficiary? -Correct Answer โ โ An insuring clause
Under MN law, if an employee is laid off from employment and is no longer eligible for group coverage, what can the employer's life insurance coverage? -Correct Answer โ โ The employer must inform the company of the amount payable to continue coverage for up to 18
Which rider lows additional insurance a a spectred date or event withou evidence ofinsumbility? -Correct Answer โ โ Guaranteed Insurability
Which of the exceptions of a variable annuity contract if a person cancelled an insurance contract within the free look period is without liability and the person is entitled a refund of? -Correct Answer โ โ
The premium paid but not including any contract fees or other charges related to the contract
The Department of Commerce must be given a minimum of how many days advance notice of disciplinary? -Correct Answer โ โ 10 days
The proposed insured's statement on the application and the first premium payment are part of the policy? -Correct Answer โ โ Consideration Clause
A temporary producer license can be issued in any of the following EXCEPT -Correct Answer โ โ A prospective producer who is enrolled in an insurance pre-licensed class
Which of the following would be prohibited advertising? -Correct Answer โ โ Advertising that uses the MN Life and Health Insurance Guaranty Association
The insured takes out the life insurance policy and the insured is suicide himself 13 months later, what will the insurance company do? -Correct Answer โ โ Reimburse the premium
How long is a temporary license? -Correct Answer โ โ 18 months
Refunding part of the commission, premium, service, or anything of value to the purchaser as an inducement to buy insurance coverage? - Correct Answer โ โ Rebating
The purpose of the insured concerning about silicate the insurer becomes insolvency and the Guaranty
Association? -Correct Answer โ โ To be bankruptcy
What is the insured becomes totally disability? -Correct Answer โ
โ Waiver of premiums
The producer submits the 1st application to the insurer, how long does it take? -Correct Answer โ โ 15 days
Which type of life insurance policy is the last die? -Correct Answer โ
โ Survivorship
Which of the following consumer reports include written, oral, and other forms of communication that consumer reporting agency had regarding consumers' credit, character, reputation, or habits? -Correct Answer โ โ Consumer report
What is NOT an example of Exclusion? -Correct Answer โ โ Firetfighter
Commissioner of Commerce refuse to give License to an applicant - Correct Answer โ โ .... Convicted of a crime ... moral..
license revocation EXCEPT.... -Correct Answer โ โ child support..
The insuring clause states that if the proposed insured dies while the policy is inforced -Correct Answer โ โ The company will pay the death benefit to the beneficiary.
