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MN Life Insurance Exam Questions and Answers, Exams of Insurance law

A comprehensive set of questions and answers for the minnesota life insurance exam. it covers various policy types, regulations, and procedures, offering valuable insights for those preparing for the exam. The questions delve into key concepts such as policy ownership, beneficiary designations, and insurance regulations, making it a useful study resource for aspiring insurance professionals.

Typology: Exams

2024/2025

Available from 05/08/2025

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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 โœ” โœ” Decreasing term
When are the applicant and the policy owner required to sign the
application: -Correct Answer โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 180 days
If a teacher wants to purchase a retirement plan, what type of plan
will he qualify for? -Correct Answer โœ” โœ” 403 (b)
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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 โœ” โœ” Decreasing term

When are the applicant and the policy owner required to sign the application: -Correct Answer โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 180 days

If a teacher wants to purchase a retirement plan, what type of plan will he qualify for? -Correct Answer โœ” โœ” 403 (b)

If the Commissioner believes a person has or shall violate an insurance law, the

Commissioner may: -Correct Answer โœ” โœ” 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 โœ” โœ” 10 days

How much can the Commissioner fine -Correct Answer โœ” โœ” $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 โœ” โœ” Certificate of Authority

An agent licensed in the same state he / she lives, is considered a/n: - Correct Answer โœ” โœ” domestic

When can the applicant change the beneficiary? -Correct Answer โœ”

โœ” The insured can change the revocable beneficiary whenever

Which premium mode is the most expensive? -Correct Answer โœ” โœ” Monthly

The act of inducing a person to terminate an existing policy and purchase a new policy is: -Correct Answer โœ” โœ” Twisting

All of the following are examples of third party ownership EXCEPT: - Correct Answer โœ” โœ” Primary Beneficiary

When an individual replaces a life insurance policy, who initials the replacement of the life insurance policy form? -Correct Answer โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 1 month

The main purpose of the spendthrift clause curtained in a settlement option is to: -Correct Answer โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” Term Life insurance

A life insurance policy will become incontestable no later than how long after its effective date. -Correct Answer โœ” โœ” 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 โœ” โœ” Irrevocable beneficiary

A reason for using individual reporting agencies to gather informing about an insurance applicant is: -Correct Answer โœ” โœ” 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 โœ” โœ” Underwriter

A rider on a whole life policy that adds temporary coverage for a spouse and children is: -Correct Answer โœ” โœ” A family term rider

EXCEPT: -Correct Answer โœ” โœ” 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 โœ” โœ” The beneficiary on record with the insurer

Which form of insurance has shareholders? -Correct Answer โœ” โœ” Stock company

When can a producer share commission with another producer? - Correct Answer โœ” โœ” 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 โœ” โœ” Failure to provide a reasonable basis for the denial claim upon request

An accidental death benefit: -Correct Answer โœ” โœ” 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 โœ” โœ” Producer delivered the policy and collect the premium

To sell long term care, how many hours do you need? -Correct Answer โœ” โœ” 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 โœ” โœ” Representation

Which of the following transaction would not be subjected to income tax under a Modified Endowment

Contract (MEC)? -Correct Answer โœ” โœ” The Death Benefit

An immediate annuity making payment after the: -Correct Answer โœ” โœ” Policy has been in force for one year

The Department of Commerce is empowered to: -Correct Answer โœ” โœ” Enforce the state laws

To sell the variable, the agent must pass? -Correct Answer โœ” โœ” Life license and a Security license

How many years to renew your license? -Correct Answer โœ” โœ” 2 year

When does your license expire? -Correct Answer โœ” โœ” 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 โœ” โœ” Collateral Assignment

In addition to the actual policy, an entire contract includes which of the following? -Correct Answer โœ” โœ” The application

Which of the following is true regarding suitability of a long term care insurance policy? -Correct Answer โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” Joint

Prior to annuity ration, what is the non-forfeiture value of an annuity? -Correct Answer โœ” โœ” Premium plus interest

At the time of initial contact and before a personal solicitation, a producer must state: -Correct Answer โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 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 โœ” โœ” 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 โœ” โœ”

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 โœ” โœ” 10 days

The proposed insured's statement on the application and the first premium payment are part of the policy? -Correct Answer โœ” โœ” Consideration Clause

A temporary producer license can be issued in any of the following EXCEPT -Correct Answer โœ” โœ” A prospective producer who is enrolled in an insurance pre-licensed class

Which of the following would be prohibited advertising? -Correct Answer โœ” โœ” 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 โœ” โœ” Reimburse the premium

How long is a temporary license? -Correct Answer โœ” โœ” 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 โœ” โœ” Rebating

The purpose of the insured concerning about silicate the insurer becomes insolvency and the Guaranty

Association? -Correct Answer โœ” โœ” To be bankruptcy

What is the insured becomes totally disability? -Correct Answer โœ”

โœ” Waiver of premiums

The producer submits the 1st application to the insurer, how long does it take? -Correct Answer โœ” โœ” 15 days

Which type of life insurance policy is the last die? -Correct Answer โœ”

โœ” 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 โœ” โœ” Consumer report

What is NOT an example of Exclusion? -Correct Answer โœ” โœ” Firetfighter

Commissioner of Commerce refuse to give License to an applicant - Correct Answer โœ” โœ” .... Convicted of a crime ... moral..

license revocation EXCEPT.... -Correct Answer โœ” โœ” child support..

The insuring clause states that if the proposed insured dies while the policy is inforced -Correct Answer โœ” โœ” The company will pay the death benefit to the beneficiary.