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MN Life License Exam
Which of the following would be prohibited advertising? -Correct Answer โ โ Advertising that uses the MN Life and Health Insurance Guaranty Association
A proposed insured whose likelihood of loss is significantly less than the average is classified as: -Correct Answer โ โ Substandard risk
Once a policy has been reinstated the insured must wait what amount of time before coverage for sickness is available? -Correct Answer โ
โ 10days
Blood tests to detect the presence of Human Immunodeficiency Virus (HIV) are becoming commonplace laws have been allowing companies to: -Correct Answer โ โ Shared the positive HIV information with other companies
What is the purpose of the conversion privilege in a group life insurance policy? -Correct Answer โ โ Gives the employee the right to convert their group coverage to an individual policy without proof of insurability upon their termination
The act of inducing a person to terminate an existing policy and purchase a new policy is referred as: -Correct Answer โ โ Twisting
All of the following are examples of third party ownership EXCEPT:
A. Key person
B. Contact assignment
C. Primary beneficiary
D. Invariable policies -Correct Answer โ โ C. 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 insurance producer
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 the producer delivers the policy to the owner in June 5th, when is the coverage effective, assuming the conditional receipt was given and there was no medical exam required? -Correct Answer โ โ May 1st
Which of the following polices has cash value dependent on the investment performance of common stock? -Correct Answer โ โ Variable life
When an immediate annuity is funded with a single premium, the annuitant may begin receiving payment after: -Correct Answer โ โ 1 month
While the policy is in-forced, the insuring clause state the insurer's obligation to: -Correct Answer โ โ Pay the death benefit to the beneficiary when a death claim is made
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
A convertible term policy enables the policy owner to: -Correct Answer โ โ Convert a policy to a permanent policy
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
Who performs the functions of resin selection in determining and 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
An insured wants to purchase a policy with three key elements. flexible premium, death benefit, and the choice of how the csh value accumulates. Which policy would fit the needs? -Correct Answer โ
โ Variable universal life
Back dating an application can be done in: -Correct Answer โ โ Policy application cannot be dated more than 6 months
Annuity products linked to a market related index are called? -Correct Answer โ โ Equity indexed annuity
In which of the following policy is the insure cover to age 100 and the premium payment are the same? -Correct Answer โ โ Straight whole life policy
To qualify for reinstatement for an individual life policy the insured must do all of the following EXCEPT: -Correct Answer โ โ Reinstate the policy within 5 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 the other producer is licensed in the same line of insurance
The Department of Commerce is empowered to -Correct Answer โ
โ Enforce state laws
An insurance producer must notify the Department of Commerce of a change in legal name or address: -Correct Answer โ โ Within 10 days
Which of the following is an example of a non-qualified plan? -Correct Answer โ โ Individual annuity
the Department of Commerce is not responsible for: -Correct Answer โ โ Endorsing insurers
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?
A. Conditional receipt
B. Credit report
C. Provisions
D. The application -Correct Answer โ โ D. The applications
Which of the following is TRUE regarding suitability of a long term care insurance policy? -Correct Answer โ โ The agent must have reasonable ground 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 proceed 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 first death? -Correct Answer โ โ Joint
How many total hours of continuing education covering the subjects for which the license is licensed must complete? -Correct Answer โ
โ 24hours
Accidental and dismemberment will pay the principal sum if death occurs: -Correct Answer โ โ As a result of an accident regardless of the the accident occurs
The following refers to which type of class? 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 employer is laid off from employment and is no longer eligible for group coverage, what can the employer do about the employer's life insurance? -Correct Answer โ โ The employer must inform the employee of the amount payable to continue coverage for up to 18 months
Which rider would allow additional insurance at a specified date or event without evidence of insurability? -Correct Answer โ โ Guaranteed insurability
Which of the exceptions of a variable annuity contract if a person cancels a insurance contract within the free-look period is without liability and the person is entitled a refund if? -Correct Answer โ โ The premium paid but not including any contact 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 30days
The proposed insured's statement on the application and the first premium payment are part of the policy? -Correct Answer โ โ Consideration clause
