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Life Insurance Exam Questions and Answers: Minnesota, Exams of Insurance Economics

A series of questions and answers covering various aspects of life insurance in minnesota. it's useful for students studying insurance principles, licensing exams, or professionals seeking to refresh their knowledge. The questions cover topics such as policy types, licensing requirements, beneficiary designations, and claim procedures, offering a comprehensive overview of the subject matter.

Typology: Exams

2024/2025

Available from 05/08/2025

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MN life insurance
To sell the variable the agent must pass? -Correct Answer โœ” โœ” Life
license and Security license
When the producer license is expiring day? -Correct Answer โœ” โœ”
you birthday or October 31
The insured is take out the life insurance policy and the insured is
suicide himself 13 mounts later, what is the insurance company will
do for this? -Correct Answer โœ” โœ” no liable
How long is the temporary license? -Correct Answer โœ” โœ” 18
months
Refunding part of the commission, premium, services, or anything of
value to the purchaser as an inducement to buy insurance covered? -
Correct Answer โœ” โœ” Rebating
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MN life insurance

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

When the producer license is expiring day? -Correct Answer โœ” โœ” you birthday or October 31

The insured is take out the life insurance policy and the insured is suicide himself 13 mounts later, what is the insurance company will do for this? -Correct Answer โœ” โœ” no liable

How long is the temporary license? -Correct Answer โœ” โœ” 18 months

Refunding part of the commission, premium, services, or anything of value to the purchaser as an inducement to buy insurance covered? - Correct Answer โœ” โœ” Rebating

The purposes of the insured concerning about silicate the insurer become 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 submit the first application to the insurer, how long it takes place? -Correct Answer โœ” โœ” 15 days

Which type of life insurances policy is the first die and last survivor? - Correct Answer โœ” โœ” Survivor Ship

Which of the following that the consumer reports included written, oral, and other forms of communication that consumer reporting agency has regarding consumers' credit, character, reputation, or habits? -Correct Answer โœ” โœ” Consumer report

The protection life policy that pay the death benefit to the last person died. -Correct Answer โœ” โœ” Survivor ship Life policy

Similar to life insurance, this party has all of the rights in the annuity policy. This party is referred to as the: -Correct Answer โœ” โœ” Owner

What is the maximum an employee of an insurer being examined by the Division of Commerce may be fined for violating a written order? - Correct Answer โœ” โœ” $10,

John has a life insurance with XYZ Company, his premium payment is due on the first day 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” A grace period

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 a: -Correct Answer โœ” โœ” Variable universal life policy

If the initial premium is paid at the time of the application on May 1, the company issues the policy as a standard issue on May 30, and the producer delivers the policy to the owner in June 5, when is coverage effective, assuming the conditional receipt was given and there was no medical exam required? -Correct Answer โœ” โœ” May 1

Which of the following policies has cash value dependent on the investment performance of common stock? -Correct Answer โœ” โœ” Variable life

When an immediate annuity is funded with a single premium, the annuitant may begin receiving payment after: -Correct Answer โœ” โœ” 60 days

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” Revocable beneficiary

A reason for using individual reporting agencies to gather information about an insurance applicant is: -Correct Answer โœ” โœ” An evaluation of the applicant by a disinterested 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

An insured wants to purchase a policy with three key elements, flexible premium, death benefit, and the choice of how the cash value accumulates. Which policy would fit the needs? -Correct Answer โœ”

โœ” Variable universal life

Back dating an application can be done in: -Correct Answer โœ” โœ” Policy application cannot be back dated more than 6 months

Annuity products linked to a market related index are called -Correct Answer โœ” โœ” Equity indexed annuity

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 is not prepaid, the effective date of the policy is when: -Correct Answer โœ” โœ” Producer delivered the policy and collect premium

The proposed insured's statement on a life insurance application are considered to be: -Correct Answer โœ” โœ” Representation

Which of the following transactions 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

In what type of policy does the owner pay the same premium throughout the term of the contract? -Correct Answer โœ” โœ” Level premium policy

Which type of beneficiary CANNOT be changed without consent? - Correct Answer โœ” โœ” The beneficiary is irrevocable

How many total hours of continuing education covering the subjects for which the license is licensed must complete. -Correct Answer โœ”

โœ” 24 hours

Accidental and dismemberment will pay the principal sum of death occurs: -Correct Answer โœ” โœ” As a result of an accident regardless of when 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 โœ” โœ” An insuring clause

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” Any circumstance the commissioner deems to be in the public interest.

Which of the following would be prohibited advertising? -Correct Answer โœ” โœ” Advertising that uses the Minnesota Life and Health Insurance Guaranty Association

A proposed insured whose likelihood of loss is significantly less than the average is classified as: -Correct Answer โœ” โœ” Substandard risk

Once a policy has been reinstated the insured must wait what amount of time before coverage for sickness is available? -Correct Answer โœ” โœ” 10 days

Blood tests to detect the presence of Human Immunodeficiency Virus (HIV) are becoming commonplace laws have been allowing companies to: -Correct Answer โœ” โœ” Shares the positive HIV information with other companies

What is the purpose of the conversion privilege in a group life insurance policy? -Correct Answer โœ” โœ” 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 โœ” โœ” Twisting

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

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 Minnesota 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 proceed 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 first death. -Correct Answer โœ” โœ” Joint

Prior to annuity ration, what is the non-forfeiture value of an annuity? -Correct Answer โœ” โœ” All premiums paid and any withdrawals and surrender charge

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

Which of the following is not included as part of a contract in the entire contract revision? -Correct Answer โœ” โœ” Endorsement if any

Which is the flexibility of a whole life policy? -Correct Answer โœ” โœ” Adjustable whole life

In group life insurance, what is it called when the employer pays for the employees? -Correct Answer โœ” โœ” Non-Contributory

How many days that the insured cancel the policy and refund all of the premiums? -Correct Answer โœ” โœ” 10 days

To sell long term care in Minnesota? -Correct Answer โœ” โœ” training 8 hours before going sell the long term care

How long is the Free Look? -Correct Answer โœ” โœ” 10 days

Decreasing Term? -Correct Answer โœ” โœ” Home mortgage

Home mortgage protection? -Correct Answer โœ” โœ” Decreasing term

Suicide? -Correct Answer โœ” โœ” Suicide is not covered in the policy for the first 2 years

Accelerated benefit rider? -Correct Answer โœ” โœ” Terminal illness or Injury