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MN LIFE LICENSE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+, Exams of Insurance law

In what type of policy does the owner pay the same premium throughout the term of the contract? a. Deferred premium policy b. Single premium policy c. Level premium policy d. Flexible premium policy Correct Answer: c. Level premium policy Which type of beneficiary CANNOT be changed without consent? a. When there are more than two beneficiaries b. The beneficiary is the spouse c. The beneficiary is a child of the proposed insured d. The beneficiary is irrevocable

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MN LIFE LICENSE EXAM | QUESTIONS &
ANSWERS (VERIFIED) | LATEST UPDATE |
GRADED A+
In what type of policy does the owner pay the same premium throughout the term of the contract?
a. Deferred premium policy
b. Single premium policy
c. Level premium policy
d. Flexible premium policy
Correct Answer: c. Level premium policy
Which type of beneficiary CANNOT be changed without consent?
a. When there are more than two beneficiaries
b. The beneficiary is the spouse
c. The beneficiary is a child of the proposed insured
d. The beneficiary is irrevocable
Correct Answer: d. The beneficiary is irrevocable
How many totals hours of continuing education covering the subjects for which the license is licensed
must complete?
a. 15 hours
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Download MN LIFE LICENSE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ and more Exams Insurance law in PDF only on Docsity!

MN LIFE LICENSE EXAM | QUESTIONS &

ANSWERS (VERIFIED) | LATEST UPDATE |

GRADED A+

In what type of policy does the owner pay the same premium throughout the term of the contract? a. Deferred premium policy b. Single premium policy c. Level premium policy d. Flexible premium policy Correct Answer: c. Level premium policy Which type of beneficiary CANNOT be changed without consent? a. When there are more than two beneficiaries b. The beneficiary is the spouse c. The beneficiary is a child of the proposed insured d. The beneficiary is irrevocable Correct Answer: d. The beneficiary is irrevocable How many totals hours of continuing education covering the subjects for which the license is licensed must complete? a. 15 hours

b. 20 hours c. 24 hours d. 30 hours Correct Answer: c. 24 hours Accidental and dismemberment will pay the principal sum of death occurs: a. As a result of an accident regardless of when the accident occurs b. As a result of an accident in the first 6 months after the occurrence c. Within a specified period of the time after the accident, most often 3 months or 90 days d. As a result of committing a crime Correct Answer: a. 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 faced the company will pay the death benefit to the beneficiary? a. An Insuring Clause b. A warranty clause c. An assignment clause d. A sufferance clause Correct Answer: a. 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?

d. Premium paid less a potential amount from the application is signed to the date of the cancellation notice Correct Answer: a. 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? a. 10 days b. 20 days c. 30 days d. 60 days Correct Answer: a. 10 days The proposed insured's statement on the application and the first premium payment are part of the policy? a. Incontestable clause b. Premium payment clause c. Consideration clause d. Ownership clause Correct Answer: c. Consideration clause A temporary producer license can be issued in any of the following EXCEPT

a. Surviving spouse of a producer b. A prospective producer who is enrolled in a insurance pre-licensed clause c. Designs of a producer entering active service in the armed service d. Any circumstance the commissioner deems to be in the public interest Correct Answer: d. Any circumstance the commissioner deems to be in the public interest Which of the following would be prohibited advertising? a. Advertising that uses the MN Life and Health Insurance Guaranty Association b. Advertising and highlighting the length of the time the agent has done business c. Advertising more than one type of life insurance in the same place of advertisement materials d. Advertising more frequently than once per month Correct Answer: a. 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: a. Preferred risk b. Below average risk c. Standard risk d. Substandard risk Correct Answer: a. Preferred risk

d. Guarantees the employees coverage for themselves and their family throughout the term of policy Correct Answer: c. 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: a. Twisting b. Subrogation c. Rebating d. Churning Correct Answer: c. Rebating All of the following are examples of third party ownership EXCEPT: a. Key person interest b. Contract assignment c. Primary Beneficiary d. Invariable policies Correct Answer: c. Primary Beneficiary When an individual replaces a life insurance policy, who initials the replacement of the life insurance policy form? a. The applicant only

b. Both the applicant and the insurance producer c. The insurance producer only d. An officer of the insurer Correct Answer: b. 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: a. Twisting b. Illegal inducement c. Discrimination d. Defamation Correct Answer: a. Twisting 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? a. An incontestable clause b. Grace period provision c. A non-forfeiture clause d. A policy assignment provision Correct Answer: b. Grace period provision

b. May 30 c. June 5 d. After the statement of the good health is signed Correct Answer: b. May 30 Which of the following policies has cash value dependent on the investment performance of common stock? a. Continue premium whole life b. Mortified endorsement c. Variable Whole Life d. Variable Life Correct Answer: c. Variable Whole Life When an immediate annuity is funded with a single premium, the annuitant may begin receiving payment after: a. 1 month b. 10 days c. 60 days d. 15 days Correct Answer: a. 1 month While the policy is in force, the insuring clause states the insurer's obligation to:

a. Return premium paid to the claim b. Have the agent pay the claim to the beneficiary upon the death of the insured c. Pay the death benefit to the beneficiary when a death claim is made d. Pay the face amount of the policy to the insured upon their request Correct Answer: c. Pay the death benefit to the beneficiary when a death claim is made A convertible term policy enables the policy owner to: a. Convert a policy to a permanent policy b. Requires payment for reinstatement c. Coverts to gain cash value d. Make additional payments Correct Answer: a. Convert a policy to a permanent policy What is MN's require grace period for a life insurance contract? a. 10 days b. 15 days c. 1 month d. 2 months Correct Answer: c. 1 month

Correct Answer: d. 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? a. Whole Life Insurance b. Variable Life Insurance c. Term Life Insurance d. Universal Life Insurance Correct Answer: c. Term Life Insurance A life insurance policy will become incontestable no later than how long after its effective date. a. 2 years b. 4 years c. 5 years d. 6 years Correct Answer: a. 2 years Which of the following beneficiary designations prohibits the policy owner from making any changes to the policy without the beneficiary written consent? a. Contingent beneficiary b. Revocable beneficiary

c. Tertiary beneficiary d. Irrevocable beneficiary Correct Answer: d. Irrevocable beneficiary A reason for using individual reporting agencies to gather informing about an insurance applicant is: a. Objective information about replacement of policies b. Verifiable information at little expense to the insurer c. An evaluation of the applicant by a disinterest source not related to the insurer d. Publically accessible information for both the insurer and the application a fee for service basis Correct Answer: c. 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? a. Underwriter b. Actuary c. Fiduciary d. Agent Correct Answer: a. Underwriter A rider on a whole life policy that adds temporary coverage for a spouse and children is: a. A family term rider

a. Policy application was back dated to the same age from their last birthday b. Policy application cannot be back dated more than 6 months c. The application was required to be back dates so the applicant would not have to d. The effective date of the application was 12 month period to the effective date Correct Answer: b. Policy application cannot be back dated more than 6 months Annuity products linked to a market related index are called: a. Deferred indexed annuity b. Equity indexed annuity c. Market adjust annuity d. Fixed annuity Correct Answer: b. Equity indexed annuity In which of the following policy is the insured covered to age 100 and the premium payment are the same? a. Renewal term policy b. Straight Whole Life Policy c. Paid up whole life policy d. Single premium whole life policy Correct Answer: b. Straight Whole Life Policy

To qualify for reinstatement for an individual life policy the insured must do all of the following EXCEPT: a. Pay premium insure arrears b. Pay interest on premium insurers c. Provide evidence of insurability satisfactory to the insurer d. Reinstate the policy within 3 years from the date of premium default Correct Answer: d. 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: a. All creditors prorated according to the amount owned b. The bankruptcy trustee c. The beneficiary on record with the insurer d. The bank that has a mortgage on the home Correct Answer: c. The beneficiary on record with the insurer Which form of insurance has shareholders? a. Reciprocal company b. Mutual company c. Stock company

c. Pays a portion of the face amount, when a policy owner is determined to be terminated d. Pays only in the event of an accident resulting in death Correct Answer: d. 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: a. Application is signed b. Application is post mares and mailed to the insurer c. Corrected by underwriter and approves the risk d. Producer delivered the policy and collect the premium Correct Answer: d. Producer delivered the policy and collect the premium When can you cancel a policy? a. 15 days b. 10 days c. 30 days d. 60 days Correct Answer: b. 10 days To sell long term care, how many hours do you need? a. 24 hrs training course with 3 hrs ethic every 2 yrs to sell LTC policy

b. 8 hrs training course follow by 4 hrs of ongoing training every 2 yrs thereafter to sell a certain type of LTC c. 8 hrs training course follow by 4 hrs of ongoing training every 2 yrs thereafter to sell any LTC policy Correct Answer: c. 8 hrs training course follow by 4 hrs 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: a. Absolute statement b. Misrepresentation c. Representation d. Warranties Correct Answer: c. Representation Which of the following transaction would not be subjected to income tax under a Modified Endowment Contract (MEC)? a. Policy withdrawals b. Dividends surrenders c. Policy loans d. The Death Benefit Correct Answer: d. The Death Benefit An immediate annuity making payment after the: