Minnesota Life Insurance

Upon the termination of a covered employee the employer was notified the employee of their right to continuation of coverage within how many days?

14 days

When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information? A-medical records B-Application C-interviews D-State records

B

Which provision states that the legal right or interest in a policy may be transferred? A-Duties of the Insured B-Assignment C-Notice of Claim D-Pro rata

B

Who bears all of the investment risk in a fixed annuity? A - The annuitant B - The insurance company C - The owner D - The beneficiary

B

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled? A-Waiver of Premium B-Payor Benefit C-Jumping Juvenile D-Juvenile Premium Provision

B

Which of the following homeowners coverage forms applies to condominium unit owners? A- НО-4 B- НО-6 C- НО-8 D- НО-2

B

Which of the following best defines the "owner" as it pertains to life settlement contracts? A-A fiduciary for the contract B-The insurance provider C-The policyowner of the life insurance policy D-A financial entity that sponsors the transaction

C

Which statement is NOT true regarding a Straight Life policy? A - Its premium steadily decreases over time, in response to its growing cash value. B - The face value of the policy is paid to the insured at age 100. C - It usually develops cash value by the end of the third policy year. D - It has the lowest annual premium of the three types of Whole Life policies.

A

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to A - Pay back all premiums owed plus interest. B - Receive payments for a fixed amount. C - Purchase a single premium policy for a reduced face amount. D - Purchase a term rider to attach to the policy.

C

Which of the following would help prevent a universal life policy from lapsing? A - Corridor of insurance B - Target premium C - Face amount D - Adjustable premium

B

Under the professional liability loss settlement provision, what must an insurer do before offering to pay a claimant to settle a claim? A - Refuse new business B - Get the insured's consent C - Sue the claimant D - Cancel the insured's policy

B

What does "level" refer to in level term insurance? A-Interest rate B-Face amount C-Premium D-Cash value

B

What type of premium do both-Universal Life and Variable Universal Life policies have? A-Increasing B-Flexible C-Level fixed D-Decreasing

B

A Universal Life Insurance policy is best described as a/an A-Flexible Premium Variable Life policy. B-Annually Renewable Term policy with a cash value account. C-Variable Life with a cash value account. D-Whole Life policy with two premiums: target and minimum.

B

What kind of deductible is applied between basic coverage and major medical coverage? A-Middle deductible B-Interval deductible C-Corridor deductible D-Bridging deductible

C

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable the contract is A-personal B-unilateral C-conditional D-aleatory

C

All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT A-Funds accumulate on a tax-deferred basis. B-Employee and employer contributions are not counted as income to the employee for iricome tax purposes C -At distribution, all amounts received by the employee are tax free D -Employer contributions are tax deductible as ordinary business expense.

C

Another name for substandard risk classification is A-declined B-elevated C-rated D-controlled

C

Which of the following best describes the aleatory nature of an insurance contract? A - Ambiguities are interpreted in favor of the insured B - Policies are submitted to the insurer on a take-it-or-leave-it basis C - Exchange of unequal values D - Only one of the parties being legally bound by the contract

C

Which of the following is NOT among the primary ways deductibles for major medical plans can be paid? A-A per-cause deductible B- A maximum annual deductible C-An embedded deductible D- A flat dollar deductible

C

If an applicant for life insurance policy is found to be a substandard risk, the insurance company is most likely to

Charge a higher premium

All of the following are duties and responsibilities of producers at the time of application EXCEPT A-Explain the nature and type of any receipt the producer is giving to the applicant. B-Probe beyond the stated questions it the producer feels the applicant is misrepresenting or concealing information. C-Check to make sure that there are no unanswered questions on the application D-Change any incorrent statement on the application by personally initialing next to the corrected statement

D

All of the following are requirements for life insurance illustrations EXCEPT A - They may only be used as approved. B- They must identify nonguaranteed values. C - They must differentiate between guaranteed and projected amounts. D - They must be part of the contract.

D

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of A - Coercion. B - Twisting. C - Controlled business. D - Rebating.

D

Should the Commissioner request information from a certificate holder, licensee, or other person under the jurisdiction of the Commissioner, they must comply with the request within the time specified in the request. If no time specified, they must comply within A - 45 days. B - 60 days. C - 10 days. D - 30 days.

D

The accelerated benefits provision will provide for an early payment of the death benefit when the insured A - Needs to borrow money. B - Has earned enough credits. C - Becomes disabled D - Becomes terminally ill.

D

What describes the specific information about a policy? A- Illustrations B - Buyer's guide C - Producer's report D - Policy summary

D

What is the term for how frequently a policyowner is required to pay the policy premium? A-Mode B-Schedule C-Grace period D-Consideration

A

An insured misstates her age at the time the life insurance application is taken. This misstatement may result in A-Adjustment in the amoupt of death benefit. B-No change whatsoever. C-Automatic lapse. D-Recession of the policy.

A

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principle has the insurer violated? A-Consideration B-Good faith C-Representation D-Adhesion

A

Children's riders attached to whole life policies are usually issued as what type of insurance? A -Term B - Variable life C - Adjustable life D - Whole life

A

Contracts that are prepared by one party and submit it to the other party on a take it or leave it bases are classified as A-contracts of adhesion B-unilateral contracts C-aleatory contracts D-binding contracts

A

In group insurance policy, each member receives a document that provides evidence of coverage under the contract. What is the name of this document? A - Certificate of insurance B - Receipt of coverage C - Proof of insurability D - Master policy

A

Stranger-originated life insurance policies are in direct opposition to the principle of A - Insurable interest. B - Law of large numbers. C - Good faith. D - Indemnity.

A

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled? A - Payor Benefit B - Jumping Juvenile C - Juvenile Premium Provision D - Waiver Premium

A

Which of the following best details the underwriting process for life insurance? A-Selection, classifications, and rating of risks B-solicitation, negotiation and sales of policies C-issuance of policies D-reporting and rejection of risks

A

Which of the following coverages in a personal auto policy would address losses such as hail, deer, or falling objects? A - Other-than-collision B - Ancillary C - Collision D- Supplemental

A

An insured misstates her age at the time the life insurance application is taken. A-This misstatement may result in Recession of the policy. B-Adjustment in the amount of death benefit. C-No change whatsoever. D-Automatic lapse.

B

All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT A - Employee and employer contributions are not counted as income to the employee for income tax purposes. B - At distribution, all amounts received by the employee are tax free. C - Employer contributions are tax deductible as ordinary business expense. D - Funds accumulate on a tax-deferred basis.

B

All the following employees may use a 403(b) plan for their retirement EXCEPT A - The vice president of a charitable organization. B - The CEO of a private corporation. C - A school bus driver. D - A part-time classroom aide.

B

How much of the premium is paid by employees participating in a non-contributory plan? A - 75% B - 0% C - 25% D - 50%

B

If an annuitant dies before annuitization occurs, what will the beneficiary receive? A-Cash value of the plan B-Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount C-Either the amount paid into the plan or the cash value of the plan, whichever is the lesser amount D-Amount paid into the plan

B

What happens when a policy is surrendered for its cash value? A - The policy can be converted to term coverage. B - Coverage ends and the policy cannot be reinstated. C - Coverage ends but the policy can be reinstated at any time. D - The policy can be reinstated by paying back all policy loans and premiums.

B

What is the maximum fine for rebates in this state? A - $100 B - $200 C - $1,000 D -$60

B

What license or licenses are required to sell variable annuities? A- No license is required B-Both a life insurance license and a securities license C-Only a life insurance license D-Only a securities license

B

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called A - Living need rider. B - Payor rider. C - Cost of living rider. D - Accelerated benefit rider.

C

An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wite receive from the policy? A-Nothing B-$50,000 C-$100,000 D-$200,000

C

An insurance company that routinely ignores all letters and phone calls from insureds who have filed claims is A-Saving money and improving the bottom line. B-Avoiding a lot of little nuisance claims C-Guilty of an unfair claim settlemenit practice D-Avoiding a lot of paperwork hassles

C

In Minnesota, what are the continuing education (CE) requirements for nonresident producers? A-Nonresident producers only need to fulfil B-Nonresident producers must complete Minnesota CE requirements. 8 credit hours of CE, in addition to their home state requirements C-Nonresident producers only need to fulfil the CErequirements in their home state D-Nonresident producers must complete a proportionate amount of CE hours Minnesota CE requirements are satisfied for nonresident producers who fulfill CE requirements of their home state in both states, depending on the amount of business conducted in each state.

C

Life income joint and survivor settlement option guarantees A-Payout of the entire death benefit. B-Equal payments to all recipients C-Income for 2 or more recipients until they die D-Payment of interest on death proceeds

C

Paul is a producer in Michigan and wants to become a producer in Minnesota. The Department will waive certain examination requirements, provided that Michigan would waive these same requirements if a Minnesota producer sought licensure in Michigan. What term is used to describe this phenomenon? A - Fair exchange B - Equanimity C - Reciprocity D - Equality

C

The death benefit under the Universal Life Option B A - Increases for the first few years of the policy, and then levels off. B - Remains level. C - Gradually increases each year by the amount that the cash value increases. D - Decreases by the amount that the cash value increases.

C

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a A-Decreasing Term Policy. B-Whole Life Policy. C-Convertible Term Policy D-Renewable Term Policy.

C

Why is an equity indexed annuity considered to be a fixed annuity? A-It has a fixed rate of return. B-It is not tied to an index like the S&P 500. C-It has a guaranteed minimum interest rate. D-It has modest investment potential.

C

An agent selling variable annuities must be registered with A-Department of Insurance. B-The Guaranty Association. C-SEC. D-FINRA.

D

A key person's insurance policy can pay for the following?

Costs of training a replacement

90 A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? A - A No taxes are due since the plan participant is over age 59 1/2. B - There is a 10% early withdrawal penalty. C - The amount distributed is subject to ordinary income tax. D - The amount of the distribution is reduced by the amount of a 20% withholding tax.

D

A health plan policy cannot be issued or delivered in Minnesota until which of the following has been filed with the Commissioner? A-Neither risks classification or premium rates B-Risks classification only C-Premium rates only D-Both risks classification and premium rates

D

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this? A-Term to specified age B-Ordinary life policy C-Limited pay whole life D-Level term

D

All of the following are considered Social Security benefits EXCEPT A - Disability. B - Survivors. C - Retirement. D - Group.

D

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? A - Good health B - Adhesion C - Conditional D - Aleatory

D

In Minnesota, life insurance coverage written under a group policy must contain which of the following provisions? A- Neither a conversion provision nor a continuation provision B- Conversion provisiof only C -Continuation provision only D-Both a conversion provision and a continuation provision

D

In an annuity, the accumulated money is converted into a stream of income during which time period? A - Payment period B - Amortization period C - Conversion period D - Annuitization period

D

What insurance term best describes perils that are NOT insured against? A-Negligence B-Liability C-Deductibles D-Exclusions

D

What is the purpose of establishing the target premium for a universal life policy? A-To accumulate cash value faster B-To pay up the policy faster C-To cover all policy expenses D-To keep the policy in force

D

Which is true about a spouse term rider? A - Coverage is allowed for an unlimited time. B - The rider is decreasing term insurance. C - Coverage is allowed up to age 75. D - The rider is usually level term insurance.

D

Which of the following best defines target premium in a universal life policy? A-The maximum amount the policyowner may pay on a policy B-The minimum amount to make sure the policy is annually renewable C-The corridor of insurance D-The recommended amount to keep the policy in force throughout its lifetime

D

Which of the following is NOT a mandatory provision in health insurance policies? A-Grace period B-Entire contract C-Notice of claim D-Illegal occupation

D

Which of the following is called a "second-to-die" policy? A-Family income B-Juvenile life C-Joint life D-Survivorship life

D

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? A - Universal Life - Option B B - Equity Indexed Universal Life C - Variable Universal Life D- Universal Life - Option A

D

Which policy provisions stipulates for what period of time the policy will remain in effect after the premium payment due date?

Grace period

What is the purpose of a free look period in insurance policies?

It allows the insured to reject the policy with a full refund.

Which of the following best describes annually renewable term insurance? A-It is level term insurance. B-It requires proof of insurability at each renewal. C-Neither the premium nor the death benefit is affected by the insured's age. D-It provides an annually increasing death benefit.

A

Which of the following is NOT a mandatory provision in health insurance policy? A - illegal occupation B - Grace period C - entire contract D- notice of claim

A

Which of the following types of life insurance provides permanent protection? A - annuities B - decreasing term C - whole life D - Term life

C

Which policy provision outlines the specific responsibilities of the insured in the event of a loss? A - Proof of Loss B - Notice of Claim C - Duties of the Insured D -Assignment

C

Which of the following types of policies allows for a flexible premium and a variable investment component? A - Guaranteed issue variable life insurance B - Variable whole life insurance C - Whole life insurance D - Variable universal life insurance

D

All of the following are duties and responsibilities of producers at the time of application EXCEPT A - Change any incorrect statement on the application by personally initialing next to the corrected statement. B - Explain the nature and type of any receipt the producer is giving to the applicant. C -Probe beyond the stated questions if the producer feels the applicant is misrepresenting or concealing information. D - Check to make sure that there are no unanswered questions on the application.

A

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term? A - The insured may renew the policy for another 10 years, but at a higher premium rate. B - The insured must provide evidence of insurability to renew the policy. C - The insured may only convert the policy to another term policy. D - The insured may renew the policy for another 10 years at the same premium rate.

A

An insured receives an annual life insurance dividend check. What term best describes this arrangement? A - Cash option B - Reduction of Premium C - Annual Dividend Provision D -Accumulation at Interest

A

Any payment to a producer from an insurer that is contingent on the sale of an insurance policy or contract is called a A - Commission. B - Regular fee. C - Charge fee. D - Service fee.

A

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this? A - Reduction of premium B - Paid-up addition C - Accumulation at interest D - Cash option

A

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called A-Waiver of premium. B-Guaranteed insurability. C-Waiver of cost of insurance. D-Payor benefit.

A

A licensed Minnesota insurance producer must notify the Commissioner of a change of address within A - 7 days. B - 10 days. C - 30 days. D - 5 business days

B

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the A-Payor rider. B-Other-insured rider. C-Change of insured rider. D-Juvenile rider.

B

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of A-Rebating. B-Twisting. C-Defamation. D-Misrepresentation.

B

An insured's home is damaged in an earthquake. He finds out that his homeowners policy will NOT cover the loss, because earth movement is listed in his policy's A-Conditions. B-Exclusions. C-Endorsements. D-Riders.

B

Continuing education must be completed every A-Year. B-2 years. C-3 years. D-4 years.

B

After an insurance company examination, the Commissioner or the examiner appointed by the Commissioner must file a written report of the examination within A - 10 days. B - 30 days. C - 60 days. D - 90 days.

C

All of the following are examples of third-party ownership of a life insurance policy EXCEPT A-A company purchases a life insurance policy on their manager, who is an important part of the operation. B-When an insured purchased a new home, the insured made an absolute assignment of a life insurance policy to the mortgage company. C-An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan. D-An insured couple purchases a life insurance policy insuring the life of their grandson.

C

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? A - Life income period certain B - Extended term C - Fixed amount D - Fixed period

C

Which is NOT true about beneficiary designations? A-The policy does not have to have a beneficiary named in order to be valid. B-Trusts can be valid beneficiaries. C-The beneficiary must have insurable interest in the insured. D-The beneficiary may be a natural person.

C

90 Which of the following best describes what the annuity period is? A - The period of time from the accumulation period to the annuitization period B - The period of time during which money is accumulated in an annuity C - The period of time from the effective date of the contract to the date of its termination D - The period of time during which accumulated money is converted into income payments

D

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium? A - If the father is disabled for at least a year B - If the daughter is disabled for more than 3 months C - If the daughter is disabled for any length of time D - If the father is disabled for more than 6 months

D

According to the Entire Contract provision, a policy must contain A- A declarations page with a summary of insureds. B-Buyer's guide to life insurance. C-Listing of the insured's former insurer(s) for incontestability provisions. D-A copy of the original application for insurance.

D

An insured decides to replace his life insurance policy with one offered by a new insurer. After receiving the policy, he is unsatisfied with the provisions and decides to return it. Within how many days must he return the policy to receive a full premium refund? A - 10 days B - 15 days C - 20 days D - 30 days

D

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract? A - Adhesion B - Personal C - Unilateral D - Conditional

D

What is the purpose of a fixed-period settlement option? A - To settle the insurance company's liability B - To provide a guaranteed income for life C - To provide a guaranteed amount of money each month D - To provide a guaranteed income for a certain amount of time

D

What required provision protects against unintentional lapse of the policy? A-Assignment B-Payment of premiums C-Reinstatement D-Grace period

D

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy? A - It is increased when extra premiums are paid. B - It decreases over the term of the policy. C - It remains the same as the original policy, regardless of any differences in value. D - It is reduced to the amount of what the cash value would buy as a single premium.

D

Which of the following best describes annually renewable term insurance? A - It requires proof of insurability at each renewal. B - Neither the premium nor the death benefit is affected by the insured's age. C - It provides an annually increasing death benefit. D - It is level term insurance.

D

Which of the following types of life insurance refers to temporary protection that only lasts for a specified period of time? A-Single-premium whole life B-Joint life C-Limited-pay whole life D-Term life

D

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? A - Material misrepresentation B - Waiver C - Utmost Good Faith D - Estoppel

A

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? A-Viatical settlement B-Estate liquidation C-Nonpayment of premium D-Change of beneficiary

A

Children's riders attached to whole life policies are usually issued as what type of insurance? A-Term B-Variable life C-Adjustable life D-Whole life

A

Equity indexed annuities A - Seek higher returns. B - Are more risky than variable annuities. C - Are security instruments. D - Invest conservatively.:

A

For what period of time is an insurance license issued in Minnesota? A-24 months B-36 months C-Licenses are perpetual D-12 months

A

If an agent wishes to sell variable life policies what license was the agent of team? A - securities B - adjuster C - surplus lines D - personal lines

A

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid A-For 20 years or until death, whichever occurs first. B-Until the policyowner reaches age 65. C-For at least 20 years. D-Until the policyowner's age 100, when the policy matures.

A

All of the following are true of key person insurance EXCEPT A -The key employee is the insured. B - The plan is funded by permanent insurance only. C - There is no limitation on the number of key employee plans in force at any one time. D -The employer is the owner, payor and beneficiary of the policy.

B

An insured has a life insurance policy from a participating company and receive his quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called A - reduction of premiums B - paid up additions C - One year term purchase D - accumulation at interest

B

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? A - One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies. B - The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive. C - The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid over time. D - The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first beneficiary dies.

B

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? A - Legal, provided that the other insurers are paid royalties for the usage of their names B - Illegal under any circumstances C - Legal, provided that the information can be verified D - Illegal until endorsed by the Guaranty Association

B

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as A - Binding contracts. B - Contracts of adhesion. C - Unilateral contracts. D - Aleatory contracts.

B

Once an individual is licensed as an insurance producer for life or accident and health insurance, how many hours of training must he or she initially complete to sell long-term care insurance? A - 6 B - 8 C - 12 D - 4

B

The initial amount of credit life insurance may NOT exceed A-The borrower's annual income. B-The amount to be repaid under the contract. C-An amount set by statute and adjusted regularly for inflation. D-The borrower's monthly income.

B

This state provided for a temporary license for all of the following EXCEPT A-A producer's time in the military service. B-A producer's retirement. C-The death of a producer. D-A producer's disability.

B

What characteristic makes whole life permanent protection? A - Living benefits B - Coverage until death or age 100 C - Guaranteed death benefit D - Guaranteed level premium

B

What do individuals use to transfer their risk of loss to a larger group? A-Indemnity B-Insurance C-Insurable interest D-Exposure

B

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? A - Premiums are taxable to the employee. B - Premiums are not tax deductible as a business expense. C - Premiums are tax deductible by the key employee. D - Premiums are tax deductible as a business expense.

B

Which of the following is not a power given to the Commissioner? A - Impose appropriate penalties on persons or companies who violate insurance laws of the state B - Set the insurance rates to be charged for insurance transacted in the state C - Issue or rescind certificates of authority of insurance companies to transact insurance in the state D - Investigate any person or insurer licensed to transact insurance in the state to determine if any state insurance law has been violated

B

An insurance contract must contain all of the following to be considered legally binding A - Consideration. B - Competent parties. C -Beneficiary's consent. D - Offer and acceptance.

C

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this? A - Incontestable clause B - Grace period C - Reinstatement provision D - Waiver of premium provision

C

An insured's home is damaged in an earthquake. He finds out that his homeowners policy will NOT cover the loss, because earth movement is listed in his policy's A - Riders. B - Conditions. C - Exclusions. D - Endorsements.

C

And insured had a $10,000 of term life policy. The annual premium of $200 was due on February 1, however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive it from the policy? A-$0 B- $200 C- $9800 D - $10,000

C

On it's advertisement, a company claims that it has funds and its possessions that are, in fact, not available for the payment of losses or claims. The companies guilty of A - unfair clean practice B - rebating C - misrepresentation D - Concealment

C

The premium of a survivorship life policy compared with that of a joint life policy would be A - As high. B - Half the amount. C - Lower. D - Higher.

C

To which of the following life products do the Replacement Regulations apply? A - Credit life insurance B - Coverage under a binding receipt issued by the same company C - Individual annuity D - Group life insurance

C

Twin brothers are starting a new business. They know it will take several years to build a business to the point they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die? A - whole life B - ordinary life C - join to life D - decreasing life

C

What is a definition of a unilateral contract? A - One author: the company wrote the contract; the insured must accept it as written. B - If one party makes a condition, the other party can counteroffer. C - One-sided: only one party makes an enforceable promise. D - Two or more parties go into a contract understanding there may be an unequal exchange of vaule.

C

What is the minimum required number of hours of prelicensing education per line of authority in this state? A - 10 hours B - 15 hours C - 20 hours D - 40 hours

C

What is the minimum required number of hours of prelicensing education per line of authority in this state? A-10 hours B-15 hours C-20 hours D-40 hours

C

What is the name of the insured who enters into a viatical settlement? A - Contingent B - Viatical broker C -Viator D - Third party

C

What is the purpose of a fixed-period settlement option? A - To provide a guaranteed income for life B - To provide a guaranteed amount of money each month C - To provide a guaranteed income for a certain amount of time D - To settle the insurance company's liability

C

Which of the following is NOT correct with regards to the death proceeds of a life insurance policy? A - If no beneficiary is named in the policy, the proceeds will go to the insured's estate. B - In the event the beneficiary predeceases the insured, proceeds are paid to the insured's estate. C - The insured's creditors may claim the proceeds from the life insurance policy of the deceased insured. D - The beneficiary cannot be required to use the policy's benefits to pay off the deceased insured's debts.

C

Which of the following is TRUE regarding variable annuities? A - The company guarantees a minimum interest rate. B - A person selling variable annuities is required to have only a life agent's license. C - The annuitant assumes the risks on investment. D - The funds are invested in the company's general account.

C

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? A - Indemnity B - Representation C - Warranty D - Concealment

C

Which of the following is true regarding the master policy? A-It is the same as the entire contract. B-It is only available for creditor-debtor groups. C-It is issued to the sponsor of the group. D-It is issued to individual participants.

C

Which of the following must an insurer obtain in order to transact insurance within a given state? A - Business entity license B - Insurer's license C - Certificate authority D - Producer's certificate

C

Which of the following terms is used to name the nontaxed return of unused premiums? A - Interest B - Surrender C - Dividend D - Premium return

C

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT A -An offer of employment. B - Stocks, securities, or bonds. C - An offer to share in commissions generated by the sale. D - Dividends from a mutual insurer.

D

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation? A - Variable life B - Universal life C - Whole life D - Decreasing term

D

And personal auto policies, which of the following types of coverage gives a total amount per claim to be used wherever needed, instead of setting maximum for bodily injury and property damage? A - maximum combine payment B - blanket total C - comprehensive maximum D - combine single limit

D

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as A - Twisting. B - False advertising. C - Coercion. D - Rebating.

D

During each licensing period, every licensee subject to Minnesota's continuing education requirement must complete a minimum of A - 30 credit hours. B - 40 credit hours. C - 15 credit hours. D - 24 credit hours.

D

Group life insurance policies must permit covered employees to continue coverage for themselves and dependents for a specified period of time if their group coverage is terminated for any of the following reasons EXCEPT A - Termination because of a slow-down in the business. B - Termination because of illness. C - Reduction of hours so the employee is no longer classified as full-time. D - Termination because of misconduct on the part of the employee.

D

If a life insurance policy has an irrevocable beneficiary designation, A - The beneficiary cannot be changed to for at least two years. B - The owner can always change the beneficiary at will. C - The beneficiary cannot be changed. D - The beneficiary can only be changed with written permission of the beneficiary.

D

In a life settlement contract, whom does the life settlement broker represent? A - The insurer B - The beneficiary C - The life settlement intermediary D - The owner

D

In which of the following cases will the insured be able to receive the full face amount from a whole life policy? A - As soon as the cash value exceeds the face amount B - If there are no named beneficiaries when the policy is paid up C - At age 65 D - If the insured lives to age 100

D

Personal Lines property policies are designed to meet the needs of A-Small companies. B-Nonprofit corporations. C-Private insurers. D-Individuals.

D

Which of the following determines the cash value of a variable life policy? A - The companies general account B - The policies guarantees C - The premium mode D - The performance of the policy portfolio

D

Which of the following is correct regarding credit life insurance? A - It is purchased on an installment basis. B - It insures the life of a creditor. C - It has a maximum term of 20 years. D - It insures the life of a debtor.

D

Which of the following licensees are not compensated directly related to the amount of insurance sold? A -Insurance agent B - Insurance producer C - Insurance broker D - Insurance consultant

D

Which of the following provisions states that it is the insured's responsibility to notify the insurer of a loss within a specified number o days? A-Proof of loss B-Claim forms C-Time of payment of claims D-Notice of claim

D

Which of the following would be grounds for the Commissioner to deny, suspend, or revoke an insurance producer's license? A-The Commissioner determines the licensee does not intend to or is not in good faith carrying on the business of an insurance producer. B-The licensee has violated or failed to comply with any order of the insurance regulator of any other state or jurisdiction. C-The licensee has misrepresented the terms of any actual or proposed insurance contract. D-Any of the above

D

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? A - Entire contract clause B - Beneficiary clause C - Consideration clause D - Insuring clause

D

Who can make a fully deductible contribution to a traditional IRA? A- Anybody; all IRA contributions are fully deductible regardless of income level B - Someone making contributions to an educational IRA C- A person whose contributions are funded by a return on investment D-An individual not covered by an employer-sponsored plan who has earned income

D