Pre-Exam

Convert the policy to a permanent policy

A convertible term policy enables the policy owner to:

Defamation

A false written or oral statement made by the producer for the producer for the purpose of replacing an existing policy is:

The premium paid but not including any contract fees or other charge related to the contract

A person's cancellation of an insurance policy or contract with the free look period is without liability and the person is entitled to a refund of:

Substandard risk

A proposed insured whose likelihood of loss is significantly less than average is classified as:

An evaluation of the applicant by a disinterested source, not related to the insured

A reason for using Individual Reporting Agencies to gather information about an insurance applicant is:

Any circumstance the commissioner deems to be in the public interest

A temporary producer license can be issued in the event of any of the following:

Viatical Settlement

A terminally ill insured can sell their policy for less then the policy death benefit and give over absolute assignment through which third part owner:

An insuring clause

Accidental Death and Dismemberment will pay the principal sum of what death occurrence?

Primary beneficiary

All of the following are examples of third party ownership EXCEPT:

Pays out only in the event of an accident resulting in death

An Accidental Death benefit:

First premium has been paid

An immediate annuity begins making payment after:

Within 10 days of the change

An insurance producer must notify the commissioner of commerce of a change in legal name or address:

Adjustable life

An insured wants to purchase a policy with three key elements; flexible premium, death benefit, and the choice of how cash value will be purchased:

Equity indexed annuity

Annuity products linked to a market related index are called:

The name of the person making contact, the name of the producer, and that you are in business to sell life insurance

At the time of the initial contact and before a personal solicitation, a producer must provide:

Share the positive HIV information with other companies

Blood test to detect the presence of the Human Immunodeficiency Virus (HIV) are becoming commonplace laws, and have been passed allowing companies to:

Tax free at the time of the insured's death

Generally, What are the tax options of life insurance as opposed to the beneficiary?

When the producer deliver the policy and collects the first premium

Generally, if the application is not prepaid, the effective date of the policy is when:

24 hours

How many total hours of Continuing Education must a producer complete upon renewing their license?

The applications

IN addition to the actual policy, an Entire Contract includes which of the following?

The beneficiary on record with the insured

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:

The contingent

If the insured and the primary beneficiary are killed in the same accident, the policy proceeds will be paid to the:

An insuring clause

If the insured individual dies while the policy is enforce, the company will pay the death benefit to the beneficiary.

Straight whole life policy

In Which of the following policies is the insured covered to age 100 and the premium payments remain the same?

Level Premium Policy

In what type of policy does the owner pay the same premium throughout the term of the contract?

A grace period provision

John has a life insurance policy with XYZ Company. His premium payment is due on the first day of each moth, Due to an illness, John failed to pay his June 1 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 benefit would be pay?

October 31st, 2010

John received his life license on April 1st 2009. When will his license expire?

6 months

Life insurance applications may be backdated up to how many moths:

10 days

Once a policy has been reinstated, the insured must wait what amount of time before coverage for sickness is enviable?

Premium plus interest

Prior to annuity ration, what is the nonforfeiture value of an annuity?

30 days

The Commissioner of Commerce MUST give a minimum of how many days advance notice of disciplinary action?

Enforce State Laws

The Commissioner of Commerce is empowered to:

Endorsing insurers

The Commissioner of commerce is Not responsible for:

Twisting

The act of inducting a person to terminate an existing policy and purchase a new policy is referred to as:

Protect the death benefit from the creditors of the beneficiary

The main purpose of the Spendthrift Clause in a settlement option is to:

$500,000

The maximum amount the Guarantee Association will pay out on for a individual is:

$300,000

The minimum amount the Guarantee Association will pay out per insured life is:

Consideration clause

The proposed insured's statement of the application and the first premium payment is which part of the policy?

Representation

The proposed insured's statement on a life insurance application are considered to be

The Department of Commerce

The rules/regulations?course for life insurance belongs to:

Reinstate the policy within 5 years from the date of the premium default

To qualify for reinstatement for an individual life policy, the insured must do all the following EXCEPT:

A separate long term care license plus 8 hours of training

To sell long term care health insurance, a produce must obtain:

The employer must inform the employee of the amount payable to continue coverage for up to 18 months.

Under Minnesota law, if an employee is laid off from employment and is no longer eligible for group coverage, what can the employer do abut the employee's life insurance coverage?

1 month

What is Minnesota's required Grace Period for a life insurance contract?

$300,000

What is the minimum amount of protection for the health claim per individual under a Minnesota life and health company?

Gives the employee the right to convert their group coverage to an individual policy without proof of insurability upon their termination

What is the purpose of the conversation privilege in a group insurance policy?

Decreasing Term

What type of policy best fits an individual with a 30 year mortgage?

1 month

When an immediate annuity is funded with a single premium, the annuitant may begin receiving payment after:

Both the applicant and the insurance producer

When an individual replaces a life insurance policy, who initials the "Important Notice: Replacement of the Life Insurance Policy From?'

When the other producer is licensed in the same line of insurance

When can producer share commission with another producer?

The application date OR the date of the medical examination, whichever is faster and the policy is issued

When dose coverage being, when a life insurance application and the initial premium are submitted together?

noncontributory

When the employer pays All the employee's policy premiums, it is considered:

Tax deductible

When the employer pays all the employee's group health premiums, it is considered:

Pay the death benefit to the beneficiary when a death claim is made

When the policy is infored, the insuring clause states the insurer's obligation to:

Variable universal life policy

When the structure and flexibility of a universal life policy are combined with investment choice, it is a:

Stock compay

Which from of insurance has shareholders?

Irrevocable beneficiary

Which of following beneficiary designations prohibits the policy owner from making any changes to the policy with the beneficiary's written consent?

Variable Universal

Which of following policies has cash values dependent on the investment performances of common stock?

The agent must have reasonable grounds for belief that the recommendation is suitable for the customer

Which of the following is TRUE regarding suitability of a long term care insurance policy?

Individual annuity

Which of the following is an example of a Nonqualified Plan?

Failure to provide a reasonable basis for the denial of a claim upon request

Which of the following is an example of an unfair claim settlement practice?

Endorsement , If any

Which of the following is not included as part of the contract in the Entire Contract Revision?

Collateral Assignment

Which of the following provisions allow a person to temporarily give up a portion of their right to their policy due to using it as a security?

individuals related closely by blood or law have an insurable interest based on love and affection.

Which of the following statements regarding the concept of the insurable interest, as related to the life insurance contract is TRUE?

The death benefit

Which of the following transactions would NOT be subject to income tax under a Modified Endowment Contract (MEC)

Advertising uses the Minnesota life and health insurance Guaranty Association for purpose of sale

Which of the following would be prohibited advertising

Guaranteed insurability

Which ride would allow additional insurance at specified dates or events, without evidence of Insurability?

The beneficiary is irrevocable

Which type of beneficiary CAN NOT be changed without consent?

Joint

Which type of insurance policy is written out under a single contract for both spouse and is payable upon the death of the first?

Commissioner of commerce

Who has the power to revoke a producer's license?