Exam Fx Simulation 1

For what period of time is an insurance license issued in Minnesota?

24 months

In insurance, an offer is usually made when

An applicant submits an application to the insurer.

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an

Authorized insurer.

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

In personal auto policies, which of the following types of coverage gives a total amount per claim to be used wherever needed, instead of setting maximums for bodily injury and property damage?

Combined single limit

What type of property insurance is available to businesses?

Commercial lines

What does "level" refer to in level term insurance?

Face amount

During this policy period, the insured can return the policy for a full refund of premiums if the insured is dissatisfied with the policy for any reason.

Free-look period

Which of the following best describes annually renewable term insurance?

Level term insurance

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-pay Life

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

Which type of life insurance policy generates immediate cash value?

Single Premium

What is the purpose of the Claims Made form?

To allow insurers to determine adequate rates for unknown losses claimed in the future