Insurance Quiz

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

Any circumstances the Commissioner deems to be the public interest

Foreign

Any company that is incorporated or organized in another state that does business in MN

a convertible the term policy enables the policy owner to:

Convert term policy to a permanent policy

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

Decreasing Term

Automatic premium loan

May be added to a cash value life insurance contract and protects the policy owner against the inadvertent lapsing of the contract

What is the penalty who violates or aids and abets any violations of a written order?

$10,000

The minimum amount the Guarantee Association will payout per insured life is?

$300,000

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

$300,000

The maximum amount the Guarantee Association will pay out on for an individual us?

$500,000

What is Minnesota's required grace period for life insurance contract?

1 month

when an immediate annuity is fund with a single premium, the annuitant may begin receiving payment after?

1 month

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

10 days

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

24 hours

The commissioner of commerce must give a minimum of how many days advanced notice of disciplinary action

30 days

Grace period provision gives how many days after the premium due date in which pay the premium without having the policy lapse?

31 days

Life insurance applications maybe backdated up to how many months?

6 months

John as a life ins policy with XYZ company. His premium payment is due on the 1st day of each month. Due to an illness, John failed to pay his first due premium of $210.00. 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?

A grace period provision

To sell long term care heath insurance, a producer must obtain?

A separate long term care license plus

Assignment clause

Allows the policy owner to designate a new owner by filing an appropriate form with the company

Which of the following would be prohibited advertising?

An advertising that uses the MN life and Health insurance Association for purpose of sale

A reason for using individual reporting agencies to gather information about an insurance applicant is?

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

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

An insuring clause

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

An insuring clause

Domestic

Any company that is incorporated or organized in the state of MN

When an individual replaces a life insurance policy who initials the important notice replacement of the life insurance policy form

Both the applicant and the insurance producer

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

Collateral assignment

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

Commissioner of commerce

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

Contingent Beneficiary

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

Deformation

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

Endorsement if any

The Commissioner of commerce is empowered to?

Enforce state laws

Annuity products linked to a market related index are called?

Equity index annuity

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

Failure to provide a reasonable assistor the denial of claim

Which rider would allow additional insurance at specifies dates or events, without evidence of Insurability

Guaranteed insurability

Which of the following is example of a non qualified plan?

Individual annuity

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

Individual related closed by

Which of the following beneficiary designations prohibits the policy owner from making any changes to the policy without the beneficiary's written consent?

Irrevocable beneficiary

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

Joint policy

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

Level premium policy

When the employer pays all the employee's policy premiums, it is considered?

Non- Contributory

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

October 31st 2010

When the policy is enforce the insuring clause states the insurer's obligation to?

Pay the death benefit to the beneficiary

An accidental death benefit?

Pays out only in the event of an accident

Prior to annuity ration, what is the non-forfeiture value of an annuity?

Premium plus interest

All of the following are examples of a third party except

Primary beneficiary

The main purpose of the spendthrift clause in a settlements option is to?

Protect death benefit from the creditor of beneficiary

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

Reinstate the policy within 5 yrs from the date the premium default

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

Representations

Blood test to detect the present of the human in immunodeficiency virus are becoming compliance laws, and have been passed allowing companies to

Share positive information with other companies

Which form of insurance has shareholders?

Stock company

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

Straight whole life policy

A proposed insured who's likelihood of loss is significantly less than average is classified as

Substandard Risk

When the employer pays all the employee's group heath premium, it is considered?

Tax deductible

Generally, what are the tax option of life insurance as opposed to the beneficiary?

Tax free at the time of the insured death

An immediate annuity begins making payment after?

The 1st premium has been paid

Which type of beneficiary CANNOT be changed without consent?

The Beneficiary is irrevocable

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

The agent must have reasonable grounds for belief that the recommendation

In addition to the actual policy, an entire contract includes which of the following?

The application

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

The application date or the date of the medical examiner or whichever is faster and the policy is issue

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 benefit on record with the insured

Which of the following transactions would NOT be subject to income tax under a modified endowment contract (MEC )?

The death benefit

The rules/regulations/courses for life insurance belongs to?

The department of commerce

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

The employer must inform the employee of the amount payable to continue

At the time of the initial contract and before a personal solicitation, a producer must provide?

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

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

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

Definition of Cease & Desist

This order is issued to prevent an insurer from transacting business that may harm the company's policyholders or the public

The act of introducing a person a terminate an existing policy and purchase a new policy if referred to as

Twisting

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?

Variable Universal Life

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

Variable universal

which of the following policies has cash value dependent on the investment performances of common stock?

Variable universal

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

Viatical settlement

When can a producer share a commission with another producer?

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

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

When the producer deliver the policy and collect the first premium

An insurance producer must notify the Commissioner of commerce of a change in legal name or address?

Within 10 days of the change

Single premium

a lump-sum payment is used to fund the annuity

The proposed insured statement on the application and the first premium payment is which part of the policy

consideration clause

Expressed authority

is extended to the producer as part of the agency agreement and allows the producer to complete all necessary job functions

Annuitant

is the person who receives the income distributed from and annuity

False advertising

making any oral or written statement with respect to the business of insurance

Misrepresentation

making statements that misrepresent the policies, dividends, or financial condition of any insurer

Defamation

making, publishing, or circulating any oral or written statement that is false

Apparent Authority

not extended by the agency agreement but is authority that a reasonable person would presume the producer has

Implied

not extended to the producer as part of the agency agreement but is authority but is authority necessary to complete the functions allowed in agency agreement

Deferred annuity

payments begin at some date in the future

Twisting

replacing insurance to the detriment of the insured

Flexible premium

smaller payments are made over a period of time to fund the annuity

A collateral assignment

used to temporarily pledge a life insurance policy as a security loan