Mn Life
If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years Which of the following would be taxable annually?
$3000
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?
8
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premiums?
Automatic premium loan
Which of the following statements concerning buy-sell agreements is true?
Buy-Sell agreements are normally funded with a life insurance policy
which of the following terms is used to name the nontaxed returns of unused premiums
Dividend
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Interest only option
Who might recieve dividends from a mutual insurer?
Policyholders
The Gramm-Leach-Bliley Act was passed to do what?
Protect private customer information filed with a financial instituition
Another name for a substandard risk classification is?
Rated
Any inducement offered to the insured in the sale of an insurance policy is an unlawful practice known as
Rebating
The interest earned on policy dividends is
Taxable
A licensed Minnesota insurance producer must notify the Commissioner of a change of address within
10 days
Once an individual has successfully passed a licensing exam, for how many year(s) are the results valid?
3
Should the Commissioner request information from a certificate holder, licensee, or other person under the jurisdiction of the Commissioner...If no time specified, they must comply within?
30 days
What is another name for interest-sensitize whole life insurance?
Current assumption life
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?
Level Term
Which of the following is not a type of whole life insurance?
Level Term
Variable whole life insurance is based on what type of premium?
Level fixed
When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would
Lower the insureds premium
Traditional IRA contributions are tax deductible based on which of the following?
Owners Incomme
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor Protection
Children's riders attached to whole life policies are usually issued as what type of insurance?
Term
In a life settlement contract, whom does the life settlement broker represent?
The Owner
Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?
The beneficiary will only receive payments of the interest earned on the death benefit.
The insured had his wife named as the beneficiary of his life policy. To ensure that his wife had income for life after the insureds death, he chose the life income settlement option. The amount of payments will be determined taking into account of all of the following EXCEPT
The insureds age at death
which of the following is not true of life settlements?
The seller must be terminally ill
Social security benefits are available for a surviving spouse until the youngest child reaches age 16. Benefits are again available for the spouse after reaching age 60. What is the time period called during which the surviving spouse does not receive benefits?
blackout period
An insured purchased a variable life insurance policy with a face amount of $50,000. over the life of the policy, stock performance declined, and cash value fell to $10,000. if the insured dies, How much will be paid out?
$50,000
Upon termination of a covered employee, the employer must notify the employee of their right to continuation of coverage within how many days?
14 days
Replacing insurers must maintain evidence of the Notice regarding Replacement for a minimum of how many years?
6 years
Any regularly salaried employee of a licensed insurer, without license or other qualification, may act on behalf of that insurer in the negotiation of insurance for that insurer, provided
A licensed producer participates in the sale of the insurance
The accelerated benefits provision will provide for an early payment of the death benefit when the insured
Becomes terminally ill
A long stretch of national economic hardship causes 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?
Cost of Living Rider
Which of the following would be the beneficiary in credit life insurance?
Creditor
Which of the following is true about the premium on the children's rider in a life insurance policy?
It remains the same no matter how many children are added to the policy
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Joint life
A participating insurance policy may do which of the following?
Pay dividends to the policy owner
A man decided to purchase a $100,000 Annually renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy
Required a premium increase each renewal
All of the flowing are true regarding the guaranteed insurability rider EXCEPT
This rider is available to all insured with no additional premium