MN life insurance

In Minnesota, policy issued without containing, bold-face type, the policy owner's right to cancel (free look), to get full refund, the policy must be return within

1 year

In replacement, an existing insurer must provide policy owners with a policy summary for existing life insurance within how many days?

10 days

If the producer's license lapses, how much time to apply for reinstatement without taking exam?

12 months

An insured suffered a loss and notified her insurance company. the insurer must provide a claim form to the insured within

15 days

No life insurance policy or certificate may be issued or delivery by an insurer organized in Minnesota until it has been approved by

The Insurance Commission

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

misrepresentation

For how long an insurance company is allowed to defer policy loan requests

6 months

Which of the following employee benefits essentially provides the employee with a wage increase and directs that wage increase to be spent on a life insurance policy?

Executive bonus

1. Which of the following is NOT true regarding a deferred annuity?

Income payment begin within 1 years from the date of purchase.

Purpose of conditional receipt -

Intended to provide coverage prior to policy issue.

Which situation insurance interest does not exist?

A person insuring the life of his best friend

An individual receives a lump sum inheritance. He would like to use the money to create a lifetime income but will be retiring soon. He purchases an annuity and wishes to receive payments beginning in 2 months. What did he buy?

Single premium deferred annuity

Initial amount of credit life insurance does NOT exceed -

The amount repaid under the contract

The policy owner may skip a premium payment without lapsing the policy as long as

the policy contains sufficient cash value at the time to cover the cost of insurance for that premium period.

When replacement is involved, the replacing insurer must send a notice to the existing insurance company that identifies the insured and policies within how many days? a. 3 days b. 5 days c. 10 days d. 30 days

a. 3 days

All of the following are true regarding insurance policy loans EXCEPT a. Policy loans can be made on policies that do not accumulate cash value. b. the amount of the outstanding loan and interest. c. The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy. d. policy owners can borrow up to the full amount of their whole life policy's cash value.

a. Policy loans can be made on policies that do not accumulate cash value

A life insurance policy qualifies a Modified Endowment Contract (MEC) if the amount of premium paid exceeds the amount that would have provided paid-up insurance in how many years?

7 years

which of the following cannot obtain a temporary license?

An employee of a retiring producer until the training of the new personnel is complete

In an annuity, accumulated money is converted into a stream of income during

Annuitization Period

In order to get a nonresident license in this state producers must

Apply and pay a fee to a nonresident state that reciprocates.

*When may an insurer advertise its membership in the minnesota insurance guaranty association?

At no time

1. When an insurer tries to discourage a policyholder from replacing an existing policy this is called

Conservation Effort

Written or oral statements made by the applicant are

Considered true to the best of the applicant's knowledge

whole life policy is surrendered for a reduced paid up policy. the cash value in the new policy

Continue to increase

Contracts prepared under one party on a take it or leave it are classified as -

Contracts of Adhesion

Which of the following is true about credit life insurance

Creditor is the policy owner

An annuity owner receives the same guaranteed payment every month. What type of annuity is it?

Fixed

The insured can return the policy for a full refund if the insured is dissatisfied with the policy.

Free-look period

Which of the following is not a clause of loss form for commercial lines?

General

if a loan request is for payment of due premium on the policy how soon must the insurer issue a loan

Immediately

What does an annuity protect the annuitant against

Living longer than expected

Which riders covered expenses incurred in nursing or convalescent home?

Long term care

Which terms defined the reduction of value of the person or property insured in a policy?

Loss

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

Misrepresentation

On the advertisement, a company claims that it has fund in its possessions that are in fact not available for the payment of losses or claims. The company is guilty of

Misrepresentation

An insurance company that is owned by the policyholders is called a

Mutual Insurer

*which of the following types group are not eligible for coverage under a group life insurance policy

Neighborhood group formed to purchased group insurance

The purpose of the fair credit reporting act is to

Protect the insurer from adverse selection

1. *What effect will the long term care (LTC) rider have on the death benefit of life insurance policy if ltc benefits were paid to the insured

Reduce the death benefit

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer "no" to the question pertaining to heart problems. Their answer is considered to be a:

Representation

If the consumer challenges the accuracy of the information contained in the consumer or investigative report, the reporting agency must

Respond to the consumer's complaint

A wife wants her husband as the beneficiary and ownership of her policy, the policy owner should name her husband as

Revocable beneficiary

Variable insurance and variable annuities are regulated by

SEC and FINRA only

*all of the following are advantages of a qualified retirement plan except

The contribution is deductible to the employer

All of the following are true of credit life except

The creditor is the policy owner

All of the following are true of annually renewable term insurance except

The death benefit remains level

*What does the application of contract of adhesion mean

The holder of the contract has the ultimate power of promise

When is an insurer examination ordered by the commissioner who pays for the cost of the examination?

The insurance department

Life settlement broker represents

The owner

What is the purpose of settlement options?

They determine how death proceeds will be paid

Which method of dealing with risk is applied when insurance is purchased

Transfer

which of the following is not true regarding the accumulation period of an annuity? a. it is also known as the pay-in-period. b. it would not occur in a deferred annuity. c. it allows the insured 10 days to pay the initial premium. d. it allows the insurer to temporarily suspend coverage after an insured's disability.

b. it would not occur in a deferred annuity.

What is the purpose of a conditional receipt? a. it serves as proof that the applicant has been determined insurable. b. it is given only to applicants who fully prepay the premium. c. It is intended to provide coverage on a date prior to the policy issue. d. it guarantees that a policy will be issued in the amount applied for.

c. It is intended to provide coverage on a date prior to the policy issue.

To what organization must all admitted insurers belong? a. the Minnesota Insurance Guaranty Fund b. The Minnesota Association of Insurers c. The insurance Guaranty Association d. The National Association of Insurance Commissioner (NAIC)

c. The Insurance Guaranty Association

All of the following are dividend options EXCEPT a. reduction of premium b. paid-up addiction c. fixed period installments d. accumulated at interest

c. fixed period installments

To be valid an insurance policy must have all of the following except

consideration

while completing a life insurance application the applicant realizes that she should have answered an earlier question differently. What should the agent do to make the necessary change?

cross out the incorrect information, write in the correct answer, and have the applicant initial the change.

An individual has a $200,000 convertible term insurance policy. If he chooses, he can convert to:

A whole life policy for the same face amount without proof of insurability.

An insured misstates her age at the time of life insurance application is taken, resulting in

Adjustment in the amount of death benefit

Which of the following kinds of group insurance is designed for groups of people who are exposed to a common hazard?

Blanket Life

Which of the following is not an indicator of a competent party

Business profession

A couple's retirement annuity pays them 250/month. The husband dies and the wife continues to receive 125/month until she dies. What settlement option they chose?

Joint and survivor

*Dividends received on participating life insurance policies are

Not taxable because they are a return on your investment

Statements are true regarding installments for a fixed amount except

Payment stops when the annuitant dies

All of the following statements about mutual insurance companies are correct EXCEPT

Policy dividends issued by mutual companies are guaranteed and not taxable

In which instances would the premium be tax deductible

Premium paid by an employer on 30,000 group term life insurance plans for employees

Under the nonforfeiture option, the policy cash value is converted to

Same face amount as the whole life policy

Accumulation at interest option except

The interest is not taxable since it remains inside the insurance policy

Which of the following statements concerning the medical information bureau is correct

The medical information bureau assists underwriters in evaluating and classifying risks.

*all of the following statements about indexed whole life insurance are correct except

There is a guaranteed minimum interest rate

what is the purpose of a free-look period in insurance policies? a. it allows the insurer to cancel coverage if a misrepresentation is discovered. b. It allows the insured to reject the policy with a full refund. c. it allows the insured 10 days to pay the initial premium. d. it allows the insurer to temporarily suspend coverage after an insured's disability.

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

Which of the following is not a duty of the Commissioner? a. Issue an insurance license for a producer b. Make state insurance laws c. Handle insurance-related consumer complaints d. Enforce state insurance laws

b. Make state insurance laws

All of the following information needs to be included on an application for life insurance EXCEPT: a. Medical information about the applicant b. Health insurance policies in force .c. Life insurance with other insurers. d. The agent's statement, if applicable.

b. health insurance policies in force

Which of the following would be considered an unfair claims settlement practice. a. requesting the insured to submit a signed, proof of loss statement, after the insured has already verbally advised the insurer of the claim. b. requesting the insured swear under oath concerning the facts of the claim. c. the settlement of the claim is delayed for 30 days in order for the insured to conduct an investigation. d. A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered.

d. A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered.

When is the earliest a policy may go into effect? a. When the first premium is paid and the policy has been delivered. b. When the insurer approves the application c. After the underwriter reviews the policy d. When the application is signed and a check is given to the agent.

d. When the application is signed and a check is given to the agent.

Which of the following is a correct statement about annuities?

fixed annuities do not provide protection against inflation.

A license Minnesota insurance producer must notify the Commissioner of a change of address within a. 10 days b. 30 days c. 5 business days d. 7 days

a. 10 days

Partners in a business want to make sure that if one of them were to pass away, their surviving family will receive a fair value for their portion in the business. what life insurance arrangement would be most suited for transitioning the business?

Buy-Sell agreement

An insurance contract must contain all of the following to be considered legally binding EXCEPT: A: Consideration B: Competent Parties C: Beneficiary's Consent D: Offer and Acceptance

C. beneficiary's consent

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT

Cash Surrendered Value

Example of liquidity in life insurance

Cash value available to policyowner

Another name for interest-sensitive whole life insurance

Current assumption life

The portion of a loss that is considered the responsibility of the insured is

Deductible

During policy solicitation an insurer exaggerates the financial condition of one of its competitors and makes it sound worse than it is. This is an example of an unfair trade practice called? a. Twisting b. False advertising c. Controlled business d. Defamation

Defamation

In this state the owner gets a free look of a specified number of days from

Delivery of the policy

Which of the following is not a standard exclusion in life insurance policies?

Disability

Change need to make to the application for insurance, the agent may do all the following except

Erase the incorrect answer and record the correct answer

Not a power given to the commissioner

Set the insurance rate to be charged

insurance policy provides insurance protection for the life of the insured and matures at the insured's age 100

Single premium whole life

which of the following individuals would be a likely candidate to purchase a deferred annuity

Someone who wants to grow retirement funds for tax deferred

in contrasting stock insurers with mutual insurance which statement is true

Stock insurers are owned by the shareholders and issue nonparticipating policies

Which of the following statements regarding HIV testing is NOT true?

Test results must be sent to the department of insurance

Which of the following is not correct regarding death proceeds of life insurance?

The insured's creditors may claim the proceed from life insurance policy of the deceased insured

An agent tells an insured that if he replaces his current insurance policy with a new one, his dividends will be higher and his premiums will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentation is being committed?

Twisting

*insurers are forbidden to do all of the following with their advertisements except

Use word or phases that exaggerate the terms of the policy

because of an injury an insured has been unable to work for 9 months. he paid the policy premium for his life for the first 6 months of disability, but didn't have to pay anything for the remaining 3 months, yet the policy remained in force. the policy include

Waiver of premium rider

Which of the following types of insurance policies would perform the function of cash accumulation?

Whole life

*According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

a policy is reissued with a reduction in cash value