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