Insurance Minnesota Exams Prep

$1,000 --

What is the maximum penalty per offense for transacting insurance without a certificate of authority.

They are not taxable and are not guaranteed.

Which statement is an accurate description of life insurance policy dividends?

Individuals age 50 and older

Who would be allowed catch-up contributions?

Owned by its stockholders

A stock insurer is defined as an insurer

60 days

According to continuation of coverage provision in group policies, how many days does a terminated employee have to elect coverage?

Cover a mortgage

Decreasing Term insurance is often used to

1 month

How long is the grace period for an individual life insurance policy?

The insurance commissioner.

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

Insurers-

The Minnesota Life and Health Insurance Guaranty Association was created to protect all of the following EXCEPT

Family Term

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve the goal?

12 months

A producer's license lapses. it can be reinstated without requiring the producer to pass the licensing exam again, provided that the producer applies for reinstatement within

$70,000

An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive.

Pay the death benefit to the estate of the insured

Key person insurance can provide protection for all of the following economic losses to a business EXCEPT

Coverage E--

provides protection against bodily injury.

Believed to be true to the best of the applicant's knowledge

Answers to questions in an insurance application are called representations and, as such, they are

A collateral Assignment

The policyowner has an option to pledge the life insurance policy as collateral for a bank loan. This is called,

It is a temporary protection--

Which of the following is TRUE of level term insurance?

Term Life

Which of the following policies would NOT offer a policy loan option?

Deductible

Which of the following terms refers to the portion of a loss that is paid by the insured?

Being Permanently disabled

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Use it for emergency expenses

Considering the principles of liquidity, how would the policyowner use today's cash values in a life insurance policy.

24 hours continuing education

For each licensing period, licensees must complete

The employer is the beneficiary

All of the following are true about group life EXCEPT

Waiver of premium rider-

Because of an injury, an insured has been unable to work for 7 months. When his life insurance premium came due, he was unable to pay, yet to policy remained in force. The policy includes.

Ban representation of an examinee by an attorney

During a hearing, the commissioner can do any of the following, EXCEPT

An individual

For which of the following entities should an agent recommend a Personal lines policy?

Misrepresentation

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

Motor Carrier

In a commercial Auto Coverage policy, which of the following coverage forms applies to automobiles transporting property for a commercial enterprise?

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

In order to get a nonresident in this state a producer must

Pay next year's premium in advance

In order to reinstate a life insurance policy the insured must do all of the following EXCEPT:

Only one party makes a promise?

Insurance contracts are unilateral in nature. What does that mean?

In boldface type--

The right to cancel provision must be shown in the policy

Continue to increase--

When a whole life policy surrendered for a reduced paid-up policy.

Offering an inducement of something of value not specified in the policy.

Which of the following best defines the unfair trade practice of rebating?

Forgery

Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license?

The insured

With Adjustable Life, the owner can change all of the following EXCEPT?

24

How many CE credits must be completed within each licensing period?

Whole life without proof of insurability

When an insured terminates membership in the insured group, the insured can convert to.

Peril

An insured's home is destroyed by a fire. In this example, the fire is a

Foreign

An insurer incorporated under the laws of another state but doing business in this state is considered

Qualified

J's retirement plan meets all federal requirments and entitles him to certain tax benefits as the owner of the plan. What term best describes J's retirement plan?

Twisting

An agent tells an insured to replace insurance with newer one. What type of misrepresentation is being committed?

Convert to a whole life policy for the same face amount without proof of insurability.

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

Revocable

An individual purchases a life insurance policy and lists as the beneficiaries. He is able to change beneficiaries at any given time, which type is this?

At the insured's age 100

In whole life insurance, when is the policy cash value scheduled to equal the face amount.

--Universal Life

Described as a flexible premium adjustable life policy?

Insuring Clause

The provision that sets forth the basic agreement between the insurer and the insured and states the insurer's promise to pay the death benefit upon the insurer's death is called the

The cash value in the policy

All of the following are consideration in an insurance policy EXCEPT

Unequal exchange of values

An aleatory contract is based on what kind of exchange?

N/A

N/A

Every 24 months

How often must producer licenses be renewed?

Obtain the consent of the insured

Prior to paying a claimant under a professional liability policy, the insurer must

If satisfies IRS requirements for a favorable tax treatment

If a retirement plan or annuity is qualified, this means

Certificated of Authority

Insurers cannot transact insurance in this state without a

Mutual Insurer

An insurance company that is owned by the policy holders is called

Disability

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

Business Profession

Which of the following is NOT an indicator of a competent party?

Fixed annuities do not provide protection against inflation.

Which of the following is a correct statement about annuities?

Death caused by a head-on-collision.

Which of the following losses would likely be covered under the Accidental Death Rider?

Pro Rata

A insured has 2 property policies in force covering the same risk. When a loss occurs, which of the following policy provisions states that each policy will pay some proportion of its limits to the overall coverage?

Since the insured does not participate in the preparing the contract, any ambiguities would be resolved in favor of the insured.

What does the application of a contract of adhesion mean

The insured must be unable to perform some activities of daily living

What is necessary in order to be eligible to receive benefits from a Long-Term Care policy?

Never, the insurer has waived its right to those answers by issuing the policy.

If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?

In 12 months

An insurance producer renewed his license 12 months ago. When will he need to renew it again?

Temporary Protection, Renewability, no cash value--

Which of the following are characteristics of term life insurance?

A buyers guide --

The entire contract included all of the following EXCEPT

Proof of insurability must be provided at each renewal

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

The death benefit is not guaranteed--

true statements about indexed whole life insurance

Alien

An insurer who transacts insurance in this state but whose articles of incorporation are registered in Canada is considered what type of insurer?

Adjust the death benefit to what the premium would have purchased at the actual age of gender.

If an insured dies, and it is discovered that the insured misstated his/her age or gender, the life insurance company will

Fixed Amount

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to contingent beneficiary. Which settlement option did J choose.

15 days

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

Fair Credit Reporting Act

An applicant may challenge information discovered as a result of an investigative consumer report under which of the following Acts?

A percentage of the face amount of the policy.

A viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following.

$25

What is the maximum fine for insurers who allow producers to transact insurance for them without appointments?

60 Days --

An individual recently lost her job. She intends to convert her group policy to an individual policy. In order to avoid proving insurability, the conversion must occur within

The owner of the original life policy.

As it relates to life settlements, the term "owner" means

Promote interest in insurance coverage

Insurers are forbidden to do all of the following with their advertisements, EXCEPT

Joint and Survivor

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policy owner select?

Countersignature

to be valid, an insurance policy must have all if the following EXCEPT

Mexico

An example if an alien insurer doing business in this state is one formed under the laws of

Insurable interest

To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of loss. What is this concept called?

When the creditor is named as the beneficiary

Under what circumstances may a creditor of a deceased insured receive the proceeds from a life insurance policy?

Spouse term and children's term

The family term rider incorporates

There is no cash benefit.

Which of the following is true regarding the cash value in term life insurance policies?

Blanket life

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

Neighborhood group formed to purchase group insurance

Which of the following type of groups are NOT eligible for coverage under a group life insurance policy?

One party accepts the exact terms of the other party's offer.

Which statement best describes agreement as it relates to insurance contracts?

The premium will remain level for 10 years

Which of the following is TRUE regarding premium in a 10-year level premium policy?

Consideration

Which of the following policy provisions makes clear that both parties to a contract must contribute something of value for the contract to be effective.