MN Laws and Rules

An Applicant Must:

- be 18+ - not have committed any acts that is grounds for denial - completed pre-licensing course of study (20 hours) - have passed the state exam - submit application fees - had a criminal background check

a fraternal benefit society has the following characteristics.

- non-forprofit - incorporated - without capital stock - exists for the benefit of its members

penalties

-first offense is a misdemeanor - each offense after is a gross misdemeanor

What is MN required grace period for a life insurance contract?

1 month

An insurer must send a notice of appointment for a producer within____ days from the date of an executed agency contract or after submitting the first application to the insurer

15 days

a life insurance policy becomes incontestable after it has been in force for

2 years

a policy owner cannot borrow against the cash value unless the policy has been in force for

3 full years

how many hours of ethics coursework must a licensee be required for continuing education?

3 hours

a life insurance policy loan shall bear interest at a specified rate, NOT in excess of

8%

Insurance Producer

A person licensed to sell, solicit, or negotiate insurance. Producers who represent companies are known as agents.

Right to Examine (Free Look)

A required provision in a life insurance policy stating that the policyowner is permitted 10 days from the date the policy is delivered to examine the policy and return it for a refund of all premiums paid. In health insurance, this provision is optional but is usually included.

Stock Insurance Company

A type of insurance company owned by stockholders.

Fair Credit Reporting Act (FCRA)

Act that protects privacy of background information and ensures that information supplied is accurate.

Unauthorized Insurer

An insurance company that has not applied, or has applied and been denied a Certificate of Authority.

Authorized Insurer

An insurance company that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state.

False Financial Statements

It is illegal to publish any false financial statement regarding a person or entity

Domestic Insurance Company

a company that resides and is incorporated under the laws of the state in which its home office is located

Alien Insurance Company

a company whose home office is located and organized in a different country other than the U.S.

Foreign Insurance Company

a company whose home office is located in another state

a temporary producer license can be issued in any of the following circumstances EXCEPT

a prospective producer who is enrolled in an insurance pre-license class

what is a an example of prohibited advertising?

advertising that uses the MN life and health insurance guaranty association to the purpose of sales

Business Ethics

any business wishing to be licensed must designate a person to be licensed as a producer of insurance that is responsible for compliance with Minnesota State Insurance laws

The spouse of a deceased producer may take which action to continue the producers insurance business?

apply for a temporary license with the commissioner of commerce

Twisting

attempting to induce and insured person through misrepresentation to lapse, forfeit insurance

The entity that has the power to revoke a producers insurance license is the

department of commerce

Unfair Discrimination

discriminating against a person in any way on a insurance-related matter (charging different rates for the same policy)

the commissioner of commerce is empowered to

enforce state laws relating to insurance

Which of the following is an example of an Unfair Claim Settlement Practice?

failure to provide a reasonable basis for the denial of a claim upon request

False Advertising

falsely advertising insurance products or publish misleading information about its insurance coverage

according to the MN statute, commissions may be paid to

licensed and duly appointed producers

Defamation

making any public statement or advertisement that contains false information about an insurance company intended to harm

discrimination of military personal

may not refuse coverage on an individual whose policy has terminated while on active duty. individual must apply for reinstatement within 90 days of return

Rebating

offering prospective client something of value that is not specified in a contract to induce the sale of the insurance policy

a transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called

replacement

Gramm-Leach-Bliley Act

requires financial institutions to ensure the security and confidentiality of customer data

an insurer may pay a commission in which of the following scenarios?

to a licensed producer who is appointed with the insurer

an insurance producer MUST notify the commissioner of commerce of a change legal name or address..

within 10 days of the change