MN Life and Health Insurance Exam
Lease Types
Which type of tenant often uses a percentage lease? Options: a. Retail; b. Office; c. Residential; d.
Industrial
Answer: a. Retail;
Lease Agreements
What is a potential disadvantage for a buyer who enters into a lease with an option to buy c...
Which type of tenant often uses a percentage lease? Options: a. Retail; b. Office; c. Residential; d.
Industrial
Answer: a. Retail;
Lease Agreements
What is a potential disadvantage for a buyer who enters into a lease with an option to buy contract?
Options: a. The buyer/lessee could lose any funds credited to the purchase price if he breaches the
lease's terms; b. The buyer/lessee could be forced to purchase the property if he decides not to; c. The
buyer/lessee could negotiate a better purchase price; d. The buyer/lessee could get a better interest
rate
Answer: a. The buyer/lessee could lose any funds credited to the purchase price if he breaches the
lease's terms;
Ground Lease
In a ground lease situation, what does the ground tenant own? Options: a. The land only; b.
Improvements (including buildings); c. The buildings only; d. Nothing
Answer: b. Improvements (including buildings);
Security Deposits
In Minnesota, what is true about interest earned on a security deposit? Options: a. Interest accrues at
the end of the year; b. Interest accrues at the first day of the month following its deposit; c. Interest is
waived; d. Interest is not earned
Answer: b. Interest accrues at the first day of the month following its deposit;
Tenant Responsibilities
,What, in addition to ensuring that rent is paid on time, is a Minnesota tenant obligated to do? Options:
a. Take reasonable care of the property; b. Make minor repairs; c. Provide notice before moving out; d.
None of the above
Answer: a. Take reasonable care of the property;
Lease Definitions
What is a ground lease? Options: a. A residential lease or sublease for a specific term that is renewable
forever, subject to the payment of ground rent; b. A commercial lease with an option to buy; c. A rental
agreement for agricultural land; d. A sublease for an extended period
Answer: a. A residential lease or sublease for a specific term that is renewable forever, subject to the
payment of ground rent
The insurer must reply to customer claims and inquires within ____ days. ✔️10 days
Policies must be delivered to the insured within ____ working days of the producers recipes from the
insurer. ✔️30 days
Producer financial and compliant records must be kept on file for ____ years. ✔️6 years.
Premium refunds must be sent to insured within _____ days of the producer receipt from the insurer.
✔️5 days
Insurers: Policy forms, applications, and advertising must be retained for ____ years after the effective
date. ✔️3 years
Insurers: Claim records must be retained for ____ years after the claim is paid or denied ✔️3 years
Insurers: must refund unearned premium to the insured within _____ days. ✔️30 days
Oral binders must be put into writing to the insured within _____ business days. ✔️5 days
, The applicant has the right to challenge any erroneous information contained in the consumer report
within ____ days ✔️30 days
Adverse information remains in a credit report for ____ years. Bankruptcy information remains in the
credit report for ____ years. ✔️7 years, 10 years.
Free-look for life insurance ✔️10 days
Free look for life insurance replacements ✔️30 days
Individual life insurance policy grace period ✔️1 month
A life policy may be backdated up to ___ months before the application date. ✔️6 months
Former employees may continue coverage for up to ___ months after termination. ✔️18 months
The premium charged may not exceed ____% of the plan cost ✔️102%
The employee has ___ days to elect to continue coverage. ✔️60 days
In the insurer determines within the first _____ years of a policy that a transfer of ownership has been
made to a person with no insurable interest, the policy may be considered to be a STOLI and is a
violations ✔️4 years
period of time within receiving an application that the replacing insurer must notify any existing insurer
✔️5 days
Length of time replacing insurer must keep copies of the above replacement notice records ✔️6 years
Newborn children are covered from ✔️birth
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