MN INSURANCE EXAM PROPERTY &
CASUALTY ACTUAL FINAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | GUARANTEED PASS | LATEST
VERSION 2024
1935 Agent Disclosure Law - ANSWER-Requires that producers tell potential
clients
-Name
-Insurance Company
-and Intent to sell insurance
Fair Credit Reporting Act - ANSWER-When a credit report is ordered, applicant
must be notified both verbally and in writing. Applicant has a right to request a
copy of the report. Applicant has a right to challenge any of the info.
Gramm-Leach-Bliley Act - ANSWER-Companies to disclose their privacy policy
and how a customer’s personal info may be used.
Required Conduct of agents - ANSWER-Producers may accept loans from clients,
in writing, all records must be kept for at least 6 years after.
,Decreasing Term - ANSWER-Premium remains level during the term, but death
benefit decreases with time. (Like a mortgage)
Increasing Term - ANSWER-Death benefit AND premium increase over the term
of coverage
Whole Life Insurance - ANSWER-Provides protection until age 100. Accumulates
cash value over time. It has higher premiums, but they remain level. Money needed
from the death benefit comes from the cash value. Interest payments can be
deferred for up to 6 months.
Straight Line Premium - ANSWER-Policy owner pays the same annual premium
until the insured dies or reaches 100.
Limited Pay Whole Life Insurance - ANSWER-Makes payments for the first
several years, then policy is paid in full.
Primary and Excess Indemnity - ANSWER-Primary insurer pays first, then once
exhausted the excess insurer pays.
Coordination of Benefits - ANSWER-When more than one group health insurance
policy covers the same loss.
Subrogation - ANSWER-Gives the insurer the right to collect from a negligent 3rd
party after taking a loss payment to insurer. (prevents from collecting twice)
Representation - ANSWER-Statements made on application that are entirely true
, Misrepresentation - ANSWER-Incorrect statements in application that don't affect
insurability.
Material Misrepresentation - ANSWER-Incorrect statements in application that
affects insurability
Fraud - ANSWER-Intentionally hiding information
Warranty - ANSWER-Statements that must be true at the time of loss, not
obligated to pay claim is breached`
Consideration - ANSWER-Exchange of value between two parties in the contract.
Insurer promises to provide indemnity in event of loss, insured promises to pay
premiums and have truthful representations.
Unilateral Contract - ANSWER-Only one party makes a legally enforceable
promise.
Contract of Adhesion - ANSWER-Insured must accept contract as is.
Aleatory Contract - ANSWER-An unequal value is exchanged between the parties.
Conditional Contract - ANSWER-Contract may be voided if polity conditions
aren't met.
Waiver of Premium rider with disability - ANSWER--If disabled, no premiums are
due during the duration of the disability
-Continues to fund the cash value for duration of the disability
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