MN Life License Study Guide Already Graded A+

MN Life License Study Guide Already Graded A+ Policy Types Which type of policy does the owner pay the same premium throughout the term of the contract? Options: a. Level premium policy; b. Increasing premium policy; c. Decreasing premium policy; d. Term life insurance Answer: a. Level premium policy; Beneficiaries What type of beneficiary cannot be changed without consent? Options: a. Irrevocable beneficiary; b. Revocable beneficiary; c. Primary beneficiary; d. Contingent beneficiary Answer: a. Irrevocable beneficiary; Continuing Education How many hours of continuing education must a licensed professional complete? Options: a. 12 hours; b. 24 hours; c. 36 hours; d. 48 hours Answer: b. 24 hours; Accidental Death Benefit What happens to the accidental death benefit if the insured dies as a result of an accident? Options: a. The benefit is paid regardless of when the accident occurred; b. The benefit is paid only if the accident occurred during the policy term; c. The benefit is paid only if the accident occurred after the policy was issued; d. The benefit is not paid Answer: a. The benefit is paid regardless of when the accident occurred; Insurance Clauses What type of clause refers to a provision in an insurance contract that outlines the circumstances under which a claim will be paid? Options: a. Insuring clause; b. Exclusion clause; c. Limitation clause; d. Condition precedent Answer: a. Insuring clause; Group Life Insurance Under Minnesota law, what must an employer inform the insurance company about if an employee is laid off from employment and is no longer eligible for group coverage? Options: a. The amount payable to continue coverage for up to 12 months; b. The amount payable to continue coverage for up to 18 months; c. The amount payable to continue coverage for up to 6 months; d. None of the above Answer: b. The amount payable to continue coverage for up to 18 months; Riders Which rider allows additional insurance to be purchased at a specified date or event without evidence of insurability? Options: a. Guaranteed insurability rider; b. Convertibility rider; c. Waiver of premium rider; d. Accidental death benefit rider Answer: a. Guaranteed insurability rider; Variable Annuity Contracts What happens if someone cancels an insurance contract within the free look period? Options: a. The person is liable for any contract fees or other charges related to the contract; b. The person is entitled to a refund of the premium paid, excluding any contract fees or other charges related to the contract; c. The person must pay any outstanding premiums before receiving a refund; d. The person receives no refund Answer: b. The person is entitled to a refund of the premium paid, excluding any contract fees or other charges related to the contract; Disciplinary Action How many days' advance notice must be given to the Department of Commerce before disciplinary action can be taken? Options: a. 5 days; b. 10 days; c. 15 days; d. 20 days Answer: b. 10 days; Insurance Contracts What is considered consideration in an insurance contract? Options: a. The proposed insured's statement on the application and first premium payment are part of consideration clause; b. Only the premium payment is part of consideration clause; c. Only the proposed insured's statement on the application is part of consideration clause; d. Neither the proposed insured's statement on the application nor first premium payment are part of consideration clause Answer: a. The proposed insured's statement on the application and first premium payment are part of consideration clause; Producer Licenses Under what circumstance can a temporary producer license be issued? Options: a. Any circumstance deemed to be in the public interest; b. Any circumstance deemed not to be in the public interest; c. Only in emergency situations; d. Only in non-emergency situations Answer: a/b (both options are correct); Which of the following statements regarding the concepts of insurable interest as related to the life insurable contract is TRUE? ️Individual related closely by blood have an insurable interest based on love and affection When the structure and flexibility of a universal life policy are combined with investment, choice is: ️Variable Universal Life Policy