MN Life Insurance
Commissioner's Duties
What is NOT a duty of the Commissioner? Options: a. Issue an insurance license for a producer; b. Make
state insurance laws; c. Handle insurance-related consumer complaints; d. Enforce state insurance laws
Answer: b. Make state insurance laws;
Unfai...
What is NOT a duty of the Commissioner? Options: a. Issue an insurance license for a producer; b. Make
state insurance laws; c. Handle insurance-related consumer complaints; d. Enforce state insurance laws
Answer: b. Make state insurance laws;
Unfair Trade Practices
What is an example of an unfair trade practice during policy solicitation? Options: a. Twisting; b. False
advertising; c. Controlled business; d. Defamation
Answer: d. Defamation;
Modified Endowment Contract
When does a life insurance policy qualify as a Modified Endowment Contract (MEC)? Options: a. 3 years;
b. 5 years; c. 7 years; d. 10 years
Answer: c. 7 years;
Application Information
What information should NOT be included on an application for life insurance? Options: a. Medical
information about the applicant; b. Health insurance policies in force; c. Life insurance with other
insurers; d. The agent's statement, if applicable
Answer: b. Health insurance policies in force;
Replacement Notice
When replacing an existing policy, what notice must the replacing insurer send to the existing insurance
company? Options: a. 3 days; b. 5 days; c. 10 days; d. 30 days
Answer: a. 3 days;
,Correcting Application Errors
What should an agent do if an applicant realizes they made an error on their application? Options: a.
Leave the incorrect information unchanged; b. Cross out the incorrect information, write in the correct
answer, and have the applicant initial the change; c. Destroy the application and start a new one; d.
Inform the insurer of the error and wait for further instructions
Answer: b. Cross out the incorrect information, write in the correct answer, and have the applicant
initial the change;
Accumulation Period
Which statement about the accumulation period of an annuity is NOT true? Options: a. It is also known
as the pay-in-period; b. It would not occur in a deferred annuity; c. It allows the insured 10 days to pay
the initial premium; d. It allows the insurer to temporarily suspend coverage after an insured's disability
Answer: b. It would not occur in a deferred annuity;
Legally Binding Contract
What must be included in an insurance contract to make it legally binding? Options: A: Consideration, B:
Competent Parties, C: Beneficiary's Consent, D: Offer and Acceptance
Answer: D: Offer and Acceptance (Beneficiary's Consent is not necessary);
Unfair Claims Settlement Practice
Which action would be considered an unfair claims settlement practice? Options: a. Requesting proof of
loss after verbal notification of claim; b. Requesting sworn testimony from the insured; c. Delaying
settlement for 30 days to allow investigation; d.A claims adjuster advises the insured of potential lower
arbitration settlement
Answer: d.A claims adjuster advises the insured of potential lower arbitration settlement;
Insurance Policy Loans
, What is NOT true about insurance policy loans? Options: a. Policy loans can be made on policies without
cash value; b.The amount of outstanding loan and interest must be disclosed; c.The policy will terminate
if the loan plus interest equals or exceeds cash value; d.Policy owners can borrow up to full cash value
Answer: a. Policy loans can be made on policies without cash value
what is the purpose of a free-look period in insurance policies?
a. it allows the insurer to cancel coverage if a misrepresentation is discovered.
b. It allows the insured to reject the policy with a full refund.
c. it allows the insured 10 days to pay the initial premium.
d. it allows the insurer to temporarily suspend coverage after an insured's disability. ✔️b. It allows the
insured to reject the policy with a full refund.
All of the following are dividend options EXCEPT
a. reduction of premium
b. paid-up addiction
c. fixed period installments
d. accumulated at interest ✔️c. fixed period installments
To what organization must all admitted insurers belong?
a. the Minnesota Insurance Guaranty Fund
b. The Minnesota Association of Insurers
c. The insurance Guaranty Association
d. The National Association of Insurance Commissioner (NAIC) ✔️c. The Insurance Guaranty Association
When is the earliest a policy may go into effect?
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