MN LIFE AND HEALTH INSURANCE FINAL EXAM 2026
ACTUAL QUESTIONS AND SOLUTIONS SCORED A+
✔✔Which terms defined the reduction of value of the person or property insured in a
policy? - ✔✔Loss
✔✔An insured misstates her age at the time of life insurance application is taken,
resulting in - ✔✔Adjustment in the amount of death benefit
✔✔A wife wants her husband as the beneficiary and ownership of her policy, the policy
owner should name her husband as - ✔✔Revocable beneficiary
✔✔On the advertisement, a company claims that it has fund in its possessions that are
in fact not available for the payment of losses or claims. The company is guilty of -
✔✔Misrepresentation
✔✔For how long an insurance company is allowed to defer policy loan requests - ✔✔6
months
✔✔The policy owner may skip a premium payment without lapsing the policy as long as
- ✔✔the policy contains sufficient cash value at the time to cover the cost of insurance
for that premium period.
✔✔What is the purpose of settlement options? - ✔✔They determine how death
proceeds will be paid
✔✔All of the following are true of credit life except - ✔✔The creditor is the policy owner
✔✔No life insurance policy or certificate may be issued or delivery by an insurer
organized in Minnesota until it has been approved by - ✔✔The Insurance Commission
✔✔Which method of dealing with risk is applied when insurance is purchased -
✔✔Transfer
✔✔An individual receives a lump sum inheritance. He would like to use the money to
create a lifetime income but will be retiring soon. He purchases an annuity and wishes
to receive payments beginning in 2 months. What did he buy? - ✔✔Single premium
deferred annuity
✔✔When is an insurer examination ordered by the commissioner who pays for the cost
of the examination? - ✔✔The insurance department
, ✔✔if, after a hearing, it is determined that an insurer or producer is violating Minnesota
insurance laws, the commissioner will issue - ✔✔
✔✔The purpose of the fair credit reporting act is to - ✔✔Protect the insurer from
adverse selection
✔✔An insurance company that is owned by the policyholders is called a - ✔✔Mutual
Insurer
✔✔All of the following are true of annually renewable term insurance except - ✔✔The
death benefit remains level
✔✔Which of the following statements concerning the medical information bureau is
correct - ✔✔The medical information bureau assists underwriters in evaluating and
classifying risks.
✔✔Which of the following types of insurance policies would perform the function of cash
accumulation? - ✔✔Whole life
✔✔An annuity owner receives the same guaranteed payment every month. What type
of annuity is it? - ✔✔Fixed
✔✔*When may an insurer advertise its membership in the minnesota insurance
guaranty association? - ✔✔At no time
✔✔Variable insurance and variable annuities are regulated by - ✔✔SEC and FINRA
only
✔✔whole life policy is surrendered for a reduced paid up policy. the cash value in the
new policy - ✔✔Continue to increase
✔✔which of the following cannot obtain a temporary license? - ✔✔An employee of a
retiring producer until the training of the new personnel is complete
✔✔because of an injury an insured has been unable to work for 9 months. he paid the
policy premium for his life for the first 6 months of disability, but didn't have to pay
anything for the remaining 3 months, yet the policy remained in force. the policy include
- ✔✔Waiver of premium rider
✔✔*According to the life insurance replacement regulations, which of the following
would be an example of policy replacement? - ✔✔a policy is reissued with a reduction
in cash value
ACTUAL QUESTIONS AND SOLUTIONS SCORED A+
✔✔Which terms defined the reduction of value of the person or property insured in a
policy? - ✔✔Loss
✔✔An insured misstates her age at the time of life insurance application is taken,
resulting in - ✔✔Adjustment in the amount of death benefit
✔✔A wife wants her husband as the beneficiary and ownership of her policy, the policy
owner should name her husband as - ✔✔Revocable beneficiary
✔✔On the advertisement, a company claims that it has fund in its possessions that are
in fact not available for the payment of losses or claims. The company is guilty of -
✔✔Misrepresentation
✔✔For how long an insurance company is allowed to defer policy loan requests - ✔✔6
months
✔✔The policy owner may skip a premium payment without lapsing the policy as long as
- ✔✔the policy contains sufficient cash value at the time to cover the cost of insurance
for that premium period.
✔✔What is the purpose of settlement options? - ✔✔They determine how death
proceeds will be paid
✔✔All of the following are true of credit life except - ✔✔The creditor is the policy owner
✔✔No life insurance policy or certificate may be issued or delivery by an insurer
organized in Minnesota until it has been approved by - ✔✔The Insurance Commission
✔✔Which method of dealing with risk is applied when insurance is purchased -
✔✔Transfer
✔✔An individual receives a lump sum inheritance. He would like to use the money to
create a lifetime income but will be retiring soon. He purchases an annuity and wishes
to receive payments beginning in 2 months. What did he buy? - ✔✔Single premium
deferred annuity
✔✔When is an insurer examination ordered by the commissioner who pays for the cost
of the examination? - ✔✔The insurance department
, ✔✔if, after a hearing, it is determined that an insurer or producer is violating Minnesota
insurance laws, the commissioner will issue - ✔✔
✔✔The purpose of the fair credit reporting act is to - ✔✔Protect the insurer from
adverse selection
✔✔An insurance company that is owned by the policyholders is called a - ✔✔Mutual
Insurer
✔✔All of the following are true of annually renewable term insurance except - ✔✔The
death benefit remains level
✔✔Which of the following statements concerning the medical information bureau is
correct - ✔✔The medical information bureau assists underwriters in evaluating and
classifying risks.
✔✔Which of the following types of insurance policies would perform the function of cash
accumulation? - ✔✔Whole life
✔✔An annuity owner receives the same guaranteed payment every month. What type
of annuity is it? - ✔✔Fixed
✔✔*When may an insurer advertise its membership in the minnesota insurance
guaranty association? - ✔✔At no time
✔✔Variable insurance and variable annuities are regulated by - ✔✔SEC and FINRA
only
✔✔whole life policy is surrendered for a reduced paid up policy. the cash value in the
new policy - ✔✔Continue to increase
✔✔which of the following cannot obtain a temporary license? - ✔✔An employee of a
retiring producer until the training of the new personnel is complete
✔✔because of an injury an insured has been unable to work for 9 months. he paid the
policy premium for his life for the first 6 months of disability, but didn't have to pay
anything for the remaining 3 months, yet the policy remained in force. the policy include
- ✔✔Waiver of premium rider
✔✔*According to the life insurance replacement regulations, which of the following
would be an example of policy replacement? - ✔✔a policy is reissued with a reduction
in cash value
