MN LIFE INSURANCE STUDY GUIDE 2026 EXAM
QUESTIONS AND SOLUTIONS SCORED A+
✔✔John has a life insurance policy with XYZ Company; his premium payment is due on
the first of each month. Due to illness, John failed to pay on June 1st a premium of
$210. On June 20th, John died.
Which of the following would be a provision in John's policy that would come into play
so that the beneficiary would be paid? - ✔✔Grace period provision
✔✔Which of the following statements regarding the concept of insurable interest as
related to the life insurance 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
✔✔If the initial premium is paid at the time of the application on May 1st, the company
issues the policy as a standard issue on May 30th, and the producer delivers the policy
to the owner in June 5, when is coverage effective, assuming the conditional receipt
was given and there was no medical exam required? - ✔✔May 30
✔✔Which of the following policies has cash value dependent on the investment
performance of common stock? - ✔✔Variable Whole Life
✔✔When an immediate annuity is funded with a single premium, the annuitant may
begin receiving payment
after: - ✔✔1 month
✔✔While the policy is in force, the insuring clause states the insurer's obligation to: -
✔✔Pay the death benefit to the beneficiary when a death claim is made
✔✔A convertible term policy enables the policy owner to: - ✔✔Convert a policy to a
permanent policy
✔✔What is Mn's require grace period for a life insurance contract? - ✔✔1 month
✔✔The main purpose of the spendthrift clause curtained in a settlement option is to: -
✔✔Protect the death benefit from the creditor of the beneficiary
✔✔When does coverage begin when a life insurance application and the initial premium
are submitted together? - ✔✔The application date or the date of the medical
examination, whichever is faster
, ✔✔Generally, what are the tax options of life insurance as it pertains to the beneficiary?
- ✔✔Tax free at the time of the insured's death
✔✔Which of the following types of insurance is designed to provide life insurance
protection only for a limited of time? - ✔✔Term Life insurance
✔✔A life insurance policy will become incontestable no later than how long after its
effective date. - ✔✔2 years
✔✔Which of the following beneficiary designations prohibits the policy owner from
making any changes to the policy without the beneficiary written consent? -
✔✔Irrevocable beneficiary
✔✔A reason for using individual reporting agencies to gather informing about an
insurance applicant is: - ✔✔An evaluation of the applicant by a disinterest source not
related to the insurer
✔✔Who performs the functions of risk selection in determining an individual's
insurability for policy issue? - ✔✔Underwriter
✔✔A rider on a whole life policy that adds temporary coverage for a spouse and
children is: - ✔✔A family term rider
✔✔Which plan does the employer pay all of the premium to the employee? - ✔✔Non-
contributory plan
✔✔insured wants to purchase a policy with 3 key elements, flexible premium, death
benefit, and the choice of how the cash value accumulates. Which policy would fit the
needs? - ✔✔Variable Universal Life
✔✔Back dating an application can be done in: - ✔✔Policy application cannot be back
dated more than 6 months
✔✔Annuity products linked to a market related index are called: - ✔✔Equity indexed
annuity
✔✔In which of the following policy is the insured covered to age 100 and the premium
payment are the same? - ✔✔Straight Whole Life Policy
✔✔To qualify for reinstatement for an individual life policy the insured must do all of the
following
EXCEPT: - ✔✔Reinstate the policy within 3 years from the date of premium default
QUESTIONS AND SOLUTIONS SCORED A+
✔✔John has a life insurance policy with XYZ Company; his premium payment is due on
the first of each month. Due to illness, John failed to pay on June 1st a premium of
$210. On June 20th, John died.
Which of the following would be a provision in John's policy that would come into play
so that the beneficiary would be paid? - ✔✔Grace period provision
✔✔Which of the following statements regarding the concept of insurable interest as
related to the life insurance 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
✔✔If the initial premium is paid at the time of the application on May 1st, the company
issues the policy as a standard issue on May 30th, and the producer delivers the policy
to the owner in June 5, when is coverage effective, assuming the conditional receipt
was given and there was no medical exam required? - ✔✔May 30
✔✔Which of the following policies has cash value dependent on the investment
performance of common stock? - ✔✔Variable Whole Life
✔✔When an immediate annuity is funded with a single premium, the annuitant may
begin receiving payment
after: - ✔✔1 month
✔✔While the policy is in force, the insuring clause states the insurer's obligation to: -
✔✔Pay the death benefit to the beneficiary when a death claim is made
✔✔A convertible term policy enables the policy owner to: - ✔✔Convert a policy to a
permanent policy
✔✔What is Mn's require grace period for a life insurance contract? - ✔✔1 month
✔✔The main purpose of the spendthrift clause curtained in a settlement option is to: -
✔✔Protect the death benefit from the creditor of the beneficiary
✔✔When does coverage begin when a life insurance application and the initial premium
are submitted together? - ✔✔The application date or the date of the medical
examination, whichever is faster
, ✔✔Generally, what are the tax options of life insurance as it pertains to the beneficiary?
- ✔✔Tax free at the time of the insured's death
✔✔Which of the following types of insurance is designed to provide life insurance
protection only for a limited of time? - ✔✔Term Life insurance
✔✔A life insurance policy will become incontestable no later than how long after its
effective date. - ✔✔2 years
✔✔Which of the following beneficiary designations prohibits the policy owner from
making any changes to the policy without the beneficiary written consent? -
✔✔Irrevocable beneficiary
✔✔A reason for using individual reporting agencies to gather informing about an
insurance applicant is: - ✔✔An evaluation of the applicant by a disinterest source not
related to the insurer
✔✔Who performs the functions of risk selection in determining an individual's
insurability for policy issue? - ✔✔Underwriter
✔✔A rider on a whole life policy that adds temporary coverage for a spouse and
children is: - ✔✔A family term rider
✔✔Which plan does the employer pay all of the premium to the employee? - ✔✔Non-
contributory plan
✔✔insured wants to purchase a policy with 3 key elements, flexible premium, death
benefit, and the choice of how the cash value accumulates. Which policy would fit the
needs? - ✔✔Variable Universal Life
✔✔Back dating an application can be done in: - ✔✔Policy application cannot be back
dated more than 6 months
✔✔Annuity products linked to a market related index are called: - ✔✔Equity indexed
annuity
✔✔In which of the following policy is the insured covered to age 100 and the premium
payment are the same? - ✔✔Straight Whole Life Policy
✔✔To qualify for reinstatement for an individual life policy the insured must do all of the
following
EXCEPT: - ✔✔Reinstate the policy within 3 years from the date of premium default
