MN LIFE AND HEALTH 2026/2027 TEST PAPER QUESTIONS
AND SOLUTIONS RATED A+
✔✔Policy loan and withdrawal options - ✔✔-Interest on policy loans may be deferred up
to 6 months
-Loan and accrued interest will be repaid upon the insureds death or policy surrender
✔✔Dividend Options - ✔✔Cash, Premium reductions, paid to addition, one year term,
accumulate at interest, endow policy earlier.
✔✔Waiver of Premium rider with disability - ✔✔-If disabled, no premiums are due during
the duration of the disability
-Continues to fund the cash value for duration of the disability
-When policy oner and insured as the same person
✔✔Payor benefit rider - ✔✔-Applies when policy owner is someone other than the
insured
-Commonly used with juvenile life insurance
-Waives premiums when the parent who owns the policy dies or becomes disabled.
✔✔Guaranteed insurability Rider - ✔✔-Policy owner to purchase additional insurance at
specified time w/o having to prove insurability
-Premiums are based off the attained age at time coverage is added
-Expires at age 40
✔✔Accidental Death Rider/Multiple indemnity rider - ✔✔If insured dies bc of accident,
the insurance company will pay out additional death benefit, if insured dies within 90
days of the accident. expires around 65
✔✔Accelerated Death Benefit - ✔✔If insured is diagnosed with a terminal illness,
insurer pays a % of the death benefit while insured is still alive. Total benefit reduced by
amount paid while alive.
✔✔Family Term Rider - ✔✔The policy owner adds term insurance for policy owner
spouse and children
✔✔Term Riders - ✔✔Term insurance added to permanent plan to provide additional
coverage.
✔✔Cost of living Rider - ✔✔Insurance Co automatically increases the benefit every year
to adjust for inflation, without requiring insurability. Premiums are increased to pay for
additional coverage
✔✔Vatical Settlement - ✔✔-Third party ownership
, -Used when the insured is terminally ill and the policy owner sells the life insurance
policy to an investor using absolute assignment
✔✔Cross Purchase - ✔✔Each partner takes out a life insurance policy on another
partner
✔✔Conditional Receipt - ✔✔Applies when the premium is submitted with the application
✔✔Insurance and Annuities - ✔✔Can be used to guarantee an income for the rest of a
persons life, with single premium or flexible premium
✔✔Single Premium immediate annuity - ✔✔Used to distribute lottery proceeds,
retirement income, and insurance settlements
✔✔Fixed Annuities - ✔✔-Commingled with insurers general assets and high-grade
bonds and other interests bearing securities
-Insurance companies pay current interest rate
-Guarantees minimum interest rate
-Surrender charges apply in decreasing amounts as policy goes on
✔✔Bailout Provisions - ✔✔Allows owner to surrender the annuity without surrender
charges if the current interest rate drops below a certain level
✔✔Variable Annuities - ✔✔-Money Deposited into this annuity is placed into a separate
accumulation account.
-Distributes money into sub accounts offered by insurer
✔✔Equity Indexed Annuities - ✔✔Designed to provide minimum guarantees of a fixed
annuity, but also provide the opportunity for a greater return on investment.
✔✔Annuity payment options - ✔✔Period certain, fixed dollar, pure life income, joint life
income, joint and survivor life income
✔✔403 (b) plans - ✔✔-Non profit organizations
-Pre-tax base contributions
-TAX DEFERRED INTEREST AND RETURN
-WITHDRAWALS TAXED AS INCOME
-Contributions can be made my employer and employee.
✔✔401 (K) plans - ✔✔-For Profit organizations
-Pre-tax base contributions
-TAX DEFERRED INTEREST AND RETURN
-WITHDRAWALS TAXED AS INCOME
-Contributions can be made by employer and employee
AND SOLUTIONS RATED A+
✔✔Policy loan and withdrawal options - ✔✔-Interest on policy loans may be deferred up
to 6 months
-Loan and accrued interest will be repaid upon the insureds death or policy surrender
✔✔Dividend Options - ✔✔Cash, Premium reductions, paid to addition, one year term,
accumulate at interest, endow policy earlier.
✔✔Waiver of Premium rider with disability - ✔✔-If disabled, no premiums are due during
the duration of the disability
-Continues to fund the cash value for duration of the disability
-When policy oner and insured as the same person
✔✔Payor benefit rider - ✔✔-Applies when policy owner is someone other than the
insured
-Commonly used with juvenile life insurance
-Waives premiums when the parent who owns the policy dies or becomes disabled.
✔✔Guaranteed insurability Rider - ✔✔-Policy owner to purchase additional insurance at
specified time w/o having to prove insurability
-Premiums are based off the attained age at time coverage is added
-Expires at age 40
✔✔Accidental Death Rider/Multiple indemnity rider - ✔✔If insured dies bc of accident,
the insurance company will pay out additional death benefit, if insured dies within 90
days of the accident. expires around 65
✔✔Accelerated Death Benefit - ✔✔If insured is diagnosed with a terminal illness,
insurer pays a % of the death benefit while insured is still alive. Total benefit reduced by
amount paid while alive.
✔✔Family Term Rider - ✔✔The policy owner adds term insurance for policy owner
spouse and children
✔✔Term Riders - ✔✔Term insurance added to permanent plan to provide additional
coverage.
✔✔Cost of living Rider - ✔✔Insurance Co automatically increases the benefit every year
to adjust for inflation, without requiring insurability. Premiums are increased to pay for
additional coverage
✔✔Vatical Settlement - ✔✔-Third party ownership
, -Used when the insured is terminally ill and the policy owner sells the life insurance
policy to an investor using absolute assignment
✔✔Cross Purchase - ✔✔Each partner takes out a life insurance policy on another
partner
✔✔Conditional Receipt - ✔✔Applies when the premium is submitted with the application
✔✔Insurance and Annuities - ✔✔Can be used to guarantee an income for the rest of a
persons life, with single premium or flexible premium
✔✔Single Premium immediate annuity - ✔✔Used to distribute lottery proceeds,
retirement income, and insurance settlements
✔✔Fixed Annuities - ✔✔-Commingled with insurers general assets and high-grade
bonds and other interests bearing securities
-Insurance companies pay current interest rate
-Guarantees minimum interest rate
-Surrender charges apply in decreasing amounts as policy goes on
✔✔Bailout Provisions - ✔✔Allows owner to surrender the annuity without surrender
charges if the current interest rate drops below a certain level
✔✔Variable Annuities - ✔✔-Money Deposited into this annuity is placed into a separate
accumulation account.
-Distributes money into sub accounts offered by insurer
✔✔Equity Indexed Annuities - ✔✔Designed to provide minimum guarantees of a fixed
annuity, but also provide the opportunity for a greater return on investment.
✔✔Annuity payment options - ✔✔Period certain, fixed dollar, pure life income, joint life
income, joint and survivor life income
✔✔403 (b) plans - ✔✔-Non profit organizations
-Pre-tax base contributions
-TAX DEFERRED INTEREST AND RETURN
-WITHDRAWALS TAXED AS INCOME
-Contributions can be made my employer and employee.
✔✔401 (K) plans - ✔✔-For Profit organizations
-Pre-tax base contributions
-TAX DEFERRED INTEREST AND RETURN
-WITHDRAWALS TAXED AS INCOME
-Contributions can be made by employer and employee
