MN LIFE AND HEALTH STUDY GUIDE 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Utmost Good faith - ✔✔representation:
statements made on application that are entirely true
misrepresentation:
incorrect statements in application that don't affect insurability
material misrepresentation:
incorrect statements in application that involve info used to make underwriting
decisions (usually void coverage)
concealment:
intentionally hiding info (fraud)
Warranty:
statements that must be true at time of loss, not obligated to pay claim if breached
✔✔Consideration (legal contract) - ✔✔an exchange of value between the parties to the
contract (payment of prem)
insurer: promise to provide indemnity in event of loss
insured's: pay prems & have truthful representations
✔✔Unique features of contract - ✔✔- unilateral: only 1 party makes a legally
enforceabble promise
- contract of adhesion: insured must accept contract as is.
- aleatory contract: an unequal value is exchanged between the parties (prem vs
coverage)
- conditional contract: contract may be voided if policy conditions aren't met
✔✔Declarations - ✔✔Property & casulty
-period of coverage
-policy limits
- premium
life & health insurance
- parties to contract
- policy limit
- age of insured at issued date
✔✔Insuring agreement - ✔✔-Named peril: policies only cover losses from perils that are
specifically listed in policy
- open peril: policies cover all losses except those listed in the policy
✔✔Conditions - ✔✔duties & responsibilities of the insured and the insurer
✔✔Exclusions - ✔✔the perils/ losses that aren't included by the policy
, ✔✔endorsements - ✔✔modifications to a property or casualty policy must be in writing
& are attached to the insurance
✔✔Riders - ✔✔modifications to life & health policy: must be in writing & are attached to
policies
✔✔Mutual insurers - ✔✔-not for profit
-owned by policy owners
- managed by board of directors
- par
- not assessable
✔✔Stock insurers - ✔✔- for profit
- owned by shareholders
- sell non par
- non assessable
✔✔Commissioner May: - ✔✔- conduct investigations
- examine documents & record or entity activities can be done w/o court order
- publish info
- require reports
✔✔Who must be licensed: - ✔✔- producers
- insurance companies
-managing general agent
✔✔temporarily license - ✔✔180 day licenses for:
spouse, next of kin, administrator/ executor of the estate, employee, legal guardian,
court appointed personal rep of a deceased or disabled licensed producer.
- designee of a licensed producer interning active service
- employee of business entity producer
- any other circumstances that serves public interest
✔✔License expiration - ✔✔duration 2 yrs.
- individual producer licenses issued before aug 1st, 2010 expire on oct 31st of the
renewal year
✔✔change of address - ✔✔10 days of name or address to notify commissioner
✔✔administrative action taken against producers by another gov agency -
✔✔notification within 30 days of the final deposition
✔✔Pre- Trial ( criminal prosecution) - ✔✔30 days of the initial pre- trial hearing date &
include a copy of initial complaint
QUESTIONS AND SOLUTIONS RATED A+
✔✔Utmost Good faith - ✔✔representation:
statements made on application that are entirely true
misrepresentation:
incorrect statements in application that don't affect insurability
material misrepresentation:
incorrect statements in application that involve info used to make underwriting
decisions (usually void coverage)
concealment:
intentionally hiding info (fraud)
Warranty:
statements that must be true at time of loss, not obligated to pay claim if breached
✔✔Consideration (legal contract) - ✔✔an exchange of value between the parties to the
contract (payment of prem)
insurer: promise to provide indemnity in event of loss
insured's: pay prems & have truthful representations
✔✔Unique features of contract - ✔✔- unilateral: only 1 party makes a legally
enforceabble promise
- contract of adhesion: insured must accept contract as is.
- aleatory contract: an unequal value is exchanged between the parties (prem vs
coverage)
- conditional contract: contract may be voided if policy conditions aren't met
✔✔Declarations - ✔✔Property & casulty
-period of coverage
-policy limits
- premium
life & health insurance
- parties to contract
- policy limit
- age of insured at issued date
✔✔Insuring agreement - ✔✔-Named peril: policies only cover losses from perils that are
specifically listed in policy
- open peril: policies cover all losses except those listed in the policy
✔✔Conditions - ✔✔duties & responsibilities of the insured and the insurer
✔✔Exclusions - ✔✔the perils/ losses that aren't included by the policy
, ✔✔endorsements - ✔✔modifications to a property or casualty policy must be in writing
& are attached to the insurance
✔✔Riders - ✔✔modifications to life & health policy: must be in writing & are attached to
policies
✔✔Mutual insurers - ✔✔-not for profit
-owned by policy owners
- managed by board of directors
- par
- not assessable
✔✔Stock insurers - ✔✔- for profit
- owned by shareholders
- sell non par
- non assessable
✔✔Commissioner May: - ✔✔- conduct investigations
- examine documents & record or entity activities can be done w/o court order
- publish info
- require reports
✔✔Who must be licensed: - ✔✔- producers
- insurance companies
-managing general agent
✔✔temporarily license - ✔✔180 day licenses for:
spouse, next of kin, administrator/ executor of the estate, employee, legal guardian,
court appointed personal rep of a deceased or disabled licensed producer.
- designee of a licensed producer interning active service
- employee of business entity producer
- any other circumstances that serves public interest
✔✔License expiration - ✔✔duration 2 yrs.
- individual producer licenses issued before aug 1st, 2010 expire on oct 31st of the
renewal year
✔✔change of address - ✔✔10 days of name or address to notify commissioner
✔✔administrative action taken against producers by another gov agency -
✔✔notification within 30 days of the final deposition
✔✔Pre- Trial ( criminal prosecution) - ✔✔30 days of the initial pre- trial hearing date &
include a copy of initial complaint
