MN LIFE AND HEALTH CORE EXAM SET 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Endowment - ✔✔-permanent insurance until a certain predetermined date/age; less
than 100
- higher premium
- stresses savings over protection
-cash values accumulate cash deferred
✔✔Universal Life Insurance - ✔✔- provides perm insurance protection + cash value
- provides **additional flexibility**
(may pay as little or as much w/ in limits)
(may reduce the death benefit at any time, but needs insurability is required to increase
the death)
- guarantees a minimum interest rate that will be paid on the cash value regardless of
the market & economic conditions
death benefit comes from cash value + pure insurance
-** flexible premium adjustable life**
✔✔Variable (Whole) Life - ✔✔-guaranteed minimum death benefit
-life insurance & securities licenses is required to sell variable whole life
- typically features a level premium
✔✔Variable (universal) life - ✔✔- no guaranteed minimum death benefit
- Life insurance & securities license is required to sell variable universal life
flexible premiums
✔✔Specialized Life insurance - ✔✔- adjustable life insurance (may change between
term and perm coverage (death benefit may be increased, but with proof of insurability)
- joint life (first to die)
- survivorship (last to die/ second to die)
✔✔Accidental death & dismemberment (AD &D) Limited coverage - ✔✔Principal sum:
the amount paid when the insured dies an accidental death
Capital sum: the amount paid when the insured suffers an accidental dismember-ship.
✔✔Taxation of term life insurance - ✔✔-term insurance doesn't accumulate cash value
- press are not tax- deductible.
-term poilices don't pay dividends & don't earn interest
✔✔Modified endowment contracts - ✔✔if they intentionally over- fund the cash value of
a life insurance policy, the policy can be classified as a MEC and lose out on tax
advantages
-seven pay test
, ✔✔Assignment clause - ✔✔allows the policy owner to designate a new owner by filing
an appropriate form with the company, then the assignee becomes new policy owner
✔✔collateral assignment - ✔✔is used to temporarily pledge a life insurance policy as
security for a loan
✔✔absolute assignment - ✔✔used to permanently transfer ownership of the policy to
another
✔✔free- look provision - ✔✔10 days from date policy is delivered to insured
✔✔Grace Period - ✔✔31 days after prem due date
✔✔Reinstatement provisions - ✔✔-may be reinstated for up to 3 years after last prem
due date
-must complete application, prove insurability & pay back prems + interest
- new incontestability period + not a new suicide exclusion
- no cash value when policy lapses & coverage ends
✔✔Incontestability clause - ✔✔-insurer can't contest a claim based on
misrepresentation or concealment after policy has been in force for 2 full years
-3 cases that can be contested: impersonation, no insurable interest, and intent to
murder
✔✔Suicide Exclusions - ✔✔- if insured commits suicide w/ in 2 years of the policy issue
date, the death benefit will not be paid
- the beneficiary will receive a refund of any premiums paid
✔✔War Exclusions - ✔✔- if insured dies because of war, the death benefit won't be paid
- the beneficiary will receive a refund of any prems paid + interest
✔✔Aviation exclusions` - ✔✔- if private pilot, death benefit won't be paid if died in an
aviation accident
✔✔Hazardous occupations or hobbies - ✔✔some insurers will exclude coverage from
occupation or hobbies if it involves a high risk danger
✔✔Spendthrift trust - ✔✔designed to protect insurance proceeds that haven't been paid
to the beneficiary, prevents the commuting of money to creditors
✔✔Settlement options (death benefit) - ✔✔cash, interest only, installment options, fixed
period, fixed amount
✔✔Life annuity options - ✔✔life income, joint & survivor income
QUESTIONS AND SOLUTIONS RATED A+
✔✔Endowment - ✔✔-permanent insurance until a certain predetermined date/age; less
than 100
- higher premium
- stresses savings over protection
-cash values accumulate cash deferred
✔✔Universal Life Insurance - ✔✔- provides perm insurance protection + cash value
- provides **additional flexibility**
(may pay as little or as much w/ in limits)
(may reduce the death benefit at any time, but needs insurability is required to increase
the death)
- guarantees a minimum interest rate that will be paid on the cash value regardless of
the market & economic conditions
death benefit comes from cash value + pure insurance
-** flexible premium adjustable life**
✔✔Variable (Whole) Life - ✔✔-guaranteed minimum death benefit
-life insurance & securities licenses is required to sell variable whole life
- typically features a level premium
✔✔Variable (universal) life - ✔✔- no guaranteed minimum death benefit
- Life insurance & securities license is required to sell variable universal life
flexible premiums
✔✔Specialized Life insurance - ✔✔- adjustable life insurance (may change between
term and perm coverage (death benefit may be increased, but with proof of insurability)
- joint life (first to die)
- survivorship (last to die/ second to die)
✔✔Accidental death & dismemberment (AD &D) Limited coverage - ✔✔Principal sum:
the amount paid when the insured dies an accidental death
Capital sum: the amount paid when the insured suffers an accidental dismember-ship.
✔✔Taxation of term life insurance - ✔✔-term insurance doesn't accumulate cash value
- press are not tax- deductible.
-term poilices don't pay dividends & don't earn interest
✔✔Modified endowment contracts - ✔✔if they intentionally over- fund the cash value of
a life insurance policy, the policy can be classified as a MEC and lose out on tax
advantages
-seven pay test
, ✔✔Assignment clause - ✔✔allows the policy owner to designate a new owner by filing
an appropriate form with the company, then the assignee becomes new policy owner
✔✔collateral assignment - ✔✔is used to temporarily pledge a life insurance policy as
security for a loan
✔✔absolute assignment - ✔✔used to permanently transfer ownership of the policy to
another
✔✔free- look provision - ✔✔10 days from date policy is delivered to insured
✔✔Grace Period - ✔✔31 days after prem due date
✔✔Reinstatement provisions - ✔✔-may be reinstated for up to 3 years after last prem
due date
-must complete application, prove insurability & pay back prems + interest
- new incontestability period + not a new suicide exclusion
- no cash value when policy lapses & coverage ends
✔✔Incontestability clause - ✔✔-insurer can't contest a claim based on
misrepresentation or concealment after policy has been in force for 2 full years
-3 cases that can be contested: impersonation, no insurable interest, and intent to
murder
✔✔Suicide Exclusions - ✔✔- if insured commits suicide w/ in 2 years of the policy issue
date, the death benefit will not be paid
- the beneficiary will receive a refund of any premiums paid
✔✔War Exclusions - ✔✔- if insured dies because of war, the death benefit won't be paid
- the beneficiary will receive a refund of any prems paid + interest
✔✔Aviation exclusions` - ✔✔- if private pilot, death benefit won't be paid if died in an
aviation accident
✔✔Hazardous occupations or hobbies - ✔✔some insurers will exclude coverage from
occupation or hobbies if it involves a high risk danger
✔✔Spendthrift trust - ✔✔designed to protect insurance proceeds that haven't been paid
to the beneficiary, prevents the commuting of money to creditors
✔✔Settlement options (death benefit) - ✔✔cash, interest only, installment options, fixed
period, fixed amount
✔✔Life annuity options - ✔✔life income, joint & survivor income
