MN Life and Health Insurance EXAM
(Latest Update ) QUESTIONS
with Verified Answers 100 % Correct
[Grade A]
Indemnity - correct answer Restoring insured to same financial position they were in
before loss. Common exceptions include replacement cost (full value w/o
depreciation), Valued policy (face amount of total loss regardless of actual cash value)
and Pro-ratability (insurer will pay proportional share of the loss.)
Primary and Excess Indemnity - correct answer Primary insurer pays first, then once
exhausted the excess insurer pays.
Coordination fo Benefits - correct answer When more than one group health insurance
policy covers the same loss.
Subrogation - correct answer Gives the insurer the right to collect from a negligent
3rd party after taking a loss payment to insurer. (prevents from collecting twice)
,Representation - correct answer Statements made on application that are entirely true
Misrepresentation - correct answer Incorrect statements in application that don't
affect insurability.
Material Misrepresentation - correct answer Incorrect statements in application that
affects insurability
Fraud - correct answer Intentionally hiding information
Warranty - correct answer Statements that must be true at the time of loss, not
obligated to pay claim is breached`
Consideration - correct answer Exchange of value between two parties in the contract.
Insurer promises to provide indemnity in event of loss, insured promises to pay
premiums and have truthful representations.
,Unilateral Contract - correct answer Only one party makes a legally enforceable
promise.
Contract of Adhesion - correct answer Insured must accept contract as is.
Aleatory Contract - correct answer An unequal value is exchanged between the
parties.
Conditional Contract - correct answer Contract may be voided if polity conditions aren't
met.
Property and Casualty Declarations - correct answer -Period coverage
-Policy limits
-Premium
Life and Health Declarations - correct answer -Parties of contract
-Policy limit
-Age of unaired at issuance date.
, Insuring agreement - correct answer Named Peril: Policy only overs specifically listed
perils
Open Peril: Policies cover all losses except those listed
Conditions - correct answer Duties and responsibilities of the insured and insurer
Endorsements - correct answer Modifications to a property or casualty policy must be
in writing & are attached to the insurance
Riders - correct answer Modifications to life and health policy that must be in writing
and attached to the policy.
Mutual Insurers - correct answer -Nonprofit
-Owned by policy holders
-Managed by board of directors
-Par
(Latest Update ) QUESTIONS
with Verified Answers 100 % Correct
[Grade A]
Indemnity - correct answer Restoring insured to same financial position they were in
before loss. Common exceptions include replacement cost (full value w/o
depreciation), Valued policy (face amount of total loss regardless of actual cash value)
and Pro-ratability (insurer will pay proportional share of the loss.)
Primary and Excess Indemnity - correct answer Primary insurer pays first, then once
exhausted the excess insurer pays.
Coordination fo Benefits - correct answer When more than one group health insurance
policy covers the same loss.
Subrogation - correct answer Gives the insurer the right to collect from a negligent
3rd party after taking a loss payment to insurer. (prevents from collecting twice)
,Representation - correct answer Statements made on application that are entirely true
Misrepresentation - correct answer Incorrect statements in application that don't
affect insurability.
Material Misrepresentation - correct answer Incorrect statements in application that
affects insurability
Fraud - correct answer Intentionally hiding information
Warranty - correct answer Statements that must be true at the time of loss, not
obligated to pay claim is breached`
Consideration - correct answer Exchange of value between two parties in the contract.
Insurer promises to provide indemnity in event of loss, insured promises to pay
premiums and have truthful representations.
,Unilateral Contract - correct answer Only one party makes a legally enforceable
promise.
Contract of Adhesion - correct answer Insured must accept contract as is.
Aleatory Contract - correct answer An unequal value is exchanged between the
parties.
Conditional Contract - correct answer Contract may be voided if polity conditions aren't
met.
Property and Casualty Declarations - correct answer -Period coverage
-Policy limits
-Premium
Life and Health Declarations - correct answer -Parties of contract
-Policy limit
-Age of unaired at issuance date.
, Insuring agreement - correct answer Named Peril: Policy only overs specifically listed
perils
Open Peril: Policies cover all losses except those listed
Conditions - correct answer Duties and responsibilities of the insured and insurer
Endorsements - correct answer Modifications to a property or casualty policy must be
in writing & are attached to the insurance
Riders - correct answer Modifications to life and health policy that must be in writing
and attached to the policy.
Mutual Insurers - correct answer -Nonprofit
-Owned by policy holders
-Managed by board of directors
-Par
