MINNESOTA STATE INSURANCE LICENSING EXAM 2026
LATEST UPDATE QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
Can you deduct LTC premiums from taxes? - ANS-Yes for qualified LTC policies, premiums are
deductible as an OOP expense if insured's medical expenses exceed 10% of insured's adjusted
gross income
Are benefits provided by LTC taxable? - ANS-No tax free
What is dread disease policies/cancer insurance? - ANS-Pays for medical care resulting from a
specific illness (indemnity and flat dollar amount)
What is critical illness insurance? - ANS-Pays lump sum in event insured diagnosed w/critical
illness during policy term. Must have 24 months or less to live.
-Funds pay for medical care, daily living expenses, and other costs associated with illness
What is credit disability insurance? - ANS-Protects debtor in event person cannot make loan
payments due to disability (premiums usually paid by debtor w/loan installments)
Are disability benefits tax deductible? - ANS-No, but benefits are tax-free
Are unreimbursed medical expenses(including premiums) tax deductible? - ANS-yes to the
extent that they exceed 10% of insured's adjusted gross income. Medical benefits are rcvd
tax-free.
,What are 12 mandatory provisions? - ANS--Preexisting conditions are auto covered after 2
years, unless specifically excluded by an impairment rider
What are the mandatory reinstatement provisions? - ANS-- insurer may request reinstatement
application and require insured to prove insurability
-If Insurer does not require a reinstatement application, the insured is auto covered when
premiums have been collected
-Insurer may collect no more than 60 days past due premiums w/reinstatement application,
and will issue a conditional receipt
-Insured is automatically covered if insurer has not rejected insured's reinstatement
application within 45 days.
-Coverage begins immediately on reinstatement, sickness is subject to 10-day probationary
period
How many days does an insured have to submit written notice of a loss (medical claim)? - ANS-
20 days
How many days does insurer have to send insured claim forms after receiving notice of claim? -
ANS-15 days
What many days does insured have from date of loss to submit claim form along with proof of
loss? - ANS-90 days
How soon does insurer have to pay on claims after receiving proof of loss? - ANS-Immediately
When must insured notify disability insurance to continue benefits? - ANS-Every 6 months
How frequently must disability be paid? - ANS-At least montlhy
,What is the claim paid to? - ANS-Policy owner
If policy owner dies, who is claim paid to? - ANS-Estate
Can insurer require physical exam/autopsy at insurer's expense before paying a claim? - ANS-Yes
Can a policy owner name a beneficiary in policies that provide a death benefit? - ANS-Yes
How soon can an insured initiate legal action against insurer ? - ANS-60 days from time of proof
of loss is submitted
Can insured initiate legal action after 3 years from time of proof of loss? - ANS-No
What does producer have to provide applicant after accepting application? - ANS-Existence of
Minnesota Life and Health Insurance Guaranty Association
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for Life
Insurance death benefit? - ANS-$500,000
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for health
insurance benefit? - ANS-$500,000 per insured life
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for
present value of annuity benefit? - ANS-Up to $500,000 per annuitant
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for life
insurance net cash surrend? - ANS-$130,000 per insured life
, How much with Minnesota Life and Health Insurance Guaranty Association pay up to for annuity
net cash surrender value? - ANS-$130,000 per contract owner
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for
aggressive max per individual? - ANS-$500,000 regardless of # of policies
Where does funding come from for the Minnesota Life and Health Insurance Guaranty
Association? - ANS-Admitted carriers
What are the 3 parts of the application? - ANS-General info, medical info, agent's report
What is the purpose of applicant's signatures? - ANS-Applicant certifies that the representation
made on application are entirely true and authorizes insurer to collect underwriting info such as
medical records/credit report. All changes to application must be initiated by applicant
How soon must policy be delivered? - ANS-30 days of receipt
If policy is rated up or issued w/a restrictive rider what must producer do? - ANS-Must have
applicant sign form acknowledging that applicant understands changes to policy
Does the producer have to explain any modification made to policy during underwriting
process? - ANS-Yes
What is an agent report? - ANS-Producer provides personal observations about applicant's
character, financial objectives, current health
What is attending physician statement (APS)? - ANS-When more detailed info is required.
Doctor who treats applicant makes written statement about severity of applicant's medical
condition, any medical treatment provided, applicant's prospects for recovery
LATEST UPDATE QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
Can you deduct LTC premiums from taxes? - ANS-Yes for qualified LTC policies, premiums are
deductible as an OOP expense if insured's medical expenses exceed 10% of insured's adjusted
gross income
Are benefits provided by LTC taxable? - ANS-No tax free
What is dread disease policies/cancer insurance? - ANS-Pays for medical care resulting from a
specific illness (indemnity and flat dollar amount)
What is critical illness insurance? - ANS-Pays lump sum in event insured diagnosed w/critical
illness during policy term. Must have 24 months or less to live.
-Funds pay for medical care, daily living expenses, and other costs associated with illness
What is credit disability insurance? - ANS-Protects debtor in event person cannot make loan
payments due to disability (premiums usually paid by debtor w/loan installments)
Are disability benefits tax deductible? - ANS-No, but benefits are tax-free
Are unreimbursed medical expenses(including premiums) tax deductible? - ANS-yes to the
extent that they exceed 10% of insured's adjusted gross income. Medical benefits are rcvd
tax-free.
,What are 12 mandatory provisions? - ANS--Preexisting conditions are auto covered after 2
years, unless specifically excluded by an impairment rider
What are the mandatory reinstatement provisions? - ANS-- insurer may request reinstatement
application and require insured to prove insurability
-If Insurer does not require a reinstatement application, the insured is auto covered when
premiums have been collected
-Insurer may collect no more than 60 days past due premiums w/reinstatement application,
and will issue a conditional receipt
-Insured is automatically covered if insurer has not rejected insured's reinstatement
application within 45 days.
-Coverage begins immediately on reinstatement, sickness is subject to 10-day probationary
period
How many days does an insured have to submit written notice of a loss (medical claim)? - ANS-
20 days
How many days does insurer have to send insured claim forms after receiving notice of claim? -
ANS-15 days
What many days does insured have from date of loss to submit claim form along with proof of
loss? - ANS-90 days
How soon does insurer have to pay on claims after receiving proof of loss? - ANS-Immediately
When must insured notify disability insurance to continue benefits? - ANS-Every 6 months
How frequently must disability be paid? - ANS-At least montlhy
,What is the claim paid to? - ANS-Policy owner
If policy owner dies, who is claim paid to? - ANS-Estate
Can insurer require physical exam/autopsy at insurer's expense before paying a claim? - ANS-Yes
Can a policy owner name a beneficiary in policies that provide a death benefit? - ANS-Yes
How soon can an insured initiate legal action against insurer ? - ANS-60 days from time of proof
of loss is submitted
Can insured initiate legal action after 3 years from time of proof of loss? - ANS-No
What does producer have to provide applicant after accepting application? - ANS-Existence of
Minnesota Life and Health Insurance Guaranty Association
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for Life
Insurance death benefit? - ANS-$500,000
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for health
insurance benefit? - ANS-$500,000 per insured life
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for
present value of annuity benefit? - ANS-Up to $500,000 per annuitant
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for life
insurance net cash surrend? - ANS-$130,000 per insured life
, How much with Minnesota Life and Health Insurance Guaranty Association pay up to for annuity
net cash surrender value? - ANS-$130,000 per contract owner
How much with Minnesota Life and Health Insurance Guaranty Association pay up to for
aggressive max per individual? - ANS-$500,000 regardless of # of policies
Where does funding come from for the Minnesota Life and Health Insurance Guaranty
Association? - ANS-Admitted carriers
What are the 3 parts of the application? - ANS-General info, medical info, agent's report
What is the purpose of applicant's signatures? - ANS-Applicant certifies that the representation
made on application are entirely true and authorizes insurer to collect underwriting info such as
medical records/credit report. All changes to application must be initiated by applicant
How soon must policy be delivered? - ANS-30 days of receipt
If policy is rated up or issued w/a restrictive rider what must producer do? - ANS-Must have
applicant sign form acknowledging that applicant understands changes to policy
Does the producer have to explain any modification made to policy during underwriting
process? - ANS-Yes
What is an agent report? - ANS-Producer provides personal observations about applicant's
character, financial objectives, current health
What is attending physician statement (APS)? - ANS-When more detailed info is required.
Doctor who treats applicant makes written statement about severity of applicant's medical
condition, any medical treatment provided, applicant's prospects for recovery
