MINNESOTA LIFE INSURANCE ACTUAL TEST PAPER
2025/2026 QUESTIONS AND ANSWERS GRADED A+
✔✔Estoppel - ✔✔Legally preventing someone from asserting or reasserting a known
right that they have previously
waived.
✔✔Extended Term Insurance - ✔✔Nonforfeiture option where cash value is used to
make a single premium payment on a Term
Insurance Policy of the same face amount as the
original policy. Original policy can be reinstated.
Not available on rated policies.
✔✔Face Amount - ✔✔Amount payable in the event of death of the
insured. Also called face value, death benefit,
policy proceeds, coverage, stated amount,
indemnity amount or proceeds to the beneficiary
✔✔Facultative Reinsurance v. Treaty
Reinsurance - ✔✔Facultative: Transferring risk from one insurance
company to another on a policy-by-policy basis.
Treaty: Transferring risk from one insurance
company to another under a blanket agreement.
✔✔Fair Credit Reporting Act - ✔✔A federal law that protects consumers in regard
to their credit history. Establishes guidelines for
how companies can access consumers' credit
reports and what types of disclosures and
notifications are required.
✔✔Financial Needs Approach - ✔✔In determining how much life insurance is
needed the needs of the surviving family are the
focus. Using needs analysis worksheets, an
amount is determined to meet the needs of the
surviving family regardless of the earnings of the
insured.
✔✔Fixed Amount Annuity - ✔✔A Life Annuity that guarantees a fixed dollar
payment at regular intervals during the lifetime of
the annuitant.
✔✔Fixed Amount Settlement Option - ✔✔Upon maturity of an insurance policy the
beneficiary receives periodic payments of a set
dollar amount from the policy proceeds.
, ✔✔Fixed Period Settlement Option - ✔✔Upon maturity of an insurance policy, the
beneficiary receives income from the policy
proceeds for a stated period of time.
✔✔Free Look Provision - ✔✔A policy provision required by state law that
establishes a set number of days (usually 10) for
the policyowner to review a newly issued policy.
The policyowner may return the policy to the
insurer during this time for any reason and
receive a 100% refund. Also known as refund
provision, unconditional refund provision, return
provision, exchange provision, or right to
examine.
✔✔General Account v. Separate Account - ✔✔General Account: Contains the
regulated, or
guaranteed, funds of an insurance company.
Separate Account: Contains the investments of
an insurance company. These investments have
no guaranteed rate of return and are regulated
by the SEC and NASD.
✔✔Grace Period - ✔✔A prescribed period of time during which the
policy stays in force without the payment of
premiums. Mandated by state law and is usually
30 or 31 days.
✔✔Graded Premium Policy - ✔✔Premiums for the policy increase regularly for 5
to 20 years and then level off. Death benefit
remains level.
✔✔Group Insurance - ✔✔An insurance policy that covers multiple people
(who have a common interest). A Master Policy
is issued to the policyowner and individual
insureds receive Certificates of Insurance.
✔✔Guaranteed Insurability Ride - ✔✔Optional rider that enables the policyowner to
purchase additional amounts of coverage at predetermined times without proof of
insurability.
✔✔Guaranty Association - ✔✔A state mandated association of all insurance
companies designed to protect consumers from
impaired or insolvent companies.
✔✔Hazard - ✔✔anything that increases the likelihood that a loss
2025/2026 QUESTIONS AND ANSWERS GRADED A+
✔✔Estoppel - ✔✔Legally preventing someone from asserting or reasserting a known
right that they have previously
waived.
✔✔Extended Term Insurance - ✔✔Nonforfeiture option where cash value is used to
make a single premium payment on a Term
Insurance Policy of the same face amount as the
original policy. Original policy can be reinstated.
Not available on rated policies.
✔✔Face Amount - ✔✔Amount payable in the event of death of the
insured. Also called face value, death benefit,
policy proceeds, coverage, stated amount,
indemnity amount or proceeds to the beneficiary
✔✔Facultative Reinsurance v. Treaty
Reinsurance - ✔✔Facultative: Transferring risk from one insurance
company to another on a policy-by-policy basis.
Treaty: Transferring risk from one insurance
company to another under a blanket agreement.
✔✔Fair Credit Reporting Act - ✔✔A federal law that protects consumers in regard
to their credit history. Establishes guidelines for
how companies can access consumers' credit
reports and what types of disclosures and
notifications are required.
✔✔Financial Needs Approach - ✔✔In determining how much life insurance is
needed the needs of the surviving family are the
focus. Using needs analysis worksheets, an
amount is determined to meet the needs of the
surviving family regardless of the earnings of the
insured.
✔✔Fixed Amount Annuity - ✔✔A Life Annuity that guarantees a fixed dollar
payment at regular intervals during the lifetime of
the annuitant.
✔✔Fixed Amount Settlement Option - ✔✔Upon maturity of an insurance policy the
beneficiary receives periodic payments of a set
dollar amount from the policy proceeds.
, ✔✔Fixed Period Settlement Option - ✔✔Upon maturity of an insurance policy, the
beneficiary receives income from the policy
proceeds for a stated period of time.
✔✔Free Look Provision - ✔✔A policy provision required by state law that
establishes a set number of days (usually 10) for
the policyowner to review a newly issued policy.
The policyowner may return the policy to the
insurer during this time for any reason and
receive a 100% refund. Also known as refund
provision, unconditional refund provision, return
provision, exchange provision, or right to
examine.
✔✔General Account v. Separate Account - ✔✔General Account: Contains the
regulated, or
guaranteed, funds of an insurance company.
Separate Account: Contains the investments of
an insurance company. These investments have
no guaranteed rate of return and are regulated
by the SEC and NASD.
✔✔Grace Period - ✔✔A prescribed period of time during which the
policy stays in force without the payment of
premiums. Mandated by state law and is usually
30 or 31 days.
✔✔Graded Premium Policy - ✔✔Premiums for the policy increase regularly for 5
to 20 years and then level off. Death benefit
remains level.
✔✔Group Insurance - ✔✔An insurance policy that covers multiple people
(who have a common interest). A Master Policy
is issued to the policyowner and individual
insureds receive Certificates of Insurance.
✔✔Guaranteed Insurability Ride - ✔✔Optional rider that enables the policyowner to
purchase additional amounts of coverage at predetermined times without proof of
insurability.
✔✔Guaranty Association - ✔✔A state mandated association of all insurance
companies designed to protect consumers from
impaired or insolvent companies.
✔✔Hazard - ✔✔anything that increases the likelihood that a loss
