MN LIFE ACCIDENT & HEALTH PRODUCER
EXAM (Latest Update )
QUESTIONS with Verified Answers 100 %
Correct [Grade A]
Unfair claims settlement - correct answer -can't refuse claim w/o conducting a
reasonable investigation
- delaying or refusing a settlement just because the claimant retains an attorney or
public adjustor
-compelling an insured to commence litigation by offering an inadequate settlement
-must cite specific policy that applies
Group Life Insurance - correct answer - group sponsor is the policy owner, & each
group member is an insured under the group
- fire/quit keeps policy for 18m pay premium & cover the policy
Individual life insurance - correct answer is purchased by an individual who needs life
insurance
,Term Life Insurance - correct answer -is designed to provide temporary protection for
someone who need life insurance for a specific period of time
- lowest cost
- no accumulation of cash value
Permanent Life insurance - correct answer is designed to provide permanent
protection for someone who needs life insurance for a longer period of time
Fixed Life insurance - correct answer -policies pay an interest rate on any cash value
in the policy
Variable life insurance - correct answer -policies allow the owner to invest the cash
value into mutual funds
-a securities license is required to sell variable life insurance
Level Term - correct answer -the premium & death benefit remain level during the
term of coverage
,annually renewable (term insurance) - correct answer - term insurance sets the term
of coverage as one year
-may renew every year w/o evidence of insurability
- higher upon renewal
death benefit decreases
Level Premium ( term insurance) - correct answer -term insurance sets the term of
coverage as longer than one year
-when term ends, may be renewed w/o evidence of insurability
- prems will change upon renewal
Decreasing Term - correct answer - premium remains level during the term of
coverage, but death benefit decreases with time
- commonly used as a form of credit life insurance
- as loan balance decrease, so does the death benefit
- may also be called mortgage protection insurance or credit life
, Increasing term - correct answer - the premium & death benefit increase over the
term of coverage
- added as a rider
Whole Life Insurance - correct answer - provides protection until age 100, provides
cash value + insurance protection
- has higher premiums =
prems remain level for the life of insured + cash value provides savings + insurance
protection
- money needed for death benefit comes from=
cash value & pure insurance (mortality charge)
-endows @ age 100
- loan doesn't need to be repaid, but interest payments are deferred for up to 6 months
straight life (continuous premium) - correct answer -the policy owner pays the same
annual premium until the insured dies or reaches age 100
EXAM (Latest Update )
QUESTIONS with Verified Answers 100 %
Correct [Grade A]
Unfair claims settlement - correct answer -can't refuse claim w/o conducting a
reasonable investigation
- delaying or refusing a settlement just because the claimant retains an attorney or
public adjustor
-compelling an insured to commence litigation by offering an inadequate settlement
-must cite specific policy that applies
Group Life Insurance - correct answer - group sponsor is the policy owner, & each
group member is an insured under the group
- fire/quit keeps policy for 18m pay premium & cover the policy
Individual life insurance - correct answer is purchased by an individual who needs life
insurance
,Term Life Insurance - correct answer -is designed to provide temporary protection for
someone who need life insurance for a specific period of time
- lowest cost
- no accumulation of cash value
Permanent Life insurance - correct answer is designed to provide permanent
protection for someone who needs life insurance for a longer period of time
Fixed Life insurance - correct answer -policies pay an interest rate on any cash value
in the policy
Variable life insurance - correct answer -policies allow the owner to invest the cash
value into mutual funds
-a securities license is required to sell variable life insurance
Level Term - correct answer -the premium & death benefit remain level during the
term of coverage
,annually renewable (term insurance) - correct answer - term insurance sets the term
of coverage as one year
-may renew every year w/o evidence of insurability
- higher upon renewal
death benefit decreases
Level Premium ( term insurance) - correct answer -term insurance sets the term of
coverage as longer than one year
-when term ends, may be renewed w/o evidence of insurability
- prems will change upon renewal
Decreasing Term - correct answer - premium remains level during the term of
coverage, but death benefit decreases with time
- commonly used as a form of credit life insurance
- as loan balance decrease, so does the death benefit
- may also be called mortgage protection insurance or credit life
, Increasing term - correct answer - the premium & death benefit increase over the
term of coverage
- added as a rider
Whole Life Insurance - correct answer - provides protection until age 100, provides
cash value + insurance protection
- has higher premiums =
prems remain level for the life of insured + cash value provides savings + insurance
protection
- money needed for death benefit comes from=
cash value & pure insurance (mortality charge)
-endows @ age 100
- loan doesn't need to be repaid, but interest payments are deferred for up to 6 months
straight life (continuous premium) - correct answer -the policy owner pays the same
annual premium until the insured dies or reaches age 100
