MN Life Producer Exam
Accelerated Benefits Rider - ANS --pays 50-80% of death benefit
-insured retains policy ownership & can designate beneficiary
-beneficiary gets remainder at insured's death
Viatical Settlement - ANS --viatical settlement provider buys policy from insured for
50-80% of death benefit
-viatical settlement provider becomes owner & beneficiary
-beneficiary gets nothing at insured's death
What does viatical settlement allow? - ANS -it allows a chronically or terminally ill
insured to gain a sum of money that is needed to pay medical expenses or to enhance
the quality of life
Frank intends to use his life insurance to make the down payment on a vacation home. In
so doing, Frank is using which of the following? - ANS -the policy's cash value
Mary inherited $10 million several years ago. She has just bought a life insurance policy
to help preserve her estate. All of the following statements regarding this are correct
EXCEPT - ANS -to keep policy proceeds out of her estate, Mary should make sure she is
the owner
The amount of money a person might typically receive from a viatical settlement - ANS
-50-80% of the death benefit
Which of the following best describes "life insurance death benefits avoid probate"? -
ANS -the death benefit is paid to the beneficiary without to regard for what the insured's
will may say
Which of the following statements about tax treatment of funds received through a
qualified viatical statement is correct? - ANS -the insured pays no federal income tax but
may have to pay state income tax
Life insurance policy proceeds are protected from the claims of creditors due to the
policy's - ANS -Spendthrift clause
Life insurance can provide both death benefits and living benefits. All of the following are
death benefit-related reasons for owning life insurance EXCEPT - ANS -to supplement
one's retirement income
Accelerated Benefits Rider - ANS --pays 50-80% of death benefit
-insured retains policy ownership & can designate beneficiary
-beneficiary gets remainder at insured's death
Viatical Settlement - ANS --viatical settlement provider buys policy from insured for
50-80% of death benefit
-viatical settlement provider becomes owner & beneficiary
-beneficiary gets nothing at insured's death
What does viatical settlement allow? - ANS -it allows a chronically or terminally ill
insured to gain a sum of money that is needed to pay medical expenses or to enhance
the quality of life
Frank intends to use his life insurance to make the down payment on a vacation home. In
so doing, Frank is using which of the following? - ANS -the policy's cash value
Mary inherited $10 million several years ago. She has just bought a life insurance policy
to help preserve her estate. All of the following statements regarding this are correct
EXCEPT - ANS -to keep policy proceeds out of her estate, Mary should make sure she is
the owner
The amount of money a person might typically receive from a viatical settlement - ANS
-50-80% of the death benefit
Which of the following best describes "life insurance death benefits avoid probate"? -
ANS -the death benefit is paid to the beneficiary without to regard for what the insured's
will may say
Which of the following statements about tax treatment of funds received through a
qualified viatical statement is correct? - ANS -the insured pays no federal income tax but
may have to pay state income tax
Life insurance policy proceeds are protected from the claims of creditors due to the
policy's - ANS -Spendthrift clause
Life insurance can provide both death benefits and living benefits. All of the following are
death benefit-related reasons for owning life insurance EXCEPT - ANS -to supplement
one's retirement income
