MINNESOTA LIFE INSURANCE EXAM
QUESTIONS 2025 – 100% CORRECT VERIFIED
ANSWERS || 100% GUARANTEED PASS <RECENT
VERSION>
Section 1: General Insurance Concepts
1. What is the definition of Risk?
A) The chance of a loss
B) The cause of a loss
C) The amount of money paid for a policy
D) The uncertainty of a loss occurring
D) The uncertainty of a loss occurring
2. What is the term for a situation that presents a possibility of loss?
A) Hazard
B) Peril
C) Risk
D) Exposure
D) Exposure
3. What is a Peril in insurance terms?
A) The chance of loss
B) The cause of a loss
C) A condition that increases the chance of a loss
D) The person covered by the policy
B) The cause of a loss
4. What is a Hazard?
A) The cause of loss
B) The probability of loss
C) A condition that increases the likelihood or severity of a loss
D) The refusal of a claim
C) A condition that increases the likelihood or severity of a loss
,5. What is the "Law of Large Numbers" used for in insurance?
A) To determine agent commissions
B) To predict individual losses with certainty
C) To predict group losses more accurately
D) To calculate policy loan interest
C) To predict group losses more accurately
6. What is the principle of Indemnity?
A) The insured must be restored to the same financial position as before a
loss.
B) The insured can profit from a loss.
C) The insurer can cancel a policy at any time.
D) The agent must be truthful.
A) The insured must be restored to the same financial position as
before a loss.
7. Which insurance principle states that the insured must have a financial
interest in the subject of the insurance?
A) Indemnity
B) Insurable Interest
C) Utmost Good Faith
D) Consideration
B) Insurable Interest
8. When must Insurable Interest exist in a Life Insurance policy?
A) Only at the time of the claim
B) Only at the time of policy inception
C) At both policy inception and the time of claim
D) It is not required for life insurance
B) Only at the time of policy inception
9. What is the term for a written request for an insurer to consider an
applicant for insurance?
A) Policy
B) Application
C) Claim form
, D) Binder
B) Application
10.What are the two parts of a life insurance application?
A) Part A and Part B
B) The General Agreement and the Medical Exam
C) The Agent's Report and the Underwriting Section
D) The Applicant's Statement and the Medical Statement
D) The Applicant's Statement and the Medical Statement
Section 2: Policy Types and Provisions
11.What type of life insurance offers pure protection for a specific period
and has no cash value?
A) Whole Life
B) Universal Life
C) Term Life
D) Variable Life
C) Term Life
12.What is the primary advantage of Term Life insurance?
A) It builds cash value quickly.
B) It offers permanent coverage.
C) It provides the most coverage for the lowest initial premium.
D) It allows for premium investment in stocks.
C) It provides the most coverage for the lowest initial premium.
13.A policy that provides lifetime coverage and has a savings component is
known as?
A) Term Life
B) Whole Life
C) Group Life
D) Credit Life
B) Whole Life
14.What type of life insurance combines term insurance with an
investment account?
QUESTIONS 2025 – 100% CORRECT VERIFIED
ANSWERS || 100% GUARANTEED PASS <RECENT
VERSION>
Section 1: General Insurance Concepts
1. What is the definition of Risk?
A) The chance of a loss
B) The cause of a loss
C) The amount of money paid for a policy
D) The uncertainty of a loss occurring
D) The uncertainty of a loss occurring
2. What is the term for a situation that presents a possibility of loss?
A) Hazard
B) Peril
C) Risk
D) Exposure
D) Exposure
3. What is a Peril in insurance terms?
A) The chance of loss
B) The cause of a loss
C) A condition that increases the chance of a loss
D) The person covered by the policy
B) The cause of a loss
4. What is a Hazard?
A) The cause of loss
B) The probability of loss
C) A condition that increases the likelihood or severity of a loss
D) The refusal of a claim
C) A condition that increases the likelihood or severity of a loss
,5. What is the "Law of Large Numbers" used for in insurance?
A) To determine agent commissions
B) To predict individual losses with certainty
C) To predict group losses more accurately
D) To calculate policy loan interest
C) To predict group losses more accurately
6. What is the principle of Indemnity?
A) The insured must be restored to the same financial position as before a
loss.
B) The insured can profit from a loss.
C) The insurer can cancel a policy at any time.
D) The agent must be truthful.
A) The insured must be restored to the same financial position as
before a loss.
7. Which insurance principle states that the insured must have a financial
interest in the subject of the insurance?
A) Indemnity
B) Insurable Interest
C) Utmost Good Faith
D) Consideration
B) Insurable Interest
8. When must Insurable Interest exist in a Life Insurance policy?
A) Only at the time of the claim
B) Only at the time of policy inception
C) At both policy inception and the time of claim
D) It is not required for life insurance
B) Only at the time of policy inception
9. What is the term for a written request for an insurer to consider an
applicant for insurance?
A) Policy
B) Application
C) Claim form
, D) Binder
B) Application
10.What are the two parts of a life insurance application?
A) Part A and Part B
B) The General Agreement and the Medical Exam
C) The Agent's Report and the Underwriting Section
D) The Applicant's Statement and the Medical Statement
D) The Applicant's Statement and the Medical Statement
Section 2: Policy Types and Provisions
11.What type of life insurance offers pure protection for a specific period
and has no cash value?
A) Whole Life
B) Universal Life
C) Term Life
D) Variable Life
C) Term Life
12.What is the primary advantage of Term Life insurance?
A) It builds cash value quickly.
B) It offers permanent coverage.
C) It provides the most coverage for the lowest initial premium.
D) It allows for premium investment in stocks.
C) It provides the most coverage for the lowest initial premium.
13.A policy that provides lifetime coverage and has a savings component is
known as?
A) Term Life
B) Whole Life
C) Group Life
D) Credit Life
B) Whole Life
14.What type of life insurance combines term insurance with an
investment account?
