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MN LIFE INSURANCE QUESTIONS WITH
100% CORRECT SOLUTIONS | GUARANTEED
SUCCESS.
Which of the following is not a duty of the Commissioner?
a. Issue an insurance license for a producer
b. Make state insurance laws
c. Handle insurance-related consumer complaints
d. Enforce state insurance laws - correct answer- b. Make state
insurance laws
During policy solicitation an insurer exaggerates the financial
condition of one of its competitors and makes it sound worse
than it is. This is an example of an unfair trade practice called?
a. Twisting
b. False advertising
c. Controlled business
d. Defamation - correct answer- Defamation
A life insurance policy qualifies a Modified Endowment Contract
(MEC) if the amount of premium paid exceeds the amount that
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would have provided paid-up insurance in how many years? -
correct answer- 7 years
All of the following information needs to be included on an
application for life insurance EXCEPT:
a. Medical information about the applicant
b. Health insurance policies in force
.c. Life insurance with other insurers.
d. The agent's statement, if applicable. - correct answer- b.
health insurance policies in force
When replacement is involved, the replacing insurer must send
a notice to the existing insurance company that identifies the
insured and policies within how many days?
a. 3 days
b. 5 days
c. 10 days
d. 30 days - correct answer- a. 3 days
while completing a life insurance application the applicant
realizes that she should have answered an earlier question
differently. What should the agent do to make the necessary
change? - correct answer- cross out the incorrect information,
write in the correct answer, and have the applicant initial the
change.
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which of the following is not true regarding the accumulation
period of an annuity?
a. it is also known as the pay-in-period.
b. it would not occur in a deferred annuity.
c. it allows the insured 10 days to pay the initial premium.
d. it allows the insurer to temporarily suspend coverage after an
insured's disability. - correct answer- b. it would not occur in a
deferred annuity.
An insurance contract must contain all of the following to be
considered legally binding EXCEPT:
A: Consideration
B: Competent Parties
C: Beneficiary's Consent
D: Offer and Acceptance - correct answer- C. beneficiary's
consent
Which of the following would be considered an unfair claims
settlement practice.
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a. requesting the insured to submit a signed, proof of loss
statement, after the insured has already verbally advised the
insurer of the claim.
b. requesting the insured swear under oath concerning the
facts of the claim.
c. the settlement of the claim is delayed for 30 days in order for
the insured to conduct an investigation.
d. A claims adjuster advises the insured that if the claim goes to
arbitration, the insured would probably receive less than what is
currently being offered. - correct answer- d. A claims adjuster
advises the insured that if the claim goes to arbitration, the
insured would probably receive less than what is currently
being offered.
All of the following are true regarding insurance policy loans
EXCEPT
a. Policy loans can be made on policies that do not accumulate
cash value.
b. the amount of the outstanding loan and interest.
c. The policy will terminate if the loan plus interest equals or
exceeds the cash value of the policy.
d. policy owners can borrow up to the full amount of their whole
life policy's cash value. - correct answer- a. Policy loans can be
made on policies that do not accumulate cash value
what is the purpose of a free-look period in insurance policies?
MN LIFE INSURANCE QUESTIONS WITH
100% CORRECT SOLUTIONS | GUARANTEED
SUCCESS.
Which of the following is not a duty of the Commissioner?
a. Issue an insurance license for a producer
b. Make state insurance laws
c. Handle insurance-related consumer complaints
d. Enforce state insurance laws - correct answer- b. Make state
insurance laws
During policy solicitation an insurer exaggerates the financial
condition of one of its competitors and makes it sound worse
than it is. This is an example of an unfair trade practice called?
a. Twisting
b. False advertising
c. Controlled business
d. Defamation - correct answer- Defamation
A life insurance policy qualifies a Modified Endowment Contract
(MEC) if the amount of premium paid exceeds the amount that
,2 | Page
would have provided paid-up insurance in how many years? -
correct answer- 7 years
All of the following information needs to be included on an
application for life insurance EXCEPT:
a. Medical information about the applicant
b. Health insurance policies in force
.c. Life insurance with other insurers.
d. The agent's statement, if applicable. - correct answer- b.
health insurance policies in force
When replacement is involved, the replacing insurer must send
a notice to the existing insurance company that identifies the
insured and policies within how many days?
a. 3 days
b. 5 days
c. 10 days
d. 30 days - correct answer- a. 3 days
while completing a life insurance application the applicant
realizes that she should have answered an earlier question
differently. What should the agent do to make the necessary
change? - correct answer- cross out the incorrect information,
write in the correct answer, and have the applicant initial the
change.
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which of the following is not true regarding the accumulation
period of an annuity?
a. it is also known as the pay-in-period.
b. it would not occur in a deferred annuity.
c. it allows the insured 10 days to pay the initial premium.
d. it allows the insurer to temporarily suspend coverage after an
insured's disability. - correct answer- b. it would not occur in a
deferred annuity.
An insurance contract must contain all of the following to be
considered legally binding EXCEPT:
A: Consideration
B: Competent Parties
C: Beneficiary's Consent
D: Offer and Acceptance - correct answer- C. beneficiary's
consent
Which of the following would be considered an unfair claims
settlement practice.
, 4 | Page
a. requesting the insured to submit a signed, proof of loss
statement, after the insured has already verbally advised the
insurer of the claim.
b. requesting the insured swear under oath concerning the
facts of the claim.
c. the settlement of the claim is delayed for 30 days in order for
the insured to conduct an investigation.
d. A claims adjuster advises the insured that if the claim goes to
arbitration, the insured would probably receive less than what is
currently being offered. - correct answer- d. A claims adjuster
advises the insured that if the claim goes to arbitration, the
insured would probably receive less than what is currently
being offered.
All of the following are true regarding insurance policy loans
EXCEPT
a. Policy loans can be made on policies that do not accumulate
cash value.
b. the amount of the outstanding loan and interest.
c. The policy will terminate if the loan plus interest equals or
exceeds the cash value of the policy.
d. policy owners can borrow up to the full amount of their whole
life policy's cash value. - correct answer- a. Policy loans can be
made on policies that do not accumulate cash value
what is the purpose of a free-look period in insurance policies?
