MN PROPERTY CASUALTY INSURANCE
TEST BANK BUNDLED 2026 QUESTIONS
AND VERIFIED ANSWERS GRADED A+
⩥ 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.
Answer: Defamation
⩥ A life insurance policy qualifies a Modified Endowment Contract
(MEC) if the amount of premium paid exceeds the amount that would
have provided paid-up insurance in how many years?.
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..
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.
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?.
Answer: cross out the incorrect information, write in the correct answer,
and have the applicant initial the change.
⩥ 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..
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.
Answer: C. beneficiary's consent
⩥ Which of the following would be considered an unfair claims
settlement practice.
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..
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..
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?
a. it allows the insurer to cancel coverage if a misrepresentation is
discovered.
b. It allows the insured to reject the policy with a full refund.
TEST BANK BUNDLED 2026 QUESTIONS
AND VERIFIED ANSWERS GRADED A+
⩥ 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.
Answer: Defamation
⩥ A life insurance policy qualifies a Modified Endowment Contract
(MEC) if the amount of premium paid exceeds the amount that would
have provided paid-up insurance in how many years?.
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..
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.
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?.
Answer: cross out the incorrect information, write in the correct answer,
and have the applicant initial the change.
⩥ 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..
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.
Answer: C. beneficiary's consent
⩥ Which of the following would be considered an unfair claims
settlement practice.
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..
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..
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?
a. it allows the insurer to cancel coverage if a misrepresentation is
discovered.
b. It allows the insured to reject the policy with a full refund.
