MN INSURANCE EXAM STUDY GUIDE 2025/2026 ALL
QUESTIONS AND SOLUTIONS GRADED A+ TIP
✔✔A couple's retirement annuity pays them 250/month. The husband dies and the wife
continues to receive 125/month until she dies. What settlement option they chose? -
✔✔Joint and survivor
✔✔Written or oral statements made by the applicant are - ✔✔Considered true to the
best of the applicant's knowledge
✔✔Which situation insurance interest does not exist? - ✔✔A person insuring the life of
his best friend
✔✔The portion of a loss that is considered the responsibility of the insured is -
✔✔Deductible
✔✔Which of the following is true about credit life insurance - ✔✔Creditor is the policy
owner
✔✔Which of the following is not correct regarding death proceeds of life insurance? -
✔✔The insured's creditors may claim the proceed from life insurance policy of the
deceased insured
✔✔Which terms defined the reduction of value of the person or property insured in a
policy? - ✔✔Loss
✔✔An insured misstates her age at the time of life insurance application is taken,
resulting in - ✔✔Adjustment in the amount of death benefit
✔✔A wife wants her husband as the beneficiary and ownership of her policy, the policy
owner should name her husband as - ✔✔Revocable beneficiary
✔✔On the advertisement, a company claims that it has fund in its possessions that are
in fact not available for the payment of losses or claims. The company is guilty of -
✔✔Misrepresentation
✔✔For how long an insurance company is allowed to defer policy loan requests - ✔✔6
months
✔✔The policy owner may skip a premium payment without lapsing the policy as long as
- ✔✔the policy contains sufficient cash value at the time to cover the cost of insurance
for that premium period.
, ✔✔What is the purpose of settlement options? - ✔✔They determine how death
proceeds will be paid
✔✔All of the following are true of credit life except - ✔✔The creditor is the policy owner
✔✔No life insurance policy or certificate may be issued or delivery by an insurer
organized in Minnesota until it has been approved by - ✔✔The Insurance Commission
✔✔Which method of dealing with risk is applied when insurance is purchased -
✔✔Transfer
✔✔An individual receives a lump sum inheritance. He would like to use the money to
create a lifetime income but will be retiring soon. He purchases an annuity and wishes
to receive payments beginning in 2 months. What did he buy? - ✔✔Single premium
deferred annuity
✔✔When is an insurer examination ordered by the commissioner who pays for the cost
of the examination? - ✔✔The insurance department
✔✔if, after a hearing, it is determined that an insurer or producer is violating Minnesota
insurance laws, the commissioner will issue - ✔✔
✔✔The purpose of the fair credit reporting act is to - ✔✔Protect the insurer from
adverse selection
✔✔An insurance company that is owned by the policyholders is called a - ✔✔Mutual
Insurer
✔✔All of the following are true of annually renewable term insurance except - ✔✔The
death benefit remains level
✔✔Which of the following statements concerning the medical information bureau is
correct - ✔✔The medical information bureau assists underwriters in evaluating and
classifying risks.
✔✔Which of the following types of insurance policies would perform the function of cash
accumulation? - ✔✔Whole life
✔✔An annuity owner receives the same guaranteed payment every month. What type
of annuity is it? - ✔✔Fixed
✔✔*When may an insurer advertise its membership in the minnesota insurance
guaranty association? - ✔✔At no time
QUESTIONS AND SOLUTIONS GRADED A+ TIP
✔✔A couple's retirement annuity pays them 250/month. The husband dies and the wife
continues to receive 125/month until she dies. What settlement option they chose? -
✔✔Joint and survivor
✔✔Written or oral statements made by the applicant are - ✔✔Considered true to the
best of the applicant's knowledge
✔✔Which situation insurance interest does not exist? - ✔✔A person insuring the life of
his best friend
✔✔The portion of a loss that is considered the responsibility of the insured is -
✔✔Deductible
✔✔Which of the following is true about credit life insurance - ✔✔Creditor is the policy
owner
✔✔Which of the following is not correct regarding death proceeds of life insurance? -
✔✔The insured's creditors may claim the proceed from life insurance policy of the
deceased insured
✔✔Which terms defined the reduction of value of the person or property insured in a
policy? - ✔✔Loss
✔✔An insured misstates her age at the time of life insurance application is taken,
resulting in - ✔✔Adjustment in the amount of death benefit
✔✔A wife wants her husband as the beneficiary and ownership of her policy, the policy
owner should name her husband as - ✔✔Revocable beneficiary
✔✔On the advertisement, a company claims that it has fund in its possessions that are
in fact not available for the payment of losses or claims. The company is guilty of -
✔✔Misrepresentation
✔✔For how long an insurance company is allowed to defer policy loan requests - ✔✔6
months
✔✔The policy owner may skip a premium payment without lapsing the policy as long as
- ✔✔the policy contains sufficient cash value at the time to cover the cost of insurance
for that premium period.
, ✔✔What is the purpose of settlement options? - ✔✔They determine how death
proceeds will be paid
✔✔All of the following are true of credit life except - ✔✔The creditor is the policy owner
✔✔No life insurance policy or certificate may be issued or delivery by an insurer
organized in Minnesota until it has been approved by - ✔✔The Insurance Commission
✔✔Which method of dealing with risk is applied when insurance is purchased -
✔✔Transfer
✔✔An individual receives a lump sum inheritance. He would like to use the money to
create a lifetime income but will be retiring soon. He purchases an annuity and wishes
to receive payments beginning in 2 months. What did he buy? - ✔✔Single premium
deferred annuity
✔✔When is an insurer examination ordered by the commissioner who pays for the cost
of the examination? - ✔✔The insurance department
✔✔if, after a hearing, it is determined that an insurer or producer is violating Minnesota
insurance laws, the commissioner will issue - ✔✔
✔✔The purpose of the fair credit reporting act is to - ✔✔Protect the insurer from
adverse selection
✔✔An insurance company that is owned by the policyholders is called a - ✔✔Mutual
Insurer
✔✔All of the following are true of annually renewable term insurance except - ✔✔The
death benefit remains level
✔✔Which of the following statements concerning the medical information bureau is
correct - ✔✔The medical information bureau assists underwriters in evaluating and
classifying risks.
✔✔Which of the following types of insurance policies would perform the function of cash
accumulation? - ✔✔Whole life
✔✔An annuity owner receives the same guaranteed payment every month. What type
of annuity is it? - ✔✔Fixed
✔✔*When may an insurer advertise its membership in the minnesota insurance
guaranty association? - ✔✔At no time
