MN LIFE AND HEALTH LATEST
INSURANCE EXAM
Aiden is 12 years old. His father, Rufus, purchased a life insurance
policy naming Aiden as the insured. What provision will result in a
suspension of the premium payments if Rufus passes away when
Aiden is 16 years old?
Payer benefit
Payee suspension
Limited pay
Autopay
Waiver of payment
Payer benefit
In which of the following situations, would a FCRA notice to the
applicant not be required?
Carrier charges a higher premium because of applicant's credit
Applicant is rejected for coverage due to poor credit
Insurance company finds a prior credit based finding against the
applicant, which was made by a different company
Application is rejected and returned to provide missing information
None of the above
Application is rejected and returned to provide missing information
END OF
PAGE
1
, MN LIFE AND HEALTH LATEST
INSURANCE EXAM
Shyman is completing a life insurance application. One of the
questions asks if he is currently suffering from terminal cancer. Will
Shyman's answer be a warranty or representation?
Representation, since the condition can impact whether the
application is approved for coverage
Warranty, because it is an essential condition of coverage
Warranty, since the condition can impact whether the application is
approved for coverage
Representation, because it is an essential condition of coverage
None of the above
Warranty, because it is an essential condition of coverage
Which of the following is a typical way to purchase AD&D
coverage?
As a life policy rider
As its own policy
As part of a group life policy
As part of a disability income policy
All of the above
All of the above
END OF
PAGE
2
, MN LIFE AND HEALTH LATEST
INSURANCE EXAM
Julian is elderly and has a whole life policy. He becomes disabled
and must live in an assisted living facility until he can take care of
himself again. His policy includes a provision that may pay for his
care. Which is false about that provision?
The policy will convert to another type of policy to help pay for the
assisted living
If the policy converts, the beneficiaries may not receive a payout
The policy could convert back to a whole life policy if Julian's
disability is removed
The life insurance benefit remains the same once converted back to
a whole policy
The life insurance benefit remains the same once converted back to
a whole policy
Can an annuity pay out start as soon as the premium is paid?
No. A build up of premium payments is necessary
No. Annuity payments start once all premiums have been paid
Yes. An annuity can be structured to permit immediate payments
Yes, but only if the insured is retired
Yes. An annuity can be structured to permit immediate payments
END OF
PAGE
3
, MN LIFE AND HEALTH LATEST
INSURANCE EXAM
Trent purchases a life insurance policy that names his daughter
Betty as the insured. Which of the following is not correct about the
parties?
Trent wants to purchase a third party policy
Trent is the first party
The carrier is the second party
This arrangement is legal
Trent is the first party
What did the U.S. Supreme Court case of Paul vs. Virginia
establish?
Selling insurance across state lines is not interstate commerce
"Paul" policies are illegal
It overruled the Sherman Antitrust Act
Selling insurance from one state to another constitutes interstate
commerce
Selling insurance across state lines is not interstate commerce
All but which of the following have an insurable interest in an
insured?
Spouse of insured
Kin of insured
END OF
PAGE
4
INSURANCE EXAM
Aiden is 12 years old. His father, Rufus, purchased a life insurance
policy naming Aiden as the insured. What provision will result in a
suspension of the premium payments if Rufus passes away when
Aiden is 16 years old?
Payer benefit
Payee suspension
Limited pay
Autopay
Waiver of payment
Payer benefit
In which of the following situations, would a FCRA notice to the
applicant not be required?
Carrier charges a higher premium because of applicant's credit
Applicant is rejected for coverage due to poor credit
Insurance company finds a prior credit based finding against the
applicant, which was made by a different company
Application is rejected and returned to provide missing information
None of the above
Application is rejected and returned to provide missing information
END OF
PAGE
1
, MN LIFE AND HEALTH LATEST
INSURANCE EXAM
Shyman is completing a life insurance application. One of the
questions asks if he is currently suffering from terminal cancer. Will
Shyman's answer be a warranty or representation?
Representation, since the condition can impact whether the
application is approved for coverage
Warranty, because it is an essential condition of coverage
Warranty, since the condition can impact whether the application is
approved for coverage
Representation, because it is an essential condition of coverage
None of the above
Warranty, because it is an essential condition of coverage
Which of the following is a typical way to purchase AD&D
coverage?
As a life policy rider
As its own policy
As part of a group life policy
As part of a disability income policy
All of the above
All of the above
END OF
PAGE
2
, MN LIFE AND HEALTH LATEST
INSURANCE EXAM
Julian is elderly and has a whole life policy. He becomes disabled
and must live in an assisted living facility until he can take care of
himself again. His policy includes a provision that may pay for his
care. Which is false about that provision?
The policy will convert to another type of policy to help pay for the
assisted living
If the policy converts, the beneficiaries may not receive a payout
The policy could convert back to a whole life policy if Julian's
disability is removed
The life insurance benefit remains the same once converted back to
a whole policy
The life insurance benefit remains the same once converted back to
a whole policy
Can an annuity pay out start as soon as the premium is paid?
No. A build up of premium payments is necessary
No. Annuity payments start once all premiums have been paid
Yes. An annuity can be structured to permit immediate payments
Yes, but only if the insured is retired
Yes. An annuity can be structured to permit immediate payments
END OF
PAGE
3
, MN LIFE AND HEALTH LATEST
INSURANCE EXAM
Trent purchases a life insurance policy that names his daughter
Betty as the insured. Which of the following is not correct about the
parties?
Trent wants to purchase a third party policy
Trent is the first party
The carrier is the second party
This arrangement is legal
Trent is the first party
What did the U.S. Supreme Court case of Paul vs. Virginia
establish?
Selling insurance across state lines is not interstate commerce
"Paul" policies are illegal
It overruled the Sherman Antitrust Act
Selling insurance from one state to another constitutes interstate
commerce
Selling insurance across state lines is not interstate commerce
All but which of the following have an insurable interest in an
insured?
Spouse of insured
Kin of insured
END OF
PAGE
4
