Page 1 of 92
MN LIFE AND HEALTH INSURANCE EXAM |
FREQUENTLY TESTED QUESTIONS WITH
CORRECT ANSWERS | BRAND NEW!
Steve seeks to have his life insured. As part of his application, a
statement from an examining physician is included. Does the
examining physician have to sign the life insurance policy
application?
No. Only the signatures of the insured and agent are required
No. Only the signature of the applicant is required
Yes, but only if the insured and applicant are not the same person
Yes, the signature is required when an examining physician's
statement is a part of the application - ✔✔✔ Correct Answer > Yes, the
signature is required when an examining physician's statement is
a part of the application
What is the main difference between whole life and term life
insurance?
Whole life builds cash value, term does not
Term life builds cash value, whole does not
Whole life is temporary, term is permanent
,Page 2 of 92
Term is temporary, whole is permanent - ✔✔✔ Correct Answer >
Whole life builds cash value, term does not
Which life insurance option allows policyholders to participate in
mutual fund-like investments?
Whole life insurance
Variable universal life insurance
Term life insurance
Variable life insurance - ✔✔✔ Correct Answer > Variable universal life
insurance
How is cash surrender value calculated in a life insurance policy?
Based on policy's face value
Depends on loan against policy
Calculated based on premiums paid
Amount in cash value - ✔✔✔ Correct Answer > Amount in cash value
What is required to prove insurable interest in life insurance?
Legal document proving ownership
Employer documentation
Proof of blood relation
,Page 3 of 92
Policy beneficiary's request - ✔✔✔ Correct Answer > Legal document
proving ownership
How does life insurance help in estate planning?
Reduces estate size
Avoids probate
Avoids probate taxes
Increases heirs' inheritance - ✔✔✔ Correct Answer > Avoids probate
Jeannie works for Hedley Insurance agency, while her cousin
Hester works for Cambrill Insurance brokerage. What is the
difference between the two types of entities?
An agent works on behalf of several insurers
A broker represents only one carrier
They are essentially the same
A broker can offer products from several insurance companies -
✔✔✔ Correct Answer > A broker can offer products from several
insurance companies
What is the purpose of a grace period in a life insurance policy?
To extend coverage after missed payments
To increase the cash value
To allow loans against the policy
, Page 4 of 92
To avoid immediate lapse of policy - ✔✔✔ Correct Answer > To extend
coverage after missed payments
Which type of policy allows the policyholder to adjust premiums
and coverage amounts?
Term Life Insurance
Whole Life Insurance
Universal Life Insurance
Variable Life Insurance - ✔✔✔ Correct Answer > Universal Life
Insurance
Which life insurance option builds cash value the fastest?
Term insurance
Universal life
Whole life insurance
Variable life insurance - ✔✔✔ Correct Answer > Universal life
The premium for a whole life policy is usually ________________ the
premium of a term life policy:
Less than
The same as
Greater than
MN LIFE AND HEALTH INSURANCE EXAM |
FREQUENTLY TESTED QUESTIONS WITH
CORRECT ANSWERS | BRAND NEW!
Steve seeks to have his life insured. As part of his application, a
statement from an examining physician is included. Does the
examining physician have to sign the life insurance policy
application?
No. Only the signatures of the insured and agent are required
No. Only the signature of the applicant is required
Yes, but only if the insured and applicant are not the same person
Yes, the signature is required when an examining physician's
statement is a part of the application - ✔✔✔ Correct Answer > Yes, the
signature is required when an examining physician's statement is
a part of the application
What is the main difference between whole life and term life
insurance?
Whole life builds cash value, term does not
Term life builds cash value, whole does not
Whole life is temporary, term is permanent
,Page 2 of 92
Term is temporary, whole is permanent - ✔✔✔ Correct Answer >
Whole life builds cash value, term does not
Which life insurance option allows policyholders to participate in
mutual fund-like investments?
Whole life insurance
Variable universal life insurance
Term life insurance
Variable life insurance - ✔✔✔ Correct Answer > Variable universal life
insurance
How is cash surrender value calculated in a life insurance policy?
Based on policy's face value
Depends on loan against policy
Calculated based on premiums paid
Amount in cash value - ✔✔✔ Correct Answer > Amount in cash value
What is required to prove insurable interest in life insurance?
Legal document proving ownership
Employer documentation
Proof of blood relation
,Page 3 of 92
Policy beneficiary's request - ✔✔✔ Correct Answer > Legal document
proving ownership
How does life insurance help in estate planning?
Reduces estate size
Avoids probate
Avoids probate taxes
Increases heirs' inheritance - ✔✔✔ Correct Answer > Avoids probate
Jeannie works for Hedley Insurance agency, while her cousin
Hester works for Cambrill Insurance brokerage. What is the
difference between the two types of entities?
An agent works on behalf of several insurers
A broker represents only one carrier
They are essentially the same
A broker can offer products from several insurance companies -
✔✔✔ Correct Answer > A broker can offer products from several
insurance companies
What is the purpose of a grace period in a life insurance policy?
To extend coverage after missed payments
To increase the cash value
To allow loans against the policy
, Page 4 of 92
To avoid immediate lapse of policy - ✔✔✔ Correct Answer > To extend
coverage after missed payments
Which type of policy allows the policyholder to adjust premiums
and coverage amounts?
Term Life Insurance
Whole Life Insurance
Universal Life Insurance
Variable Life Insurance - ✔✔✔ Correct Answer > Universal Life
Insurance
Which life insurance option builds cash value the fastest?
Term insurance
Universal life
Whole life insurance
Variable life insurance - ✔✔✔ Correct Answer > Universal life
The premium for a whole life policy is usually ________________ the
premium of a term life policy:
Less than
The same as
Greater than
