MN LIFE AND HEALTH INSURANCE EXAM COMPLETE
EXAM QUESTIONS AND DETAILED ANSWERS (2026)
|ALREADY GRADED A+|JUST RELEASED!!
Term Riders - ANSWER-Term insurance added to
permanent plan to provide additional coverage.
Cost of living Rider - ANSWER-Insurance Co
automatically increases the benefit every year to adjust for
inflation, without requiring insurability. Premiums are
increased to pay for additional coverage
Vatical Settlement - ANSWER--Third party ownership
,-Used when the insured is terminally ill and the policy
owner sells the life insurance policy to an investor using
absolute assignment
Cross Purchase - ANSWER-Each partner takes out a life
insurance policy on another partner
Conditional Receipt - ANSWER-Applies when the
premium is submitted with the application
Insurance and Annuities - ANSWER-Can be used to
guarantee an income for the rest of a persons life, with
single premium or flexible premium
,Single Premium immediate annuity - ANSWER-Used to
distribute lottery proceeds, retirement income, and
insurance settlements
Fixed Annuities - ANSWER--Commingled with insurers
general assets and high-grade bonds and other interests
bearing securities
-Insurance companies pay current interest rate
-Guarantees minimum interest rate
-Surrender charges apply in decreasing amounts as policy
goes on
, Bailout Provisions - ANSWER-Allows owner to surrender
the annuity without surrender charges if the current
interest rate drops below a certain level
Variable Annuities - ANSWER--Money Deposited into this
annuity is placed into a separate accumulation account.
-Distributes money into sub accounts offered by insurer
Equity Indexed Annuities - ANSWER-Designed to provide
minimum guarantees of a fixed annuity, but also provide
the opportunity for a greater return on investment.
EXAM QUESTIONS AND DETAILED ANSWERS (2026)
|ALREADY GRADED A+|JUST RELEASED!!
Term Riders - ANSWER-Term insurance added to
permanent plan to provide additional coverage.
Cost of living Rider - ANSWER-Insurance Co
automatically increases the benefit every year to adjust for
inflation, without requiring insurability. Premiums are
increased to pay for additional coverage
Vatical Settlement - ANSWER--Third party ownership
,-Used when the insured is terminally ill and the policy
owner sells the life insurance policy to an investor using
absolute assignment
Cross Purchase - ANSWER-Each partner takes out a life
insurance policy on another partner
Conditional Receipt - ANSWER-Applies when the
premium is submitted with the application
Insurance and Annuities - ANSWER-Can be used to
guarantee an income for the rest of a persons life, with
single premium or flexible premium
,Single Premium immediate annuity - ANSWER-Used to
distribute lottery proceeds, retirement income, and
insurance settlements
Fixed Annuities - ANSWER--Commingled with insurers
general assets and high-grade bonds and other interests
bearing securities
-Insurance companies pay current interest rate
-Guarantees minimum interest rate
-Surrender charges apply in decreasing amounts as policy
goes on
, Bailout Provisions - ANSWER-Allows owner to surrender
the annuity without surrender charges if the current
interest rate drops below a certain level
Variable Annuities - ANSWER--Money Deposited into this
annuity is placed into a separate accumulation account.
-Distributes money into sub accounts offered by insurer
Equity Indexed Annuities - ANSWER-Designed to provide
minimum guarantees of a fixed annuity, but also provide
the opportunity for a greater return on investment.
