MN LIFE INSURANCE 200 EXAM QUESTIONS WITH 100% CORRECT
VERIFIED ANSWERS GRADE A LATEST 2024
1. Which of the following is not a duty of the Commissioner?
a. Issue an insurance license for a producer
b. Make state insurance laws
c. Handle insurance-related consumer complaints
d. Enforce state insurance laws: b. Make state insurance laws
2. 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: Defamation
3. 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?: 7 years
4. 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.: b. health insurance policies in force
5. 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: a. 3 days
6. 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?: cross out the incorrect information, write in the correct answer, and have
the applicant initial the change.
7. 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 suspend coverage after an insured's disability temporarily.: b. it
would not occur in a deferred annuity.
8. 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: C. beneficiary's consent
9. 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.: 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.
10. 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.: a.
Policy loans can be made on policies that do not accumulate cash value
11. 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.
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.: b. It
allows the insured to reject the policy with a full refund.
12. All of the following are dividend options EXCEPT
a. reduction of premium
b. paid-up addiction
c. fixed period installments
d. accumulated at interest: c. fixed period installments
13. To what organization must all admitted insurers belong?
VERIFIED ANSWERS GRADE A LATEST 2024
1. Which of the following is not a duty of the Commissioner?
a. Issue an insurance license for a producer
b. Make state insurance laws
c. Handle insurance-related consumer complaints
d. Enforce state insurance laws: b. Make state insurance laws
2. 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: Defamation
3. 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?: 7 years
4. 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.: b. health insurance policies in force
5. 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: a. 3 days
6. 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?: cross out the incorrect information, write in the correct answer, and have
the applicant initial the change.
7. 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 suspend coverage after an insured's disability temporarily.: b. it
would not occur in a deferred annuity.
8. 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: C. beneficiary's consent
9. 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.: 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.
10. 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.: a.
Policy loans can be made on policies that do not accumulate cash value
11. 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.
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.: b. It
allows the insured to reject the policy with a full refund.
12. All of the following are dividend options EXCEPT
a. reduction of premium
b. paid-up addiction
c. fixed period installments
d. accumulated at interest: c. fixed period installments
13. To what organization must all admitted insurers belong?
