MN INSURANCE TEST PAPER 2025/2026 ALL
QUESTIONS AND SOLUTIONS GRADED A+ TIP
✔✔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.
✔✔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
✔✔To what organization must all admitted insurers belong?
a. the Minnesota Insurance Guaranty Fund
b. The Minnesota Association of Insurers
c. The insurance Guaranty Association
d. The National Association of Insurance Commissioner (NAIC) - ✔✔c. The Insurance
Guaranty Association
✔✔When is the earliest a policy may go into effect?
a. When the first premium is paid and the policy has been delivered.
b. When the insurer approves the application
c. After the underwriter reviews the policy
d. When the application is signed and a check is given to the agent. - ✔✔d. When the
application is signed and a check is given to the agent.
✔✔What is the purpose of a conditional receipt?
a. it serves as proof that the applicant has been determined insurable.
b. it is given only to applicants who fully prepay the premium.
c. It is intended to provide coverage on a date prior to the policy issue.
d. it guarantees that a policy will be issued in the amount applied for. - ✔✔c. It is
intended to provide coverage on a date prior to the policy issue.
✔✔A license Minnesota insurance producer must notify the Commissioner of a change
of address within
,a. 10 days
b. 30 days
c. 5 business days
d. 7 days - ✔✔a. 10 days
✔✔Initial amount of credit life insurance does NOT exceed - - ✔✔The amount repaid
under the contract
✔✔Contracts prepared under one party on a take it or leave it are classified as - -
✔✔Contracts of Adhesion
✔✔Purpose of conditional receipt - - ✔✔Intended to provide coverage prior to policy
issue.
✔✔In an annuity, accumulated money is converted into a stream of income during -
✔✔Annuitization Period
✔✔If the producer's license lapses, how much time to apply for reinstatement without
taking exam? - ✔✔12 months
✔✔In Minnesota, policy issued without containing, bold-face type, the policy owner's
right to cancel (free look), to get full refund, the policy must be return within - ✔✔1 year
✔✔Accumulation at interest option except - ✔✔The interest is not taxable since it
remains inside the insurance policy
✔✔Life settlement broker represents - ✔✔The owner
✔✔Another name for interest-sensitive whole life insurance - ✔✔Current assumption life
✔✔Under the nonforfeiture option, the policy cash value is converted to - ✔✔Same face
amount as the whole life policy
✔✔Not a power given to the commissioner - ✔✔Set the insurance rate to be charged
✔✔Example of liquidity in life insurance - ✔✔Cash value available to policyowner
✔✔The insured can return the policy for a full refund if the insured is dissatisfied with
the policy. - ✔✔Free-look period
✔✔If the consumer challenges the accuracy of the information contained in the
consumer or investigative report, the reporting agency must - ✔✔Respond to the
consumer's complaint
, ✔✔Statements are true regarding installments for a fixed amount except - ✔✔Payment
stops when the annuitant dies
✔✔Change need to make to the application for insurance, the agent may do all the
following except - ✔✔Erase the incorrect answer and record the correct answer
✔✔In which instances would the premium be tax deductible - ✔✔Premium paid by an
employer on 30,000 group term life insurance plans for employees
✔✔insurance policy provides insurance protection for the life of the insured and matures
at the insured's age 100 - ✔✔Single premium whole life
✔✔Which riders covered expenses incurred in nursing or convalescent home? -
✔✔Long term care
✔✔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
QUESTIONS AND SOLUTIONS GRADED A+ TIP
✔✔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.
✔✔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
✔✔To what organization must all admitted insurers belong?
a. the Minnesota Insurance Guaranty Fund
b. The Minnesota Association of Insurers
c. The insurance Guaranty Association
d. The National Association of Insurance Commissioner (NAIC) - ✔✔c. The Insurance
Guaranty Association
✔✔When is the earliest a policy may go into effect?
a. When the first premium is paid and the policy has been delivered.
b. When the insurer approves the application
c. After the underwriter reviews the policy
d. When the application is signed and a check is given to the agent. - ✔✔d. When the
application is signed and a check is given to the agent.
✔✔What is the purpose of a conditional receipt?
a. it serves as proof that the applicant has been determined insurable.
b. it is given only to applicants who fully prepay the premium.
c. It is intended to provide coverage on a date prior to the policy issue.
d. it guarantees that a policy will be issued in the amount applied for. - ✔✔c. It is
intended to provide coverage on a date prior to the policy issue.
✔✔A license Minnesota insurance producer must notify the Commissioner of a change
of address within
,a. 10 days
b. 30 days
c. 5 business days
d. 7 days - ✔✔a. 10 days
✔✔Initial amount of credit life insurance does NOT exceed - - ✔✔The amount repaid
under the contract
✔✔Contracts prepared under one party on a take it or leave it are classified as - -
✔✔Contracts of Adhesion
✔✔Purpose of conditional receipt - - ✔✔Intended to provide coverage prior to policy
issue.
✔✔In an annuity, accumulated money is converted into a stream of income during -
✔✔Annuitization Period
✔✔If the producer's license lapses, how much time to apply for reinstatement without
taking exam? - ✔✔12 months
✔✔In Minnesota, policy issued without containing, bold-face type, the policy owner's
right to cancel (free look), to get full refund, the policy must be return within - ✔✔1 year
✔✔Accumulation at interest option except - ✔✔The interest is not taxable since it
remains inside the insurance policy
✔✔Life settlement broker represents - ✔✔The owner
✔✔Another name for interest-sensitive whole life insurance - ✔✔Current assumption life
✔✔Under the nonforfeiture option, the policy cash value is converted to - ✔✔Same face
amount as the whole life policy
✔✔Not a power given to the commissioner - ✔✔Set the insurance rate to be charged
✔✔Example of liquidity in life insurance - ✔✔Cash value available to policyowner
✔✔The insured can return the policy for a full refund if the insured is dissatisfied with
the policy. - ✔✔Free-look period
✔✔If the consumer challenges the accuracy of the information contained in the
consumer or investigative report, the reporting agency must - ✔✔Respond to the
consumer's complaint
, ✔✔Statements are true regarding installments for a fixed amount except - ✔✔Payment
stops when the annuitant dies
✔✔Change need to make to the application for insurance, the agent may do all the
following except - ✔✔Erase the incorrect answer and record the correct answer
✔✔In which instances would the premium be tax deductible - ✔✔Premium paid by an
employer on 30,000 group term life insurance plans for employees
✔✔insurance policy provides insurance protection for the life of the insured and matures
at the insured's age 100 - ✔✔Single premium whole life
✔✔Which riders covered expenses incurred in nursing or convalescent home? -
✔✔Long term care
✔✔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
