MN LIFE ACCIDENT HEALTH PRODUCER

MN LIFE ACCIDENT & HEALTH PRODUCER EXAM Latest Update - 160 Questions and 100% Verified Correct Answers Guaranteed A+

1935 Agent Disclosure Law - CORRECT ANSWER: - producers name

• insurance company
• intent to sell business

30 day free look period - CORRECT ANSWER: only for replacement polices

401 (K) Plans - CORRECT ANSWER: - for profit organizations

• pre tax basis contributions
• tax deferred interest & return on investments
• taxed as income withdrawals
• contributions made by employer are voluntary, employees can contribute

403 (b) plans - CORRECT ANSWER: - non profit organizations

• pre tax basis contributions
• tax deferred interest & return on investments
• taxed as income withdrawals
• contributions made by employer are voluntary, employees can contribute

absolute assignment - CORRECT ANSWER: used to permanently transfer ownership of

the policy to another

Accelerated Death Benefit/ Living Benefits Rider - CORRECT ANSWER: if the insured is diagnosed w/ a terminal illness, the insurer pays a % of the death benefit while insured is still alive 1 / 3

• death benefit will be reduced by the amt. paid before death

Accidental death & dismemberment (AD &D) Limited coverage - CORRECT ANSWER:

Principal sum: the amount paid when the insured dies an accidental death

Capital sum: the amount paid when the insured suffers an accidental dismember-ship.

Accidental death rider/ Multiple indemnity rider - CORRECT ANSWER: - if insured dies bc of accident, the insurance co will pay the beneficiary an additional death benefit

• Additional benefit if cause of death is accidental/ dead 90 days from accident
• expires around age 65

ADL'S - CORRECT ANSWER: Bathing, dressing, eating, tilting, transferring, continence

administrative action taken against producers by another gov agency - CORRECT

ANSWER: notification within 30 days of the final deposition

Adverse selection - CORRECT ANSWER: those with high risk situations attempt to

purchase insurance before those with average or below- avg. risk

annually renewable (term insurance) - CORRECT ANSWER: - term insurance sets the

term of coverage as one year -may renew every year w/o evidence of insurability

• higher upon renewal

death benefit decreases

Annuity payment options - CORRECT ANSWER: period certain, fixed dollar, pure life income, join life income, joint & survivor life income

apparent authority - CORRECT ANSWER: powers NOT given by the agency

agreement, but that a reasonable person would presume the agent has

• / 3

Assignment clause - CORRECT ANSWER: allows the policy owner to designate a new

owner by filing an appropriate form with the company, then the assignee becomes new policy owner

Automatic premium loans - CORRECT ANSWER: -allows insurance company to deduct

unpaid premiums from policies cash value if they have not been received by the end of the grace period

Aviation exclusions` - CORRECT ANSWER: - if private pilot, death benefit won't be paid if died in an aviation accident

bailout provision - CORRECT ANSWER: allows the owner of the annuity to surrender the annuity without surrender charges if the current interest rate drops below a certain level

Boycott, coercion & intimidation - CORRECT ANSWER: any act of these listed that result in an unreasonable restraint of trade

Certificate of Insurance - CORRECT ANSWER: - used after policy is issued

• contains summary of policy coverage & limits
• required in loan transactions and other matters

change of address - CORRECT ANSWER: 10 days of name or address to notify

commissioner

Children Term rider - CORRECT ANSWER: Allows children of insured to be added to

coverage

• level term insurance

COBRA - CORRECT ANSWER: - Employees who lose their jobs

• can reside under policy for 18 month
• by paying 102% of the actual group rate
• / 3