MLAHP - Minnesota Life Accident and Health Producer Exam

Question 1: A permanent policy credits interest to its accumulation value according to the movement of a broad stock market index, while promising that the rate credited will never fall below zero in a losing year. Which product is being described?

Variable whole life insurance

Modified premium whole life

Adjustable life insurance

Equity-indexed universal life

Question 2: A retiree receives an inheritance and buys a permanent policy outright with one payment at issue, so that this deposit plus its interest earnings covers every future cost of keeping the contract in force. Which policy has the retiree purchased?

Continuous premium whole life

Single premium whole life

Annually renewable term

Modified premium whole life

Question 3: Two permanent policies both hold their values in separate accounts. After years of poor investment results, one of them can terminate because the account no longer covers monthly insurance charges, while the other still owes at least the original face amount. Which statement is accurate?

Both contracts guarantee the original face amount

Variable whole life can lapse this way

Neither contract can ever lapse

Variable universal life guarantees no minimum

Question 4: A policyowner asks her producer whether paying her life premium monthly, quarterly, semi-annually or annually changes the total amount she gives the insurer over the course of a year. Which answer correctly states the effect of the mode she selects?

Annual payment produces the lowest total

All four modes cost exactly alike

Monthly payment produces the lowest total

Quarterly payment produces the lowest total

Question 5: A retiree hands an insurer a lump sum from the sale of her business and wants income to begin as soon as the contract allows, with the first check arriving one payment interval later. Which annuity fits this purchase?

Flexible premium deferred annuity

Level premium deferred annuity

Single premium immediate annuity

Single premium deferred annuity

Question 6: A permanent policy charges the same level premium every year from purchase until the insured dies or the contract matures at age one hundred. This form is also called straight life or ordinary life. Which type of whole life is it?

Limited-payment whole life

Single premium whole life

Modified premium whole life

Continuous premium whole life

Question 7: A client wants lifetime protection but needs to pay more in profitable years and less when income drops, and understands the contract runs on its cash value rather than a set premium bill each year. Which policy design fits this client best?

Continuous premium whole life

Universal life insurance

Twenty-year level term insurance

Single premium whole life

Question 8: A universal life policyowner selects a death benefit design under which the amount payable at death stays equal to the face amount no matter how large the cash account grows over the years. Which death benefit option has been selected?

Option B, the increasing death benefit

The corridor of additional protection

The cost of insurance deduction

Option A, the level death benefit

Question 9: A bank sponsors a group life plan covering the people who owe it money. The amount of coverage on each borrower is limited to that borrower's outstanding loan balance, and the bank is automatically the beneficiary. Which coverage is described here?

Group credit life insurance

Association group life insurance

Multiple employer trust coverage

Home service life insurance

Question 10: An annuitant with no dependents wants the largest monthly income the insurer will guarantee for as long as he lives, and he accepts that payments end at his death with nothing going to anyone else. Which payout option fits?

Life with ten-year period certain

Straight life income

Joint and survivor life

Installment refund life income

Question 11: A client buys a twenty-year policy on which the death benefit stays at the same face amount for the whole twenty years and the premium charged also stays the same each year until the term ends. Which type of term coverage is described?

Level term insurance

Decreasing term insurance

Increasing term insurance

Return of premium term insurance

Question 12: A permanent policy keeps a fixed, level death benefit and a fixed schedule of premium due dates, but the insurer may credit excess current interest so that the cash value climbs above the guaranteed amount. Which policy is being described?

Variable universal life

Interest-sensitive whole life

Twenty-pay whole life

Decreasing term insurance

Question 13: A policy written many years ago carries a face amount of two thousand dollars or less, was often bought to cover burial costs, and had premiums collected weekly by a producer calling at the home. Which class of life insurance is described?

Group credit life insurance

Juvenile life insurance

Home service life insurance

Industrial life insurance

Question 14: A woman applies for and owns a life policy on her husband's life, naming their daughter to receive the proceeds. In identifying who the parties to this insurance contract actually are, which one of the following statements is correct?

The daughter is the third party

Only the insurer is a party

The daughter is not a party

The husband is not a party

Question 15: A permanent policy written on a seven-year-old child provides that the face amount automatically multiplies when the child reaches age twenty-one, with no increase in the premium the family pays. Which of the following juvenile arrangements does this describe?

Industrial life insurance

A survivorship life policy

A joint life policy

A jumping juvenile policy

Question 16: An insured who bought a whole life policy decades ago is still living when the contract reaches its stated maturity date. The policy has not been surrendered and no loan is outstanding. Which statement best describes what happens at that point?

Coverage continues with no further premium

The insurer refunds all premiums paid

Cash value is paid to the policyowner

The face amount passes to the beneficiary

Question 17: A policyowner wants a single permanent contract that allows the face amount, the premium and the length of the protection period to be changed as family circumstances shift, without ever exchanging one policy for another. Which policy provides that?

Level term with a conversion privilege

Adjustable life insurance

Single premium whole life

Joint life insurance

Question 18: A policyowner converts a term contract to whole life and elects to have the new premium based on the age at which the original term policy was written rather than his current age. Besides the lower ongoing premium, what does this election require of him?

A completed application and medical exam

Written consent from the term insurer

A lump-sum payment covering foregone cash value

Proof that the term policy never lapsed

Question 19: An insurer holds the premiums paid on its variable products in a fund kept apart from the assets supporting its fixed products, using that fund to buy the stocks, bonds and mutual funds the contracts offer. Which term names that fund?

The separate account

The general account

The accumulation corridor

The reserve for net amount at risk

Question 20: A retired couple wants annuity income to keep coming to whichever spouse lives longer, at a reduced amount after the first death so the checks are larger while both are alive. A producer suggests a joint life annuity. Which response is best?

Joint life matches the couple's request

Joint life pays the smallest monthly income

Joint and survivor life is correct instead

Straight life allows a reduced survivor benefit

MLAHP Minnesota Life Accident and Health Producer Exam - Set 2 - Part 1

Question 1: A permanent policy credits interest to its accumulation value according to the movement of a broad stock market index, while promising that the rate credited will never fall below zero in a losing year. Which product is being described?

Question 2: A retiree receives an inheritance and buys a permanent policy outright with one payment at issue, so that this deposit plus its interest earnings covers every future cost of keeping the contract in force. Which policy has the retiree purchased?

Question 3: Two permanent policies both hold their values in separate accounts. After years of poor investment results, one of them can terminate because the account no longer covers monthly insurance charges, while the other still owes at least the original face amount. Which statement is accurate?

Question 4: A policyowner asks her producer whether paying her life premium monthly, quarterly, semi-annually or annually changes the total amount she gives the insurer over the course of a year. Which answer correctly states the effect of the mode she selects?

Question 5: A retiree hands an insurer a lump sum from the sale of her business and wants income to begin as soon as the contract allows, with the first check arriving one payment interval later. Which annuity fits this purchase?

Question 6: A permanent policy charges the same level premium every year from purchase until the insured dies or the contract matures at age one hundred. This form is also called straight life or ordinary life. Which type of whole life is it?

Question 7: A client wants lifetime protection but needs to pay more in profitable years and less when income drops, and understands the contract runs on its cash value rather than a set premium bill each year. Which policy design fits this client best?

Question 8: A universal life policyowner selects a death benefit design under which the amount payable at death stays equal to the face amount no matter how large the cash account grows over the years. Which death benefit option has been selected?

Question 9: A bank sponsors a group life plan covering the people who owe it money. The amount of coverage on each borrower is limited to that borrower's outstanding loan balance, and the bank is automatically the beneficiary. Which coverage is described here?

Question 10: An annuitant with no dependents wants the largest monthly income the insurer will guarantee for as long as he lives, and he accepts that payments end at his death with nothing going to anyone else. Which payout option fits?

Question 11: A client buys a twenty-year policy on which the death benefit stays at the same face amount for the whole twenty years and the premium charged also stays the same each year until the term ends. Which type of term coverage is described?

Question 12: A permanent policy keeps a fixed, level death benefit and a fixed schedule of premium due dates, but the insurer may credit excess current interest so that the cash value climbs above the guaranteed amount. Which policy is being described?

Question 13: A policy written many years ago carries a face amount of two thousand dollars or less, was often bought to cover burial costs, and had premiums collected weekly by a producer calling at the home. Which class of life insurance is described?

Question 14: A woman applies for and owns a life policy on her husband's life, naming their daughter to receive the proceeds. In identifying who the parties to this insurance contract actually are, which one of the following statements is correct?

Question 15: A permanent policy written on a seven-year-old child provides that the face amount automatically multiplies when the child reaches age twenty-one, with no increase in the premium the family pays. Which of the following juvenile arrangements does this describe?

Question 16: An insured who bought a whole life policy decades ago is still living when the contract reaches its stated maturity date. The policy has not been surrendered and no loan is outstanding. Which statement best describes what happens at that point?

Question 17: A policyowner wants a single permanent contract that allows the face amount, the premium and the length of the protection period to be changed as family circumstances shift, without ever exchanging one policy for another. Which policy provides that?

Question 18: A policyowner converts a term contract to whole life and elects to have the new premium based on the age at which the original term policy was written rather than his current age. Besides the lower ongoing premium, what does this election require of him?

Question 19: An insurer holds the premiums paid on its variable products in a fund kept apart from the assets supporting its fixed products, using that fund to buy the stocks, bonds and mutual funds the contracts offer. Which term names that fund?

Question 20: A retired couple wants annuity income to keep coming to whichever spouse lives longer, at a reduced amount after the first death so the checks are larger while both are alive. A producer suggests a joint life annuity. Which response is best?

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