MLAHP - Minnesota Life Accident and Health Producer Exam

Question 1: A proposed insured asks to read everything the producer submitted with his application, including the section where the producer described his impressions. The producer explains how that section is handled. Which statement about the producer's report is accurate here?

The insured does not see it

It is attached to the issued policy

The applicant must sign it too

It replaces Part Two of the application

Question 2: A producer orders business cards bearing the insurer's logo, sets up client appointments, delivers sales presentations and helps applicants complete forms. None of these acts appears in her written contract, yet all are customary. Which authority permits her to do them?

Express authority

Statutory authority

Apparent authority

Implied authority

Question 3: An insurer's name hangs on the sign outside a producer's office, and the producer regularly takes applications for that company. A customer assumes the producer speaks for the insurer in every dealing. Which authority does that assumption rest on?

Express authority

Implied authority

Apparent authority

Delegated underwriting authority

Question 4: One kind of receipt puts coverage in place for a fixed window of thirty to sixty days from the application date, and it does so even if the company later finds the applicant uninsurable. Which receipt works that way?

The conditional receipt

The premium deposit receipt

The delivery receipt

The binding receipt

Question 5: An application marked as involving replacement reaches the home office of the company issuing the new coverage. Which of the following actions does that company take with respect to the carrier that already insures the applicant under the older contract?

It notifies the existing insurer of replacement

It bills the older carrier for expenses

It takes over the older policy reserves

It cancels the older policy on request

Question 6: A producer finishes an application and must decide whether to ask for the first premium now or wait until the policy arrives. The client wants protection as soon as possible. Which of the following supports collecting the premium immediately?

It removes the need for underwriting

It is the quickest route to coverage

It guarantees the policy will be issued

It shortens the contestable period

Question 7: Sitting with a new client, a producer must explain in advance and in writing who may disclose the client's personal information, what kinds of information may be released, and why it is being collected. Which of the following does the client's signature then provide?

Consent to gather and share that information

Proof the first premium was paid

A guarantee that coverage will be issued

A waiver of the medical examination

Question 8: A producer collects the initial premium and leaves a receipt promising coverage from the application date, but only if the company's underwriters reach a particular conclusion about the proposed insured. Which conclusion must they reach for coverage to exist?

He has paid two full premiums

He has no prior insurance elsewhere

He signed a good health statement

He is insurable at standard rates

Question 9: Before signing, a client wants to see the premium, the death benefit and the accumulated values of the coverage she already owns set beside the same figures for the contract being proposed. Which item is designed to place that information side by side?

The buyer's guide

The signed delivery receipt

The comparison statement

The free look provision

Question 10: Along with the applicant's answers, a life insurer wants the producer's own account of how long he has known the proposed insured and what he knows of that person's finances, habits and character. Where is this information recorded on the application?

In Part Three, the producer's report

In the attending physician's statement

In an investigative consumer report

In Part Two, health information

Question 11: An applicant signs the paperwork but tells the producer he will pay when the policy is delivered. Three weeks later, while the file is still in underwriting, the man dies in a car accident. Which of the following results?

The full death benefit is paid

A prorated death benefit is paid

No benefit is payable at all

The beneficiary receives the premium refund

Question 12: A producer deposits client premium payments into the same checking account he uses for household expenses, intending to write one check to the insurer at the end of each month. Which term names the fiduciary violation that this arrangement represents?

Commingling

Rebating

Twisting

Defamation

Question 13: An applicant paid with her application on the third of the month and completed the medical examination the company required on the tenth. She holds a conditional receipt and is later found insurable. When does her coverage take effect?

On the application date, the third

On the examination date, the tenth

On the date the policy is delivered

On the date the insurer approves her

Question 14: A producer's written agency agreement states that she may bind life coverage of up to one hundred thousand dollars. She writes a policy for one hundred five thousand dollars. Which kind of authority did the producer exceed by doing that?

Implied authority

Apparent authority

Express authority

Fiduciary authority

Question 15: A producer tells an applicant that a health policy will cover a condition, submits the application late, and never explains an exclusion. The client suffers an uncovered loss and sues. Which exposure does this pattern of conduct best illustrate?

Errors and omissions liability

Adverse selection by the insurer

A speculative risk assumed by clients

A morale hazard created by coverage

Question 16: A woman paid the initial premium and holds a conditional receipt. Underwriting develops information showing she is a substandard risk rather than a standard one, and she dies before any policy is issued. Which of the following occurs?

The full death benefit is paid

A reduced death benefit is paid

The insurer must issue a rated policy

No coverage exists and premium is refunded

Question 17: A producer learns during the sales interview that the applicant intends to drop an existing health policy once the new one is issued. Which step is the producer expected to take at or before the time the application is taken?

Give the applicant a signed replacement notice

Wait until the new policy is delivered

Ask the existing insurer for permission

Cancel the old policy immediately

Question 18: A prospect asks for something that explains in plain language how life insurance works and what the different kinds of policies do, along with a document showing the premiums, values and benefits of the specific contract proposed. Which pair of documents serves those two purposes?

The application and the producer's report

The delivery receipt and the free look

The replacement notice and the rate card

The buyer's guide and the policy summary

Question 19: Over one weekend a producer moves eleven of his clients out of policies they hold with his own company and into new contracts from the same company, funding each purchase with the cash value of the old contract. Which practice does this describe?

Twisting

Churning

Reinstatement

Conservation

Question 20: A client aged sixty-two is thinking about surrendering a policy issued twelve years ago to buy a similar new one. Which of the following consequences of that change should the producer bring to the client's attention before the sale is completed?

The old policy's issue age still applies

The contestable period stays where it was

The new policy pays dividends immediately

A new contestable period starts over

MLAHP Minnesota Life Accident and Health Producer Exam - Set 3 - Part 1

Question 1: A proposed insured asks to read everything the producer submitted with his application, including the section where the producer described his impressions. The producer explains how that section is handled. Which statement about the producer's report is accurate here?

Question 2: A producer orders business cards bearing the insurer's logo, sets up client appointments, delivers sales presentations and helps applicants complete forms. None of these acts appears in her written contract, yet all are customary. Which authority permits her to do them?

Question 3: An insurer's name hangs on the sign outside a producer's office, and the producer regularly takes applications for that company. A customer assumes the producer speaks for the insurer in every dealing. Which authority does that assumption rest on?

Question 4: One kind of receipt puts coverage in place for a fixed window of thirty to sixty days from the application date, and it does so even if the company later finds the applicant uninsurable. Which receipt works that way?

Question 5: An application marked as involving replacement reaches the home office of the company issuing the new coverage. Which of the following actions does that company take with respect to the carrier that already insures the applicant under the older contract?

Question 6: A producer finishes an application and must decide whether to ask for the first premium now or wait until the policy arrives. The client wants protection as soon as possible. Which of the following supports collecting the premium immediately?

Question 7: Sitting with a new client, a producer must explain in advance and in writing who may disclose the client's personal information, what kinds of information may be released, and why it is being collected. Which of the following does the client's signature then provide?

Question 8: A producer collects the initial premium and leaves a receipt promising coverage from the application date, but only if the company's underwriters reach a particular conclusion about the proposed insured. Which conclusion must they reach for coverage to exist?

Question 9: Before signing, a client wants to see the premium, the death benefit and the accumulated values of the coverage she already owns set beside the same figures for the contract being proposed. Which item is designed to place that information side by side?

Question 10: Along with the applicant's answers, a life insurer wants the producer's own account of how long he has known the proposed insured and what he knows of that person's finances, habits and character. Where is this information recorded on the application?

Question 11: An applicant signs the paperwork but tells the producer he will pay when the policy is delivered. Three weeks later, while the file is still in underwriting, the man dies in a car accident. Which of the following results?

Question 12: A producer deposits client premium payments into the same checking account he uses for household expenses, intending to write one check to the insurer at the end of each month. Which term names the fiduciary violation that this arrangement represents?

Question 13: An applicant paid with her application on the third of the month and completed the medical examination the company required on the tenth. She holds a conditional receipt and is later found insurable. When does her coverage take effect?

Question 14: A producer's written agency agreement states that she may bind life coverage of up to one hundred thousand dollars. She writes a policy for one hundred five thousand dollars. Which kind of authority did the producer exceed by doing that?

Question 15: A producer tells an applicant that a health policy will cover a condition, submits the application late, and never explains an exclusion. The client suffers an uncovered loss and sues. Which exposure does this pattern of conduct best illustrate?

Question 16: A woman paid the initial premium and holds a conditional receipt. Underwriting develops information showing she is a substandard risk rather than a standard one, and she dies before any policy is issued. Which of the following occurs?

Question 17: A producer learns during the sales interview that the applicant intends to drop an existing health policy once the new one is issued. Which step is the producer expected to take at or before the time the application is taken?

Question 18: A prospect asks for something that explains in plain language how life insurance works and what the different kinds of policies do, along with a document showing the premiums, values and benefits of the specific contract proposed. Which pair of documents serves those two purposes?

Question 19: Over one weekend a producer moves eleven of his clients out of policies they hold with his own company and into new contracts from the same company, funding each purchase with the cash value of the old contract. Which practice does this describe?

Question 20: A client aged sixty-two is thinking about surrendering a policy issued twelve years ago to buy a similar new one. Which of the following consequences of that change should the producer bring to the client's attention before the sale is completed?

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