MLAHP - Minnesota Life Accident and Health Producer Exam

Question 21: A contract owner has been depositing money into a deferred annuity for eleven years, earning tax-deferred interest, and no income payments have started yet. The owner may still add deposits, take withdrawals, or surrender the contract. Which phase of the annuity does this describe?

The annuitization period

The payout period

The period certain

The accumulation period

Question 22: A manufacturer sponsors group life coverage for its workers. The insurer issues one contract to the manufacturer, and each enrolled worker receives a document showing a summary of benefits, a certificate number and the beneficiary named. Which document does the worker hold?

The master policy

An individual life insurance policy

A certificate of insurance

A certificate of policy

Question 23: A homeowner wants coverage that pays off the remaining balance of a thirty-year mortgage if death occurs, so the face amount should shrink toward zero as the loan is repaid while the premium stays the same. Which term form fits?

Decreasing term insurance

Level term to age sixty-five

Annually renewable term insurance

Single premium whole life insurance

Question 24: Every valid contract requires an exchange of value. In a life insurance policy, one clause identifies what the applicant must give in return for the insurer's promise to pay the face amount. Which one of these clauses carries that identification?

The entire contract clause

The insuring clause

The ownership clause

The consideration clause

Question 25: A universal life policy with a level death benefit has accumulated cash value so large in relation to the face amount that the insurer automatically raises the amount of pure protection to keep the contract qualified. Which term names that automatic increase?

The cost of insurance deduction

The net amount at risk

The corridor

The increasing death benefit option

Question 26: A father worries that his son will squander a large death benefit and that the son's creditors will seize it. The policy requires proceeds to be paid in set monthly installments the son cannot borrow against or assign. Which provision applies?

The facility of payment provision

The spendthrift provision

The fixed amount settlement option

The interest only settlement option

Question 27: A policyowner stops paying premiums and elects a nonforfeiture option that uses the guaranteed cash value as a single premium to buy a smaller amount of whole life coverage at his attained age, payable whenever he dies. Which option did he elect?

Reduced paid-up insurance

Extended term insurance

Cash surrender value

One-year term insurance

Question 28: A corporation owns a policy on a key employee and is also the beneficiary. That employee resigns, and the company wants the same face amount to continue on a replacement employee instead. Which rider allows the company to make that change?

The other-insured term rider

The guaranteed insurability rider

The exchange privilege rider

The accelerated death benefit rider

Question 29: A long-term care rider is attached to a permanent life policy so that benefits paid for nursing home care will not touch the life policy's face amount or its cash value. Which description fits the arrangement this policyowner has chosen?

The integrated approach

An accelerated benefit for terminal illness

A payor benefit arrangement

The independent approach

Question 30: A disabled owner of a flexible premium universal life policy has a disability waiver benefit in force. Rather than waiving a scheduled premium payment, this benefit suspends a different charge instead. Which charge does that version of the benefit suspend?

Interest charged on outstanding policy loans

Monthly deductions from the cash account

Surrender charges on partial withdrawals

Federal income tax on policy gains

Question 31: Fourteen months after letting his whole life policy lapse for nonpayment, an owner asks to put the original contract back in force rather than buy a new one. Which set of conditions must he satisfy for the insurer to restore it?

Back premiums only, with no other requirement

Evidence of insurability only

A new application at his current age

Back premiums with interest and insurability evidence

Question 32: An insured holding a guaranteed insurability rider is three years away from her next scheduled option date when she adopts a child. She asks whether she may use an option now rather than waiting. Which statement is correct?

She must wait for the scheduled date

She must furnish evidence of insurability

Adoption lets her advance the option date

The rider ends when a child arrives

Question 33: A policyowner asks for a rider that will send him a monthly check if he becomes disabled, with the amount tied to the face value of his life policy under an industry standard of one percent. Which rider does that?

Disability income rider

Waiver of premium rider

Accelerated death benefit rider

Long-term care rider

Question 34: A rider attached to a permanent policy pays an additional death benefit equal to the total premiums paid for the rider and the base policy, although no actual premium dollars are handed back. Which rider works in that manner?

The accidental death benefit rider

The return of premium rider

The waiver of premium rider

The accelerated death benefit rider

Question 35: An insured misses the premium due on the first of the month and then dies eleven days later, before any payment has been made. The policy has not yet lapsed. Which of these describes how the insurer settles the death claim?

The benefit less the overdue premium

No benefit is payable at all

The full face amount is paid

Only the premiums paid are refunded

Question 36: An applicant for life insurance races cars on weekends and also works as a commercial diver. The insurer is unwilling to accept that risk on standard terms but does not want to turn the case down. Which responses are open to it?

Shorten the contestable period instead

Waive the entire contract provision

Charge extra premium or limit coverage

Require a collateral assignment of benefits

Question 37: When an insured dies, the insurer learns that he understated his age by ten years on the application, so the premium charged was too low for his true age. Which action does the misstatement of age provision direct the insurer to take?

Deny the claim as a misrepresentation

Reduce the benefit to the amount purchased

Pay the full face amount anyway

Collect the shortfall from the beneficiary

Question 38: A father transfers to his adult daughter every right he holds in a life policy on his own life, permanently and without condition, so that she becomes the policyowner. Which term describes what the father has done in this transaction?

A collateral assignment

A policy loan

A reinstatement of coverage

An absolute assignment

Question 39: An insured carries an accidental death and dismemberment rider with a principal sum of one hundred thousand dollars. He survives the accident but loses one hand. Which amount and which label describe the benefit payable for that single loss?

The capital sum, one-half the principal

The full principal sum, paid at death

The corridor amount, paid immediately

The full principal sum, then doubled

Question 40: An insured dies and the named beneficiary cannot be located after a diligent search. A cousin has already paid the insured's funeral bill. The insurer pays part of the benefit to that cousin. Which provision permitted the insurer to do so?

The common disaster provision