MLAHP - Minnesota Life Accident and Health Producer Exam

Question 21: A producer submits an application on which two health questions were left blank because the applicant could not remember the dates. The home office cannot act on the file as submitted. What is the immediate practical consequence for the applicant?

Underwriting is delayed and protection postponed

The application is automatically declined

Coverage begins at standard rates anyway

The producer's appointment is suspended

Question 22: At the delivery appointment the policyowner mentions that she was hospitalized for chest pain two weeks after applying, and no premium was paid with the application. Which action should the producer take regarding the policy contract he brought with him?

Deliver it and note the hospitalization

Withhold delivery and notify the insurer

Deliver it after collecting a higher premium

Deliver it once she waives the claim

Question 23: An applicant is uninsurable only because of one chronic knee condition; the rest of the file is clean. Rather than decline him or charge extra premium, the company issues the policy with an attachment removing coverage for that condition. Which describes the attachment?

A rated-up policy endorsement

A waiver of premium rider

A conditional receipt limitation

An impairment or exclusion rider

Question 24: Two applicants of the same age apply on the same day. One requests a modest face amount and is underwritten on the information in the application; the other must see a physician for stress testing. Which factor drove the difference?

The beneficiary designation chosen

The amount of death benefit applied for

The applicant's marital status

The applicant's state of residence

Question 25: Member insurers submit coded entries about unfavorable findings such as hazardous hobbies, poor driving records and medical history to a non-profit trade association, where other member companies can retrieve them during later applications. Which of the following is that organization?

A consumer reporting agency

The National Association of Insurance Commissioners

The Medical Information Bureau

A reinsurance pool

Question 26: While reviewing an application that mentions ongoing treatment for high blood pressure, an underwriter writes to the doctor who has treated the proposed insured for years and requests a summary of that history. Which document has the underwriter ordered?

An attending physician's statement

A paramedical examination report

An investigative consumer report

A Medical Information Bureau code

Question 27: An applicant sent in an application with the standard premium, was later rated substandard, and agreed at the delivery meeting to pay the extra premium the company required. Which of the following dates becomes the effective date of coverage under these facts?

The original application date

The date the policy was delivered

The date underwriting was completed

The date of the medical examination

Question 28: An applicant for a large death benefit is told the company wants blood work and an electrocardiogram before it will make a decision. He asks who will be billed for the testing the insurer has requested. Which answer is correct?

The applicant pays the testing costs

The producer pays from earned commission

The insurer pays for the testing

Costs are split between applicant and insurer

Question 29: A prospect mails in a fully completed application for term insurance but attaches no money. The company reviews the file and issues the policy. Under general contract principles, which of the following describes who made the offer and how it is accepted?

The prospect offered; issuing accepted it

Both parties offered at the same time

No offer exists until underwriting finishes

The insurer offered; paying premium accepts it

Question 30: At the delivery appointment a producer sits down with the policyowner and goes through the contract page by page, covering the riders attached, the exclusions listed, and any rating applied. Which purpose does this review primarily serve for the owner?

It confirms the owner understands the coverage

It replaces the written contract terms

It extends the contestable period

It waives exclusions the owner dislikes

Question 31: A bank asks to purchase life coverage on a borrower who owes it a large commercial loan, while a neighbor separately asks to insure the man next door. An underwriter reviews both requests. Which of the following best describes the outcome?

Both requests satisfy insurable interest

Neither request satisfies insurable interest

Only the bank's request qualifies

Only the neighbor's request qualifies

Question 32: An insurer issues a life policy although one application question about prior hospital admissions was left blank and never followed up. A claim is later filed, and the insurer wants to deny it because that answer was missing. What is the result?

The insurer may rescind the policy

The claim is denied for concealment

The producer must reimburse the insurer

The insurer waived that missing information

Question 33: A whole life contract is handed to the owner on the fifteenth of the month, though the policy carries an issue date earlier in the month. The owner wants to know when the period for returning the contract for a full refund begins. Which answer is correct?

On the policy issue date

On the date the application was signed

On the date the owner receives it

On the first premium due date

Question 34: An insurer places an issued life policy in the mail addressed to the policyowner and keeps no ability to recall it. The owner has not yet opened the envelope. Which of the following describes what has occurred under general delivery principles?

Delivery is void until opened

Delivery waits for a signed receipt

No delivery occurs without a producer

Constructive delivery has taken place

Question 35: During underwriting a company obtains a report showing how consistently an applicant has paid monthly obligations, on the theory that premium payment habits matter because a life policy takes years to become profitable. Which type of report was obtained?

An attending physician's statement

A consumer report

An inspection report from neighbors

A Medical Information Bureau search

Question 36: An applicant deliberately hides a recent heart attack, and the company later proves the omission and refuses the claim. Which principle BEST explains why the company is entitled to treat the applicant's conduct as destroying its obligation under the contract?

The contract is aleatory in nature

The contract is one of adhesion

Utmost good faith between the parties

The policy is a personal contract

Question 37: A producer tells a client that if one company rates or declines him, every other member insurer will see that outcome in the shared file and follow it. An underwriter corrects the statement. Which of the following makes the correction accurate?

Underwriting decisions are never reported there

Only declines are reported, not ratings

Decisions are reported after two years

The applicant must authorize each disclosure

Question 38: An applicant hands over the completed answers about her health and habits along with a check for the first premium, while the company promises to pay a death benefit if a covered loss occurs. Which element of a legal contract does this exchange satisfy?

Legal purpose

Competent parties

Acceptance

Consideration

Question 39: A father applies for and will own a life insurance policy covering his adult daughter, who has consented to the coverage. The producer is checking that the form is properly executed before mailing it. Which signature is required beyond the producer's and the applicant's?

The named beneficiary's signature

The underwriter's signature

The proposed insured's signature

A witness from the household

Question 40: An applicant with a hazardous occupation and a history of poor health is offered coverage anyway, at terms reflecting his above-average chance of loss. Which of the following is one of the recognized methods insurers use for such a risk?

Charging the premium for a higher age

Discounting the premium for the impairment

Waiving the medical examination entirely

Shortening the incontestability period

MLAHP Minnesota Life Accident and Health Producer Exam - Set 3 - Part 2