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

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A policyowner directs each annual dividend to purchase a small amount of extra permanent coverage at the insured's attained age. Every addition builds its own cash value and earns dividends of its own. Which dividend option has she chosen?

Paid-up additions

Accumulation at interest

One-year term insurance

Reduction of premium

Question 42: A policyowner submits a written request to surrender her whole life contract for its cash value, and the insurer notifies her that payment will be postponed for a period allowed by the contract. Which policy provision permits the insurer to wait?

The grace period provision

The free look provision

The deferment provision

The incontestability provision

Question 43: An insured borrows against the cash value of her whole life policy and never repays any of it. She dies three years later with the loan and its accrued interest still outstanding. How is the death benefit affected?

Proceeds drop by the loan plus interest

Proceeds are paid in full regardless

The policy is treated as surrendered

The beneficiary must repay the loan

Question 44: An insured with a waiver of premium rider becomes disabled and keeps paying premiums during the rider's waiting period, which runs several months. She remains disabled when that period ends. Which action does the insurer take regarding those payments?

It keeps them as earned premium

It credits them to the cash value

It refunds those premiums retroactively

It applies them to a policy loan

Question 45: A policyowner tells her insurer to hold each annual dividend on deposit in an account that credits interest, so she can withdraw the balance later. She does not want the dividend applied to her billing or used to buy coverage. Which option is this?

Reduction of premium

Cash payment

Paid-up additions

Accumulation at interest

Question 46: A business owner pledges part of the death benefit of her life policy to a bank as security for a commercial loan, keeping every other right in the contract for herself. Which type of transfer has she made?

A collateral assignment

An absolute assignment

A change of ownership

An irrevocable designation

Question 47: A beneficiary elects a settlement option under which the insurer pays a set dollar sum at regular intervals until principal and interest run out. The insurer then earns more than the guaranteed rate. Which result follows from that extra interest?

Each payment increases in size

The final payment is larger

The insurer keeps the excess interest

The payments continue for longer

Question 48: An insured and his primary beneficiary die together in a highway crash and no evidence shows which of them died first. A contingent beneficiary is named in the policy. Which outcome does the Uniform Simultaneous Death Act direct here?

Proceeds go to the primary beneficiary's estate

Proceeds go to the insured's estate

Proceeds go to the contingent beneficiary

Proceeds are split between both estates

Question 49: A rider raises a policy's death benefit each year in step with the Consumer Price Index, charges for the added coverage at the insured's attained age, and requires no proof of insurability. Which statement about a year of falling prices is correct?

Coverage already added is not reduced

The policy lapses during that year

The insured must repay past increases

Evidence of insurability becomes required

Question 50: A policyowner named an irrevocable beneficiary three years ago and now wants both to borrow against the cash value and to substitute a different beneficiary. The insurer explains what stands between him and those two actions. Which explanation is correct?

Neither action needs anyone's consent

Both actions need the beneficiary's consent

Only the loan needs written consent

Only the change needs written consent

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