Licensing 101
If the MN Commissioner of Commerce suspects the license of a producer who has violated insurance law, the suspension will be effective for?
2 years/24 months
An insurance company that is organized in MN and sells only in MN is considered what type of insurer?
Domestic Insurer
What are the two available features of a term insurance?
Renewable and Convertible
How often may the Minnesota Commissioner of Commerce examine the records of an authorized insurance company?
As often as the Commissioner thinks advisable.
The annuity pay-in period is also referred to as the ________ period.
Accumulation period
Insurance license fees in MN must be paid once every __ year(s)?
2 years
What mode of payment would result in the insured paying the least annual outlay for life?
Annually
What is the difference between option A and option B in a universal life policy?
A: Pays out the face amount.
B: Pays out the face amount + cash value accrued.
Where must an insurance producer's license be held?
On display in the producer's office.
Annuities guarantees what percent of loss when/if the stock market crashes or declines?
0
The highest authority for insurance regulation is?
The individual states
What types of insurance does not use the MIB (Medical Information Bureau) in the underwriting process?
Auto and homeowners
What is an IUL?
Indexed Universal Life
When does the 10-day right to cancel period of a life policy begin?
When the policy is delivered to the policyholder.
What is the difference between a Lump Sum and Annuitization?
Lump sum: An annuitant opts to cash out the annuity in a lump sum.
Annuitization: An annuitant opts to receive payments as a steady stream for life or for a specified period.
How many hours of education is the MINIMUM required for your state license?
20
A federal regulation called the _____ protects consumer privacy.
Fair Credit Reporting Act
What type of policy has a death benefit that will increase or decrease over time based on the performance of the separate account?
Variable Life
A life insurance policy may be backdated at a MAXIMUM of how many months?
6 months
What is the MINIMUM amount a person is required to start an annuity?
$10,000
Which person or entity issues a certificate of authority enabling an insurer to conduct insurance business within a particular state?
State insurance Commissioner or Director
Which of the following is NOT required to sign a completed application?
Applicant
Beneficiary
Insured or guardian
Producer
Beneficiary
Flexible premium and adjustable death benefits are features of what type of policy?
Universal life
If a producer urges an insured to cancel a policy in favor of another resulting in financial harm to the insured, the producer action is commonly known as:
Twisting
The annuity __________ option selected can provide a temporary or lifetime payment.
Settlement option