Under Minn. Stat. § 60K.38, what does the life insurance line of authority permit a Minnesota resident insurance producer to sell?
A. Coverage on human lives, including endowment and annuity benefits, and coverage related to death or dismemberment by accident, and benefits for disability income
B. Only term life insurance, with all other life products requiring a separate line of authority
C. Only group life insurance sold through employers
D. Property insurance covering direct loss to real property
Source: Minn. Stat. § 60K.38
A Minnesota consumer purchases a new individual life insurance policy. What is the standard 'free look' period during which the policyholder may return the policy for a full premium refund?
A. There is no free-look period in Minnesota
B. 10 days
C. 60 days
D. 90 days
Source: Minnesota free-look requirement (individual life insurance)
A consumer replaces an existing life insurance policy with a new one from a different insurer. Compared to a policy purchased without a replacement, what is generally true of the free-look period on the new replacement policy?
A. It is generally extended, commonly to 30 days, given the added consumer protection concerns associated with replacing an existing policy
B. There is no free-look period at all on replacement policies
C. The free-look period is identical in every respect and never varies for replacements
D. It is shortened to 5 days because replacements are considered lower risk
Source: Minnesota replacement-related free-look requirement
A life insurance policy contains a standard suicide clause. If the insured dies by suicide within the first two policy years, what does this clause typically provide?
A. The insurer pays the full death benefit exactly as if no suicide clause existed
B. The insurer's liability is generally limited to a refund of premiums paid, rather than the full death benefit
C. The policy is retroactively voided with no refund of any kind
D. The beneficiary automatically loses all rights to any future policy regardless of cause of death
Source: Standard life insurance policy provisions
A life insurance policy has been in force for three years when the insured dies. The insurer later discovers a material misstatement on the original application. What does the standard incontestability clause generally mean for the insurer's ability to contest the claim on that basis?
A. The clause only applies to health insurance policies, not life insurance
B. The insurer may still freely contest the claim at any time with no time restriction
C. After the standard contestability period (commonly two years) has elapsed, the insurer is generally barred from contesting the policy based on statements in the application, except in cases such as fraud where specifically preserved by law
D. The incontestability clause has no bearing on misstatements found in an application
Source: Standard life insurance policy provisions
