MN State Insurance Exam All Answers Correct
FICA Taxes
How are employee FICA taxes collected? Options: a. The employee withholds the tax and pays it along
with the employer's portion; b. The employer withholds the tax and pays it only; c. The employee pays
the tax separately; d. The employe...
MN State Insurance Exam All Answers Correct
FICA Taxes
How are employee FICA taxes collected? Options: a. The employee withholds the tax and pays it along
with the employer's portion; b. The employer withholds the tax and pays it only; c. The employee pays
the tax separately; d. The employer pays the tax only
Answer: a. The employee withholds the tax and pays it along with the employer's portion;
Insurance Premiums
What is the adequate consideration for a monthly premium payment of $100 for an insurance policy?
Options: a. $50; b. $100; c. $260; d. $1,000
Answer: b. $100;
Non-Forfeiture Options
Which non-forfeiture option provides the least amount of coverage? Options: a. Reduced paid-up; b.
Extended term insurance; c. Cash surrender value; d. Paid-up life insurance
Answer: a. Reduced paid-up;
Insurance Application
What document must always be submitted for review by an insurance company to determine if it will
issue a policy? Options: a. The application; b. The proposal form; c. The policy form; d. The declaration
page
Answer: a. The application;
Certificate of Authority
, What is required before an insurer can operate in this state? Options: a. Certificate of Authority issued
by the state Insurance Department; b. License issued by the state Insurance Department; c. Permit
issued by the state Insurance Department; d. Registration issued by the state Insurance Department
Answer: a. Certificate of Authority issued by the state Insurance Department;
Prelicensing Education
How many hours of education are required per line of authority for prelicensing education? Options: a.
10 hours; b. 15 hours; c. 20 hours; d. 25 hours
Answer: c. 20 hours;
Guardianship
Who signs the application if an applicant is a minor? Options: a. The applicant themselves; b. Their
guardian; c. A parent or legal representative; d. A trusted friend
Answer: b. Their guardian;
Dividend Options
Which option is NOT a dividend option? Options: a. Reduced paid-up; b. Paid-up life insurance; c.
Extended term insurance; d. Reduced paid-up
Answer: d (Reduced paid-up is not a dividend option);
Tax Consequences
What are the tax consequences if an insured takes the cash value of $15,000 from a universal life policy
after contributing $12,000 in premiums? Options: a. $3,000 is taxable as ordinary income; b. $12,000 is
taxable as ordinary income; c. $3,000 is not taxable as ordinary income; d.$12,000 is not taxable as
ordinary income
Answer: a.$3,000 is taxable as ordinary income;
Policy Features
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller bestscores1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.82. You're not tied to anything after your purchase.