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Life and Health Insurance Producer Exam

Conduct (MN): practice questions

Our Life & Health Insurance bank has 8 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Minnesota

How must a Minnesota producer handle premiums received from an insured, unless they are forwarded directly to the insurer?

  1. Hold them in the producer's personal account until month end
  2. Keep them as cash in a locked safe at the agency office
  3. Promptly deposit them in a business checking, savings, or similar account
  4. Mail them to the Department of Commerce for safekeeping
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C. Promptly deposit them in a business checking, savings, or similar account — Minn. Stat. 60K.46, subd. 5.

Question 2 · Minnesota

A Minnesota producer wants to give a consumer a noncash gift connected with selling a personal policy. What is the cost limit?

  1. The greater of 10% of the premium or $100 per policy, per year
  2. None; all gifts are illegal rebates in Minnesota
  3. The lesser of 5% of the premium or $250 per policy year
  4. Any amount, as long as it is shown on the application
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C. The lesser of 5% of the premium or $250 per policy year — Minn. Stat. 72A.071, subd. 3(a)(1).

Question 3 · Minnesota

Circulating a false or maliciously critical statement about an insurer's financial condition, calculated to injure it, is which unfair practice under Minnesota law?

  1. Unfair discrimination
  2. Misrepresentation
  3. Illegal rebating
  4. Defamation
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D. Defamation — Minn. Stat. 72A.20, subd. 3.

Question 4 · Minnesota

A Minnesota producer who places coverage with a company that is required to be, but is not, authorized in the state faces what liability?

  1. Liability only if the insured files suit within 90 days
  2. Personal liability for premiums paid and covered losses
  3. No liability if the producer acted in good faith
  4. Liability limited to returning the commission earned
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B. Personal liability for premiums paid and covered losses — Minn. Stat. 60K.47.

Question 5 · Minnesota

Making a misrepresentation to a policyholder to induce the lapse, forfeiture, or surrender of a policy is defined in Minn. Stat. 72A.20 as what?

  1. A violation only when replacing with another insurer
  2. A civil court matter, not a trade practice
  3. An unfair method of competition and deceptive practice
  4. Acceptable conservation if the new policy costs less
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C. An unfair method of competition and deceptive practice — Minn. Stat. 72A.20, subd. 1.

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