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MI Life Insurance Exam Questions and Answers
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MI Life Insurance Exam Questions and Answers
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MI Life Insurance Exam Questions andAnswers
In which of the following must a beneficiary change request be filed in writing to the
insurer and is made effective by the insurance company recording the change in its
records?
1. Designation Option
2. Recording method
3. Endorsement method
4. Succession of beneficiaries - Answer -recording method
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while
1. serving in the military
2. living overseas
3. committing a misdemeanor
4. piloting a personal aircraft - Answer -commiting a misdemeanor
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application?
1. The applicant and possibly the agent initial any changes made.
2. The applicant and the agent sign a document that outlines changes made.
3. An arbitration agreement is signed at the time of the signing of the application.
4. All changes must be approved by the underwriter prior to the submission of the
application. - Answer -The applicant and possibly the agent initial any changes made
How might someone cover the extra expenses of child care and home-related costs?
1. adding coverage of a grandparent
2. adding cost of living coverage
3. purchasing family term insurance
4. purchasing a substitute insured rider - Answer -purchasing family term insurance
Which policy type is backed by equity investments and allows the policyholder to adjust
the death benefit?
1. term life
2. variable life
3. regular whole life
4. variable universal life - Answer -variable universal life
, Which policy provision permits the policyowner to take a specified number of days to
examine the contract, and allows for cancellation and a full refund if the policyowner
rejects the terms or costs?
1. Exclusions
2. Free look
3. Grace period
4. Insuring Clause - Answer -free look
All life insurance and health insurance contracts contain all of the following EXCEPT
1. policy face
2. insuring clause
3. conditions
4. representations - Answer -Representations
How do warranties differ from representations?
1. a warranty is guaranteed to be true, a representation is believed to be true to the best
of one's knowledge.
2. a representation is guaranteed to be true, a waranty is believed to be true to the best
of one's knowledge.
3. a warranty is issued by the insurer, a representation is a statement provided by the
applicant.
4. an incorrect representation automatically voids a contract, whereas an incorrect
waranty must be proven. - Answer -a warranty is guaranteed to be true, a
representation is believed to be true to the best of one's knowledge.
Which of the following is the time limit on certain defenses after which the policy
becomes incontestable?
1. 12 months
2. 18 months
3. 2 years
4. 5 years - Answer -2 years
Which of the following refers to how often a premium is paid?
1. level
2. mode
3. net
4. ratio - Answer -mode
What is the purpose of Stranger-originated life insurance (STOLI)?
1. the policy is originated primarily or solely for the purpose of resale
2. the policy is written so as to avoid proof of insurable interest
3. it is a method of insuring a person who has been previously declined.
4. it is a fraudulent policy meant for financial gain of someone unknown to the insured. -
Answer -the policy is originated primarily or solely for the purpose of resale
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