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Michigan Life Insurance State Exam Questions with Answers
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Michigan Life Insurance State Exam Questions with Answers
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Michigan Life Insurance State ExamQuestions with Answers
Under a traditional IRA, interest is taxed:
Only if withdrawn prior to age 59 1/2
According to the capital gains rate
Upon distribution
During the accumulation phase - -Upon distribution
- Which of these statements concerning Traditional IRAs is CORRECT?
Earnings are not taxable when withdrawn
Earnings are taxable when withdrawn
Contribution are never tax deductible
Contributions are always made by the employer - -Earnings are taxable
when withdrawn
- Which of these describes the result of a modified endowment contract that
failed to meet the seven- pay test?
Policy loans are disallowed
The premium payments will be tax deductible
Pre- death distributions are typically taxable
Withdrawals will be prohibited - -Pre- death distributions are typically
taxable
- In order for a contract to be valid, it must
be filled with the state
be signing and witnessed by an attorney
be in writing
,contain offer and acceptance - -Contain offer and acceptance
- Which of the following actions is REQUIRED by a producer who is replacing
an existing life insurance policy?
Keep replacement records on file for at least 10 years
Notify the existing insurer of the proposed replacement
Submit to the replacing insurer a list of the policies to be replaced
Offer the insured a 60- day free- look period - -Submit to the replacing
insurer a list of the policies to be replaced
- Who were Keogh plans designed to provide pension benefits for?
Corporate officers
Public school employees
The self-employed
Government employees - -The self emplyed
- A producer's fiduciary duty requires that
premiums are maintained in a personal bank account until remittance to
insurer
premiums be deposited in an interest bearing account
premiums are forwarded to the insurer on a timely basis
premiums be commingled - -Premiums are forwarded on a timely basis
- An individual who removes the risk of losing money in the stock market by
never purchasing stocks is said to be engaging in
Risk reduction
Risk Transference
Risk avoidance
Risk retention - -Risk avoidance
, - A type of group that has a constitution and has been organized for
purposes other than obtaining insurance is called a(n)
employer group
employee group
association or labor group
multiple coalition - -association or labor group
- Which of the following is NOT a federal requirement of a qualified plan?
Must benefit a broad cross-section of employees
Employee must be able to make unlimited contributions
Vesting schedule must be defined
Employer establishes the plan - -Employee must be able to make unlimited
contributions
- The acceptance of a credit life application requires the submission of a
certificate of insurance to the insured within __ days.
10
20
30
40 - -30
- What does the Group Life underwriting risk selection process help protect
insurance companies from?
Risk aversion
Natural selection
Adverse selection
Risk Management - -Adverse Selection
- A guaranteed issue insurance policy has no
, initial premium requirement
incontestable period
waiting period
medical underwriting - -Medical Underwriting
- A Universal Life policyowner must receive a notice of cash surrender value
at LEAST every
6 months
year
2 years
5 years - -year
- A Roth IRA owner must be at least what age in order to make tax free
withdrawals?
59 1/2 and owned account for a minimum of 10 years
59 1/2 and owned account minimum of 5 years
70 1/2 and owned account for a minimum of 10 years
70 1/2 and owned account for a minimum of 5 years - -59 1/2 and owned the
account for 5 years
- In Michigan, legal action may be taken against an insurer for up to ___
Years for failing to pay a life insurance claim after proof of loss was
submitted
4
5
6
7 - -6
- Level premium permanent insurance accumulates a reserve that will
eventually
equal the face amount of the policy
pay a dividend to the policyowner
require the policyowner to make periodic withdrawals
become larger than the face amount - -equal the face amount of the policy
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