LIFE PRODUCER EXAM (MI) STUDY QUESTIONS AND ANSWERS UPDATED 2024
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Course
LIFE PRODUCER.
Institution
LIFE PRODUCER.
Which of the following is NOT true regarding a Certificate of Authority?
a)It may be necessary for transacting business in a specific state.
b)It is equivalent to an insurance license.
c)It is issued by the state department of insurance.
d)It is issued to group insurance participants. - d) It...
LIFE PRODUCER EXAM (MI) STUDY
QUESTIONS AND ANSWERS UPDATED
2024
POSSIBLEA
LIFE PRODUCER
.
, LIFE PRODUCER EXAM (MI) STUDY QUESTIONS AND ANSWERS UPDATED 2024
Which of the following is NOT true regarding a Certificate of Authority?
a)It may be necessary for transacting business in a specific state.
b)It is equivalent to an insurance license.
c)It is issued by the state department of insurance.
d)It is issued to group insurance participants. - d) It is issued to group insurance
participants.
Before insurers may transact business in a specific state, they must apply for a
license or Certificate of Authority from the state department of insurance and
meet any financial (capital and surplus) requirements set down by the state.
If an insured changes his payment plan from monthly to annually, what happens
to the total premium?
a)Doubles
b)Increases
c)Decreases
d)Stays the same - c) Decreases
Because the insurer would have the entire premium to invest for a full year, they
would reduce the premium amount.
To sell variable life insurance policies, an agent must receive all of the following
EXCEPT
a)A life insurance license.
b)SEC registration.
c)FINRA registration
.d)A securities license. - b) The owner will receive the surrender value of the
annuity.
If a deferred annuity is surrendered prior to annuitization, the surrender value of
the annuity is guaranteed according to the nonforfeiture provision.
What happens if a deferred annuity is surrendered before the annuitization
period?
a)Deferred annuities cannot be surrendered prior to the annuitization period.
b)The owner will receive the surrender value of the annuity.
c)The owner will only receive a refund of premium.
d)The insurer can only apply the surrender value toward another annuity. - b)
The owner will receive the surrender value of the annuity.
If a deferred annuity is surrendered prior to annuitization, the surrender value of
the annuity is guaranteed according to the nonforfeiture provision.
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