Michigan Life Insurance State Exam Questions And Answers Latest Top Score.
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Michigan life insurance
Institution
Michigan Life Insurance
Michigan Life Insurance State Exam Questions And Answers Latest Top Score.
Which is TRUE regarding the annuitant, when the annuitant is NOT the policy owner?
1. The annuitant has the right to name the beneficiary
2. The annuitant is the person paying the premiums
3. The cas...
Michigan Life Insurance State Exam
Questions And Answers Latest Top Score.
Which is TRUE regarding the annuitant, when the annuitant is NOT the policy owner?
1. The annuitant has the right to name the beneficiary
2. The annuitant is the person paying the premiums
3. The cash value is available to the annuitant for withdrawals
4. Annuity payments will be based on the annuitants life expectancy - correct answer.
Annuity payments will be based on the annuitants life expectancy
Signing an applicants name for insurance is known as...?
1. Concealment
2. Defamation
3. Coercion
4. Forgery - correct answer. 4. Forgery
Failure to pay a penalty assessed by the commissioner may result in...?
1. Revoked or suspended license
2. Require the license to retake the examination
3. Complete 5 extra hours of continuing education
4. Pay a late charge of 1.5% - correct answer. 1. Revoked or suspended license
,Two business business partners own life insurance, which or the following allows the
surviving partner to use death benefit to purchase the deceased owners share?
1. Buy-sell agreement
2. Key employee life insurance
3. Business continuation
4. Accidental death - correct answer. 1. Buy-sell agreement
Policy owner surrenders a policy for its cash value, when is tax liability incurred?
1. The cash value exceeds all premiums paid
2. The cash value is less than premiums paid
3. The policy is exchanged for a policy of equal value
4. The party is transferred to a third party - correct answer. 1. The cash value exceeds
all premiums paid
When is insurable interest required?
1. At time of claim
2. At time of application
3. In event of a policy loan
4. Within the first year of death - correct answer. 2. At the time of application
Which of the following best describes a single premium cash policy?
1. It requires only one payment to make the policy paid up
2. It provides for only one premium to be paid without evidence of insurability
3. It waives one future premium of the owner becomes disabled
4. It requires the policy owner to pay one premium annually - correct answer. 1. It
requires only one payment to make the policy paid up
When life insurance is funded by contributions to a qualified retirement...
,1. Premiums are taxable
2. Death benefits are taxable
3. The insurance must be incidental to the plan
4. Death benefits are paid to the employer - correct answer. 1. Premiums are taxable
How does a graded premium whole life policy differ from a modified premium?
1. It increase the premium annually during the first several years of the policy
2. It increase the premium annually for the duration of the policy
3. It increases the premium once during the duration of the policy
4. It has lower premium for the duration of the policy - correct answer. 1. It has a lower
premium for the duration of the policy
Which of the following is NOT true about converting a group policy into an individual
policy?
1. The converted policy must be the same amount as the group coverage
2. Group policies must include a guarantee of conversion
3. Coverage continues during the conversion period
4. Proof of insurability must be required - correct answer. 4. Proof of insurability must
be required
Before doing business under an assumed name, who must the producer first notify?
Which writer allows you to purchase additional insurance without underwriting or
specific dates?
1. Guaranteed renewability
, 2. Guaranteed insurability
3. Cost of living
4. Disability income - correct answer. 2. Guaranteed insurability
Which of the following is a life insurance contract written on the life of an individual?
1. Insurance
2. Survivorship policy
3. Joint life contract
4. Single life insurance - correct answer. 4. Single life Insurance
An Insurance policy lapsed due to nonpayment of premium to activate the reinstatement
clause...
1. Play the premium within 15 days of the grace period.
2. Provide the insurer with the evidence of insurability
3. Apply for a new life insurance policy
4. Demonstrate the incontestable clause can be invoked - correct answer. 2. Provide
the insurer with the evidence of insurability
Term life insurance differs from permanent life insurance in that MOST often, term life
insurance... - correct answer. Remains in force for a specific period of time
Which activity does NOT require an insurance producer's license? - correct answer.
Underwriting
Which nonforfeiture option allows the policy owner to purchase less coverage for life?
1. Reduced paid-up insurance
2. Cash surrender value
3. Settlement value
4. Extended term - correct answer. 1. Reduced paid-up insurance
If the annuitant dies before the annuity start date, the interest earned is...
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