MICHIGAN LIFE LATEST
INSURANCE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
Bob and Tom start a business. Since each partner contributes an
important element to the success of the business, they decide to take life
insurance policies out on each other, and name each other as
beneficiaries. Eventually, they retire and dissolve the business. Bob dies
12 months later. The policies continue in force with no change. Both
partners are still married at the time of Bob's death. In this situation, who
will receive Bob's policy proceeds?
A. Tom's spouse
B. Bob's spouse
C. Tom - ANSWERS-C. Tom
What is the automatic continuance of insurance coverage referred to as?
A. Renovation
B. Reinstatement
C. Renewal
D. Resumption - ANSWERS-C. Renewal
END OF
PAGE
1
, MICHIGAN LIFE LATEST
INSURANCE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
In an insurance contract, the insurer is the only party legally obligated to
perform. Because of this, an insurance contract is considered?
A. Unilateral
B. Conditional
C. Aleatory
D. Voidable - ANSWERS-A. Unilateral
Ambiguities in an insurance policy are always resolved in favor of the?
A. Producer
B. Underwriter
C. Insurer
D. Insured - ANSWERS-D. Insured
END OF
PAGE
2
, MICHIGAN LIFE LATEST
INSURANCE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
What types of life insurance are normally used for key employee
indemnification?
A. Joint, credit, and group life insurance
B. Term, whole, and universal life insurance
C. Increasing term insurance
D. Adjustable, permanent, and limited-pay life insurance - ANSWERS-
B. Term, whole, and universal life insurance
In order for a contract to be valid, it must?
A. Be in writing
B. Be signed and witnessed by an attorney
C. Be filed with the state
D. Contain an offer and acceptance - ANSWERS-D. Contain an offer
and acceptance
END OF
PAGE
3
, MICHIGAN LIFE LATEST
INSURANCE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
Which of the following policies does NOT build cash value?
A. Endowment
B. Term
C. Variable life
D. Straight life - ANSWERS-B. Term
Bob and Tom start a business. Since each partner contributes an
important element to the success of the business, they decide to take life
insurance policies out on each other, and name each other as
beneficiaries. Eventually, they retire and dissolve the business. Bob dies
12 months later. The policies continue in force with no change. Both
partners are still married at the time of Bob's death. In this situation, who
will receive Bob's policy proceeds?
A. Tom's spouse
B. Bob's spouse
C. Tom - ANSWERS-C. Tom
END OF
PAGE
4
INSURANCE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
Bob and Tom start a business. Since each partner contributes an
important element to the success of the business, they decide to take life
insurance policies out on each other, and name each other as
beneficiaries. Eventually, they retire and dissolve the business. Bob dies
12 months later. The policies continue in force with no change. Both
partners are still married at the time of Bob's death. In this situation, who
will receive Bob's policy proceeds?
A. Tom's spouse
B. Bob's spouse
C. Tom - ANSWERS-C. Tom
What is the automatic continuance of insurance coverage referred to as?
A. Renovation
B. Reinstatement
C. Renewal
D. Resumption - ANSWERS-C. Renewal
END OF
PAGE
1
, MICHIGAN LIFE LATEST
INSURANCE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
In an insurance contract, the insurer is the only party legally obligated to
perform. Because of this, an insurance contract is considered?
A. Unilateral
B. Conditional
C. Aleatory
D. Voidable - ANSWERS-A. Unilateral
Ambiguities in an insurance policy are always resolved in favor of the?
A. Producer
B. Underwriter
C. Insurer
D. Insured - ANSWERS-D. Insured
END OF
PAGE
2
, MICHIGAN LIFE LATEST
INSURANCE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
What types of life insurance are normally used for key employee
indemnification?
A. Joint, credit, and group life insurance
B. Term, whole, and universal life insurance
C. Increasing term insurance
D. Adjustable, permanent, and limited-pay life insurance - ANSWERS-
B. Term, whole, and universal life insurance
In order for a contract to be valid, it must?
A. Be in writing
B. Be signed and witnessed by an attorney
C. Be filed with the state
D. Contain an offer and acceptance - ANSWERS-D. Contain an offer
and acceptance
END OF
PAGE
3
, MICHIGAN LIFE LATEST
INSURANCE EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
Which of the following policies does NOT build cash value?
A. Endowment
B. Term
C. Variable life
D. Straight life - ANSWERS-B. Term
Bob and Tom start a business. Since each partner contributes an
important element to the success of the business, they decide to take life
insurance policies out on each other, and name each other as
beneficiaries. Eventually, they retire and dissolve the business. Bob dies
12 months later. The policies continue in force with no change. Both
partners are still married at the time of Bob's death. In this situation, who
will receive Bob's policy proceeds?
A. Tom's spouse
B. Bob's spouse
C. Tom - ANSWERS-C. Tom
END OF
PAGE
4
