Michigan Life Insurance State COMPLETE EXAM LATEST
VERSION 2026-2027 QUESTIONS AND ANSWERS
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 - answer>>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 - answer>>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 - answer>>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 - answer>>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 - answer>>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 - answer>>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 - answer>>30
What does the Group Life underwriting risk selection process help protect insurance companies from?
Risk aversion
Natural selection
Adverse selection
Risk Management - answer>>Adverse Selection
A guaranteed issue insurance policy has no
initial premium requirement
incontestable period
,waiting period
medical underwriting - answer>>Medical Underwriting
A Universal Life policyowner must receive a notice of cash surrender value at LEAST every
6 months
year
2 years
5 years - answer>>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 - answer>>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 - answer>>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 -
answer>>equal the face amount of the policy
Under a life insurance policy, what does the insuring clause state?
The agents obligation to provide the proper amount of coverage
The insurers obligation to return all premiums upon an approved death claim
The Insurers obligation to pay a death benefit upon an approved death claim
, The agents obligation to pay a death benefit upon an approved death claim - answer>>The Insurers obligation to
pay a death benefit upon an approved death claim
Term insurance is appropriate for someone who
seeks living benefits for themselves
seeks a policy that builds cash value
seeks temporary protection and lower premiums
seeks permanent protection and higher premiums - answer>>seeks temporary protection and lower premiums
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?
Toms estate
Bobs estate
Bobs spouse
Tom - answer>>Tom
Michigan requires that a licensee complete __ hours of continuing education on the subject of ethics every
reporting period
1
2
3
4 - answer>>3
What kind of insurance policy issued by a mutual insurer provides a return of divisible surplus?
Nonparticipating life insurance policy
participating life insurance policy
divisible surplus life insurance policy
straight life insurance policy - answer>>Participating life insurance policy
Which of these would limit a company's liability to provide insurance coverage?
VERSION 2026-2027 QUESTIONS AND ANSWERS
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 - answer>>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 - answer>>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 - answer>>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 - answer>>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 - answer>>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 - answer>>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 - answer>>30
What does the Group Life underwriting risk selection process help protect insurance companies from?
Risk aversion
Natural selection
Adverse selection
Risk Management - answer>>Adverse Selection
A guaranteed issue insurance policy has no
initial premium requirement
incontestable period
,waiting period
medical underwriting - answer>>Medical Underwriting
A Universal Life policyowner must receive a notice of cash surrender value at LEAST every
6 months
year
2 years
5 years - answer>>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 - answer>>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 - answer>>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 -
answer>>equal the face amount of the policy
Under a life insurance policy, what does the insuring clause state?
The agents obligation to provide the proper amount of coverage
The insurers obligation to return all premiums upon an approved death claim
The Insurers obligation to pay a death benefit upon an approved death claim
, The agents obligation to pay a death benefit upon an approved death claim - answer>>The Insurers obligation to
pay a death benefit upon an approved death claim
Term insurance is appropriate for someone who
seeks living benefits for themselves
seeks a policy that builds cash value
seeks temporary protection and lower premiums
seeks permanent protection and higher premiums - answer>>seeks temporary protection and lower premiums
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?
Toms estate
Bobs estate
Bobs spouse
Tom - answer>>Tom
Michigan requires that a licensee complete __ hours of continuing education on the subject of ethics every
reporting period
1
2
3
4 - answer>>3
What kind of insurance policy issued by a mutual insurer provides a return of divisible surplus?
Nonparticipating life insurance policy
participating life insurance policy
divisible surplus life insurance policy
straight life insurance policy - answer>>Participating life insurance policy
Which of these would limit a company's liability to provide insurance coverage?
