Michigan Life Insurance State Exam Answer Key Questions And Correct Verified Answers

MICHIGAN LIFE INSURANCE STATE EXAM
ANSWER KEY QUESTIONS AND CORRECT
VERIFIED ANSWERS
WhichA2isA2TRUEA2regardingA2theA2annuitant,A2whenA2theA2annuitantA2isA2NOTA2theA2polic
yA2owner?

1.A2TheA2annuitantA2hasA2theA2rightA2toA2nameA2theA2beneficiary

2.A2TheA2annuitantA2isA2theA2personA2payingA2theA2premiumsA2

3.A2TheA2cashA2valueA2isA2availableA2toA2theA2annuitantA2forA2withdrawals

4.A2AnnuityA2paymentsA2willA2beA2basedA2onA2theA2annuitantsA2lifeA2expectancyA2-A2Ans--
AnnuityA2paymentsA2willA2beA2basedA2onA2theA2annuitantsA2lifeA2expectancy

SigningA2anA2applicantsA2nameA2forA2insuranceA2isA2knownA2as...?
1.A2Concealment

2.A2DefamationA2

3.A2Coercion

4.A2ForgeryA2-A2Ans--4.A2Forgery

FailureA2toA2payA2aA2penaltyA2assessedA2byA2theA2commissionerA2mayA2resultA2in...?

1.A2RevokedA2orA2suspendedA2licenseA2

2.A2RequireA2theA2licenseA2toA2retakeA2theA2examinationA2

3.A2CompleteA25A2extraA2hoursA2ofA2continuingA2educationA2

4.A2PayA2aA2lateA2chargeA2ofA21.5%A2-A2Ans--1.A2RevokedA2orA2suspendedA2license

TwoA2businessA2businessA2partnersA2ownA2lifeA2insurance,A2whichA2orA2theA2followingA2all
owsA2theA2survivingA2partnerA2toA2useA2deathA2benefitA2toA2purchaseA2theA2deceasedA2ow
nersA2share?

1.A2Buy-sellA2agreementA2

2.A2KeyA2employeeA2lifeA2insuranceA2

3.A2BusinessA2continuationA2

,4.A2AccidentalA2deathA2-A2Ans--1.A2Buy-sellA2agreement

PolicyA2ownerA2surrendersA2aA2policyA2forA2itsA2cashA2value,A2whenA2isA2taxA2liabilityA2incu
rred?A2

1.A2TheA2cashA2valueA2exceedsA2allA2premiumsA2paidA2

2.A2TheA2cashA2valueA2isA2lessA2thanA2premiumsA2paid

3.A2TheA2policyA2isA2exchangedA2forA2aA2policyA2ofA2equalA2valueA2

4.A2TheA2partyA2isA2transferredA2toA2aA2thirdA2partyA2-A2Ans--
1.A2TheA2cashA2valueA2exceedsA2allA2premiumsA2paid

WhenA2isA2insurableA2interestA2required?

1.A2AtA2timeA2ofA2claimA2

2.A2AtA2timeA2ofA2applicationA2

3.A2InA2eventA2ofA2aA2policyA2loanA2

4.A2WithinA2theA2firstA2yearA2ofA2deathA2-A2Ans--2.A2AtA2theA2timeA2ofA2application

WhichA2ofA2theA2followingA2bestA2describesA2aA2singleA2premiumA2cashA2policy?A2

1.A2ItA2requiresA2onlyA2oneA2paymentA2toA2makeA2theA2policyA2paidA2up

2.A2ItA2providesA2forA2onlyA2oneA2premiumA2toA2beA2paidA2withoutA2evidenceA2ofA2insurabili
tyA2

3.A2ItA2waivesA2oneA2futureA2premiumA2ofA2theA2ownerA2becomesA2disabled

4.A2ItA2requiresA2theA2policyA2ownerA2toA2payA2oneA2premiumA2annuallyA2-A2Ans--
1.A2ItA2requiresA2onlyA2oneA2paymentA2toA2makeA2theA2policyA2paidA2up

WhenA2lifeA2insuranceA2isA2fundedA2byA2contributionsA2toA2aA2qualifiedA2retirement...

1.A2PremiumsA2areA2taxableA2

2.A2DeathA2benefitsA2areA2taxableA2

3.A2TheA2insuranceA2mustA2beA2incidentalA2toA2theA2plan

4.A2DeathA2benefitsA2areA2paidA2toA2theA2employerA2-A2Ans--1.A2PremiumsA2areA2taxable

,HowA2doesA2aA2gradedA2premiumA2wholeA2lifeA2policyA2differA2fromA2aA2modifiedA2premiu
m?

1.A2ItA2increaseA2theA2premiumA2annuallyA2duringA2theA2firstA2severalA2yearsA2ofA2theA2poli
cy

2.A2ItA2increaseA2theA2premiumA2annuallyA2forA2theA2durationA2ofA2theA2policy

3.A2ItA2increasesA2theA2premiumA2onceA2duringA2theA2durationA2ofA2theA2policyA2

4.A2ItA2hasA2lowerA2premiumA2forA2theA2durationA2ofA2theA2policyA2-A2Ans--
1.A2ItA2hasA2aA2lowerA2premiumA2forA2theA2durationA2ofA2theA2policy

WhichA2ofA2theA2followingA2isA2NOTA2trueA2aboutA2convertingA2aA2groupA2policyA2intoA2anA2
individualA2policy?

1.A2TheA2convertedA2policyA2mustA2beA2theA2sameA2amountA2asA2theA2groupA2coverageA2

2.A2GroupA2policiesA2mustA2includeA2aA2guaranteeA2ofA2conversionA2

3.A2CoverageA2continuesA2duringA2theA2conversionA2periodA2

4.A2ProofA2ofA2insurabilityA2mustA2beA2requiredA2-A2Ans--
4.A2ProofA2ofA2insurabilityA2mustA2beA2required

BeforeA2doingA2businessA2underA2anA2assumedA2name,A2whoA2mustA2theA2producerA2first
A2notify?


1.A2Insured

2.A2insurer

3.A2Commissioner

4.A2InsuranceA2agencyA2-A2Ans--3.A2Commissioner

WhichA2writerA2allowsA2youA2toA2purchaseA2additionalA2insuranceA2withoutA2underwritingA2
orA2specificA2dates?

1.A2GuaranteedA2renewability

2.A2GuaranteedA2insurability

3.A2CostA2ofA2living

, 4.A2DisabilityA2incomeA2-A2Ans--2.A2GuaranteedA2insurability

WhichA2ofA2theA2followingA2isA2aA2lifeA2insuranceA2contractA2writtenA2onA2theA2lifeA2ofA2anA2i
ndividual?

1.A2InsuranceA2

2.A2SurvivorshipA2policy

3.A2JointA2lifeA2contractA2

4.A2SingleA2lifeA2insuranceA2-A2Ans--4.A2SingleA2lifeA2Insurance

AnA2InsuranceA2policyA2lapsedA2dueA2toA2nonpaymentA2ofA2premiumA2toA2activateA2theA2re
instatementA2clause...

1.A2PlayA2theA2premiumA2withinA215A2daysA2ofA2theA2graceA2period.A2

2.A2ProvideA2theA2insurerA2withA2theA2evidenceA2ofA2insurabilityA2

3.A2ApplyA2forA2aA2newA2lifeA2insuranceA2policy

4.A2DemonstrateA2theA2incontestableA2clauseA2canA2beA2invokedA2-A2Ans--
2.A2ProvideA2theA2insurerA2withA2theA2evidenceA2ofA2insurability

TermA2lifeA2insuranceA2differsA2fromA2permanentA2lifeA2insuranceA2inA2thatA2MOSTA2often,
A2termA2lifeA2insurance...A2-A2Ans--RemainsA2inA2forceA2forA2aA2specificA2periodA2ofA2time


WhichA2activityA2doesA2NOTA2requireA2anA2insuranceA2producer'sA2license?A2-A2Ans--
Underwriting

WhichA2nonforfeitureA2optionA2allowsA2theA2policyA2ownerA2toA2purchaseA2lessA2coverageA
2forA2life?A2


1.A2ReducedA2paid-upA2insuranceA2

2.A2CashA2surrenderA2value

3.A2SettlementA2valueA2

4.A2ExtendedA2termA2-A2Ans--1.A2ReducedA2paid-upA2insurance

IfA2theA2annuitantA2diesA2beforeA2theA2annuityA2startA2date,A2theA2interestA2earnedA2is...

1.A2Taxable