Michigan Life Insurance State Exam Questions and Answers Updated Solutions

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 - ANSWERS,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 - ANSWERS,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 - ANSWERS,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 - ANSWERS,Risk avoidance A type of group that has a constitution and has been organized for purposes other than obtaining insurance is called a(n