MI LIFE PRODUCER FINAL EXAM AND
PRACTICE QUESTIONS EXAM 2024-
2025 ACTUAL EXAM COMPLETE
ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS
Jane works for a company that allows employee contributions under a 401(k)
plan. When will Jane become fully vested in her plan contributions? -
✔✔immediately//While employer contributions to a qualified plan can be
subject to a vesting schedule, participants are always fully vested in their own
contributions.
Agents must act in the best interests of applicants and insureds. What does this
require them to do? - ✔✔give all important information about a proposed
policy//Agents must act in the applicant's or insured's best interests at all times.
This means that agents must give all important information about a proposed
policy. Also, they cannot misrepresent the terms or conditions of a proposed
policy.
What does a viatical settlement allow? - ✔✔It allows a chronically or terminally
ill insured to gain a sum of money that is needed to pay medical expenses or to
enhance the quality of life.//A viatical settlement allows a chronically or
1|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,terminally ill insured to gain a sum of money that might be needed to pay
medical expenses or to enhance quality of life.
If an employer/employee group offers group life insurance on a contributory
basis, what percentage of the group must enroll? - ✔✔At least 75 percent of the
group must enroll in the plan//If an employer/employee group life insurance
plan is contributory, 75 percent of the group must enroll in the plan. If the plan
is non-contributory, 100 percent of the group must enroll.
Which of the following is NOT a life insurance premium? - ✔✔competitors'
rates//Actuaries base life insurance premiums on three basic factors: mortality
(a charge), interest (a credit), and expenses (a charge).
In calculating their mortality charges, life insurers today generally use: - ✔✔the
2001 CSO table//The mortality factor is drawn from mortality statistics
compiled by the National Association of Insurance Commissioners (NAIC) into a
set of rates called the Commissioners Standard Ordinary (CSO) table. Policies
issued since 2009 are required to base their mortality charges on the 2001 CSO
table.
All of the following are standard life insurance policy nonforfeiture options
EXCEPT: - ✔✔accumulate at interest option//This is a policy dividend option in
2|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,which declared dividends are left with the insurer to accumulate interest on the
policyowner's behalf.
Which of the following most correctly describes the nonforfeiture option(s)
available with universal life insurance? - ✔✔surrender the policy for its cash
value or stop paying premiums and continue coverage as long as the cash value
will support it//Universal life policies do not contain the standard nonforfeiture
options. Instead, the policyowner can either surrender the policy for its cash
value or continue coverage with no further premium payments, in which case
coverage will last for as long as the cash value is able to support the policy's
monthly mortality and expense charge deductions.
James wants to convert his $150,000 traditional IRA to a Roth IRA. What best
describes the tax treatment for the Roth conversion? - ✔✔The converted funds
are taxed, but Roth IRA earnings and distribution will be tax free.//The
$150,000 from the traditional IRA has been deferred so it will be taxed upon
conversion. However, as long as James holds the new Roth IRA for at least five
years and is older than 59', distributions from the Roth IRA will be tax free.
Under variable life insurance plans, policy loans can be as high as what percent
of the cash value? - ✔✔75 to 90 percent//Policy loans under traditional whole
life insurance plans can be as high as 100 percent of the cash value, but with
3|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, variable life insurance the maximum loan amount is something less than the full
cash value (e.g., 75 to 90 percent of the cash value), less any debt currently
outstanding against the policy.
Under which nonforfeiture option does permanent life insurance continue in
force with no further need for premiums? - ✔✔reduced paid-up option//A paid-
up policy under the reduced paid-up option requires no further premiums (nor
can any be paid). The paid-up policy retains a cash value that will continue to
grow throughout the life of the policy. However, it will grow much more slowly
than during the period that premiums were being paid.
Which of the following can be funded with a single premium payment, a series
of fixed premium payments, or flexible premium payments? - ✔✔deferred
annuities//Deferred annuities can be funded with a single premium payment, a
series of fixed premium payments, or with flexible premium payments.
Moreover, the owner can make these payments whenever and in whatever
amount he or she wants.
How does the cost of group life insurance generally compare to the cost of
individual life insurance? - ✔✔Group life is less expensive.//Per unit of benefits
or coverage, group life insurance is less expensive than individual life insurance
because it has lower administrative and operational costs.
4|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
PRACTICE QUESTIONS EXAM 2024-
2025 ACTUAL EXAM COMPLETE
ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS
Jane works for a company that allows employee contributions under a 401(k)
plan. When will Jane become fully vested in her plan contributions? -
✔✔immediately//While employer contributions to a qualified plan can be
subject to a vesting schedule, participants are always fully vested in their own
contributions.
Agents must act in the best interests of applicants and insureds. What does this
require them to do? - ✔✔give all important information about a proposed
policy//Agents must act in the applicant's or insured's best interests at all times.
This means that agents must give all important information about a proposed
policy. Also, they cannot misrepresent the terms or conditions of a proposed
policy.
What does a viatical settlement allow? - ✔✔It allows a chronically or terminally
ill insured to gain a sum of money that is needed to pay medical expenses or to
enhance the quality of life.//A viatical settlement allows a chronically or
1|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,terminally ill insured to gain a sum of money that might be needed to pay
medical expenses or to enhance quality of life.
If an employer/employee group offers group life insurance on a contributory
basis, what percentage of the group must enroll? - ✔✔At least 75 percent of the
group must enroll in the plan//If an employer/employee group life insurance
plan is contributory, 75 percent of the group must enroll in the plan. If the plan
is non-contributory, 100 percent of the group must enroll.
Which of the following is NOT a life insurance premium? - ✔✔competitors'
rates//Actuaries base life insurance premiums on three basic factors: mortality
(a charge), interest (a credit), and expenses (a charge).
In calculating their mortality charges, life insurers today generally use: - ✔✔the
2001 CSO table//The mortality factor is drawn from mortality statistics
compiled by the National Association of Insurance Commissioners (NAIC) into a
set of rates called the Commissioners Standard Ordinary (CSO) table. Policies
issued since 2009 are required to base their mortality charges on the 2001 CSO
table.
All of the following are standard life insurance policy nonforfeiture options
EXCEPT: - ✔✔accumulate at interest option//This is a policy dividend option in
2|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,which declared dividends are left with the insurer to accumulate interest on the
policyowner's behalf.
Which of the following most correctly describes the nonforfeiture option(s)
available with universal life insurance? - ✔✔surrender the policy for its cash
value or stop paying premiums and continue coverage as long as the cash value
will support it//Universal life policies do not contain the standard nonforfeiture
options. Instead, the policyowner can either surrender the policy for its cash
value or continue coverage with no further premium payments, in which case
coverage will last for as long as the cash value is able to support the policy's
monthly mortality and expense charge deductions.
James wants to convert his $150,000 traditional IRA to a Roth IRA. What best
describes the tax treatment for the Roth conversion? - ✔✔The converted funds
are taxed, but Roth IRA earnings and distribution will be tax free.//The
$150,000 from the traditional IRA has been deferred so it will be taxed upon
conversion. However, as long as James holds the new Roth IRA for at least five
years and is older than 59', distributions from the Roth IRA will be tax free.
Under variable life insurance plans, policy loans can be as high as what percent
of the cash value? - ✔✔75 to 90 percent//Policy loans under traditional whole
life insurance plans can be as high as 100 percent of the cash value, but with
3|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, variable life insurance the maximum loan amount is something less than the full
cash value (e.g., 75 to 90 percent of the cash value), less any debt currently
outstanding against the policy.
Under which nonforfeiture option does permanent life insurance continue in
force with no further need for premiums? - ✔✔reduced paid-up option//A paid-
up policy under the reduced paid-up option requires no further premiums (nor
can any be paid). The paid-up policy retains a cash value that will continue to
grow throughout the life of the policy. However, it will grow much more slowly
than during the period that premiums were being paid.
Which of the following can be funded with a single premium payment, a series
of fixed premium payments, or flexible premium payments? - ✔✔deferred
annuities//Deferred annuities can be funded with a single premium payment, a
series of fixed premium payments, or with flexible premium payments.
Moreover, the owner can make these payments whenever and in whatever
amount he or she wants.
How does the cost of group life insurance generally compare to the cost of
individual life insurance? - ✔✔Group life is less expensive.//Per unit of benefits
or coverage, group life insurance is less expensive than individual life insurance
because it has lower administrative and operational costs.
4|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
