MI LIFE PRODUCER EXAMINATION SET 2025/2026
QUESTIONS AND SOLUTIONS MARKED A+
✔✔Twin brothers are starting a new business. They know it will take several years to
build the business to the point that they can pay off the debt incurred in starting the
business. What type of insurance would be the most affordable and still provide a death
benefit should one of them die? - ✔✔Joint Life
✔✔At age 30, an applicant wants to start an insurance program, but realizing that his
insurance needs will likely change, he wants a policy that can be modified to
accommodate those changes as they occur. Which of the following policies would most
likely fit his needs? - ✔✔Adjustable Life
✔✔If an insurer becomes insolvent, which of the following would pay benefits to
policyholders? - ✔✔The Guaranty Association
✔✔if the insurer does not pay the benefit to the beneficiary within the required time
period, what interest rate will be assessed on the proceeds - ✔✔6%
✔✔when must an insurer send a copy of the Notice to the Commissioner of the
producers termination to the producer - ✔✔within 15 days of the notice
✔✔all of the following statements are true regarding installments for a fixed period
annuity settlement option except - ✔✔It is a life contingency option.
✔✔all of the following are true regarding a decreasing term policy except - ✔✔the
payable premium amount steadily declines throughout the duration of the contract
✔✔all of the following employees may use a 403(b) plan for their retirement except -
✔✔CEO of a private corporation
✔✔which type of life insurance policy generates immediate cash values - ✔✔single
premium
✔✔which of the following protects the insured from an unintentional policy lapse due to
a nonpayment of premium - ✔✔Automatic premium loan
✔✔which of the following policies is characterized by a provision where the premiums
are lower in the early years of the policy and increase over time to a point where they
become level for the remainder of the policy - ✔✔Graded premium whole life
, ✔✔when an insured under a life insurance policy died the designated beneficiary
received the face amount of the policy as well as a refund of all the premiums paid.
which rider is attached to the policy? - ✔✔Return of premium
✔✔all of the following entities regulate variable life policies except - ✔✔The Guaranty
Association
✔✔an insurance company forwards fixed annuity premiums to their general account,
where the money is invested. the guaranteed minimum interest is set at 2.5%. during an
economic down string, the investments only drew 2%. what interest rate will the insurer
pay to its policyholders - ✔✔2.5%
✔✔which if the following methods of calculating the amount of life insurance needed
takes into the account the insurers wages, years until retirement and inflation -
✔✔human life value approach
✔✔The insured under a $100,000 life insurance policy with a triple indemnity rider for
accidental death was killed in a car accident. It was determined that the accident was
his fault. The triple indemnity rider in the policy specifies that the death must not be
contributed to by the insured in any manner. In this case, what will the policy beneficiary
receive? - ✔✔$100,000
✔✔What is the tax consequence of amounts received from a Traditional IRA after the
money was left in the tax-deferred account by the beneficiary? - ✔✔income tax on
distributions and no penalty
✔✔Concerning Juvenile Life insurance, which of the following statements is
INCORRECT? - ✔✔Juvenile Life is classified as any life insurance purchased by a
minor.
✔✔According to the entire contract provision, what document must be made part of the
insurance policy? - ✔✔Copy of the original application
✔✔which of the following would not be considered an unfair and deceptive practice -
✔✔Controlled business
✔✔All advertisements are the responsibility of the - ✔✔insurer
✔✔which of following is not a term for the period of time during which the annuitant or
the beneficiary receives income - ✔✔Depreciation period
QUESTIONS AND SOLUTIONS MARKED A+
✔✔Twin brothers are starting a new business. They know it will take several years to
build the business to the point that they can pay off the debt incurred in starting the
business. What type of insurance would be the most affordable and still provide a death
benefit should one of them die? - ✔✔Joint Life
✔✔At age 30, an applicant wants to start an insurance program, but realizing that his
insurance needs will likely change, he wants a policy that can be modified to
accommodate those changes as they occur. Which of the following policies would most
likely fit his needs? - ✔✔Adjustable Life
✔✔If an insurer becomes insolvent, which of the following would pay benefits to
policyholders? - ✔✔The Guaranty Association
✔✔if the insurer does not pay the benefit to the beneficiary within the required time
period, what interest rate will be assessed on the proceeds - ✔✔6%
✔✔when must an insurer send a copy of the Notice to the Commissioner of the
producers termination to the producer - ✔✔within 15 days of the notice
✔✔all of the following statements are true regarding installments for a fixed period
annuity settlement option except - ✔✔It is a life contingency option.
✔✔all of the following are true regarding a decreasing term policy except - ✔✔the
payable premium amount steadily declines throughout the duration of the contract
✔✔all of the following employees may use a 403(b) plan for their retirement except -
✔✔CEO of a private corporation
✔✔which type of life insurance policy generates immediate cash values - ✔✔single
premium
✔✔which of the following protects the insured from an unintentional policy lapse due to
a nonpayment of premium - ✔✔Automatic premium loan
✔✔which of the following policies is characterized by a provision where the premiums
are lower in the early years of the policy and increase over time to a point where they
become level for the remainder of the policy - ✔✔Graded premium whole life
, ✔✔when an insured under a life insurance policy died the designated beneficiary
received the face amount of the policy as well as a refund of all the premiums paid.
which rider is attached to the policy? - ✔✔Return of premium
✔✔all of the following entities regulate variable life policies except - ✔✔The Guaranty
Association
✔✔an insurance company forwards fixed annuity premiums to their general account,
where the money is invested. the guaranteed minimum interest is set at 2.5%. during an
economic down string, the investments only drew 2%. what interest rate will the insurer
pay to its policyholders - ✔✔2.5%
✔✔which if the following methods of calculating the amount of life insurance needed
takes into the account the insurers wages, years until retirement and inflation -
✔✔human life value approach
✔✔The insured under a $100,000 life insurance policy with a triple indemnity rider for
accidental death was killed in a car accident. It was determined that the accident was
his fault. The triple indemnity rider in the policy specifies that the death must not be
contributed to by the insured in any manner. In this case, what will the policy beneficiary
receive? - ✔✔$100,000
✔✔What is the tax consequence of amounts received from a Traditional IRA after the
money was left in the tax-deferred account by the beneficiary? - ✔✔income tax on
distributions and no penalty
✔✔Concerning Juvenile Life insurance, which of the following statements is
INCORRECT? - ✔✔Juvenile Life is classified as any life insurance purchased by a
minor.
✔✔According to the entire contract provision, what document must be made part of the
insurance policy? - ✔✔Copy of the original application
✔✔which of the following would not be considered an unfair and deceptive practice -
✔✔Controlled business
✔✔All advertisements are the responsibility of the - ✔✔insurer
✔✔which of following is not a term for the period of time during which the annuitant or
the beneficiary receives income - ✔✔Depreciation period
