MI LIFE PRODUCER EXAMS SET 2025/2026 QUESTIONS
AND SOLUTIONS MARKED A+
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged for the transfer of risk. The consideration on the part of the insured is
the representations made in the application and the payment of premium; the
consideration on the part of the insurer is the promise to pay in the event of loss.
✔✔Consumer Report - ✔✔A written and /or oral statement regarding a consumer's
credit, character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources.
✔✔Contract - ✔✔An agreement between two or more parties enforceable by law.
Contributory A group insurance plan that requires the employees to pay part of the
premium.
✔✔Controlled Business - ✔✔An entity that obtains and possesses a license solely for
the purpose of writing business on the owner, immediate family, relatives, employer or
employees.
✔✔Convertible - ✔✔A policy that may be exchanged for another type of policy by
contractual provision, at the option of the policyowner, and without evidence of
insurability (i.e. term life changed to a form of permanent life).
✔✔Countersignature - ✔✔The act of signing an insurance policy by a licensed resident
agent.
✔✔Credit Life Insurance - ✔✔A special type of coverage written to pay off the balance
of a loan in the event of the death of the debtor.
✔✔Death Benefit - ✔✔The amount payable upon the death of the person whose life is
insured.
✔✔Decreasing Term - ✔✔A type of life insurance that features a level premium and a
death benefit that decreases each year over the duration of the policy.
✔✔Defamation - ✔✔An unfair trade practice in which one agent or insurer makes an
injurious statement about another with the intent of harming the person's or company's
reputation.
✔✔Dependent - ✔✔A person who relies on another for support and maintenance.
✔✔Director - ✔✔The chief executive and administrative officer of the Insurance
, ✔✔Disclosure - ✔✔An act of identifying the name of the producer, representative or
firm, limited insurance representative, or temporary insurance producer on any policy
solicitation.
✔✔Domestic Insurer - ✔✔An insurance company that conducts business in the state of
incorporation.
✔✔Domicile of Insurer - ✔✔Insurer's location of incorporation and the legal ability to
write business in a state.
✔✔Earned Premium - ✔✔The amount of the premium for which the policy protection
has been given.
✔✔Employee Retirement Income Security Act (ERISA) - ✔✔The act that stipulates
federal standards for private pension plans.
✔✔Endow - ✔✔To reach the maturity date or time at which the face amount equals
cash values.
✔✔Estoppel - ✔✔A legal impediment to denying a fact or restoring a right that has been
previously waived.
✔✔Excess Insurance - ✔✔Insurance that pays over and above or in addition to basic
policy limits.
✔✔Exclusions - ✔✔Causes of loss, exposures, conditions, etc. listed in the policy for
which the benefits will not be paid.
✔✔Expiration - ✔✔The date specified in the policy as the date of termination.
✔✔Express Authority - ✔✔The authority granted to an agent by means of the agent's
written contract.
✔✔Extension of Benefits - ✔✔A provision that allows coverage to continue beyond the
policy's expiration date for employees who are not actively at work due to disability or
who have dependents hospitalized on that date. This coverage continues only until the
employee returns to work or the dependent leaves the hospital.
✔✔Face - ✔✔The first page of a policy.
✔✔Fair Credit Reporting Act - ✔✔A federal law that established procedures consumer
reporting agencies must follow in order to ensure that records are confidential, accurate,
relevant and properly used.
AND SOLUTIONS MARKED A+
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged for the transfer of risk. The consideration on the part of the insured is
the representations made in the application and the payment of premium; the
consideration on the part of the insurer is the promise to pay in the event of loss.
✔✔Consumer Report - ✔✔A written and /or oral statement regarding a consumer's
credit, character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources.
✔✔Contract - ✔✔An agreement between two or more parties enforceable by law.
Contributory A group insurance plan that requires the employees to pay part of the
premium.
✔✔Controlled Business - ✔✔An entity that obtains and possesses a license solely for
the purpose of writing business on the owner, immediate family, relatives, employer or
employees.
✔✔Convertible - ✔✔A policy that may be exchanged for another type of policy by
contractual provision, at the option of the policyowner, and without evidence of
insurability (i.e. term life changed to a form of permanent life).
✔✔Countersignature - ✔✔The act of signing an insurance policy by a licensed resident
agent.
✔✔Credit Life Insurance - ✔✔A special type of coverage written to pay off the balance
of a loan in the event of the death of the debtor.
✔✔Death Benefit - ✔✔The amount payable upon the death of the person whose life is
insured.
✔✔Decreasing Term - ✔✔A type of life insurance that features a level premium and a
death benefit that decreases each year over the duration of the policy.
✔✔Defamation - ✔✔An unfair trade practice in which one agent or insurer makes an
injurious statement about another with the intent of harming the person's or company's
reputation.
✔✔Dependent - ✔✔A person who relies on another for support and maintenance.
✔✔Director - ✔✔The chief executive and administrative officer of the Insurance
, ✔✔Disclosure - ✔✔An act of identifying the name of the producer, representative or
firm, limited insurance representative, or temporary insurance producer on any policy
solicitation.
✔✔Domestic Insurer - ✔✔An insurance company that conducts business in the state of
incorporation.
✔✔Domicile of Insurer - ✔✔Insurer's location of incorporation and the legal ability to
write business in a state.
✔✔Earned Premium - ✔✔The amount of the premium for which the policy protection
has been given.
✔✔Employee Retirement Income Security Act (ERISA) - ✔✔The act that stipulates
federal standards for private pension plans.
✔✔Endow - ✔✔To reach the maturity date or time at which the face amount equals
cash values.
✔✔Estoppel - ✔✔A legal impediment to denying a fact or restoring a right that has been
previously waived.
✔✔Excess Insurance - ✔✔Insurance that pays over and above or in addition to basic
policy limits.
✔✔Exclusions - ✔✔Causes of loss, exposures, conditions, etc. listed in the policy for
which the benefits will not be paid.
✔✔Expiration - ✔✔The date specified in the policy as the date of termination.
✔✔Express Authority - ✔✔The authority granted to an agent by means of the agent's
written contract.
✔✔Extension of Benefits - ✔✔A provision that allows coverage to continue beyond the
policy's expiration date for employees who are not actively at work due to disability or
who have dependents hospitalized on that date. This coverage continues only until the
employee returns to work or the dependent leaves the hospital.
✔✔Face - ✔✔The first page of a policy.
✔✔Fair Credit Reporting Act - ✔✔A federal law that established procedures consumer
reporting agencies must follow in order to ensure that records are confidential, accurate,
relevant and properly used.
