LIFE PRODUCER (MI) EXAM 2025
QUESTIONS AND ANSWERS
Which of the following is NOT true regarding a Certificate of Authority?
a)It may be necessary for transacting business in a specific state.
b)It is equivalent to an insurance license.
c)It is issued by the state department of insurance.
d)It is issued to group insurance participants. - ANS d) It is issued to group insurance
participants.
Before insurers may transact business in a specific state, they must apply for a license or
Certificate of Authority from the state department of insurance and meet any financial (capital
and surplus) requirements set down by the state.
If an insured changes his payment plan from monthly to annually, what happens to the total
premium?
a)Doubles
b)Increases
c)Decreases
d)Stays the same - ANS c) Decreases
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, Because the insurer would have the entire premium to invest for a full year, they would reduce
the premium amount.
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
a)A life insurance license.
b)SEC registration.
c)FINRA registration
.d)A securities license. - ANS b) The owner will receive the surrender value of the annuity.
If a deferred annuity is surrendered prior to annuitization, the surrender value of the annuity is
guaranteed according to the nonforfeiture provision.
What happens if a deferred annuity is surrendered before the annuitization period?
a)Deferred annuities cannot be surrendered prior to the annuitization period.
b)The owner will receive the surrender value of the annuity.
c)The owner will only receive a refund of premium.
d)The insurer can only apply the surrender value toward another annuity. - ANS b) The
owner will receive the surrender value of the annuity.
If a deferred annuity is surrendered prior to annuitization, the surrender value of the annuity is
guaranteed according to the nonforfeiture provision.
What is the maximum fine for submitting a false or fraudulent claim to the insurer?
a)$500
b)$1,000
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QUESTIONS AND ANSWERS
Which of the following is NOT true regarding a Certificate of Authority?
a)It may be necessary for transacting business in a specific state.
b)It is equivalent to an insurance license.
c)It is issued by the state department of insurance.
d)It is issued to group insurance participants. - ANS d) It is issued to group insurance
participants.
Before insurers may transact business in a specific state, they must apply for a license or
Certificate of Authority from the state department of insurance and meet any financial (capital
and surplus) requirements set down by the state.
If an insured changes his payment plan from monthly to annually, what happens to the total
premium?
a)Doubles
b)Increases
c)Decreases
d)Stays the same - ANS c) Decreases
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 1
, Because the insurer would have the entire premium to invest for a full year, they would reduce
the premium amount.
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
a)A life insurance license.
b)SEC registration.
c)FINRA registration
.d)A securities license. - ANS b) The owner will receive the surrender value of the annuity.
If a deferred annuity is surrendered prior to annuitization, the surrender value of the annuity is
guaranteed according to the nonforfeiture provision.
What happens if a deferred annuity is surrendered before the annuitization period?
a)Deferred annuities cannot be surrendered prior to the annuitization period.
b)The owner will receive the surrender value of the annuity.
c)The owner will only receive a refund of premium.
d)The insurer can only apply the surrender value toward another annuity. - ANS b) The
owner will receive the surrender value of the annuity.
If a deferred annuity is surrendered prior to annuitization, the surrender value of the annuity is
guaranteed according to the nonforfeiture provision.
What is the maximum fine for submitting a false or fraudulent claim to the insurer?
a)$500
b)$1,000
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
