PRACTICE TEST MI LIFE PRODUCER
EXAM 2025 QUESTIONS AND ANSWERS
Which of the following term insurance types provides temporary protection that can be
changed to some type of permanent protection without evidence of insurability? -
ANS Convertible
Which policy type is backed by equity investments and allows the policyholder to adjust the
death benefit? - ANS variable universal life
which of the following lists the three common types of permanent individual life insurance? -
ANS Variable Life, whole Life, Universal Life
Which of the following is common in an increasing term life policy - ANS It begins with little
or no insurance protection **
While whole life policy premium type is the mot common? - ANS Continuous premium
Which of the following is TRUE of the limited pay whole life policy? - ANS Coverage continues
after the policy is paid-up
Which annuity settlement option provides a stated monthly amount to the annuitant and upon
the annuitant's death the same or lesser amount paid for the lifetime of the survivor? -
ANS Joint and survivorship option
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, Which of the following is TRUE of the equity-indexed annuity? - ANS It has a guaranteed
minimum interest rate **
In a level term life policy, which ALWAYS remains constant? - ANS death benefit **
Current assumption whole life policies are sensitive to which of the following? - ANS Interest
rates **
Which of the following is TRUE for a flexible premium annuity? - ANS The purchaser has the
option to vary the amount of each premium payment falling between a minimum and
maximum amount
Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying
investment account? - ANS Variable
For an individual long-term care policy there is an annual dollar limit for tax deductions that is
based on which of the following? - ANS Age **
The group conversion option is alloed for all the following EXCEPT? - ANS During the annual
benefits enrollment period **
In order to AVOID being classified as an MEC, a policy must pass which of the following? -
ANS seven-pay test
Which of the following is characteristic of a nonqualified plan? - ANS plan does not meet
federal guidelines for tax benefits
All of the following are tax qualified retirement plans EXCEPT? - ANS Section 529 plan
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
EXAM 2025 QUESTIONS AND ANSWERS
Which of the following term insurance types provides temporary protection that can be
changed to some type of permanent protection without evidence of insurability? -
ANS Convertible
Which policy type is backed by equity investments and allows the policyholder to adjust the
death benefit? - ANS variable universal life
which of the following lists the three common types of permanent individual life insurance? -
ANS Variable Life, whole Life, Universal Life
Which of the following is common in an increasing term life policy - ANS It begins with little
or no insurance protection **
While whole life policy premium type is the mot common? - ANS Continuous premium
Which of the following is TRUE of the limited pay whole life policy? - ANS Coverage continues
after the policy is paid-up
Which annuity settlement option provides a stated monthly amount to the annuitant and upon
the annuitant's death the same or lesser amount paid for the lifetime of the survivor? -
ANS Joint and survivorship option
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 1
, Which of the following is TRUE of the equity-indexed annuity? - ANS It has a guaranteed
minimum interest rate **
In a level term life policy, which ALWAYS remains constant? - ANS death benefit **
Current assumption whole life policies are sensitive to which of the following? - ANS Interest
rates **
Which of the following is TRUE for a flexible premium annuity? - ANS The purchaser has the
option to vary the amount of each premium payment falling between a minimum and
maximum amount
Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying
investment account? - ANS Variable
For an individual long-term care policy there is an annual dollar limit for tax deductions that is
based on which of the following? - ANS Age **
The group conversion option is alloed for all the following EXCEPT? - ANS During the annual
benefits enrollment period **
In order to AVOID being classified as an MEC, a policy must pass which of the following? -
ANS seven-pay test
Which of the following is characteristic of a nonqualified plan? - ANS plan does not meet
federal guidelines for tax benefits
All of the following are tax qualified retirement plans EXCEPT? - ANS Section 529 plan
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
