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MICHIGAN LIFE INSURANCE STATE EXAM/
MOST
RECENT VERSION FOR MICHIGAN
INSUARANCE
STATE EXAM ALL QUESTIONS AND
CORRECT
ANSWERS/ BEST GRADED A+
Fair Credit Reporting Act main purpose is to protect consumers with guidelines
regarding credit reporting and distribution
Which of the following protects a policy owner from misrepresentation caused by
an innocent mistake Incontestable clause
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A life insurance policy owner was injured in an automobile accident which results
in a total and permanent disability. Which rider would pay a monthly amount
because of this disability
Disability income rider
Which scenario would most life insurance policies exclude coverage for An
individual who has a hobby racing cars once a month
Dorian exercised a nonforfeiture option by using his life policy's cash value to
purchase an extended term option. When the term insurance expires
The protection ends
What happens when an insurance policy is backdated?
The policy's effective date is earlier than the present
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Rob purchased a standard whole life policy with a $500,000 death benefit when he
was age 30. His insurance agent told him the policy would be paid up if he reached
age 100. The present cash value of the policy equals $250,000. Rob recently died
at age 60. The death benefit would be
500,000
How is the cost of a policy affected when a policyowner pays premiums more
frequently?
Increases
Intentional withholding of material facts that would affect an insurance policy's
validity is called
Concealment
Under Michigan Law, which of the following would NOT be considered an illegal
inducement?
A promotional item with the producer's name and address valued at $5
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Which contract element is insurable interest a component of? legal purpose
Which type of rider will waive the premium on a child's life insurance policy if the
parent paying the premium dies?
Payor benefit
What is the nonforfeiture value of an annuity before annuitization?
All premiums paid, plus interest, minus any withdrawals and surrender charges
Who assumes the investment risk with fixed annuity
The insurer
ABC Insurance Company transfers part of their risk to XYZ Insurance Company.
This situation is called
MICHIGAN LIFE INSURANCE STATE EXAM/
MOST
RECENT VERSION FOR MICHIGAN
INSUARANCE
STATE EXAM ALL QUESTIONS AND
CORRECT
ANSWERS/ BEST GRADED A+
Fair Credit Reporting Act main purpose is to protect consumers with guidelines
regarding credit reporting and distribution
Which of the following protects a policy owner from misrepresentation caused by
an innocent mistake Incontestable clause
,2|Page
A life insurance policy owner was injured in an automobile accident which results
in a total and permanent disability. Which rider would pay a monthly amount
because of this disability
Disability income rider
Which scenario would most life insurance policies exclude coverage for An
individual who has a hobby racing cars once a month
Dorian exercised a nonforfeiture option by using his life policy's cash value to
purchase an extended term option. When the term insurance expires
The protection ends
What happens when an insurance policy is backdated?
The policy's effective date is earlier than the present
,3|Page
Rob purchased a standard whole life policy with a $500,000 death benefit when he
was age 30. His insurance agent told him the policy would be paid up if he reached
age 100. The present cash value of the policy equals $250,000. Rob recently died
at age 60. The death benefit would be
500,000
How is the cost of a policy affected when a policyowner pays premiums more
frequently?
Increases
Intentional withholding of material facts that would affect an insurance policy's
validity is called
Concealment
Under Michigan Law, which of the following would NOT be considered an illegal
inducement?
A promotional item with the producer's name and address valued at $5
, 4|Page
Which contract element is insurable interest a component of? legal purpose
Which type of rider will waive the premium on a child's life insurance policy if the
parent paying the premium dies?
Payor benefit
What is the nonforfeiture value of an annuity before annuitization?
All premiums paid, plus interest, minus any withdrawals and surrender charges
Who assumes the investment risk with fixed annuity
The insurer
ABC Insurance Company transfers part of their risk to XYZ Insurance Company.
This situation is called
