Michigan Life Test Questions and
Answers All Correct
What type of beneficiary designation allows the benefit to pass from a deceased primary
beneficiary to the beneficiary's heirs, instead of splitting the benefit among surviving
primary beneficiaries? - Answer-Per stirpes
Which authority is NOT stated in an agent's contract but is required for the agent to
conduct business? - Answer-Implied
All of the following entities regulate variable life policies EXCEPT - Answer-The
Guaranty Association.
During partial withdrawal from a universal life policy, which portion will be taxed? -
Answer-Interest
An agent accepts the premium payment 35 days after it is due, telling the insured that
there will not be a problem keeping the policy in force. This is an example of what type
of agent authority? - Answer-Apparent
A prospective insured receives a conditional receipt but dies before the policy is issued.
The insurer will - Answer-Pay the policy proceeds only if it would have issued the policy.
Another name for a substandard risk classification is - Answer-Rated.
Not all losses are insurable, and there are certain requirements that must be met before
a risk is a proper subject for insurance. These requirements include all of the following
EXCEPT - Answer-The loss may be intentional.
If the annuitant dies during the accumulation period, who will receive the annuity
benefits? - Answer-Benificiary
If a beneficiary wants a guarantee that benefits paid from principal and interest would be
paid for a period of 10 years before being exhausted, what settlement option should the
beneficiary select? - Answer-Fixed Period
Which of the following is the closest term to an authorized insurer? - Answer-Admitted
Answers All Correct
What type of beneficiary designation allows the benefit to pass from a deceased primary
beneficiary to the beneficiary's heirs, instead of splitting the benefit among surviving
primary beneficiaries? - Answer-Per stirpes
Which authority is NOT stated in an agent's contract but is required for the agent to
conduct business? - Answer-Implied
All of the following entities regulate variable life policies EXCEPT - Answer-The
Guaranty Association.
During partial withdrawal from a universal life policy, which portion will be taxed? -
Answer-Interest
An agent accepts the premium payment 35 days after it is due, telling the insured that
there will not be a problem keeping the policy in force. This is an example of what type
of agent authority? - Answer-Apparent
A prospective insured receives a conditional receipt but dies before the policy is issued.
The insurer will - Answer-Pay the policy proceeds only if it would have issued the policy.
Another name for a substandard risk classification is - Answer-Rated.
Not all losses are insurable, and there are certain requirements that must be met before
a risk is a proper subject for insurance. These requirements include all of the following
EXCEPT - Answer-The loss may be intentional.
If the annuitant dies during the accumulation period, who will receive the annuity
benefits? - Answer-Benificiary
If a beneficiary wants a guarantee that benefits paid from principal and interest would be
paid for a period of 10 years before being exhausted, what settlement option should the
beneficiary select? - Answer-Fixed Period
Which of the following is the closest term to an authorized insurer? - Answer-Admitted
