Michigan Life Practice Exam Questions
with 100% Correct Answers
In a fixed annuity, which of the following is true regarding the guaranteed interest rate
on the investment? - Answer-The annuitant will receive the higher of either the
guaranteed minimum rate or current rate.
Which of the following is NOT typically excluded from life policies? - Answer-Death due
to plane crash for a fare-paying passenger
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT -
Answer-At distribution, all amounts received by the employee are tax free.
Which of the following is NOT an allowable 1035 exchange? - Answer-A whole life
insurance policy is exchanged for a term insurance policy.
An individual applied for an insurance policy and paid the initial premium. The insurer
issued a conditional receipt. Five days later the applicant had to submit to a medical
exam. If the policy is issued, what would be the policy's effective date? - Answer-The
date of medical exam
Which of the following best describes what the annuity period is? - Answer-The period
of time during which accumulated money is converted into income payments
Which of the following is a statement that is guaranteed to be true, and if untrue, may
breach an insurance contract? - Answer-Warranty
An employee quits her job where she has a balance of $10,000 in her qualified plan.
The balance was paid out directly to the employee in order for her to move the funds to
a new account. If she decides to rollover her plan to a Traditional IRA, how much will
she receive from the plan administrator and how long does she have to complete the
tax-free rollover? - Answer-$8,000, 60 days
A credit insurance policy must be delivered to the debtor within how many days after the
indebtedness is incurred? - Answer-30 Days
with 100% Correct Answers
In a fixed annuity, which of the following is true regarding the guaranteed interest rate
on the investment? - Answer-The annuitant will receive the higher of either the
guaranteed minimum rate or current rate.
Which of the following is NOT typically excluded from life policies? - Answer-Death due
to plane crash for a fare-paying passenger
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT -
Answer-At distribution, all amounts received by the employee are tax free.
Which of the following is NOT an allowable 1035 exchange? - Answer-A whole life
insurance policy is exchanged for a term insurance policy.
An individual applied for an insurance policy and paid the initial premium. The insurer
issued a conditional receipt. Five days later the applicant had to submit to a medical
exam. If the policy is issued, what would be the policy's effective date? - Answer-The
date of medical exam
Which of the following best describes what the annuity period is? - Answer-The period
of time during which accumulated money is converted into income payments
Which of the following is a statement that is guaranteed to be true, and if untrue, may
breach an insurance contract? - Answer-Warranty
An employee quits her job where she has a balance of $10,000 in her qualified plan.
The balance was paid out directly to the employee in order for her to move the funds to
a new account. If she decides to rollover her plan to a Traditional IRA, how much will
she receive from the plan administrator and how long does she have to complete the
tax-free rollover? - Answer-$8,000, 60 days
A credit insurance policy must be delivered to the debtor within how many days after the
indebtedness is incurred? - Answer-30 Days
