MI Variable Life and Annuities
Producer Exam with Correct
Answers 100% Pass
A variable annuity has a payout that is - CORRECT ANSWER-Contingent upon
the profitability of the investment portfolio
Which of the following would be considered the largest cost incurred on the value
of a variable annuity?
a) the cost of insurance
b) Mortality fee
c) Investment management fee
d) Administrative expenses - CORRECT ANSWER-c) Investment management
fee
The two main categories of policy loan interest rates are - CORRECT ANSWER-
Fixed and variable
Which of the following types of policies would allow a policyowner to choose a
premium amount payment schedule?
,a) Fixed premium
b) Indeterminate premium
c) Flexible premium
d) Initial premium - CORRECT ANSWER-c) Flexible premium
SIMPLE Plans require all of the following EXCEPT
a) Employees must receive a minimum of $5,000 in annual compensation.
b) At least 1,000 employees.
c) No other qualified plan can be used.
d) No more than 100 employees/ - CORRECT ANSWER-b) At least 1,000
employees.
Employer contributions made to a qualified plan - CORRECT ANSWER-Are
subject to vesting requirements
Which of the following is used to determine interest rates on variable products? -
CORRECT ANSWER-a) Cash value
b) Interest rate index
c) consumer price index
d) annual average rate
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,b) Interest rate index
For a retirement plan to be qualified, it must be designed for the benefit of? -
CORRECT ANSWER-Employees
Which of the following requires mandates a prospectus?
a) Secured Investors Protection Act of 1970
b) Fair Credit Act of 1933
c) Securities Act of 1933
d) Securities Exchange Act of 1934 - CORRECT ANSWER-c) Securities Act of
1933
Traditional IRA contributions are tax deductible based on which of the following?
a) IRA limit
b) Owner's income
c) How long the plan has been in force
d) Owner's age - CORRECT ANSWER-b) Owner's income
A variable life insurance policy states all of the following current and maximum
policy charges EXCEPT
a) Administrative expenses
b) Mortality costs
, c) Investment management fee
d) Guaranteed cash value - CORRECT ANSWER-d) Guaranteed cash value
What does a variable annuity guarantee to the annuitant at retirement?
a) Tax-free income
b) Total payments that equal at least the amount invested in the contract
c) Higher returns than can be obtained from a fixed annuity
d) None of the above - CORRECT ANSWER-d) None of the above
*None of these answers are true. If the performance in the separate account does
well over time and lives long enough, he or she will come out much better than
from a fixed annuity, but there are no guarantees this will occur.
Which of the following is a key distinction between variable whole life and variable
universal life products?
a) Variable whole life has a guaranteed death benefit.
b) Variable universal life is regulated solely through FINRA.
c) Variable whole life allows policy loans from the cash value.
d) Variable universal life has a fixed premium. - CORRECT ANSWER-a) Variable
whole life has a guaranteed death benefit.
All of the following are true of an annuity owner EXCEPT
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Producer Exam with Correct
Answers 100% Pass
A variable annuity has a payout that is - CORRECT ANSWER-Contingent upon
the profitability of the investment portfolio
Which of the following would be considered the largest cost incurred on the value
of a variable annuity?
a) the cost of insurance
b) Mortality fee
c) Investment management fee
d) Administrative expenses - CORRECT ANSWER-c) Investment management
fee
The two main categories of policy loan interest rates are - CORRECT ANSWER-
Fixed and variable
Which of the following types of policies would allow a policyowner to choose a
premium amount payment schedule?
,a) Fixed premium
b) Indeterminate premium
c) Flexible premium
d) Initial premium - CORRECT ANSWER-c) Flexible premium
SIMPLE Plans require all of the following EXCEPT
a) Employees must receive a minimum of $5,000 in annual compensation.
b) At least 1,000 employees.
c) No other qualified plan can be used.
d) No more than 100 employees/ - CORRECT ANSWER-b) At least 1,000
employees.
Employer contributions made to a qualified plan - CORRECT ANSWER-Are
subject to vesting requirements
Which of the following is used to determine interest rates on variable products? -
CORRECT ANSWER-a) Cash value
b) Interest rate index
c) consumer price index
d) annual average rate
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,b) Interest rate index
For a retirement plan to be qualified, it must be designed for the benefit of? -
CORRECT ANSWER-Employees
Which of the following requires mandates a prospectus?
a) Secured Investors Protection Act of 1970
b) Fair Credit Act of 1933
c) Securities Act of 1933
d) Securities Exchange Act of 1934 - CORRECT ANSWER-c) Securities Act of
1933
Traditional IRA contributions are tax deductible based on which of the following?
a) IRA limit
b) Owner's income
c) How long the plan has been in force
d) Owner's age - CORRECT ANSWER-b) Owner's income
A variable life insurance policy states all of the following current and maximum
policy charges EXCEPT
a) Administrative expenses
b) Mortality costs
, c) Investment management fee
d) Guaranteed cash value - CORRECT ANSWER-d) Guaranteed cash value
What does a variable annuity guarantee to the annuitant at retirement?
a) Tax-free income
b) Total payments that equal at least the amount invested in the contract
c) Higher returns than can be obtained from a fixed annuity
d) None of the above - CORRECT ANSWER-d) None of the above
*None of these answers are true. If the performance in the separate account does
well over time and lives long enough, he or she will come out much better than
from a fixed annuity, but there are no guarantees this will occur.
Which of the following is a key distinction between variable whole life and variable
universal life products?
a) Variable whole life has a guaranteed death benefit.
b) Variable universal life is regulated solely through FINRA.
c) Variable whole life allows policy loans from the cash value.
d) Variable universal life has a fixed premium. - CORRECT ANSWER-a) Variable
whole life has a guaranteed death benefit.
All of the following are true of an annuity owner EXCEPT
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