Michigan Life Insurance State Exam with correct solutions.

Michigan Life Insurance State Exam with correct solutions. Under a traditional IRA, interest is taxed: Only if withdrawn prior to age 59 1/2 According to the capital gains rate Upon distribution During the accumulation phase - correct answers.Upon distribution Which of these statements concerning Traditional IRAs is CORRECT? Earnings are not taxable when withdrawn Earnings are taxable when withdrawn Contribution are never tax deductible Contributions are always made by the employer - correct answers.Earnings are taxable when withdrawn Which of these describes the result of a modified endowment contract that failed to meet the seven- pay test? Policy loans are disallowed The premium payments will be tax deductible Pre- death distributions are typically taxable Withdrawals will be prohibited - correct answers.Pre- death distributions are typically taxable In order for a contract to be valid, it must be filled with the state be signing and witnessed by an attorney be in writing contain offer and acceptance - correct answers.Contain offer and acceptance Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy? Keep replacement records on file for at least 10 years Notify the existing insurer of the proposed replacement Submit to the replacing insurer a list of the policies to be replaced Offer the insured a 60- day free- look period - correct answers.Submit to the replacing insurer a list of the policies to be replaced Who were Keogh plans designed to provide pension benefits for? Corporate officers Public school employees The self-employed Government employees - correct answers.The self emplyed A producer's fiduciary duty requires that premiums are maintained in a personal bank account until remittance to insurer premiums be deposited in an interest bearing account premiums are forwarded to the insurer on a timely basis premiums be commingled - correct answers.Premiums are forwarded on a timely basis An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in Risk reduction Risk Transference