Michigan Variable Annuities Exam
Questions and Answers 2026/2027
|Already Graded A+| Verified and
Updated
Life Income - CORRECT ANSWER -an insurance or annuity settlement option in
which payments are based on mortality and interest calculations and continue for
as long as the annuitant lives
Life income with period certain - CORRECT ANSWER -an insurance and annuity
settlement option in which payments continue to the longer of the life of the
annuitant or the selected certain period. Payments are made to a named
beneficiary if the annuitant dies before the expiry of the selected period
minimum guaranteed death benefit (VLI) - CORRECT ANSWER -the initial face
amount of a variable life policy that is guaranteed to be paid to a named
beneficiary so long as the scheduled premiums are paid regardless of the
performance of the separate account
Mortality Guarantee - CORRECT ANSWER -a basic settlement option guarantee,
which promises the insurer will continue annuitized payments for as long as the
annuitant(s) live, even beyond mortality data life expectancy
,nonforfeiture guarantee - CORRECT ANSWER -an annuity and cash value life
insurance guarantee that the contract owner will not lose the surrender value of
the contract should they stop making pmts prior to annuitization or death
prospectus - CORRECT ANSWER -a detailed summary of the SEC registration
statement for a security, which must be provided to the prospect for any variable
product sale; an agent is required to provide this material prior to, or concurrently
with, any sales presentation
refund option - CORRECT ANSWER -an insurance or annuity settlement option in
which payments continue to the longer of the life of the annuitant or until the
original principal is paid out; the payments are continued to a named beneficiary;
otherwise, a lump sum payment of any remaining balance is made to the
beneficiary at the annuitant's death
Separate Account - CORRECT ANSWER -the account containing the investments
supporting any variable annuity or variable life insurance contracts of an insurer;
this account is segregated by federal securities law from the other assets, such as
the general account, of the insurer
single payment deferred annuity (SPDA) - CORRECT ANSWER -a deferred annuity
created with a single purchase payment
, Subaccount - CORRECT ANSWER -an investment portfolio, often similar to a
mutual fund, within the separate account; the purchaser of a variable product
may be offered a dozen or more of these portfolios among which to direct their
investments
Suitability Requirements - CORRECT ANSWER -an NASD principle requiring the
agent in a variable products representation to make a conscientious inquiry into
the prospect's insurance product needs, financial circumstances, objectives and
investment attitudes before consummating the sale
target (guideline) premiums - CORRECT ANSWER -with flexible-premium products
(UL and VUL), this is the premium calculated by the insurer's actuaries, which will
maintain the death benefit for the entire life of the insured
Tax sheltered annuity - CORRECT ANSWER -an annuity used in an IRS-qualified
retirement plan, such as a 403(b) Plan for the employees of public schools, public
hospitals, church organizations and other not-for-profit organizations; in such a
plan, both employer and employee contributions are made on a pre-tax basis and
accumulate tax deferred; all withdrawals are then taxed as ordinary income
Universal Life Insurance - CORRECT ANSWER -a type of life insurance characterized
by flexible premiums, an adjustable death benefit and cash values, which may be
Questions and Answers 2026/2027
|Already Graded A+| Verified and
Updated
Life Income - CORRECT ANSWER -an insurance or annuity settlement option in
which payments are based on mortality and interest calculations and continue for
as long as the annuitant lives
Life income with period certain - CORRECT ANSWER -an insurance and annuity
settlement option in which payments continue to the longer of the life of the
annuitant or the selected certain period. Payments are made to a named
beneficiary if the annuitant dies before the expiry of the selected period
minimum guaranteed death benefit (VLI) - CORRECT ANSWER -the initial face
amount of a variable life policy that is guaranteed to be paid to a named
beneficiary so long as the scheduled premiums are paid regardless of the
performance of the separate account
Mortality Guarantee - CORRECT ANSWER -a basic settlement option guarantee,
which promises the insurer will continue annuitized payments for as long as the
annuitant(s) live, even beyond mortality data life expectancy
,nonforfeiture guarantee - CORRECT ANSWER -an annuity and cash value life
insurance guarantee that the contract owner will not lose the surrender value of
the contract should they stop making pmts prior to annuitization or death
prospectus - CORRECT ANSWER -a detailed summary of the SEC registration
statement for a security, which must be provided to the prospect for any variable
product sale; an agent is required to provide this material prior to, or concurrently
with, any sales presentation
refund option - CORRECT ANSWER -an insurance or annuity settlement option in
which payments continue to the longer of the life of the annuitant or until the
original principal is paid out; the payments are continued to a named beneficiary;
otherwise, a lump sum payment of any remaining balance is made to the
beneficiary at the annuitant's death
Separate Account - CORRECT ANSWER -the account containing the investments
supporting any variable annuity or variable life insurance contracts of an insurer;
this account is segregated by federal securities law from the other assets, such as
the general account, of the insurer
single payment deferred annuity (SPDA) - CORRECT ANSWER -a deferred annuity
created with a single purchase payment
, Subaccount - CORRECT ANSWER -an investment portfolio, often similar to a
mutual fund, within the separate account; the purchaser of a variable product
may be offered a dozen or more of these portfolios among which to direct their
investments
Suitability Requirements - CORRECT ANSWER -an NASD principle requiring the
agent in a variable products representation to make a conscientious inquiry into
the prospect's insurance product needs, financial circumstances, objectives and
investment attitudes before consummating the sale
target (guideline) premiums - CORRECT ANSWER -with flexible-premium products
(UL and VUL), this is the premium calculated by the insurer's actuaries, which will
maintain the death benefit for the entire life of the insured
Tax sheltered annuity - CORRECT ANSWER -an annuity used in an IRS-qualified
retirement plan, such as a 403(b) Plan for the employees of public schools, public
hospitals, church organizations and other not-for-profit organizations; in such a
plan, both employer and employee contributions are made on a pre-tax basis and
accumulate tax deferred; all withdrawals are then taxed as ordinary income
Universal Life Insurance - CORRECT ANSWER -a type of life insurance characterized
by flexible premiums, an adjustable death benefit and cash values, which may be
