Michigan life insurance state exam answer key 2024
Questions And Answers 100% Correct
Which is TRUE regarding the annuitant, when the annuitant is NOT the policy owner?
1. The annuitant has the right to name the beneficiary
2. The annuitant is the person paying the premiums 3. The cash value is available to the annuitant for withdrawals
4. Annuity payments will be based on the annuitants life expectancy ANS-Annuity payments will be based on the annuitants life expectancy
Signing an applicants name for insurance is known as...?
1. Concealment
2. Defamation 3. Coercion
4. Forgery ANS-4. Forgery
Failure to pay a penalty assessed by the commissioner may result in...?
1. Revoked or suspended license 2. Require the license to retake the examination 3. Complete 5 extra hours of continuing education 4. Pay a late charge of 1.5% ANS-1. Revoked or suspended license
Two business business partners own life insurance, which or the following allows the surviving partner to use death benefit to purchase the deceased owners share?
1. Buy-sell agreement 2. Key employee life insurance 3. Business continuation 4. Accidental death ANS-1. Buy-sell agreement
Policy owner surrenders a policy for its cash value, when is tax liability incurred? 1. The cash value exceeds all premiums paid 2. The cash value is less than premiums paid
3. The policy is exchanged for a policy of equal value 4. The party is transferred to a third party ANS-1. The cash value exceeds all premiums paid
When is insurable interest required?
1. At time of claim 2. At time of application 3. In event of a policy loan 4. Within the first year of death ANS-2. At the time of application
Which of the following best describes a single premium cash policy? 1. It requires only one payment to make the policy paid up
2. It provides for only one premium to be paid without evidence of insurability 3. It waives one future premium of the owner becomes disabled
4. It requires the policy owner to pay one premium annually ANS-1. It requires only one payment to make the policy paid up
When life insurance is funded by contributions to a qualified retirement...
1. Premiums are taxable 2. Death benefits are taxable 3. The insurance must be incidental to the plan
4. Death benefits are paid to the employer ANS-1. Premiums are taxable
How does a graded premium whole life policy differ from a modified premium?
1. It increase the premium annually during the first several years of the policy 2. It increase the premium annually for the duration of the policy
3. It increases the premium once during the duration of the policy 4. It has lower premium for the duration of the policy ANS-1. It has a lower premium for the duration of the policy
Which of the following is NOT true about converting a group policy into an individual policy?
1. The converted policy must be the same amount as the group coverage 2. Group policies must include a guarantee of conversion 3. Coverage continues during the conversion period 4. Proof of insurability must be required ANS-4. Proof of insurability must be required
Before doing business under an assumed name, who must the producer first notify?
1. Insured
2. insurer
3. Commissioner
4. Insurance agency ANS-3. Commissioner
Which writer allows you to purchase additional insurance without underwriting or specific dates?
Questions And Answers 100% Correct
Which is TRUE regarding the annuitant, when the annuitant is NOT the policy owner?
1. The annuitant has the right to name the beneficiary
2. The annuitant is the person paying the premiums 3. The cash value is available to the annuitant for withdrawals
4. Annuity payments will be based on the annuitants life expectancy ANS-Annuity payments will be based on the annuitants life expectancy
Signing an applicants name for insurance is known as...?
1. Concealment
2. Defamation 3. Coercion
4. Forgery ANS-4. Forgery
Failure to pay a penalty assessed by the commissioner may result in...?
1. Revoked or suspended license 2. Require the license to retake the examination 3. Complete 5 extra hours of continuing education 4. Pay a late charge of 1.5% ANS-1. Revoked or suspended license
Two business business partners own life insurance, which or the following allows the surviving partner to use death benefit to purchase the deceased owners share?
1. Buy-sell agreement 2. Key employee life insurance 3. Business continuation 4. Accidental death ANS-1. Buy-sell agreement
Policy owner surrenders a policy for its cash value, when is tax liability incurred? 1. The cash value exceeds all premiums paid 2. The cash value is less than premiums paid
3. The policy is exchanged for a policy of equal value 4. The party is transferred to a third party ANS-1. The cash value exceeds all premiums paid
When is insurable interest required?
1. At time of claim 2. At time of application 3. In event of a policy loan 4. Within the first year of death ANS-2. At the time of application
Which of the following best describes a single premium cash policy? 1. It requires only one payment to make the policy paid up
2. It provides for only one premium to be paid without evidence of insurability 3. It waives one future premium of the owner becomes disabled
4. It requires the policy owner to pay one premium annually ANS-1. It requires only one payment to make the policy paid up
When life insurance is funded by contributions to a qualified retirement...
1. Premiums are taxable 2. Death benefits are taxable 3. The insurance must be incidental to the plan
4. Death benefits are paid to the employer ANS-1. Premiums are taxable
How does a graded premium whole life policy differ from a modified premium?
1. It increase the premium annually during the first several years of the policy 2. It increase the premium annually for the duration of the policy
3. It increases the premium once during the duration of the policy 4. It has lower premium for the duration of the policy ANS-1. It has a lower premium for the duration of the policy
Which of the following is NOT true about converting a group policy into an individual policy?
1. The converted policy must be the same amount as the group coverage 2. Group policies must include a guarantee of conversion 3. Coverage continues during the conversion period 4. Proof of insurability must be required ANS-4. Proof of insurability must be required
Before doing business under an assumed name, who must the producer first notify?
1. Insured
2. insurer
3. Commissioner
4. Insurance agency ANS-3. Commissioner
Which writer allows you to purchase additional insurance without underwriting or specific dates?
