Michigan Life Insurance State Exam All Possible Questions and Answers with complete

Under a traditional IRA, interest is taxed: Only if withdrawn prior to age 59 1/2 According to the capital gains rate Upon distribution During the accumulation phase - Answer-Upon distribution Which of these statements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 Earnings are not taxable when withdrawn Earnings are taxable when withdrawn Contribution are never tax deductible Contributions are always made by the employer - Answer-Earnings are taxable when withdrawn Which of these describes the result of a modified endowment contract that failed to meet the sevenpay test? Policy loans are disallowed The premium payments will be tax deductiblePre- death distributions are typically taxable Withdrawals will be prohibited - Answer-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 - Answer-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 - Answer-Submit to the replacing insurer a list of the policies to be replaced Who were Keogh plans designed to provide pension benefits for? Corporate officersPublic school employees The self-employed Government employees - Answer-The self emplyed