, Final Study Set - Michigan Life Producer
Exam QUESTIONS AND ANSWERS 100%
CORRECT!
Estate Creation - ANSWER Proceeds are paid to provide financial assets to create an
immediate estate the insured can pass on to survivors.
Estate Conservation - ANSWER provides money to pay any estate taxes or loans
which must be satisfied upon the death of the estate owner preserving the insured's
estate
Buy-Sell Agreement - ANSWER Is a contract in the event an owner dies that ensures a
business is sold to surviving owners.
Human Life Approach - ANSWER Looks at the amount of earning years left for an
insured taking the average the insured would make over those years.
Need Approach - ANSWER Looks at the financial expenses of an insured excluding
any short term debt over a set number of years.
Permanent Insurance - ANSWER Is a policy designed to cover you for the rest of your
life and develops cash value. (It is like buying a house, you agree to make payments
typically over a set period of time and if you sell it early you retain whatever equity you
earned)
Mortality Table - ANSWER is a table showing the probability of death at specified ages.
Aleatory Contract - ANSWER is a contract where one party potentially gains an
economic advantage over the other.
Conditional Agreement Receipt - ANSWER states that coverage begins on a date of
application or date of medical exam (if one is required) whichever date is later.
30 Day Interim Agreement - ANSWER is an agreement that provides an applicant up to
30 days of coverage as applied for or until they make a counter offer, even if insured
declines to issue policy.
Exam QUESTIONS AND ANSWERS 100%
CORRECT!
Estate Creation - ANSWER Proceeds are paid to provide financial assets to create an
immediate estate the insured can pass on to survivors.
Estate Conservation - ANSWER provides money to pay any estate taxes or loans
which must be satisfied upon the death of the estate owner preserving the insured's
estate
Buy-Sell Agreement - ANSWER Is a contract in the event an owner dies that ensures a
business is sold to surviving owners.
Human Life Approach - ANSWER Looks at the amount of earning years left for an
insured taking the average the insured would make over those years.
Need Approach - ANSWER Looks at the financial expenses of an insured excluding
any short term debt over a set number of years.
Permanent Insurance - ANSWER Is a policy designed to cover you for the rest of your
life and develops cash value. (It is like buying a house, you agree to make payments
typically over a set period of time and if you sell it early you retain whatever equity you
earned)
Mortality Table - ANSWER is a table showing the probability of death at specified ages.
Aleatory Contract - ANSWER is a contract where one party potentially gains an
economic advantage over the other.
Conditional Agreement Receipt - ANSWER states that coverage begins on a date of
application or date of medical exam (if one is required) whichever date is later.
30 Day Interim Agreement - ANSWER is an agreement that provides an applicant up to
30 days of coverage as applied for or until they make a counter offer, even if insured
declines to issue policy.
