, Michigan life insurance state exam answer
key EXAM QUESTIONS AND ANSWERS
100% CORRECT!
Which is TRUE regarding the annuitant, when the annuitant is NOT the policy owner? -
ANSWERAnnuity payments will be based on the annuitants life expectancy
Signing an applicants name for insurance is known as...? - ANSWERForgery
Failure to pay a penalty assessed by the commissioner may result in...? -
ANSWERRevoked 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? -
ANSWERBuy-sell agreement
Policy owner surrenders a policy for its cash value, when is tax liability incurred? -
ANSWERThe cash value exceeds all premiums paid
When is insurable interest required? - ANSWERAt the time of application
Which of the following best describes a single premium cash policy? - ANSWERIt
requires only one payment to make the policy paid up
When life insurance is funded by contributions to a qualified retirement... -
ANSWERPremiums are taxable
How does a graded premium whole life policy differ from a modified premium? -
ANSWERIt 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 - ANSWERProof of insurability must be required
Before doing business under an assumed name, who must the producer first notify? -
ANSWERCommissioner
key EXAM QUESTIONS AND ANSWERS
100% CORRECT!
Which is TRUE regarding the annuitant, when the annuitant is NOT the policy owner? -
ANSWERAnnuity payments will be based on the annuitants life expectancy
Signing an applicants name for insurance is known as...? - ANSWERForgery
Failure to pay a penalty assessed by the commissioner may result in...? -
ANSWERRevoked 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? -
ANSWERBuy-sell agreement
Policy owner surrenders a policy for its cash value, when is tax liability incurred? -
ANSWERThe cash value exceeds all premiums paid
When is insurable interest required? - ANSWERAt the time of application
Which of the following best describes a single premium cash policy? - ANSWERIt
requires only one payment to make the policy paid up
When life insurance is funded by contributions to a qualified retirement... -
ANSWERPremiums are taxable
How does a graded premium whole life policy differ from a modified premium? -
ANSWERIt 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 - ANSWERProof of insurability must be required
Before doing business under an assumed name, who must the producer first notify? -
ANSWERCommissioner
