Michigan Life Insurance State Exam Questions with
Answers
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Only if withdrawn prior to age 59 1/2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 Ans✔✔-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Earnings are not taxable when withdrawn
Earnings are taxable when withdrawn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 Ans✔✔-Earnings are
taxable when withdrawn
,Which of these describes the result of a modified endowment contract
that failed to meet the seven- pay test?
Policy loans are disallowed
The premium payments will be tax deductible
Pre- death distributions are typically taxable
Withdrawals will be prohibited Ans✔✔-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 Ans✔✔-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 Ans✔✔-Submit to the
replacing insurer a list of the policies to be replaced
Who were Keogh plans designed to provide pension benefits for?
Corporate officers
Public school employees
The self-employed
Government employees Ans✔✔-The self emplyed
A producer's fiduciary duty requires that
premiums are maintained in a personal bank account until remittance to
insurer
, premiums be deposited in an interest bearing account
premiums are forwarded to the insurer on a timely basis
premiums be commingled Ans✔✔-Premiums are forwarded on a timely
basis
An individual who removes the risk of losing money in the stock market
by never purchasing stocks is said to be engaging in
Risk reduction
Risk Transference
Risk avoidance
Risk retention Ans✔✔-Risk avoidance
A type of group that has a constitution and has been organized for
purposes other than obtaining insurance is called a(n)
employer group
Answers
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Only if withdrawn prior to age 59 1/2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 Ans✔✔-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 Ans✔✔-Earnings are
taxable when withdrawn
,Which of these describes the result of a modified endowment contract
that failed to meet the seven- pay test?
Policy loans are disallowed
The premium payments will be tax deductible
Pre- death distributions are typically taxable
Withdrawals will be prohibited Ans✔✔-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 Ans✔✔-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 Ans✔✔-Submit to the
replacing insurer a list of the policies to be replaced
Who were Keogh plans designed to provide pension benefits for?
Corporate officers
Public school employees
The self-employed
Government employees Ans✔✔-The self emplyed
A producer's fiduciary duty requires that
premiums are maintained in a personal bank account until remittance to
insurer
, premiums be deposited in an interest bearing account
premiums are forwarded to the insurer on a timely basis
premiums be commingled Ans✔✔-Premiums are forwarded on a timely
basis
An individual who removes the risk of losing money in the stock market
by never purchasing stocks is said to be engaging in
Risk reduction
Risk Transference
Risk avoidance
Risk retention Ans✔✔-Risk avoidance
A type of group that has a constitution and has been organized for
purposes other than obtaining insurance is called a(n)
employer group
