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MICHIGAN LIFE INSURANCE STATE PRACTICE
EXAM/ MOST RECENT VERSION FOR MICHIGAN
INSUARANCE STATE EXAM ALL QUESTIONS
AND CORRECT ANSWERS/ GRADED A+
Which of these best describes the illegal act of twisting?
Publishing any false financial statement regarding a person or entity
replacing an insurance policy from one insurer to another based on
misrepresentation
using threat or force to restrict fair trade in the transaction of insurance
unfairly discriminate against a person in any way on an insurance related matter -
ANSWER: replacing an insurance policy from one insurer to another based on
misrepresentation
In an insurance contract, the applicants "consideration" is the
offer and acceptance
premium only
statements made in the application and the premium
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statements made in the application only - ANSWER: statements made in the
application and the premium
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Only if withdrawn prior to age 59 1/2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Earnings are not taxable when withdrawn
Earnings are taxable when withdrawn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when withdrawn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 seven- pay test?
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Policy loans are disallowed
The premium payments will be tax deductible
Pre- 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
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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 officers
Public school employees
The self-employed
Government employees - ANSWER: 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 - ANSWER: Premiums are forwarded on a timely basis
MICHIGAN LIFE INSURANCE STATE PRACTICE
EXAM/ MOST RECENT VERSION FOR MICHIGAN
INSUARANCE STATE EXAM ALL QUESTIONS
AND CORRECT ANSWERS/ GRADED A+
Which of these best describes the illegal act of twisting?
Publishing any false financial statement regarding a person or entity
replacing an insurance policy from one insurer to another based on
misrepresentation
using threat or force to restrict fair trade in the transaction of insurance
unfairly discriminate against a person in any way on an insurance related matter -
ANSWER: replacing an insurance policy from one insurer to another based on
misrepresentation
In an insurance contract, the applicants "consideration" is the
offer and acceptance
premium only
statements made in the application and the premium
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statements made in the application only - ANSWER: statements made in the
application and the premium
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 seven- pay test?
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Policy loans are disallowed
The premium payments will be tax deductible
Pre- 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
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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 officers
Public school employees
The self-employed
Government employees - ANSWER: 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 - ANSWER: Premiums are forwarded on a timely basis
