Michigan Life Insurance State Exam
2026 Michigan Life Insurance
Licensing State Exam – Latest
Verified Questions & Answers
Save
Under a traditional IRA, interest is taxed: Upon distribution
Only if withdrawn prior to age 59 1/2
According to the capital gains rate
Upon distribution
During the accumulation phase
Which of these statements concerning Traditional IRAs is Earnings are taxable when withdrawn
CORRECT?
Earnings are not taxable when withdrawn
Earnings are taxable when withdrawn
Contribution are never tax deductible
Contributions are always made by the employer
Which of these describes the result of a modified Pre- death distributions are typically taxable
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
,In order for a contract to be valid, it must Contain offer and acceptance
be filled with the state
be signing and witnessed by an attorney
be in writing
contain offer and acceptance
Which of the following actions is REQUIRED by a Submit to the replacing insurer a list of the policies to be replaced
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
Who were Keogh plans designed to provide pension The self emplyed
benefits for?
Corporate officers
Public school employees
The self-employed
Government employees
A producer's fiduciary duty requires that Premiums are forwarded on a timely basis
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
,An individual who removes the risk of losing money in the Risk avoidance
stock market by never purchasing stocks is said to be
engaging in
Risk reduction
Risk Transference
Risk avoidance
Risk retention
A type of group that has a constitution and has been association or labor group
organized for purposes other than obtaining insurance is
called a(n)
employer group
employee group
association or labor group
multiple coalition
Which of the following is NOT a federal requirement of a Employee must be able to make unlimited contributions
qualified plan?
Must benefit a broad cross-section of employees
Employee must be able to make unlimited contributions
Vesting schedule must be defined
Employer establishes the plan
The acceptance of a credit life application requires the 30
submission of a certificate of insurance to the insured
within __ days.
10
20
30
40
, What does the Group Life underwriting risk selection Adverse Selection
process help protect insurance companies from?
Risk aversion
Natural selection
Adverse selection
Risk Management
A guaranteed issue insurance policy has no Medical Underwriting
initial premium requirement
incontestable period
waiting period
medical underwriting
A Universal Life policyowner must receive a notice of year
cash surrender value at LEAST every
6 months
year
2 years
5 years
A Roth IRA owner must be at least what age in order to 59 1/2 and owned the account for 5 years
make tax free withdrawals?
59 1/2 and owned account for a minimum of 10 years
59 1/2 and owned account minimum of 5 years
70 1/2 and owned account for a minimum of 10 years
70 1/2 and owned account for a minimum of 5 years
In Michigan, legal action may be taken against an insurer 6
for up to __ Years for failing to pay a life insurance claim
after proof of loss was submitted
4
5
6
7
2026 Michigan Life Insurance
Licensing State Exam – Latest
Verified Questions & Answers
Save
Under a traditional IRA, interest is taxed: Upon distribution
Only if withdrawn prior to age 59 1/2
According to the capital gains rate
Upon distribution
During the accumulation phase
Which of these statements concerning Traditional IRAs is Earnings are taxable when withdrawn
CORRECT?
Earnings are not taxable when withdrawn
Earnings are taxable when withdrawn
Contribution are never tax deductible
Contributions are always made by the employer
Which of these describes the result of a modified Pre- death distributions are typically taxable
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
,In order for a contract to be valid, it must Contain offer and acceptance
be filled with the state
be signing and witnessed by an attorney
be in writing
contain offer and acceptance
Which of the following actions is REQUIRED by a Submit to the replacing insurer a list of the policies to be replaced
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
Who were Keogh plans designed to provide pension The self emplyed
benefits for?
Corporate officers
Public school employees
The self-employed
Government employees
A producer's fiduciary duty requires that Premiums are forwarded on a timely basis
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
,An individual who removes the risk of losing money in the Risk avoidance
stock market by never purchasing stocks is said to be
engaging in
Risk reduction
Risk Transference
Risk avoidance
Risk retention
A type of group that has a constitution and has been association or labor group
organized for purposes other than obtaining insurance is
called a(n)
employer group
employee group
association or labor group
multiple coalition
Which of the following is NOT a federal requirement of a Employee must be able to make unlimited contributions
qualified plan?
Must benefit a broad cross-section of employees
Employee must be able to make unlimited contributions
Vesting schedule must be defined
Employer establishes the plan
The acceptance of a credit life application requires the 30
submission of a certificate of insurance to the insured
within __ days.
10
20
30
40
, What does the Group Life underwriting risk selection Adverse Selection
process help protect insurance companies from?
Risk aversion
Natural selection
Adverse selection
Risk Management
A guaranteed issue insurance policy has no Medical Underwriting
initial premium requirement
incontestable period
waiting period
medical underwriting
A Universal Life policyowner must receive a notice of year
cash surrender value at LEAST every
6 months
year
2 years
5 years
A Roth IRA owner must be at least what age in order to 59 1/2 and owned the account for 5 years
make tax free withdrawals?
59 1/2 and owned account for a minimum of 10 years
59 1/2 and owned account minimum of 5 years
70 1/2 and owned account for a minimum of 10 years
70 1/2 and owned account for a minimum of 5 years
In Michigan, legal action may be taken against an insurer 6
for up to __ Years for failing to pay a life insurance claim
after proof of loss was submitted
4
5
6
7
