Michigan Life Insurance State Exam ACTUAL EXAM QUESTIONS WITH
Michigan Life Insurance State Exam
COMPLETE SOLUTION GUIDE) (MULTIPLE CHOICES) (A+ GRADED
Study online at https://quizlet.com/_820heq
100% VERIFIED) LATEST VERSION 2025
1. 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Only if withdrawn prior to age 59 1/2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
2. Which of these statements concerning Traditional Earnings are taxable when
IRAs is CORRECT? withdrawn
Earnings are not taxable when withdrawn
Earnings are taxable when withdrawn
Contribution are never tax deductible
Contributions are always made by the employer
3. Which of these describes the result of a modified en- Pre- death distributions
dowment contract that failed to meet the seven- pay are typically taxable
test?
Policy loans are disallowed
The premium payments will be tax deductible
Pre- death distributions are typically taxable
Withdrawals will be prohibited
4. In order for a contract to be valid, it must
, Michigan Life Insurance State Exam
Study online at https://quizlet.com/_820heq
be filled with the state Contain offer and accep-
tance
be signing and witnessed by an attorney
be in writing
contain offer and acceptance
5. Which of the following actions is REQUIRED by a pro- Submit to the replacing
ducer who is replacing an existing life insurance poli- insurer a list of the policies
cy? to be replaced
Keep replacement records on file for at least 10 years
Notify the existing insurer of the proposed replace-
ment
Submit to the replacing insurer a list of the policies to
be replaced
Offer the insured a 60- day free- look period
6. Who were Keogh plans designed to provide pension The self emplyed
benefits for?
Corporate officers
Public school employees
The self-employed
Government employees
7. A producer's fiduciary duty requires that
, Michigan Life Insurance State Exam
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premiums are maintained in a personal bank account Premiums are forwarded
until remittance to insurer on a timely basis
premiums be deposited in an interest bearing ac-
count
premiums are forwarded to the insurer on a timely
basis
premiums be commingled
8. An individual who removes the risk of losing money in Risk avoidance
the stock market by never purchasing stocks is said to
be engaging in
Risk reduction
Risk Transference
Risk avoidance
Risk retention
9. A type of group that has a constitution and has been association or labor group
organized for purposes other than obtaining insur-
ance is called a(n)
employer group
employee group
association or labor group
multiple coalition
, Michigan Life Insurance State Exam
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10. Which of the following is NOT a federal requirement of Employee must be able to
a qualified plan? make unlimited contribu-
tions
Must benefit a broad cross-section of employees
Employee must be able to make unlimited contribu-
tions
Vesting schedule must be defined
Employer establishes the plan
11. 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
12. What does the Group Life underwriting risk selection Adverse Selection
process help protect insurance companies from?
Risk aversion
Natural selection
Adverse selection
Risk Management
Michigan Life Insurance State Exam
COMPLETE SOLUTION GUIDE) (MULTIPLE CHOICES) (A+ GRADED
Study online at https://quizlet.com/_820heq
100% VERIFIED) LATEST VERSION 2025
1. 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
2. Which of these statements concerning Traditional Earnings are taxable when
IRAs is CORRECT? withdrawn
Earnings are not taxable when withdrawn
Earnings are taxable when withdrawn
Contribution are never tax deductible
Contributions are always made by the employer
3. Which of these describes the result of a modified en- Pre- death distributions
dowment contract that failed to meet the seven- pay are typically taxable
test?
Policy loans are disallowed
The premium payments will be tax deductible
Pre- death distributions are typically taxable
Withdrawals will be prohibited
4. In order for a contract to be valid, it must
, Michigan Life Insurance State Exam
Study online at https://quizlet.com/_820heq
be filled with the state Contain offer and accep-
tance
be signing and witnessed by an attorney
be in writing
contain offer and acceptance
5. Which of the following actions is REQUIRED by a pro- Submit to the replacing
ducer who is replacing an existing life insurance poli- insurer a list of the policies
cy? to be replaced
Keep replacement records on file for at least 10 years
Notify the existing insurer of the proposed replace-
ment
Submit to the replacing insurer a list of the policies to
be replaced
Offer the insured a 60- day free- look period
6. Who were Keogh plans designed to provide pension The self emplyed
benefits for?
Corporate officers
Public school employees
The self-employed
Government employees
7. A producer's fiduciary duty requires that
, Michigan Life Insurance State Exam
Study online at https://quizlet.com/_820heq
premiums are maintained in a personal bank account Premiums are forwarded
until remittance to insurer on a timely basis
premiums be deposited in an interest bearing ac-
count
premiums are forwarded to the insurer on a timely
basis
premiums be commingled
8. An individual who removes the risk of losing money in Risk avoidance
the stock market by never purchasing stocks is said to
be engaging in
Risk reduction
Risk Transference
Risk avoidance
Risk retention
9. A type of group that has a constitution and has been association or labor group
organized for purposes other than obtaining insur-
ance is called a(n)
employer group
employee group
association or labor group
multiple coalition
, Michigan Life Insurance State Exam
Study online at https://quizlet.com/_820heq
10. Which of the following is NOT a federal requirement of Employee must be able to
a qualified plan? make unlimited contribu-
tions
Must benefit a broad cross-section of employees
Employee must be able to make unlimited contribu-
tions
Vesting schedule must be defined
Employer establishes the plan
11. 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
12. What does the Group Life underwriting risk selection Adverse Selection
process help protect insurance companies from?
Risk aversion
Natural selection
Adverse selection
Risk Management
