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MICHIGAN LIFE INSURANCE STATE EXAM :
UPDATED EXAM WITH VERIFIED
SOLUTIONS.
He's life insurance policy offers a 30 day grace period.
This prevents the policy from being canceled a payment
is received late, but within 30 days of the premium due
date. Which of the following is TRUE, if an insured dies
within the 30 day grace period? - correct answer -The
late premium will be subtracted from the benefit amount
In public and producers actions of these demonstrates
which type of authority?
1. Implied
2. Apparent
3. Express
4. Delegated - correct answer -2. Apparent
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An insured has a 5 year renewable term life insurance
policy. Upon exercising the renewable privilege the
insured must?
1. Provide evidence of insurability
2. Renew for at least 10 years
3. Pay an annual premium that may be higher
4. Convert to a whole life policy - correct answer -3.
Pay an annual premium that may be higher
All of the following are considering a risk EXCEPT the...?
1. Nature of the insured's occupation
2. Amount the insured charged for services
3. Location of the insured's business
4. Proximity of the insured location to emergency
services - correct answer -2. Amount the insured
charged for services
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All of the following characteristics of fixed annuity contract
EXCEPT?
1. Funds are invested in a separate account
2. The minimum interest rate is guaranteed in the
contract
3. Benefit payments remain level
4. It may be sold as an immediate or different annuity
- correct answer -1. Funds are invested in a separate
account
Which type of insurer is sometimes referred to as a
participating company?
1. Authoritative insurer
2. Reciprocal insurer
3. Mutual insurer
4. Stock insurer - correct answer -3. Mutual insurer
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DOES NOT describe a defining characteristics of a whole
life policy?
1. The policy accumulates cash value over time
2. The policy is designed to provide coverage
3. The face amount of the policy remains the same over
time
4. The death benefit is in force for a specific period
of time - correct answer -4. The death benefit is in
force for a specific period of time
Which of the following changes to an adjustable life policy
REQUIRE proof of insurability?
1. Universal life coverage to term coverage
2. Term coverage to whole life coverage increase
the death benefit
MICHIGAN LIFE INSURANCE STATE EXAM :
UPDATED EXAM WITH VERIFIED
SOLUTIONS.
He's life insurance policy offers a 30 day grace period.
This prevents the policy from being canceled a payment
is received late, but within 30 days of the premium due
date. Which of the following is TRUE, if an insured dies
within the 30 day grace period? - correct answer -The
late premium will be subtracted from the benefit amount
In public and producers actions of these demonstrates
which type of authority?
1. Implied
2. Apparent
3. Express
4. Delegated - correct answer -2. Apparent
, Page |2
An insured has a 5 year renewable term life insurance
policy. Upon exercising the renewable privilege the
insured must?
1. Provide evidence of insurability
2. Renew for at least 10 years
3. Pay an annual premium that may be higher
4. Convert to a whole life policy - correct answer -3.
Pay an annual premium that may be higher
All of the following are considering a risk EXCEPT the...?
1. Nature of the insured's occupation
2. Amount the insured charged for services
3. Location of the insured's business
4. Proximity of the insured location to emergency
services - correct answer -2. Amount the insured
charged for services
, Page |3
All of the following characteristics of fixed annuity contract
EXCEPT?
1. Funds are invested in a separate account
2. The minimum interest rate is guaranteed in the
contract
3. Benefit payments remain level
4. It may be sold as an immediate or different annuity
- correct answer -1. Funds are invested in a separate
account
Which type of insurer is sometimes referred to as a
participating company?
1. Authoritative insurer
2. Reciprocal insurer
3. Mutual insurer
4. Stock insurer - correct answer -3. Mutual insurer
, Page |4
DOES NOT describe a defining characteristics of a whole
life policy?
1. The policy accumulates cash value over time
2. The policy is designed to provide coverage
3. The face amount of the policy remains the same over
time
4. The death benefit is in force for a specific period
of time - correct answer -4. The death benefit is in
force for a specific period of time
Which of the following changes to an adjustable life policy
REQUIRE proof of insurability?
1. Universal life coverage to term coverage
2. Term coverage to whole life coverage increase
the death benefit
