LIFE PRODUCER EXAM (MI) final verified 100%

LIFE PRODUCER EXAM (MI) final verified 100% Which of the following is NOT true regarding a Certificate of Authority? a)It may be necessary for transacting business in a specific state. b)It is equivalent to an insurance license. c)It is issued by the state department of insurance. d)It is issued to group insurance participants. - d) It is issued to group insurance participants. Before insurers may transact business in a specific state, they must apply for a license or Certificate of Authority from the state department of insurance and meet any financial (capital and surplus) requirements set down by the state. If an insured changes his payment plan from monthly to annually, what happens to the total premium? a)Doubles b)Increases c)Decreases d)Stays the same - c) Decreases Because the insurer would have the entire premium to invest for a full year, they would reduce the premium amount. To sell variable life insurance policies, an agent must receive all of the following EXCEPT a)A life insurance license. b)SEC registration. c)FINRA registration .d)A securities license. - b) The owner will receive the surrender value of the annuity. If a deferred annuity is surrendered prior to annuitization, the surrender value of the annuity is guaranteed according to the nonforfeiture provision. What happens if a deferred annuity is surrendered before the annuitization period? a)Deferred annuities cannot be surrendered prior to the annuitization period. b)The owner will receive the surrender value of the annuity. c)The owner will only receive a refund of premium. d)The insurer can only apply the surrender value toward another annuity. - b) The owner will receive the surrender value of the annuity.