MI Life Producer Final Exam Latest Update 2024-
2025 380 Questions and 100% Verified Correct
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A couple owns a life insurance policy with a Children's Term rider. Their daughter is
reaching the maximum age of dependent coverage, so she will have to convert to
permanent insurance in the near future. Which of the following will she need to provide
for proof of insurability. - CORRECT ANSWER: proof of insurability is not required.
A policy owner who is also the insured wants to name her husband as the beneficiary of
her life policy. She also wishes to retain all of the rights of ownership. The policy owner
should have her husband named as the - CORRECT ANSWER: revocable beneficiary
All of the following are duties and responsibilities of producer at the time of application
EXCEPT - CORRECT ANSWER: change any incorrect statement on the application by
personally initialing next to the corrected statement.
All of the following are true regarding rebates EXCEPT
a)Dividends are not considered to be rebates.
b)Rebates are allowed if it's in the best interest of the client.
c)Rebates are only allowed if specifically stated in the policy.
d)Rebating can be anything of economic value, given as an inducement to buy. -
CORRECT ANSWER: b) Rebates are allowed if it's in the best interest of the client.
A rebate is an illegal act which involves returning something of value to the client as an
inducement to buy, such as the commission. Rebates are only allowed if specifically
stated in the policy. Insurance dividends are not considered rebates as the IRS
considers it as a return of overpaid premium.
,All of the following could be considered rebates if offered to an insured in the sale of
insurance EXCEPT - CORRECT ANSWER: Dividends from a mutual insurer
An agent and an applicant for a life insurance policy fill out and sign the application.
However, the applicant does not wish to give the agent the initial premium, and no
conditional receipt is issued. When will coverage begin? - CORRECT ANSWER: When
the agent delivers the policy, collects the initial premium, and the applicant completes
an acceptable Statement of Good Health
an employee quits his job and converts his group policy to an individual policy, the
premium for the individual policy will be based on his - CORRECT ANSWER: attained
age
An insured buys a 5-year level premium term policy with a face amount of 10,000. The
policy also contains renewability and convertibility options. When the insured renews
the policy in 5 years, what will happen the premium? - CORRECT ANSWER: it will
increase because the insured will be 5 years older than when the policy was originally
purchased
annually renewable term polices provide a level death benefit for a premium that -
CORRECT ANSWER: increased annually
Annually renewable term policies provide a level death benefit for a premium that
Annually renewable term policies provide a level death benefit for a premium that
increases each year with the age of the insured.
Annuities can be used to fund which of the following?
,A) estate creation
B) Retirement plans
C) Variable Life Variable
D) Group Life Insurance - CORRECT ANSWER: b) retirement plans
Annuities can be used to fund which of the following?
a)Estate creation
b)Retirement plans
c)Variable life insurance
d)Group life insurance - CORRECT ANSWER: b) Retirement plans
Since annuities are a popular means to provide retirement income, they are often used
to fund qualified retirement plans.
are insurance company underwrites allowed to discriminate? - CORRECT ANSWER:
yes, but not unfairly
graded-premium whole life policy premiums are typically lower initially, but gradually
increase for a period of 5 to 10 years. After the period of increase the premiums will -
CORRECT ANSWER: be level thereafter
how much is agent's appointment fee? - CORRECT ANSWER: $5
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be
delivered to the applicant - CORRECT ANSWER: with the policy
if a statement of policy information is not furnished to the applicant at the time of
application, how soon must the form be delivered to the applicant? - CORRECT
ANSWER: 15 days
, If an immediate annuity is purchased with the face amount at death or with the cash
value at surrender, this would be considered a - CORRECT ANSWER: settlement option
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 - CORRECT ANSWER: c) Decreases
Because the insurer would have the entire premium to invest for a full year, they would
reduce the premium amount.
if an insured changes his payment plan from monthly to annually, what happens to the
total premium? - CORRECT ANSWER: decreases
In a case where the primary beneficiary predeceases the insured. in the event of the
insured'a death, the death benefit proceeds will be paid to - CORRECT ANSWER: the
contingent beneficiary
In a group the life insurance policy, the employer may select at all of the following
EXCEPT - CORRECT ANSWER: The beneficiary
In the state, a temporary license may be issued for any of the following reasons
EXCEPT - CORRECT ANSWER: a producer's retirement
in which of the following situations is it legal to limit coverage based on marital status? -
CORRECT ANSWER: It is never legal to limit coverage based on marital status
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