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MI LIFE PRODUCER FINAL EXAM NEWEST 2024 WITH COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!! $26.99
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MI LIFE PRODUCER FINAL EXAM NEWEST 2024 WITH COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!!
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MI LIFE PRODUCER
Institution
MI LIFE PRODUCER
MI LIFE PRODUCER FINAL EXAM NEWEST 2024 WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS
(DETAILED ANSWERS) ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS!!!
MI LIFE PRODUCER FINAL EXAM NEWEST 2024 WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS
(DETAILED ANSWERS) ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS!!!
Jane works for a company that allows employee contributions under a 401(k)
plan. When will Jane become fully vested in her plan contributions? - ANSWER-
immediately//While employer contributions to a qualified plan can be subject
to a vesting schedule, participants are always fully vested in their own
contributions.
Agents must act in the best interests of applicants and insureds. What does this
require them to do? - ANSWER-give all important information about a
proposed policy//Agents must act in the applicant's or insured's best interests
at all times. This means that agents must give all important information about a
proposed policy. Also, they cannot misrepresent the terms or conditions of a
proposed policy.
What does a viatical settlement allow? - ANSWER-It allows a chronically or
terminally ill insured to gain a sum of money that is needed to pay medical
expenses or to enhance the quality of life.//A viatical settlement allows a
chronically or terminally ill insured to gain a sum of money that might be
needed to pay medical expenses or to enhance quality of life.
If an employer/employee group offers group life insurance on a contributory
basis, what percentage of the group must enroll? - ANSWER-At least 75 percent
of the group must enroll in the plan//If an employer/employee group life
,insurance plan is contributory, 75 percent of the group must enroll in the plan.
If the plan is non-contributory, 100 percent of the group must enroll.
Which of the following is NOT a life insurance premium? - ANSWER-
competitors' rates//Actuaries base life insurance premiums on three basic
factors: mortality (a charge), interest (a credit), and expenses (a charge).
In calculating their mortality charges, life insurers today generally use: -
ANSWER-the 2001 CSO table//The mortality factor is drawn from mortality
statistics compiled by the National Association of Insurance Commissioners
(NAIC) into a set of rates called the Commissioners Standard Ordinary (CSO)
table. Policies issued since 2009 are required to base their mortality charges on
the 2001 CSO table.
All of the following are standard life insurance policy nonforfeiture options
EXCEPT: - ANSWER-accumulate at interest option//This is a policy dividend
option in which declared dividends are left with the insurer to accumulate
interest on the policyowner's behalf.
Which of the following most correctly describes the nonforfeiture option(s)
available with universal life insurance? - ANSWER-surrender the policy for its
cash value or stop paying premiums and continue coverage as long as the cash
value will support it//Universal life policies do not contain the standard
nonforfeiture options. Instead, the policyowner can either surrender the policy
for its cash value or continue coverage with no further premium payments, in
which case coverage will last for as long as the cash value is able to support the
policy's monthly mortality and expense charge deductions.
James wants to convert his $150,000 traditional IRA to a Roth IRA. What best
describes the tax treatment for the Roth conversion? - ANSWER-The converted
funds are taxed, but Roth IRA earnings and distribution will be tax free.//The
$150,000 from the traditional IRA has been deferred so it will be taxed upon
,conversion. However, as long as James holds the new Roth IRA for at least five
years and is older than 59', distributions from the Roth IRA will be tax free.
Under variable life insurance plans, policy loans can be as high as what percent
of the cash value? - ANSWER-75 to 90 percent//Policy loans under traditional
whole life insurance plans can be as high as 100 percent of the cash value, but
with variable life insurance the maximum loan amount is something less than
the full cash value (e.g., 75 to 90 percent of the cash value), less any debt
currently outstanding against the policy.
Under which nonforfeiture option does permanent life insurance continue in
force with no further need for premiums? - ANSWER-reduced paid-up
option//A paid-up policy under the reduced paid-up option requires no further
premiums (nor can any be paid). The paid-up policy retains a cash value that
will continue to grow throughout the life of the policy. However, it will grow
much more slowly than during the period that premiums were being paid.
Which of the following can be funded with a single premium payment, a series
of fixed premium payments, or flexible premium payments? - ANSWER-
deferred annuities//Deferred annuities can be funded with a single premium
payment, a series of fixed premium payments, or with flexible premium
payments. Moreover, the owner can make these payments whenever and in
whatever amount he or she wants.
How does the cost of group life insurance generally compare to the cost of
individual life insurance? - ANSWER-Group life is less expensive.//Per unit of
benefits or coverage, group life insurance is less expensive than individual life
insurance because it has lower administrative and operational costs.
Which of the following statements about the 'accumulate at interest' policy
dividend option is correct? - ANSWER-The insurer credits a rate of interest to
the dividends as they remain on deposit with the insurer.//The insurer credits a
rate of interest to the dividends as they remain on deposit with the insurer.
, When it comes to choosing a financial instrument to fund a qualified
retirement account, which of the following features makes an annuity the most
suitable product? - ANSWER-retirement income that is guaranteed for life//All
qualified retirement plan assets enjoy tax-deferred growth and tax-deductible
deposits, and many offer a variety of investment choices, but only a deferred
annuity can be converted to an income stream that is guaranteed for life.
The term used to describe the voluntarily surrender of a known right is: -
ANSWER-waiver//Waiver is voluntarily giving up a known right. If an insurer
voluntarily gives up a legal right that it has under an insurance contract, it
cannot deny a claim based on a violation of that right. Estoppel involves giving
up a right without intending to do so. A party surrenders a right that it failed to
preserve.
Social Security benefit amounts are most directly based on a worker's: -
ANSWER-average indexed monthly earnings//The amount of Social Security
OASDI benefits that a covered worker is entitled to is based on the person's
average indexed monthly earnings, which are the average of a worker's lifetime
earnings on which FICA taxes were imposed.
Producers must inform consumers about the practices that insurance
companies will use in their review and underwriting processes. Typically, these
processes include all of the following, EXCEPT: - ANSWER-using phone
taps//For information about their applicants, insurance companies look to such
sources as an attending physician's statement (APS), investigative agencies,
credit agencies, and the MIB ' but not phone taps.
Insurance agents are often called: - ANSWER-producers//Insurance companies
sell their products through agents or producers who either represent one
insurance company exclusively or are independent and represent several
insurers.
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