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Michigan Life Only State Exam Questions and Answers
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Michigan Life Only State Exam Questions and Answers
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Michigan Life Only State ExamQuestions and Answers
A securities license is required for a life insurance producer to sell - Answer -variable life
insurance
Family Term Insurance Rider - Answer -provides a death benefit if the spouse of the
insured dies
Hazard - Answer -event or condition that increases the probability of an insured's loss
All of the following are characteristics of a Group Life Insurance Plan EXCEPT: -
Answer -Individual Undwriting
Is not one of the standard exclusions found in life insurance policies. - Answer -
Disability
The act of __________ insurance does NOT require an individual to hold an insurance
producer license. - Answer -Undwriting
All of the following statements correctly describe the purpose of Social Security
EXCEPT: - Answer -It provides a source of income for a meaningful standard of living
during retirement.
__________ is a risk management technique that seeks to eliminate any possibility of
risk through hazard prevention, or the discontinuation of activities determined to entail
any level of risk. - Answer -Risk Avoidance
Conversion Privilege - Answer -Allows an employee to convert to an individual plan
upon termination of employment.
Entire Contract Provision - Answer -The provision that the policy and a copy of an
application is endorsed upon or attached to the policy when issued.
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This
situation is called - Answer -Reinsurance
Which settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - Answer -Interest Only
, Which of these is a method of determining the level of funds required for ongoing
support in the event of the breadwinner's death> - Answer -Human Life Value
Insurance represents the process of risk - Answer -transference
According to the principle of Utmost Good Faith, the insured will answer questions on
the application to the best of their knowledge and pay the required premium, while the
insurer will deal fairly with the insured and it's ____ - Answer -Promises Made
Under a Traditional IRA, interest earned is taxed - Answer -upon distribution
Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called - Answer -Annuity Certain
Which of these statements concerning Traditional IRA's is CORRECT - Answer -
Earnings are taxable when withdrawn
In the state of Michigan, a licensed producer - Answer -represents the insurer
Reggie purchased a life insurance policy with a face amount of $500,000. After 15
years, the cash value has accumulated to $100,000 and the policy's face amount has
become $600,000. Which type of life insurance policy is this? - Answer -Universal Life
A nonparticipating policy will - Answer -not pay dividends
Which annuity payout option allows the policyowner to choose a pre-determined
number of benefit payments? - Answer -period certain
A type of insurer that is owned by its policyowners is called - Answer -Mutual
A renewable Term Life insurance policy can be renewed - Answer -at a predetermined
date or age, regardless of the insured's health
a provision that allows a policyowner to temporarily give up ownership rights to secure a
loan is called a(n) - Answer -collateral assignment
a nonparticipating company is sometimes called a(n) - Answer -stock insurer
all of the following are exempt from the 10% tax penalty for early qualified plan
withdrawals EXCEPT - Answer -Stock Purchase
Loans obtained by a policyowner against the cash value of a life insurance policy -
Answer -would not be treated as taxable income
Which contract element is insurable interest a component of? - Answer -legal purpose
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