LIFE PRODUCER EXAM (MI) EXAM
NEWEST ACTUAL EXAM 2024-2025
QUESTIONS AND DETAILED CORRECT
ANSWERS (VERIFIED ANSWERS) |
A+GRADE
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. Correct Answer 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. Correct Answer 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 is the maximum fine for submitting a false or
fraudulent claim to the insurer?
a)$500
b)$1,000
c)$1,500
d)$2,000 Correct Answer b) 1,000
If convicted for a false claim, an insured, agent, collector,
physician or any other person could be fined up to $1,000.
Which is generally true regarding insureds who have been
classified as preferred risks?
a)They keep a higher percentage of any interest earned
on their policies.
b)Their premiums are lower.
c)They can borrow higher amounts off of their policies.
d)They can decide when to pay their monthly premiums.
Correct Answer b) Their premiums are lower.
An insurance company sends a proposed insurance policy
to an applicant with instructions to accept the policy in
,writing by December 15 or it will be withdrawn. What must
the applicant do to accept the policy? Correct Answer give
written notice on or before December 15//Under common
law, an offeree who wants to accept an offer must abide
by every condition in the offer. If written notice must be
provided by a certain date, that condition must be met.
What rule lets a policyowner return a policy for a refund of
premiums paid for a certain period of time after the policy
is issued? Correct Answer right to examine (free look)//All
insurance policies require a free-look provision. Grace has
a set period in which to review the policy and to decide
whether to keep it. The free look begins when the agent
delivers the policy.
An agent who sells insurance for an insurance company
that does not have a certificate of authority to operate in
the state represents: Correct Answer a non-admitted
insurer//A company not holding a certificate of authority in
the state in which it does business is a non-admitted
insurer in that state.
Three equal partners in a corporation worth $3 million
decide to set up a stock redemption agreement. The
corporation buys and pays the premiums for life insurance
policies to fund the agreement. What will happen if one of
the owners dies? Correct Answer The corporation will buy
the deceased owner's shares.//In a stock redemption
agreement, the corporation buys the interest or shares of
a deceased shareholder. To fund the agreement, the
business buys, owns, and pays the premiums for life
, insurance policies on the life of each owner. At the owner's
death, the insurer pays the death benefit to the company,
which uses it to buy the owner's shares.
Patty is interested in buying a life insurance policy. Her
agent asks if she has any existing policies. She does, and
says that she would cancel her current policy if she bought
the policy from the agent. What is the agent now obligated
to do? Correct Answer inform Patty of the consequences
of replacing the policy//The producer must inform the
applicant of the real and potential consequences of
replacing the policy and must act only in the applicant's
best interests. The producer and the applicant must sign a
form indicating that the required disclosures have been
made and that the applicant understands the
consequences of the replacement.
The act of deliberately withholding material facts when
applying for insurance is called: Correct Answer
concealment//Concealment is deliberately withholding
material facts when applying for insurance. If the
concealed facts would affect the insurer's decision to offer
the insurance policy, the insurer can void the insurance
contract.
Which annuity settlement option guarantees that income is
paid for the length of the annuitant's life, but no less than a
specified number of years? Correct Answer life income
with period certain//The life with period (or term) certain
option guarantees that income is paid for the length of the
annuitant's life. However, the income is paid for no less
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