Michigan Life Insurance State Exam Questions And Answers Correctly Done
Question : Which is TRUE regarding the annuitant, when the
annuitant is NOT the policy owner?
The annuitant has the right to name the beneficiary
The annuitant is the person paying the premiums
The cash value is available to the annuitant for withdrawals
Annuity payments will be based on the annuitants life expectancy
CORRECT ANSWER : Annuity payments will be based on
the annuitants life expectancy
Question : Signing an applicants name for insurance is known
as...?
Concealment
Defamation
Coercion
Forgery
CORRECT ANSWER : 4. Forgery
Question : Failure to pay a penalty assessed by the
commissioner may result in...?
Revoked or suspended license
Require the license to retake the examination
Complete 5 extra hours of continuing education
Pay a late charge of 1.5%
CORRECT ANSWER : 1. Revoked or suspended license
Question : Two business business partners own life insurance,
which or the following allows the surviving partner to use death benefit to purchase the deceased owners share?
Buy-sell agreement
Key employee life insurance
Business continuation
Accidental death
CORRECT ANSWER : 1. Buy-sell agreement
Question : Policy owner surrenders a policy for its cash value,
when is tax liability incurred?
The cash value exceeds all premiums paid
The cash value is less than premiums paid
The policy is exchanged for a policy of equal value
The party is transferred to a third party
CORRECT ANSWER : 1. The cash value exceeds all
premiums paid
Question : When is insurable interest required?
At time of claim
At time of application
In event of a policy loan
Within the first year of death