Exam Prep Test Bank with 750 Questions and Correct

pg. 1 New Michigan Life Health and Accident Insurance Exam Prep Test Bank with 750 Questions and Correct Verified Answers for Actual Exam Preparation | MI Life and Health Insurance Test -

Michigan requires that a licensee complete __ hours of continuing education on the subject of ethics every reporting period 1 2 3 4 3 A whole life policy that offers the policy owner ability to adjust face amount l, premium and length without having to complete a new application...?

• A modified whole life policy

• A modified term life policy

• An adjustable life policy

• A variable life policy
• An adjustable life policy

Two 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
• Buy-sell agreement 1 / 4

pg. 2 A license can disclose a consumer's policy account number to all of the following

EXCEPT...?

• Member in an affinity program that was identified to the consumers

• Service provider marketing on behalf of the license

• Consumer reporting cause

• Nonaffiliated third party
• Nonaffiliated third party

When life insurance is funded by contributions to a qualified retirement...

• Premiums are taxable

• Death benefits are taxable

• The insurance must be incidental to the plan

• Death benefits are paid to the employer
• Premiums are taxable

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%
• Revoked or suspended license

How does a graded premium whole life policy differ from a modified premium?

• It increase the premium annually during the first several years of the policy

• It increase the premium annually for the duration of the policy
• / 4

pg. 3

• It increases the premium once during the duration of the policy

• It has lower premium for the duration of the policy
• It has a lower premium for the duration of the policy

Insurance applicants with an average life expectancy who represent the same risk classification as the majority of people with similar lifestyles are considered which type of risk?

• Declined

• Preferred

• Standard

• Substandard
• Standard

It early withdrawal before age 59 1/2 from a qualified plan is taxed in additional...?10% ABC insurance agency is entering each applicant who purchases insurance through their agent into a drawing to win a free trip. This is an example of ...?

• Illegal inducement

• False advertising

• Concealment

• Fraud
• Illegal inducement

A method of handling risk such as having a sprinkler system installed in a building, is an example of...?

• Transfer

• Loss retention
• / 4

pg. 4

• Risk reduction

• Avoidance
• Risk reduction

In addition to the actual policy, an entire contract includes which of the following?

• Clauses

• Credit report

• Provisions

• The application
• The application

Earnings in a Roth IRA are taxed...At non-qualified distribution Applicant concerning personal health history, family health history, occupation referred to as...?

• Depictions

• Certifications

• Representations

• Personal characteristics
• Personal characteristics

The grace period is a period of time...

• Between the death of the insured individual and the payment of benefits

• After the premium is paid and policy is issued

• After the premium is received and before the policy is based

• After the premium is due but while policy remains in force
• / 4