Michigan Life

If a statement of policy information is not furnished to the applicant at the time of application, how soon must the form be delivered to the applicant?

15 days

If an insurer wishes to appoint a producer, it must file a notice of appointment within how many days of the date that the contract is executed?

15 days

Licensees who are currently licensed, and have recently become residents of the state of Michigan may not have to complete any prelicensing education. To qualify for this exemption, they must apply to become resident licensees within a few days of establishing a legal residence within how many days?

90 days

In this state, a temporary license may be issued for any of the following reasons EXCEPT

A producer's retirement

Which of the following is the closest term to an authorized insurer?

Admitted

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

Benificiary

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

Which of the following would be considered an illegal inducement to purchase insurance?

Confirming future dividends in a life insurance proposal

Which of the following is NOT typically excluded from life policies?

Death due to plane crash for a fare-paying passenger

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed Period

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

What type of insurance would be used for a Return of Premium rider?

Increasing Term

During partial withdrawal from a universal life policy, which portion will be taxed?

Interest

An insurer invests the money it receives from premiums paid by its insureds. Which of the following is TRUE regarding the interest earned on these investments?

It is used to lower premiums.

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid-up option

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Pay the policy proceeds only if it would have issued the policy.

What type of beneficiary designation allows the benefit to pass from a deceased primary beneficiary to the beneficiary's heirs, instead of splitting the benefit among surviving primary beneficiaries?

Per stirpes

Another name for a substandard risk classification is

Rated.

All of the following are true regarding rebates EXCEPT

Rebates are allowed if it's in the best interest of the client.

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association.

A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?

The amount of the distribution is reduced by the amount of a 20% withholding tax.

J transferred his life insurance policy to his son two years before his death. Which of the following is true?

The entire face value of the policy will be included in J's taxable estate.

What method is used to determine the taxable portion of each annuity payment?

The exclusion ratio

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

The insurer will pay the full death benefit from the group policy to the beneficiary.

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT

The loss may be intentional.

Which of the following is true regarding a modified guaranteed annuity?

The owner is guaranteed a fixed interest rate for a specific period of time.

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?

The policy will not be affected.

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy.

A temporary producer license could be issued without examination to all of the following EXCEPT

The spouse of a retiring insurance producer.

Which of the following is NOT a goal of risk retention?

To minimize the insured's level of liability in the event of loss

When would life insurance policy proceeds be included in the insured's taxable estate?

When there are any incidents of ownership at the time of death

Which of the following policies would be classified as a traditional level premium contract?

straight life

An agent accepts the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This is an example of what type of agent authority?

Apparent