Michigan Life Insurance State Exam Questions and Answers 2024 Correctly done
Under a traditional IRA, interest is taxed:
Only if withdrawn prior to age 59 1/2 According to the capital gains rate Upon distribution During the accumulation phase - Upon distribution Which of these statements concerning Traditional IRAs is CORRECT?Earnings are not taxable when withdrawn Earnings are taxable when withdrawn Contribution are never tax deductible Contributions are always made by the employer - Earnings are taxable when withdrawn Which of these describes the result of a modified endowment contract that failed to meet the seven- pay test?Policy loans are disallowed The premium payments will be tax deductible Pre- death distributions are typically taxable Withdrawals will be prohibited - Pre- death distributions are typically taxable In order for a contract to be valid, it must be filled with the state be signing and witnessed by an attorney 1 / 4
be in writing contain offer and acceptance - Contain offer and acceptance Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy?Keep replacement records on file for at least 10 years Notify the existing insurer of the proposed replacement Submit to the replacing insurer a list of the policies to be replaced Offer the insured a 60- day free- look period - Submit to the replacing insurer a list of the policies to be replaced Who were Keogh plans designed to provide pension benefits for?Corporate officers Public school employees The self-employed Government employees - The self emplyed A producer's fiduciary duty requires that premiums are maintained in a personal bank account until remittance to insurer premiums be deposited in an interest bearing account premiums are forwarded to the insurer on a timely basis
premiums be commingled - Premiums are forwarded on a timely basis An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in Risk reduction Risk Transference Risk avoidance Risk retention - Risk avoidance 2 / 4
A type of group that has a constitution and has been organized for purposes other than obtaining insurance is called a(n) employer group employee group association or labor group multiple coalition - association or labor group Which of the following is NOT a federal requirement of a qualified plan?Must benefit a broad cross-section of employees Employee must be able to make unlimited contributions Vesting schedule must be defined Employer establishes the plan - Employee must be able to make unlimited contributions The acceptance of a credit life application requires the submission of a certificate of insurance to the insured within __ days.10 20 30
40 - 30
What does the Group Life underwriting risk selection process help protect insurance companies from?Risk aversion Natural selection Adverse selection Risk Management - Adverse Selection A guaranteed issue insurance policy has no 3 / 4
initial premium requirement incontestable period waiting period medical underwriting - Medical Underwriting A Universal Life policyowner must receive a notice of cash surrender value at LEAST every
- months
- years
- years - year
year
A Roth IRA owner must be at least what age in order to make tax free withdrawals?59 1/2 and owned account for a minimum of 10 years 59 1/2 and owned account minimum of 5 years 70 1/2 and owned account for a minimum of 10 years 70 1/2 and owned account for a minimum of 5 years - 59 1/2 and owned the account for 5 years In Michigan, legal action may be taken against an insurer for up to ___ Years for failing to pay a life insurance claim after proof of loss was submitted 4 5 6
7 - 6
Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount - equal the face amount of the policy Under a life insurance policy, what does the insuring clause state?
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