MICHIGAN LIFE INSURANCE STATE EXAM
ANSWER KEY EXAM(ACTUAL EXAM)
WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+ 2026
What is the purpose of the automatic premium loan rider?
1. Allows partial surrender to make loan payments
2. Protects the policy owner against an unintentional lapse
of coverage
3. The insured will cancel the loan if the insured is
prematurely disabled
4. Insurer the right to purchase additional insurance with
evidence of insurance - ANSWERS-2. Protects the policy
owner against an unintentional lapse of coverage
,Under which circumstances can a person obtain a portion of
their life insurance benefit without federal income tax
liability?
1. The policy is for less than $10
2. The policy is behind in premium payments
3. When the policy owner has elected a non-forfeiture
option
4. When the insured is terminally ill and has less than 24
months to live - ANSWERS-3. When the policy owner has
elected a nonforfeiture option
Which of the following characteristics applies to a modified
life policy?
1. Premiums remain level for the life of the policy
2. The policy provided immediate cash value that can be
powered to a policy loan
,3. The face amount of the policy will automatically increase
after the policy is in force for 5 years
4. As long as premiums are paid, insurance protection is
provided until the policy matures at age - ANSWERS-3. The
face amount of the policy will automatically increase after
the policy is in force for 5 years
An insurer in a general business practice fails to properly
provide a reasonable explanation for the denial of a claim...
1. A contractual liability
2. An unfair claim settlement practice
3. A violation of the grace period provision
4. A fraudulent insurance act - ANSWERS-4. A fraudulent
insurance act
, Which of the following is TRUE regarding federal income tax
obligations a beneficiary is faced with...?
1. Federal income tax is only charged if the amount exceeds
100K
2. The beneficiary must pay 10% regardless of the amount
3. There is no federal income tax on the life insurance
proceeds
4. The federal income tax levies from state to state -
ANSWERS-3. There are no federal income tax on the life
insurance proceeds
Earnings in a Roth IRA are taxed...
1. At distribution
2. Prior to contribution
3. Upon a premature distribution
ANSWER KEY EXAM(ACTUAL EXAM)
WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+ 2026
What is the purpose of the automatic premium loan rider?
1. Allows partial surrender to make loan payments
2. Protects the policy owner against an unintentional lapse
of coverage
3. The insured will cancel the loan if the insured is
prematurely disabled
4. Insurer the right to purchase additional insurance with
evidence of insurance - ANSWERS-2. Protects the policy
owner against an unintentional lapse of coverage
,Under which circumstances can a person obtain a portion of
their life insurance benefit without federal income tax
liability?
1. The policy is for less than $10
2. The policy is behind in premium payments
3. When the policy owner has elected a non-forfeiture
option
4. When the insured is terminally ill and has less than 24
months to live - ANSWERS-3. When the policy owner has
elected a nonforfeiture option
Which of the following characteristics applies to a modified
life policy?
1. Premiums remain level for the life of the policy
2. The policy provided immediate cash value that can be
powered to a policy loan
,3. The face amount of the policy will automatically increase
after the policy is in force for 5 years
4. As long as premiums are paid, insurance protection is
provided until the policy matures at age - ANSWERS-3. The
face amount of the policy will automatically increase after
the policy is in force for 5 years
An insurer in a general business practice fails to properly
provide a reasonable explanation for the denial of a claim...
1. A contractual liability
2. An unfair claim settlement practice
3. A violation of the grace period provision
4. A fraudulent insurance act - ANSWERS-4. A fraudulent
insurance act
, Which of the following is TRUE regarding federal income tax
obligations a beneficiary is faced with...?
1. Federal income tax is only charged if the amount exceeds
100K
2. The beneficiary must pay 10% regardless of the amount
3. There is no federal income tax on the life insurance
proceeds
4. The federal income tax levies from state to state -
ANSWERS-3. There are no federal income tax on the life
insurance proceeds
Earnings in a Roth IRA are taxed...
1. At distribution
2. Prior to contribution
3. Upon a premature distribution
