MICHIGAN LIFE INSURANCE LATEST 2026 EXAM
QUESTIONS AND ANSWERS RATED A+
✔✔What is the automatic continuance of insurance coverage referred to as?
Renewal
Reinstatement
resumption
renovation - ✔✔Renewal
✔✔A nonparticipating company is sometimes called a(n)
alien insurer
mutual insurer
reinsurer
stock insurer - ✔✔Stock insurer
✔✔Insurance companies determine risk exposure by which of the following?
Insurable interest
insurance exchanges
law of large numbers and risk pooling
population table data - ✔✔law of large numbers and risk pooling
✔✔The act of using misrepresentation to induce an insured person to terminate an
existing policy and purchase a new policy is referred to as
twisting
subrogation
defamation
intimidation - ✔✔Twisting
✔✔Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following
statements is true?
The policy may be paid up early by using accumulated
,cash values
The policy may be paid up early by using policy dividends
The policy's premiums will increase after 20 years
The policys cash values steadily decrease after 20 years - ✔✔The policy may be paid
up early by using policy dividends
✔✔If an insured dies during the grace period with no premiums paid
the policy would be payable, minus the premium amount
the policy would be payable only after the beneficiary makes past due premium
payment
all past premiums will be refunded with interest
the claim would be denied - ✔✔the policy would be payable, minus the premium
amount
✔✔A life insurance policy written on one contract for two people in which it is payable
upon the first death is called
Split
Shared
Joint
Survivorship - ✔✔Joint
✔✔Which of the following is considered to be an act of misrepresentation?
Sharing commissions with other licensed producers
Replacing an existing policy with a new one
Giving back part of a producers commission as an incentive for a sale
Falsifying the terms, benefits, advantages, or conditions of an insurance policy -
✔✔Falsifying the terms, benefits, advantages, or conditions of an insurance policy
✔✔A life insurance policy that is subject to a contract interest rate is referred to as
, adjustable life
group life
term life
universal life - ✔✔Universal life
✔✔What happens to the coverage under a children's term rider when that child reaches
a certain specified age?
Coverage decreases automatically
Coverage increases automatically
Coverage remains as long as proof of insurability is provided
Coverage is eliminated - ✔✔Coverage is eliminated
✔✔Which annuity payout option allows the policyowner to choose a pre-determined
number of benefit payments?
Period certain
straight life
installment refund
amount certain - ✔✔Period certain
✔✔An annuitant is guaranteed to NOT outlive their benefits with a(n)
Survivorship clause
Guaranteed lifetime withdrawal benefit
period certain provision
Guaranteed minimum accumulation benefit - ✔✔Guaranteed lifetime withdrawal benefit
✔✔What is the primary purpose of a rating service company such as A.M Best?
Determine which insurer offers the best rates
Determine which insurer offers the best policies
QUESTIONS AND ANSWERS RATED A+
✔✔What is the automatic continuance of insurance coverage referred to as?
Renewal
Reinstatement
resumption
renovation - ✔✔Renewal
✔✔A nonparticipating company is sometimes called a(n)
alien insurer
mutual insurer
reinsurer
stock insurer - ✔✔Stock insurer
✔✔Insurance companies determine risk exposure by which of the following?
Insurable interest
insurance exchanges
law of large numbers and risk pooling
population table data - ✔✔law of large numbers and risk pooling
✔✔The act of using misrepresentation to induce an insured person to terminate an
existing policy and purchase a new policy is referred to as
twisting
subrogation
defamation
intimidation - ✔✔Twisting
✔✔Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following
statements is true?
The policy may be paid up early by using accumulated
,cash values
The policy may be paid up early by using policy dividends
The policy's premiums will increase after 20 years
The policys cash values steadily decrease after 20 years - ✔✔The policy may be paid
up early by using policy dividends
✔✔If an insured dies during the grace period with no premiums paid
the policy would be payable, minus the premium amount
the policy would be payable only after the beneficiary makes past due premium
payment
all past premiums will be refunded with interest
the claim would be denied - ✔✔the policy would be payable, minus the premium
amount
✔✔A life insurance policy written on one contract for two people in which it is payable
upon the first death is called
Split
Shared
Joint
Survivorship - ✔✔Joint
✔✔Which of the following is considered to be an act of misrepresentation?
Sharing commissions with other licensed producers
Replacing an existing policy with a new one
Giving back part of a producers commission as an incentive for a sale
Falsifying the terms, benefits, advantages, or conditions of an insurance policy -
✔✔Falsifying the terms, benefits, advantages, or conditions of an insurance policy
✔✔A life insurance policy that is subject to a contract interest rate is referred to as
, adjustable life
group life
term life
universal life - ✔✔Universal life
✔✔What happens to the coverage under a children's term rider when that child reaches
a certain specified age?
Coverage decreases automatically
Coverage increases automatically
Coverage remains as long as proof of insurability is provided
Coverage is eliminated - ✔✔Coverage is eliminated
✔✔Which annuity payout option allows the policyowner to choose a pre-determined
number of benefit payments?
Period certain
straight life
installment refund
amount certain - ✔✔Period certain
✔✔An annuitant is guaranteed to NOT outlive their benefits with a(n)
Survivorship clause
Guaranteed lifetime withdrawal benefit
period certain provision
Guaranteed minimum accumulation benefit - ✔✔Guaranteed lifetime withdrawal benefit
✔✔What is the primary purpose of a rating service company such as A.M Best?
Determine which insurer offers the best rates
Determine which insurer offers the best policies
