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Michigan life insurance state exam answer key
2026 Michigan Life Insurance State
Licensing Exam – Complete Answer
Key with Verified Solutions
Save
Which is TRUE regarding the annuitant, when the Annuity payments will be based on the annuitants life expectancy
annuitant is NOT the policy owner?
1. The annuitant has the right to name the beneficiary
2. The annuitant is the person paying the premiums
3. The cash value is available to the annuitant for
withdrawals
4. Annuity payments will be based on the annuitants life
expectancy
Signing an applicants name for insurance is known as...? 4. Forgery
1. Concealment
2. Defamation
3. Coercion
4. Forgery
,Failure to pay a penalty assessed by the commissioner 1. Revoked or suspended license
may result in...?
1. Revoked or suspended license
2. Require the license to retake the examination
3. Complete 5 extra hours of continuing education
4. Pay a late charge of 1.5%
Two business business partners own life insurance, which 1. Buy-sell agreement
or the following allows the surviving partner to use death
benefit to purchase the deceased owners share?
1. Buy-sell agreement
2. Key employee life insurance
3. Business continuation
4. Accidental death
Policy owner surrenders a policy for its cash value, when 1. The cash value exceeds all premiums paid
is tax liability incurred?
1. The cash value exceeds all premiums paid
2. The cash value is less than premiums paid
3. The policy is exchanged for a policy of equal value
4. The party is transferred to a third party
When is insurable interest required? 2. At the time of application
1. At time of claim
2. At time of application
3. In event of a policy loan
4. Within the first year of death
,Which of the following best describes a single premium 1. It requires only one payment to make the policy paid up
cash policy?
1. It requires only one payment to make the policy paid
up
2. It provides for only one premium to be paid without
evidence of insurability
3. It waives one future premium of the owner becomes
disabled
4. It requires the policy owner to pay one premium
annually
When life insurance is funded by contributions to a 1. Premiums are taxable
qualified retirement...
1. Premiums are taxable
2. Death benefits are taxable
3. The insurance must be incidental to the plan
4. Death benefits are paid to the employer
How does a graded premium whole life policy differ from 1. It has a lower premium for the duration of the policy
a modified premium?
1. It increase the premium annually during the first several
years of the policy
2. It increase the premium annually for the duration of the
policy
3. It increases the premium once during the duration of
the policy
4. It has lower premium for the duration of the policy
Which of the following is NOT true about converting a 4. Proof of insurability must be required
group policy into an individual policy?
1. The converted policy must be the same amount as the
group coverage
2. Group policies must include a guarantee of conversion
3. Coverage continues during the conversion period
4. Proof of insurability must be required
, Before doing business under an assumed name, who 3. Commissioner
must the producer first notify?
1. Insured
2. insurer
3. Commissioner
4. Insurance agency
Which writer allows you to purchase additional insurance 2. Guaranteed insurability
without underwriting or specific dates?
1. Guaranteed renewability
2. Guaranteed insurability
3. Cost of living
4. Disability income
Which of the following is a life insurance contract written 4. Single life Insurance
on the life of an individual?
1. Insurance
2. Survivorship policy
3. Joint life contract
4. Single life insurance
An Insurance policy lapsed due to nonpayment of 2. Provide the insurer with the evidence of insurability
premium to activate the reinstatement clause...
1. Play the premium within 15 days of the grace period.
2. Provide the insurer with the evidence of insurability
3. Apply for a new life insurance policy
4. Demonstrate the incontestable clause can be invoked
Term life insurance differs from permanent life insurance Remains in force for a specific period of time
in that MOST often, term life insurance...
Which activity does NOT require an insurance producer's Underwriting
license?
Michigan life insurance state exam answer key
2026 Michigan Life Insurance State
Licensing Exam – Complete Answer
Key with Verified Solutions
Save
Which is TRUE regarding the annuitant, when the Annuity payments will be based on the annuitants life expectancy
annuitant is NOT the policy owner?
1. The annuitant has the right to name the beneficiary
2. The annuitant is the person paying the premiums
3. The cash value is available to the annuitant for
withdrawals
4. Annuity payments will be based on the annuitants life
expectancy
Signing an applicants name for insurance is known as...? 4. Forgery
1. Concealment
2. Defamation
3. Coercion
4. Forgery
,Failure to pay a penalty assessed by the commissioner 1. Revoked or suspended license
may result in...?
1. Revoked or suspended license
2. Require the license to retake the examination
3. Complete 5 extra hours of continuing education
4. Pay a late charge of 1.5%
Two business business partners own life insurance, which 1. Buy-sell agreement
or the following allows the surviving partner to use death
benefit to purchase the deceased owners share?
1. Buy-sell agreement
2. Key employee life insurance
3. Business continuation
4. Accidental death
Policy owner surrenders a policy for its cash value, when 1. The cash value exceeds all premiums paid
is tax liability incurred?
1. The cash value exceeds all premiums paid
2. The cash value is less than premiums paid
3. The policy is exchanged for a policy of equal value
4. The party is transferred to a third party
When is insurable interest required? 2. At the time of application
1. At time of claim
2. At time of application
3. In event of a policy loan
4. Within the first year of death
,Which of the following best describes a single premium 1. It requires only one payment to make the policy paid up
cash policy?
1. It requires only one payment to make the policy paid
up
2. It provides for only one premium to be paid without
evidence of insurability
3. It waives one future premium of the owner becomes
disabled
4. It requires the policy owner to pay one premium
annually
When life insurance is funded by contributions to a 1. Premiums are taxable
qualified retirement...
1. Premiums are taxable
2. Death benefits are taxable
3. The insurance must be incidental to the plan
4. Death benefits are paid to the employer
How does a graded premium whole life policy differ from 1. It has a lower premium for the duration of the policy
a modified premium?
1. It increase the premium annually during the first several
years of the policy
2. It increase the premium annually for the duration of the
policy
3. It increases the premium once during the duration of
the policy
4. It has lower premium for the duration of the policy
Which of the following is NOT true about converting a 4. Proof of insurability must be required
group policy into an individual policy?
1. The converted policy must be the same amount as the
group coverage
2. Group policies must include a guarantee of conversion
3. Coverage continues during the conversion period
4. Proof of insurability must be required
, Before doing business under an assumed name, who 3. Commissioner
must the producer first notify?
1. Insured
2. insurer
3. Commissioner
4. Insurance agency
Which writer allows you to purchase additional insurance 2. Guaranteed insurability
without underwriting or specific dates?
1. Guaranteed renewability
2. Guaranteed insurability
3. Cost of living
4. Disability income
Which of the following is a life insurance contract written 4. Single life Insurance
on the life of an individual?
1. Insurance
2. Survivorship policy
3. Joint life contract
4. Single life insurance
An Insurance policy lapsed due to nonpayment of 2. Provide the insurer with the evidence of insurability
premium to activate the reinstatement clause...
1. Play the premium within 15 days of the grace period.
2. Provide the insurer with the evidence of insurability
3. Apply for a new life insurance policy
4. Demonstrate the incontestable clause can be invoked
Term life insurance differs from permanent life insurance Remains in force for a specific period of time
in that MOST often, term life insurance...
Which activity does NOT require an insurance producer's Underwriting
license?
