MICHIGAN LIFE INSURANCE STATE FINAL
TEST 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ What grounds can lead to disciplinary actions?.
Answer: False applications, violating laws, misrepresentation, felony
convictions, accepting business from unlicensed persons.
◍ Insurance applicants with an average life expectancy who represent the
same risk classification as the majority of people with similar lifestyles are
considered which type of risk?.
Answer: Standard
◍ Which approach considers the future needs of the survivors in determining
amounts of life insurance? 1. Human life approach 2. Cost of comparison
approach3. Living benefits approach 4. Needs approach.
Answer: 1. Human life approach
◍ What is the reinstatement period for life insurance policies?.
Answer: Within 3 years with back premiums, interest, and proof of
insurability.
◍ Maximum penalty commissioner can fine a producer?.
Answer: 10,000
◍ Which type of insurance is sometimes referred to as a non participating
company?1. Reciprocal insurer2. Fraternal insurer 3. Mutual insurer 4.
Stock insurer.
Answer: 4. Stock insurer
◍ What is required for group life insurance conversion?.
Answer: Conversion available within 31 days of loss of coverage, no proof
, of insurability required.
◍ What is the maximum fine for a knowing violation?.
Answer: $25,000
◍ What must be submitted to the Commissioner before acting on behalf of an
insurer?.
Answer: Appointments
◍ What is the total Continuing Education requirement?.
Answer: 24 hours
◍ What is the maximum penalty for insurance fraud?.
Answer: Fines up to $50,000 and up to 15 years imprisonment.
◍ If a producer is found guilty of signing an applications name, the
commissioner can do all of the following EXCEP
T. ..1. Place the producer on probation 2. Levy a civil fine on the producer 3.
Suspend or revoke license 4. Require the producer to tell the client.
Answer: 4. Require the producer to tell the client
◍ What is the Grace Period for life insurance policies?.
Answer: 1 month
◍ What are the coverage limits for life insurance death benefits under the
Guaranty Association?.
Answer: $300,000 life death benefit.
◍ Maximum penalty commissioner can fine a producer? 1. 2,500 2. 5,0003.
10,0004. 7,500.
Answer: 3. 10,000
◍ Two business business partners own life insurance, which or the following
allows the surviving partner to use death benefit to purchase the deceased
owners share?.
Answer: Buy-sell agreement
◍ What constitutes unfair claims settlement practices?.
Answer: Providing false info, failing to respond promptly, rejecting claims
, without valid reasons.
◍ What is the coverage limit for cash surrender under the Guaranty
Association?.
Answer: $100,000 cash surrender.
◍ What is the minimum Continuing Education requirement in ethics?.
Answer: At least 3 hours
◍ Which of the following is TRUE regarding federal income tax obligations a
beneficiary is faced with...?.
Answer: There are no federal income tax on the life insurance proceeds
◍ A reinstatement clause outlines conditions that include...?.
Answer: Proof of insurability
◍ A license can disclose a consumer's policy account number to all of the
following EXCEP
T. ..?.
Answer: Nonaffiliated third party
◍ Generally If an application is not prepaid, the effective date of begins on the
date the...1. Application is signed 2. Application is postmarked and mailed
to the insurer 3. Company underwriter approves the risk4. Producer delivers
the policy and collects the premium.
Answer: 4. Producer delivers the policy and collects the premium
◍ In addition to the actual policy, an entire contract includes which of the
following?.
Answer: The application
◍ The unfair trade practice of using threat or forced restrict fair trade in the
transaction of insurance is called...?.
Answer: Intimidation
◍ Which type of insurance is sometimes referred to as a non participating
company?.
Answer: Stock insurer
, ◍ How often must licenses be renewed?.
Answer: Every 2 years
◍ Which of the following not an example of a producer duties? 1. Selling
insurance 2. Issuing and countersigning policies 3. Collecting premiums 4.
Represent the insured.
Answer: 4. Represent the insured
◍ Which of the following is an example of risk sharing?.
Answer: Purchasing an insurance policy to cover liability exposure
◍ What are the penalties for disciplinary actions?.
Answer: Probation, suspension, revocation, civil fines, denial or refusal to
renew licenses.
◍ Which is the simplest type of life insurance plan that provides protection for
a specific period of time and pays a benefit only if the insured dies during
that period?.
Answer: Level term life insurance
◍ What is the validity period for Temporary Licenses?.
Answer: Up to 180 days
◍ Which of the following is an example of an unfair claim settlement
practice?.
Answer: Delaying the settlement of claims in which liability has become
clear
◍ All of the following are examples of flexible life insurance policies EXCEP
T. ..?.
Answer: Whole life
◍ What is required for Resident Producers to obtain a license?.
Answer: Be 18+, complete prelicensing education, pass the Michigan exam,
submit application and fees within 12 months.
◍ How data reported and maintained on applicants for life or health by
medical information?.
TEST 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ What grounds can lead to disciplinary actions?.
Answer: False applications, violating laws, misrepresentation, felony
convictions, accepting business from unlicensed persons.
◍ Insurance applicants with an average life expectancy who represent the
same risk classification as the majority of people with similar lifestyles are
considered which type of risk?.
Answer: Standard
◍ Which approach considers the future needs of the survivors in determining
amounts of life insurance? 1. Human life approach 2. Cost of comparison
approach3. Living benefits approach 4. Needs approach.
Answer: 1. Human life approach
◍ What is the reinstatement period for life insurance policies?.
Answer: Within 3 years with back premiums, interest, and proof of
insurability.
◍ Maximum penalty commissioner can fine a producer?.
Answer: 10,000
◍ Which type of insurance is sometimes referred to as a non participating
company?1. Reciprocal insurer2. Fraternal insurer 3. Mutual insurer 4.
Stock insurer.
Answer: 4. Stock insurer
◍ What is required for group life insurance conversion?.
Answer: Conversion available within 31 days of loss of coverage, no proof
, of insurability required.
◍ What is the maximum fine for a knowing violation?.
Answer: $25,000
◍ What must be submitted to the Commissioner before acting on behalf of an
insurer?.
Answer: Appointments
◍ What is the total Continuing Education requirement?.
Answer: 24 hours
◍ What is the maximum penalty for insurance fraud?.
Answer: Fines up to $50,000 and up to 15 years imprisonment.
◍ If a producer is found guilty of signing an applications name, the
commissioner can do all of the following EXCEP
T. ..1. Place the producer on probation 2. Levy a civil fine on the producer 3.
Suspend or revoke license 4. Require the producer to tell the client.
Answer: 4. Require the producer to tell the client
◍ What is the Grace Period for life insurance policies?.
Answer: 1 month
◍ What are the coverage limits for life insurance death benefits under the
Guaranty Association?.
Answer: $300,000 life death benefit.
◍ Maximum penalty commissioner can fine a producer? 1. 2,500 2. 5,0003.
10,0004. 7,500.
Answer: 3. 10,000
◍ Two business business partners own life insurance, which or the following
allows the surviving partner to use death benefit to purchase the deceased
owners share?.
Answer: Buy-sell agreement
◍ What constitutes unfair claims settlement practices?.
Answer: Providing false info, failing to respond promptly, rejecting claims
, without valid reasons.
◍ What is the coverage limit for cash surrender under the Guaranty
Association?.
Answer: $100,000 cash surrender.
◍ What is the minimum Continuing Education requirement in ethics?.
Answer: At least 3 hours
◍ Which of the following is TRUE regarding federal income tax obligations a
beneficiary is faced with...?.
Answer: There are no federal income tax on the life insurance proceeds
◍ A reinstatement clause outlines conditions that include...?.
Answer: Proof of insurability
◍ A license can disclose a consumer's policy account number to all of the
following EXCEP
T. ..?.
Answer: Nonaffiliated third party
◍ Generally If an application is not prepaid, the effective date of begins on the
date the...1. Application is signed 2. Application is postmarked and mailed
to the insurer 3. Company underwriter approves the risk4. Producer delivers
the policy and collects the premium.
Answer: 4. Producer delivers the policy and collects the premium
◍ In addition to the actual policy, an entire contract includes which of the
following?.
Answer: The application
◍ The unfair trade practice of using threat or forced restrict fair trade in the
transaction of insurance is called...?.
Answer: Intimidation
◍ Which type of insurance is sometimes referred to as a non participating
company?.
Answer: Stock insurer
, ◍ How often must licenses be renewed?.
Answer: Every 2 years
◍ Which of the following not an example of a producer duties? 1. Selling
insurance 2. Issuing and countersigning policies 3. Collecting premiums 4.
Represent the insured.
Answer: 4. Represent the insured
◍ Which of the following is an example of risk sharing?.
Answer: Purchasing an insurance policy to cover liability exposure
◍ What are the penalties for disciplinary actions?.
Answer: Probation, suspension, revocation, civil fines, denial or refusal to
renew licenses.
◍ Which is the simplest type of life insurance plan that provides protection for
a specific period of time and pays a benefit only if the insured dies during
that period?.
Answer: Level term life insurance
◍ What is the validity period for Temporary Licenses?.
Answer: Up to 180 days
◍ Which of the following is an example of an unfair claim settlement
practice?.
Answer: Delaying the settlement of claims in which liability has become
clear
◍ All of the following are examples of flexible life insurance policies EXCEP
T. ..?.
Answer: Whole life
◍ What is required for Resident Producers to obtain a license?.
Answer: Be 18+, complete prelicensing education, pass the Michigan exam,
submit application and fees within 12 months.
◍ How data reported and maintained on applicants for life or health by
medical information?.
