MICHIGAN LIFE INSURANCE STATE FINAL PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
FULL SOLUTION GRADED A+
◉ All of these are common exclusions to a life insurance policy
EXCEPT
accidental death
military service
aviation
Hazardous occupations. Answer: accidental death
◉ What is the automatic continuance of insurance coverage referred
to as?
Renewal
Reinstatement
,resumption
renovation. Answer: Renewal
◉ A nonparticipating company is sometimes called a(n)
alien insurer
mutual insurer
reinsurer
stock insurer. Answer: 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. Answer: 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. Answer: 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. Answer:
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. Answer: 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
2026 COMPLETE QUESTIONS AND ANSWERS
FULL SOLUTION GRADED A+
◉ All of these are common exclusions to a life insurance policy
EXCEPT
accidental death
military service
aviation
Hazardous occupations. Answer: accidental death
◉ What is the automatic continuance of insurance coverage referred
to as?
Renewal
Reinstatement
,resumption
renovation. Answer: Renewal
◉ A nonparticipating company is sometimes called a(n)
alien insurer
mutual insurer
reinsurer
stock insurer. Answer: 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. Answer: 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. Answer: 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. Answer:
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. Answer: 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
