11/6/24, 4:55 PM MI Life Producer Final Exam Flashcards | Quizlet
MI Life Producer Final Exam
Terms in this set (320)
Jane works for a company immediately//While employer contributions to a
that allows employee qualified plan can be subject to a vesting schedule,
contributions under a participants are always fully vested in their own
401(k) plan. When will Jane contributions.
become fully vested in her
plan contributions?
give all important information about a proposed
Agents must act in the
policy//Agents must act in the applicant's or insured's
best interests of
best interests at all times. This means that agents must
applicants and insureds.
give all important information about a proposed
What does this require
policy. Also, they cannot misrepresent the terms or
them to do?
conditions of a proposed policy.
It allows a chronically or terminally ill insured to gain a
sum of money that is needed to pay medical expenses
What does a viatical or to enhance the quality of life.//A viatical settlement
settlement allow? allows a chronically or terminally ill insured to gain a
sum of money that might be needed to pay medical
expenses or to enhance quality of life.
If an employer/employee At least 75 percent of the group must enroll in the
group offers group life plan//If an employer/employee group life insurance
insurance on a plan is contributory, 75 percent of the group must
contributory basis, what enroll in the plan. If the plan is non-contributory, 100
percentage of the group percent of the group must enroll.
must enroll?
Which of the following is competitors' rates//Actuaries base life insurance
NOT a life insurance premiums on three basic factors: mortality (a charge),
premium? interest (a credit), and expenses (a charge).
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,11/6/24, 4:55 PM MI Life Producer Final Exam Flashcards | Quizlet
the 2001 CSO table//The mortality factor is drawn
from mortality statistics compiled by the National
In calculating their
Association of Insurance Commissioners (NAIC) into a
mortality charges, life
set of rates called the Commissioners Standard
insurers today generally
Ordinary (CSO) table. Policies issued since 2009 are
use:
required to base their mortality charges on the 2001
CSO table.
All of the following are accumulate at interest option//This is a policy
standard life insurance dividend option in which declared dividends are left
policy nonforfeiture with the insurer to accumulate interest on the
options EXCEPT: policyowner's behalf.
surrender the policy for its cash value or stop paying
premiums and continue coverage as long as the cash
value will support it//Universal life policies do not
Which of the following
contain the standard nonforfeiture options. Instead,
most correctly describes
the policyowner can either surrender the policy for its
the nonforfeiture option(s)
cash value or continue coverage with no further
available with universal life
premium payments, in which case coverage will last
insurance?
for as long as the cash value is able to support the
policy's monthly mortality and expense charge
deductions.
The converted funds are taxed, but Roth IRA earnings
James wants to convert his
and distribution will be tax free.//The $150,000 from
$150,000 traditional IRA to
the traditional IRA has been deferred so it will be
a Roth IRA. What best
taxed upon conversion. However, as long as James
describes the tax
holds the new Roth IRA for at least five years and is
treatment for the Roth
older than 59', distributions from the Roth IRA will be
conversion?
tax free.
75 to 90 percent//Policy loans under traditional whole
Under variable life
life insurance plans can be as high as 100 percent of
insurance plans, policy
the cash value, but with variable life insurance the
loans can be as high as
maximum loan amount is something less than the full
what percent of the cash
cash value (e.g., 75 to 90 percent of the cash value),
value?
less any debt currently outstanding against the policy.
https://quizlet.com/967600593/mi-life-producer-final-exam-flash-cards/?new 2/22
, 11/6/24, 4:55 PM MI Life Producer Final Exam Flashcards | Quizlet
reduced paid-up option//A paid-up policy under the
Under which nonforfeiture reduced paid-up option requires no further premiums
option does permanent (nor can any be paid). The paid-up policy retains a
life insurance continue in cash value that will continue to grow throughout the
force with no further need life of the policy. However, it will grow much more
for premiums? slowly than during the period that premiums were
being paid.
Which of the following deferred annuities//Deferred annuities can be funded
can be funded with a with a single premium payment, a series of fixed
single premium payment, premium payments, or with flexible premium
a series of fixed premium payments. Moreover, the owner can make these
payments, or flexible payments whenever and in whatever amount he or
premium payments? she wants.
How does the cost of Group life is less expensive.//Per unit of benefits or
group life insurance coverage, group life insurance is less expensive than
generally compare to the individual life insurance because it has lower
cost of individual life administrative and operational costs.
insurance?
Which of the following The insurer credits a rate of interest to the dividends
statements about the as they remain on deposit with the insurer.//The
'accumulate at interest' insurer credits a rate of interest to the dividends as
policy dividend option is they remain on deposit with the insurer.
correct?
When it comes to retirement income that is guaranteed for life//All
choosing a financial qualified retirement plan assets enjoy tax-deferred
instrument to fund a growth and tax-deductible deposits, and many offer a
qualified retirement variety of investment choices, but only a deferred
account, which of the annuity can be converted to an income stream that is
following features makes guaranteed for life.
an annuity the most
suitable product?
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MI Life Producer Final Exam
Terms in this set (320)
Jane works for a company immediately//While employer contributions to a
that allows employee qualified plan can be subject to a vesting schedule,
contributions under a participants are always fully vested in their own
401(k) plan. When will Jane contributions.
become fully vested in her
plan contributions?
give all important information about a proposed
Agents must act in the
policy//Agents must act in the applicant's or insured's
best interests of
best interests at all times. This means that agents must
applicants and insureds.
give all important information about a proposed
What does this require
policy. Also, they cannot misrepresent the terms or
them to do?
conditions of a proposed policy.
It allows a chronically or terminally ill insured to gain a
sum of money that is needed to pay medical expenses
What does a viatical or to enhance the quality of life.//A viatical settlement
settlement allow? allows a chronically or terminally ill insured to gain a
sum of money that might be needed to pay medical
expenses or to enhance quality of life.
If an employer/employee At least 75 percent of the group must enroll in the
group offers group life plan//If an employer/employee group life insurance
insurance on a plan is contributory, 75 percent of the group must
contributory basis, what enroll in the plan. If the plan is non-contributory, 100
percentage of the group percent of the group must enroll.
must enroll?
Which of the following is competitors' rates//Actuaries base life insurance
NOT a life insurance premiums on three basic factors: mortality (a charge),
premium? interest (a credit), and expenses (a charge).
https://quizlet.com/967600593/mi-life-producer-final-exam-flash-cards/?new 1/22
,11/6/24, 4:55 PM MI Life Producer Final Exam Flashcards | Quizlet
the 2001 CSO table//The mortality factor is drawn
from mortality statistics compiled by the National
In calculating their
Association of Insurance Commissioners (NAIC) into a
mortality charges, life
set of rates called the Commissioners Standard
insurers today generally
Ordinary (CSO) table. Policies issued since 2009 are
use:
required to base their mortality charges on the 2001
CSO table.
All of the following are accumulate at interest option//This is a policy
standard life insurance dividend option in which declared dividends are left
policy nonforfeiture with the insurer to accumulate interest on the
options EXCEPT: policyowner's behalf.
surrender the policy for its cash value or stop paying
premiums and continue coverage as long as the cash
value will support it//Universal life policies do not
Which of the following
contain the standard nonforfeiture options. Instead,
most correctly describes
the policyowner can either surrender the policy for its
the nonforfeiture option(s)
cash value or continue coverage with no further
available with universal life
premium payments, in which case coverage will last
insurance?
for as long as the cash value is able to support the
policy's monthly mortality and expense charge
deductions.
The converted funds are taxed, but Roth IRA earnings
James wants to convert his
and distribution will be tax free.//The $150,000 from
$150,000 traditional IRA to
the traditional IRA has been deferred so it will be
a Roth IRA. What best
taxed upon conversion. However, as long as James
describes the tax
holds the new Roth IRA for at least five years and is
treatment for the Roth
older than 59', distributions from the Roth IRA will be
conversion?
tax free.
75 to 90 percent//Policy loans under traditional whole
Under variable life
life insurance plans can be as high as 100 percent of
insurance plans, policy
the cash value, but with variable life insurance the
loans can be as high as
maximum loan amount is something less than the full
what percent of the cash
cash value (e.g., 75 to 90 percent of the cash value),
value?
less any debt currently outstanding against the policy.
https://quizlet.com/967600593/mi-life-producer-final-exam-flash-cards/?new 2/22
, 11/6/24, 4:55 PM MI Life Producer Final Exam Flashcards | Quizlet
reduced paid-up option//A paid-up policy under the
Under which nonforfeiture reduced paid-up option requires no further premiums
option does permanent (nor can any be paid). The paid-up policy retains a
life insurance continue in cash value that will continue to grow throughout the
force with no further need life of the policy. However, it will grow much more
for premiums? slowly than during the period that premiums were
being paid.
Which of the following deferred annuities//Deferred annuities can be funded
can be funded with a with a single premium payment, a series of fixed
single premium payment, premium payments, or with flexible premium
a series of fixed premium payments. Moreover, the owner can make these
payments, or flexible payments whenever and in whatever amount he or
premium payments? she wants.
How does the cost of Group life is less expensive.//Per unit of benefits or
group life insurance coverage, group life insurance is less expensive than
generally compare to the individual life insurance because it has lower
cost of individual life administrative and operational costs.
insurance?
Which of the following The insurer credits a rate of interest to the dividends
statements about the as they remain on deposit with the insurer.//The
'accumulate at interest' insurer credits a rate of interest to the dividends as
policy dividend option is they remain on deposit with the insurer.
correct?
When it comes to retirement income that is guaranteed for life//All
choosing a financial qualified retirement plan assets enjoy tax-deferred
instrument to fund a growth and tax-deductible deposits, and many offer a
qualified retirement variety of investment choices, but only a deferred
account, which of the annuity can be converted to an income stream that is
following features makes guaranteed for life.
an annuity the most
suitable product?
https://quizlet.com/967600593/mi-life-producer-final-exam-flash-cards/?new 3/22
