MICHIGAN LIFE INSURANCE STATE EXAM/ LIFE I
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NSUAREANCE STATE EXAM FOR MICHIGAN REC
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ENT AND COMPLETE VERSION ALL QUESTIONS
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AND CORRECT ANSWERS/ GRADED A+
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UndergagtraditionalgIRA,ginterestgisgtaxed:
Onlygifgwithdrawngpriorgtogageg59g1/2
Accordinggtogthegcapitalggainsgrate
Upongdistribution
Duringgthegaccumulationgphaseg-gANSWER:gUpongdistribution
WhichgofgthesegstatementsgconcerninggTraditionalgIRAsgisgCORRECT?
Earningsgaregnotgtaxablegwhengwithdrawn
Earningsgaregtaxablegwhengwithdrawn
Contributiongaregnevergtaxgdeductible
Contributionsgaregalwaysgmadegbygthegemployerg-
gANSWER:gEarningsgaregtaxablegwhengwithdrawn
,Pageg2gofg61
Whichgofgthesegdescribesgthegresultgofgagmodifiedgendowmentgcontractgthatgfailedgtogme
etgthegseven-gpaygtest?
Policygloansgaregdisallowed
Thegpremiumgpaymentsgwillgbegtaxgdeductible
Pre-gdeathgdistributionsgaregtypicallygtaxable
Withdrawalsgwillgbegprohibitedg-gANSWER:gPre-
gdeathgdistributionsgaregtypicallygtaxable
Ingordergforgagcontractgtogbegvalid,gitgmust
begfilledgwithgthegstate
begsigninggandgwitnessedgbygangattorney
begingwriting
containgoffergandgacceptanceg-gANSWER:gContaingoffergandgacceptance
WhichgofgthegfollowinggactionsgisgREQUIREDgbygagproducergwhogisgreplacinggangexisti
ngglifeginsurancegpolicy?
,Pageg3gofg61
Keepgreplacementgrecordsgongfilegforgatgleastg10gyears
Notifygthegexistingginsurergofgthegproposedgreplacement
Submitgtogthegreplacingginsurergaglistgofgthegpoliciesgtogbegreplaced
Offergtheginsuredgag60-gdaygfree-glookgperiodg-
gANSWER:gSubmitgtogthegreplacingginsurergaglistgofgthegpoliciesgtogbegreplaced
WhogweregKeoghgplansgdesignedgtogprovidegpensiongbenefitsgfor?
Corporategofficers
Publicgschoolgemployees
Thegself-employed
Governmentgemployeesg-gANSWER:gThegselfgemplyed
Agproducer'sgfiduciarygdutygrequiresgthat
premiumsgaregmaintainedgingagpersonalgbankgaccountguntilgremittancegtoginsurer
premiumsgbegdepositedginganginterestgbearinggaccount
premiumsgaregforwardedgtogtheginsurergongagtimelygbasis
, Pageg4gofg61
premiumsgbegcommingledg-gANSWER:gPremiumsgaregforwardedgongagtimelygbasis
Angindividualgwhogremovesgthegriskgofglosinggmoneygingthegstockgmarketgbygnevergpurc
hasinggstocksgisgsaidgtogbegengaginggin
Riskgreduction
RiskgTransference
Riskgavoidance
Riskgretentiong-gANSWER:gRiskgavoidance
Agtypegofggroupgthatghasgagconstitutiongandghasgbeengorganizedgforgpurposesgother
gthangobtainingginsurancegisgcalledga(n)
employerggroup
employeeggroup
associationgorglaborggroup
multiplegcoalitiong-gANSWER:gassociationgorglaborggroup
WhichgofgthegfollowinggisgNOTgagfederalgrequirementgofgagqualifiedgplan?