MI LIFE PRODUCER FINAL EXAM STUDY QUESTIONS AND ANSWERS.
What happens when a universal life insurance policy's cash value no
longer covers the monthly deductions to cover the policy's insurance and
operational costs?
Correct Answer -The policy lapses. //When the cash value no longer
covers those deductions, a universal life insurance policy lapses.
Which of the following parties to a deferred annuity contract is the person
upon whose life the annuity payment amount and duration are based
when the contract is annuitized?
Correct Answer -the annuitant//The annuitant is the person upon whose
life the annuity payment amount and duration are based when the
contract is annuitized. The annuitant and the owner are usually the same
person. However, an owner can choose anyone as the annuitant. The only
restriction is that the annuitant must be a natural person.
In an absolute assignment, what term is used to describe the new
policyowner?
Correct Answer -assignee//The policyowner making the assignment is the
assignor. The person to whom the assignment of rights is made is the
assignee.
The Director will issue a counselor's license to a qualified applicant within
how many days of the application?
Correct Answer -60 days//To be licensed as an insurance counselor, a
person must submit an application to the Director and pass a written
examination. The Director must decide whether to issue the license within
60 days of receiving the application.