Michigan Life Insurance State Exam | 150 Questions And Answers 100% Correct

Which contract element is insurable interest a component of? Competent parties offer and acceptance consideration legal purpose {Ans: legal purpose}Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy? Keep replacement records on file for at least 10 years Notify the existing insurer of the proposed replacement Submit to the replacing insurer a list of the policies to be replaced Offer the insured a 60- day free- look period {Ans: Submit to the replacing insurer a list of the policies to be replaced}What happens to the coverage under a children's term rider when that child reaches a certain specified age? Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated {Ans: Coverage is eliminated}Life insurance policies will normally pay for losses arising from commercial aviation war suicide hazardous jobs {Ans: Commercial aviation}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