10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The MI L&H exam has 150 questions and runs 2 hours 30 minutes.
These 10 free MI L&H questions are organized by exam domain, so you can see how each part of the Michigan Life, Accident and Health Producer blueprint is tested. Reveal the answer and explanation under each question.
A Michigan producer deposits an applicant's $4,000 initial premium into the agency's operating account and uses it to cover payroll, intending to replace the money before the insurer requests it. How is this conduct best classified?
Correct answer: C - A fiduciary breach involving conversion of premium funds
After failing to complete Michigan's continuing-education requirement, a producer is placed in Suspended for Education status for 90 days. During that status, which activity is permitted?
Correct answer: A - Servicing existing policies without producing new business
Because an insurer supplies a producer with branded applications, an insurer email address, and a public website listing, an applicant reasonably believes the producer can bind coverage-even though the agency contract says otherwise. Which authority is implicated?
Correct answer: D - Apparent authority
While a replacement life policy is still being underwritten, the owner wants to surrender the existing policy so its cash value can fund the new premium. Which recommendation best protects the owner's coverage and satisfies replacement duties?
Correct answer: B - Keep the existing policy in force until the new policy is issued, delivered, accepted, and reviewed
A family identifies $25,000 for final expenses, $225,000 for debt, $150,000 for education, and $500,000 for survivor income. It has $125,000 in liquid assets and $300,000 of existing life insurance. Its $200,000 of home equity will not be liquidated. How much additional coverage is indicated?
Correct answer: C - $475,000
One planned premium is missed, but a universal life statement shows enough account value to cover the monthly expense and cost-of-insurance charges; no guarantee has been exhausted. Which explanation is most accurate?
Correct answer: A - Coverage can continue; a missed planned premium does not by itself cause immediate lapse
Unable to continue premiums, a whole-life policyowner wants to preserve as much of the current death benefit as possible for the next several years, even if coverage later expires. Which nonforfeiture option best matches that objective?
Correct answer: D - Extended term insurance
At a guaranteed-insurability option date, an insured's health has deteriorated. The rider permits an additional $50,000 of coverage. What may the policyowner generally do?
Correct answer: B - Purchase the permitted amount without new evidence of insurability, at the applicable attained-age premium
An equity-indexed annuity credits interest using a 70% participation rate and an 8% cap. The index gains 15% for the term. Before other contract charges, what rate is credited?
Correct answer: C - 8%
For a client seeking a direct, tax-deferred exchange under Internal Revenue Code Section 1035 without receiving cash, which transaction qualifies?
Correct answer: A - Exchanging one annuity directly for another annuity
The MI L&H exam also covers these domains. Drill them in the full free practice test:
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