Xcel License Exam Questions with
Complete Solutions16
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the
following EXCEPT - ANSWERS-additional premiums
Michigan requires that a licensee complete.
_hours of continuing education on the subject of ethics every reporting period - ANSWERS-3
Paul the producer has provided a false statement in relation to an insurance claim. Which illegal
act has been committed? - ANSWERS-fraud
The __________ must notify the producer in the event of the producer's insurance
appointment being terminated. - ANSWERS-insurer
The act of _________ insurance does NOT require an individual to hold an insurance producer
license. - ANSWERS-Underwriting
Under which circumstance do consumer privacy regulations allow an insured's financial
information be released? - ANSWERS-An authorized agency makes a written request to the
insurer during an insurance fraud investigation
Upon finding a producer guilty of forgery, the Commissioner may take all of the following
actions EXCEPT? - ANSWERS-require the producer to notify his/her clients
Upon receiving a producer complaint, the Commissioner may immediately - ANSWERS-issue a
cease and desist order
,Which of the following is an example of the illegal act of defamation? - ANSWERS-Making a
statement that is false or maliciously critical of the financial condition of an insurer
Which of the following is considered to be an act of misrepresentation? - ANSWERS-Falsifying
the terms, benefits, advantages, or conditions of an insurance policy
Which of these actions would NOT result in a producer's license revocation? - ANSWERS-Not
maintaining an adequate level of sales
Which of these BEST describes the illegal act of twisting? - ANSWERS-Replacing an insurance
policy from one insurer to another based on misrepresentation
Which of these is NOT subject to false advertising regulations? - ANSWERS-Gifts
Which of these is the BEST example of misrepresentation? - ANSWERS-Providing incorrect,
misleading, incomplete, or materially untrue information in the license application
A baby is born to a husband and wife covered under a family accident and health insurance
policy. If first payment for the additional coverage would become due in ____ days. - ANSWERS-
31
A Medicare Supplement policy issued in the state of Michigan is required to provide each of the
following EXCEPT - ANSWERS-It must include outpatient prescription drug coverage
A foreign insurance company doing business in Michigan - ANSWERS-is a company domiciled
under the laws of another state
, A producer's license is required for all of these activities EXCEPT - ANSWERS-Underwriting
insurance
A producer has allowed his/her license to lapse by failing to complete the required continuing
education credits. The license may be reinstated by completing the requirement within _____
days of the renewal date. - ANSWERS-90
HMO plans are REQUIRED to provide - ANSWERS-home health care
A(n) ____ company is owned exclusively by shareholders. - ANSWERS-stock
ABC Insurance Agency is entering each applicant who purchases insurance through their agency
into a drawing to win a free trip. This is an unlawful insurance practice known as - ANSWERS-
illegal inducement
If an insured's unmarried child is incapable of self support because of a mental handicap, how
long must this child be provided health coverage under the parent's policy? - ANSWERS-Until
policy termination with proof of incapacity
In determining whether a pre-existing condition applies, the enrollee CANNOT have more than
how many days' gap in health insurance? - ANSWERS-63
An example of an unfair claims settlement practice is - ANSWERS-Failing to promptly provide
reasonable explanations for the denial of claims
To be classified as a small employer in Michigan, an employer must employ - ANSWERS-2-50
employees
To be eligible for small employer group coverage, an employee must work a MINIMUM of hours
in a typical week. - ANSWERS-17.5
Complete Solutions16
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the
following EXCEPT - ANSWERS-additional premiums
Michigan requires that a licensee complete.
_hours of continuing education on the subject of ethics every reporting period - ANSWERS-3
Paul the producer has provided a false statement in relation to an insurance claim. Which illegal
act has been committed? - ANSWERS-fraud
The __________ must notify the producer in the event of the producer's insurance
appointment being terminated. - ANSWERS-insurer
The act of _________ insurance does NOT require an individual to hold an insurance producer
license. - ANSWERS-Underwriting
Under which circumstance do consumer privacy regulations allow an insured's financial
information be released? - ANSWERS-An authorized agency makes a written request to the
insurer during an insurance fraud investigation
Upon finding a producer guilty of forgery, the Commissioner may take all of the following
actions EXCEPT? - ANSWERS-require the producer to notify his/her clients
Upon receiving a producer complaint, the Commissioner may immediately - ANSWERS-issue a
cease and desist order
,Which of the following is an example of the illegal act of defamation? - ANSWERS-Making a
statement that is false or maliciously critical of the financial condition of an insurer
Which of the following is considered to be an act of misrepresentation? - ANSWERS-Falsifying
the terms, benefits, advantages, or conditions of an insurance policy
Which of these actions would NOT result in a producer's license revocation? - ANSWERS-Not
maintaining an adequate level of sales
Which of these BEST describes the illegal act of twisting? - ANSWERS-Replacing an insurance
policy from one insurer to another based on misrepresentation
Which of these is NOT subject to false advertising regulations? - ANSWERS-Gifts
Which of these is the BEST example of misrepresentation? - ANSWERS-Providing incorrect,
misleading, incomplete, or materially untrue information in the license application
A baby is born to a husband and wife covered under a family accident and health insurance
policy. If first payment for the additional coverage would become due in ____ days. - ANSWERS-
31
A Medicare Supplement policy issued in the state of Michigan is required to provide each of the
following EXCEPT - ANSWERS-It must include outpatient prescription drug coverage
A foreign insurance company doing business in Michigan - ANSWERS-is a company domiciled
under the laws of another state
, A producer's license is required for all of these activities EXCEPT - ANSWERS-Underwriting
insurance
A producer has allowed his/her license to lapse by failing to complete the required continuing
education credits. The license may be reinstated by completing the requirement within _____
days of the renewal date. - ANSWERS-90
HMO plans are REQUIRED to provide - ANSWERS-home health care
A(n) ____ company is owned exclusively by shareholders. - ANSWERS-stock
ABC Insurance Agency is entering each applicant who purchases insurance through their agency
into a drawing to win a free trip. This is an unlawful insurance practice known as - ANSWERS-
illegal inducement
If an insured's unmarried child is incapable of self support because of a mental handicap, how
long must this child be provided health coverage under the parent's policy? - ANSWERS-Until
policy termination with proof of incapacity
In determining whether a pre-existing condition applies, the enrollee CANNOT have more than
how many days' gap in health insurance? - ANSWERS-63
An example of an unfair claims settlement practice is - ANSWERS-Failing to promptly provide
reasonable explanations for the denial of claims
To be classified as a small employer in Michigan, an employer must employ - ANSWERS-2-50
employees
To be eligible for small employer group coverage, an employee must work a MINIMUM of hours
in a typical week. - ANSWERS-17.5
