MI Insurance Exam Questions with complete solutions 2023.

MI Insurance Exam Questions with complete solutions 2023. Preferred Risk - correct insurance applicant with a below average likelihood of loss is typically considered to be Conversion - correct answers.Tim is covered under a group plan and would like to change is group coverage to an individual policy with the name insurer because of employment termination. Which of these describes the change that will take place? Dies instantly from a car accident - correct answers.Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt.. Pain and Suffering - correct of the following is not covered under workers comp? Protecting the business by covering entry level employees with life insurance - correct answers.All of the following are considered appropriate uses of life insurance for business purposes except Roth IRA - correct answers.Which of these retirement plans do not qualify for a federal income tax deduction? Martial Status - correct answers.An insurer would be committing unfair discrimination if coverage was denied based upon Unilateral - correct answers.In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered Exclusions on a new policy - correct answers.One of the most important considerations when replacing health insurance would be the Association or Labor group - correct answers.A type of group that has a constitution and bylaws and has been organized for the purpose other than obtaining insurance is called an Responsible Third Party - correct answers.Under the subrogation clause, legal action can be taken by the insurer against the $200 - correct answers.An insured under a major medical expense plan with a plan zero deductible and 80/20 coinsurance provision files a $1000 claim. How much of this claim is the insured responsible for? Falling below the federal poverty level - correct answers.Which of these is NOT a qualifying event for Medicare? Illegal Inducement - correct answers.ABC insurance agency is entering each applicant who purchase insurance thought their agency into a drawing to win a free trip. This is an unlawful insurance practice known as Financial Objectives if the income earner were to die/disabled - correct answers.When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? Universal Life Policy - correct answers.Joe has life insurance policy that's has a face amount of $300,000. After a number of years, the policy cash value accumulates $50K making it $350K. Requires certain condition/acts by the insured individual - correct answers.Which of the following best describes a conditional insurance contract? After the premium is dues but the policy remains in force - correct is an insurance policies grace period? Drug Formality - correct answers.A pharmacy benefit covers prescription drugs derived from a list called a Inpatient Hospital Stay - correct answers.Medicare Part A covers Qualified Retirement Annuity - correct answers.Dana is an employer who deposits a percentage of her income her individual annuity. Her company also contributes a percentage into a separate company pension plan. What kind of annuity is this considered? Life Annuity Certain - correct answers.Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Only the insurer is legally bound - correct answers.What makes an insurance policy an unilateral contract? The amount contributed by the employer - correct answers.Which of the following would a health saving account (HSA) owner not be able to make? Losing money at a casino - correct answers.All of the following are examples of a pure risk except irrevocable - correct answers.Sharon is the policy owner of a $50K life insurance policy. Her son, Mike is the beneficiary. If Sharon must obtain Mike's signature in order the beneficiary, what kind if beneficiary designation is this? Conditionally Renewable - correct answers.A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called Change of Occupation - correct answers.Which of the following is not a required provision in a accident and health insurance policy? Survivorship Life Policy - correct answers.The type of multiple protection that pays on the death of the last person is called an Peril - correct answers.The cause of a loss is referred to as an Deferred Compensation - correct answers.All of the following are examples of a Business Continuation Plan EXCEPT Upon Distribution - correct answers.Under a Traditional IRA, interest earned is taxed Making a statement that is false or maliciously critical of the financial condition of an insurer - correct answers.Which of the following is an example of the illegal act of defamation? A minimum of 12 months after date of purchase - correct answers.How soon can the benefit payments begin with a deferred annuity? 100 Days - correct answers.Medical Part A does not pay for medical benefits provided for treatment in a skilled nursing facility beyond the premiums paid plus interest earned will be given to the beneficiary - correct answers.Andy the annuitant dies before the annuity state date. Which of the following is a true statement? $0 - correct answers.Pierre is covered by his employers group major medical plan. His employer pay to 75% of the premium and he pays 25%. How much would a $10,000 benefit be taxable as income under this plan? Two - correct answers.A life insurance policy sold in Michigan may by contested by the insurers only during the first ___ years of the contract? Covert to an individual policy in the event of employment termination - correct answers.An employee under a group insurance policy has the right to name beneficiary and the right to Experience Rating - correct answers.XYZ company has applied for group health insurance for it's employees. What information would the insurers underwriters likely use to determine the appreciate and final premium rate given to the group? Reduced death benefit prepayment - correct answers.What is the primary feature of a viatical settlement? Employees waiting period for the coverage of a preexisting condition can be reduced under the new employers heath plan - correct answers.Under the heath insurance portability and accountability act (HIPAA) the employee's new group health plan will verify creditable coverage so that the Birth abnormalities - correct answers.Newborn coverage under health insurance policies must coverage for Preventative heath service - correct answers.A health insurance policy will typically cover Licensed producers not appointed by an insurer - correct answers.Producer commission may not be paid to Concealment - correct answers.Intentional withholding of information of a material fact that would affect an insurance policy's validity is called an Juvenile Insurance - correct answers.Which type of life insurance is normally associated with a Payor Benefit rider? 12% - correct answers.XYZ insurance company received satisfactory proof of loss for a claim. If XYZ does not pay the claim within 60 days of receipt, the insurer must pay simple interest of __ per annum It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill - correct answers.What is the purpose for having an accelerated death benefit on a life insurance policy? Policy Summary - correct answers.Which of these is considered to be a document that describes the critical segments of a life insurance policy? Last Survivor Insurance - correct answers.What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? Adverse Selection - correct answers.People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called __ Level Premium - correct answers.When a decreasing term policy is purchased, it contains a decreasing death benefit and __ Incontestable Clause - correct answers.Which of the following protects a policy owner from misrepresentation caused by an innocent mistake? Claims were higher than expected - correct answers.Which if the following is NOT a valid reason for an insurer to refuse renewable of the small employer group plan? A rating from a rating service company such as AM best - correct answers.Which of the following is NOT considered advertising? Net death benefit will be reduced if the loan is not repaid - correct answers.Joanne has a $100K whole life policy with an accumulated $25K of cash value. She would like to borrow $15K against cash value. Optional Renewable Clauases - correct answers.A clause that allows an insurer that right to terminate coverage at any anniversary date is called Certificate of coverage and benefits - correct answers.The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? $10,000 - correct answers.Karen is producer who has obtained personal information about a client without having reason to do so. Under the MCCarron-Ferguson Act, what is the minimum penalty for this? Decreasing Term Life - correct answers.The least expensive option to pay off a 30-year mortgage balance would be Receive matching funds to expand public assistance programs - correct answers.The role of the federal government was expanded when the medicaid was established by allowing the state to The annuitant's life expectancy determine the annuity payments - correct answers.Which of the following statements regarding the annuitant is correct? $700 - correct answers.Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500? Pay age-corrected benefits - correct answers.What is an insurer required to do when faced with an error made under the Misstatement of Age provision? Claim Forms - correct answers.All of the following are elements of an insurance policy except.. long term care - correct answers.All _____ policies must be organized be guaranteed renewable provide evidence of insurability, pay past due premiums - correct answers.The two major actions required for a policyholder to comply with the reinstatement clause are A promotional item with the producer's name/address valued at $5 - correct answers.Under Michigan Law, which of the following would not be considered an illegal inducement? Variable Whole Life - correct answers.A life insurance policy which contains cash values that vary according to its investment performance of stocks is called _________. Human Life Value Approach - correct answers.Which approach predicts a person's potential and determines how much of that amount be devoted to dependents? indicates a pre-existing condition - correct answers.A proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment.. Nonforfeiture provision - correct answers.A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n) poverty stricken people - correct answers.Medicaid is intended for___ Full Contributory - correct answers.A group disability income plan that pays tax free benefits to covered employee is considered Partial Disability - correct answers.A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?