MICHIGAN LIFE, ACCIDENT, AND HEALTH
The Commissioner of Insurance is appointed by the Governor for a term of - Answers -4
years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - Answers -Correct answer: C - licensing of producers
A temporary license issued to close the affairs of a deceased producer may be issued
for up to _____ days at the discretion of the Commissioner - Answers -180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - Answers -24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - Answers -Protects policy
holders against failure insolvent insurers
Controlled business - Answers -It is permitted provided it does not exceed 15% of the
premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a gift
equal to 50% of the commission. This is an example of __________. - Answers -
Rebating
True/False
A Medicare supplement policy can indemnify against losses resulting from accidents on
a different basis than losses resulting from sickness. - Answers -False - Medicare
supplements must indemnify the same way for accidents and sickness.
True/False
A Medicare supplement policy must cover intermediate outpatient care for substance
abuse. - Answers -True - Intermediate care for substance abuse includes inpatient
treatment for drug addiction and alcohol abuse
In Michigan, the free-look or trial examination period for a LTC policy is ______ days. -
Answers -30
True/False
,All LTC policy owners must be offered a cost-of-living benefit adjustment option. -
Answers -True
Health insurance is in force for newborns from birth and notification must be given within
_____ days of birth for coverage to extend beyond that point. - Answers -31 days
An individual that is continually insured under a group policy for at least ____ months
may convert to an individual policy upon policy termination. - Answers -3 months
A person becomes eligible for the federal Medicare program at the age of ____.
Coverage must be requested within _____ days before or after the applicant's birthday.
- Answers -65 years old, 90 days
The Medicare maximum preexisting condition exclusion period is ____ months. -
Answers -6 months
The free-look period for Medicare supplements and LTC policies is ____ days. -
Answers -30 days
An employee who works at least _____ hours weekly must be considered an eligible
employee for small employer medical plans. - Answers -30 hours / week
The number of eligible full-time employees for small group health plans is _____ to
_____. - Answers -2 to 50 employees
A LTC policy must provide coverage for at least ______ consecutive months. - Answers
-12 consecutive months
An insurance company must file a notice of appointment or give notice of appointment
termination to a producer within _____ days. - Answers -15 days
A producer has ______ days to notify the Department of Insurance of any name or
address changes. - Answers -30 days
Peril - Answers -Immediate specific event causing a loss
Hazard - Answers -A factor that gives rise to a loss.
The five methods of managing risk are: - Answers -STARR (sharing, transfer,
avoidance, reduction, retention)
Elimination period - Answers -Total # of days an insured must be disabled before
income benefits will pay out.
Coinsurance - Answers -Shared expenses between the insured and the insurer. The
insurer always has the higher %.
, Participating insurance company - Answers -Pays dividends
Unauthorized/non-admitted - Answers -Cannot transact insurance within the state.
Express authority - Answers -Explicit authority that an agent has per the written contract
Implied authority - Answers -Authority that is not expressly granted in the contract but is
necessary in order to conduct business
Apparent authority - Answers -Authority the agent seems to have to the general public
based on actions undertaken by the agent.
Waiver - Answers -Intentional giving up of a right
Aleatory contract - Answers -Dependent on an uncertain event
Contract of adhesion - Answers -The insurance company drafts the contract wording
and the insured simply follows it.
Unilateral contract - Answers -The insured makes the premium payments only one party
has the responsibility.
Loss Ratio % = - Answers -operating expenses / premiums
Contributory - Answers -The insured contributes $ to their group plan
____% of eligible employees must participate in a contributory plan. - Answers -75%
Non-contributory - Answers -Premium is paid entirely by the employer.
____% of eligible employees must participate in a non-contributory plan. - Answers -
100%
Enrollment period - Answers -Time in which you can enroll in benefits without having to
undergo medical underwriting. (No evidence of insurability)
Probationary period - Answers -The period of time before an employee is eligible to
enroll in benefits.
The human life value approach to selling life insurance focuses on an individual's
_______________. - Answers -An individual's future stream of income. (Annual salary,
expenses, years remaining until retirement, future value of current dollars)
The Commissioner of Insurance is appointed by the Governor for a term of - Answers -4
years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - Answers -Correct answer: C - licensing of producers
A temporary license issued to close the affairs of a deceased producer may be issued
for up to _____ days at the discretion of the Commissioner - Answers -180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - Answers -24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - Answers -Protects policy
holders against failure insolvent insurers
Controlled business - Answers -It is permitted provided it does not exceed 15% of the
premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a gift
equal to 50% of the commission. This is an example of __________. - Answers -
Rebating
True/False
A Medicare supplement policy can indemnify against losses resulting from accidents on
a different basis than losses resulting from sickness. - Answers -False - Medicare
supplements must indemnify the same way for accidents and sickness.
True/False
A Medicare supplement policy must cover intermediate outpatient care for substance
abuse. - Answers -True - Intermediate care for substance abuse includes inpatient
treatment for drug addiction and alcohol abuse
In Michigan, the free-look or trial examination period for a LTC policy is ______ days. -
Answers -30
True/False
,All LTC policy owners must be offered a cost-of-living benefit adjustment option. -
Answers -True
Health insurance is in force for newborns from birth and notification must be given within
_____ days of birth for coverage to extend beyond that point. - Answers -31 days
An individual that is continually insured under a group policy for at least ____ months
may convert to an individual policy upon policy termination. - Answers -3 months
A person becomes eligible for the federal Medicare program at the age of ____.
Coverage must be requested within _____ days before or after the applicant's birthday.
- Answers -65 years old, 90 days
The Medicare maximum preexisting condition exclusion period is ____ months. -
Answers -6 months
The free-look period for Medicare supplements and LTC policies is ____ days. -
Answers -30 days
An employee who works at least _____ hours weekly must be considered an eligible
employee for small employer medical plans. - Answers -30 hours / week
The number of eligible full-time employees for small group health plans is _____ to
_____. - Answers -2 to 50 employees
A LTC policy must provide coverage for at least ______ consecutive months. - Answers
-12 consecutive months
An insurance company must file a notice of appointment or give notice of appointment
termination to a producer within _____ days. - Answers -15 days
A producer has ______ days to notify the Department of Insurance of any name or
address changes. - Answers -30 days
Peril - Answers -Immediate specific event causing a loss
Hazard - Answers -A factor that gives rise to a loss.
The five methods of managing risk are: - Answers -STARR (sharing, transfer,
avoidance, reduction, retention)
Elimination period - Answers -Total # of days an insured must be disabled before
income benefits will pay out.
Coinsurance - Answers -Shared expenses between the insured and the insurer. The
insurer always has the higher %.
, Participating insurance company - Answers -Pays dividends
Unauthorized/non-admitted - Answers -Cannot transact insurance within the state.
Express authority - Answers -Explicit authority that an agent has per the written contract
Implied authority - Answers -Authority that is not expressly granted in the contract but is
necessary in order to conduct business
Apparent authority - Answers -Authority the agent seems to have to the general public
based on actions undertaken by the agent.
Waiver - Answers -Intentional giving up of a right
Aleatory contract - Answers -Dependent on an uncertain event
Contract of adhesion - Answers -The insurance company drafts the contract wording
and the insured simply follows it.
Unilateral contract - Answers -The insured makes the premium payments only one party
has the responsibility.
Loss Ratio % = - Answers -operating expenses / premiums
Contributory - Answers -The insured contributes $ to their group plan
____% of eligible employees must participate in a contributory plan. - Answers -75%
Non-contributory - Answers -Premium is paid entirely by the employer.
____% of eligible employees must participate in a non-contributory plan. - Answers -
100%
Enrollment period - Answers -Time in which you can enroll in benefits without having to
undergo medical underwriting. (No evidence of insurability)
Probationary period - Answers -The period of time before an employee is eligible to
enroll in benefits.
The human life value approach to selling life insurance focuses on an individual's
_______________. - Answers -An individual's future stream of income. (Annual salary,
expenses, years remaining until retirement, future value of current dollars)
