MICHIGAN LIFE, ACCIDENT, AND HEALTH EXAM
PREP
A policyowner may change two policy features on what type of life insurance? -
Answers -Adjustable life
The legal action provision in a health contract is limited to no more than ___ years. -
Answers -5
Long-Term Care policies may provide coverage for claims arising from - Answers -
Senile dementia
In group health care, what is the purpose of the coordination of benefits provision? -
Answers -Determines what is paid by the primary and secondary insures in the event of
a claim
All of the following riders can increase the death benefit amount EXCEPT
-Cost of Living
-Waiver of Premium
-Accidental Death Rider
-Guaranteed Insurability - Answers -Wavier of premium
Frank is shopping for a disability income policy. Which of the following would have the
HIGHEST premium?
-14 day waiting period / 5 year benefit period
-14 day waiting period / 10 year benefit period
-28 day waiting period / 5 year benefit period
-28 day waiting period / 10 year benefit period - Answers -14 day waiting period / 10
year benefit period
he premium and he pays for 25%. How much would a $10,000 benefit be taxable as
income under this plan? - Answers -$0 (benefits under major medical are not taxed
because they just cover a loss (they are not income))
A disability income policy can prevent an insured from earning a higher income than if
he/she were working by utilizing - Answers -benefit limits
Which of the following is NOT a federal requirement of a qualified plan?
-Must benefit a broad cross-section of employees
-Employee must be able to make unlimited contributions
-Vesting schedule must be defined
-Employer establishes the plan - Answers -Employee must be able to make unlimited
contributions
, A provision that allows a policyowner to withdraw a policy's cash value interest free is
a(n) - Answers -Partial surrender
In Michigan, legal action can be taken against an insurer for failure to pay LIFE
insurance claims for a period not to exceed - Answers -6 year
All of the following are examples of a Business Continuation Plan EXCEPT - Answers -
Deferred compensation
A producer MUST be appointed by the insurer within how many days from the date the
agency contract application is submitted? - Answers -15
Small employers who are sponsored by an insurer to provide group benefits to its
employees are called - Answers -MEWA
Tom has a home health care benefit and is confined to his home. Which of these
benefits is NOT typically covered? - Answers -Full time nursing care
An HMO that involves a partnership of physicians and other providers who practice out
of a central facility is called a(n) - Answers -group HMO
Which of these will typically authorize treatment from a specialist? - Answers -
Gatekeeper
What happens to the coverage under a children's term rider when that child reaches a
certain specified age? - Answers -Coverage is eliminated
Which dividend option would an insurer invest the policyowner's money and add any
interest earnings as the dividends accrue? - Answers -Accumulation at interest option
Barbara's policy includes a rider which allows her to purchase additional insurance at
specific dates or events without evidence of insurability. This rider is called a(n) -
Answers -Guaranteed insurability rider
Who assumes the investment risk with a fixed annuity contract? - Answers -The insurer
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? -
Answers -unpaid premium
An example of a tax-qualified retirement plan would be a(n) - Answers -defined
contribution plan
Funding for Medicare Part B is partially provided by - Answers -user premiums
PREP
A policyowner may change two policy features on what type of life insurance? -
Answers -Adjustable life
The legal action provision in a health contract is limited to no more than ___ years. -
Answers -5
Long-Term Care policies may provide coverage for claims arising from - Answers -
Senile dementia
In group health care, what is the purpose of the coordination of benefits provision? -
Answers -Determines what is paid by the primary and secondary insures in the event of
a claim
All of the following riders can increase the death benefit amount EXCEPT
-Cost of Living
-Waiver of Premium
-Accidental Death Rider
-Guaranteed Insurability - Answers -Wavier of premium
Frank is shopping for a disability income policy. Which of the following would have the
HIGHEST premium?
-14 day waiting period / 5 year benefit period
-14 day waiting period / 10 year benefit period
-28 day waiting period / 5 year benefit period
-28 day waiting period / 10 year benefit period - Answers -14 day waiting period / 10
year benefit period
he premium and he pays for 25%. How much would a $10,000 benefit be taxable as
income under this plan? - Answers -$0 (benefits under major medical are not taxed
because they just cover a loss (they are not income))
A disability income policy can prevent an insured from earning a higher income than if
he/she were working by utilizing - Answers -benefit limits
Which of the following is NOT a federal requirement of a qualified plan?
-Must benefit a broad cross-section of employees
-Employee must be able to make unlimited contributions
-Vesting schedule must be defined
-Employer establishes the plan - Answers -Employee must be able to make unlimited
contributions
, A provision that allows a policyowner to withdraw a policy's cash value interest free is
a(n) - Answers -Partial surrender
In Michigan, legal action can be taken against an insurer for failure to pay LIFE
insurance claims for a period not to exceed - Answers -6 year
All of the following are examples of a Business Continuation Plan EXCEPT - Answers -
Deferred compensation
A producer MUST be appointed by the insurer within how many days from the date the
agency contract application is submitted? - Answers -15
Small employers who are sponsored by an insurer to provide group benefits to its
employees are called - Answers -MEWA
Tom has a home health care benefit and is confined to his home. Which of these
benefits is NOT typically covered? - Answers -Full time nursing care
An HMO that involves a partnership of physicians and other providers who practice out
of a central facility is called a(n) - Answers -group HMO
Which of these will typically authorize treatment from a specialist? - Answers -
Gatekeeper
What happens to the coverage under a children's term rider when that child reaches a
certain specified age? - Answers -Coverage is eliminated
Which dividend option would an insurer invest the policyowner's money and add any
interest earnings as the dividends accrue? - Answers -Accumulation at interest option
Barbara's policy includes a rider which allows her to purchase additional insurance at
specific dates or events without evidence of insurability. This rider is called a(n) -
Answers -Guaranteed insurability rider
Who assumes the investment risk with a fixed annuity contract? - Answers -The insurer
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? -
Answers -unpaid premium
An example of a tax-qualified retirement plan would be a(n) - Answers -defined
contribution plan
Funding for Medicare Part B is partially provided by - Answers -user premiums
