XCEL SOLUTIONS FINAL EXAM - MICHIGAN
LIFE AND HEALTH | 2024 QUESTIONS AND
ANSWERS
Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy
covering all three of their lives. If Mike dies first, the policy proceeds
A.) Will no longer provide insurance protection
B.) Will go to Mike's estate
C.) Wwill be divided by probate
D.) Will not be paid until the last brother dies - A.) Will no longer provide insurance
protection
Susan is insured through her Group Health Insurance plan and changed her coverage
to an individual plan with the same insurer after her employment was terminated. This
change is called a(n)
A.) Crossover
B.) Conversion
C.) Exchange
D.) Extension of benefits - A.) Conversion
Which of the following is NOT a common exclusion for a medical expense policy?
A.) Physical Therapy
B.) Act of War
C.) On-the-Job Injury
D.) Self Inflicted Injury - A.) Physical Therapy
The acceptance of a credit life application requires the submission fo a certificate of
insurance to the insured within _____ days.
A.) 10
B.) 20
C.) 30
D.) 40 - C.) 30
In the state of Michigan, a licensed producer
A.) represents the insurer
B.) may modify insurance contracts
C.) approves insurance contracts
D.) represents the insured - A.) represents the insurer
A life insurance policy sold in Michigan may be contested by the insurer ONLY during
the first _____ year(s) of the contract.
,A.) one
B.) two
C.) three
D.) four - B.) two
Which of the following does Medicare Part D cover?
A.) intensive care coverage
B.) Doctor visits
C.) Prescription drugs
D.) Hospital coverage - C.) Prescription drugs
Which situation accurately describes a reduced paid-up nonforfeiture option?
A.) Policy has a decreased face amount
B.) Face amount of the new policy equals that of the original policy
C.) Cash value is surrendered to policy owner
D.) Premiums must continue to be paid - A.) Policy has a decrease face amount
An example of a presumptive disability would be
A.) a stroke
B.) deafness
C.) diabetes
D.) cancer - B.) deafness
Under Michigan Insurance Code, Chapter 45, financial loss can be defined as
A.) loss of income
B.) restrictive fees
C.) punitive penalties
D.) additional fines - A.) loss of income
A newborn must be covered under and existing health policy
A.) at the moment of birth
B.) within 7 days of birth
C.) within 10 days of birth
D.) when initial premium is paid for newborn - A.) at the moment of birth
All of these statements concerning whole life insurance are false EXCEPT
A.) Policy owner can take out a policy loan up to the face amount
B.) When a whole life policy is surrendered, income taxes may be owned
C.) Coverage is normally temporary
D.) The death benefit is not affected by outstanding loans - B.) When a whole life policy
is surrendered, income taxes may be owned
Which policy feature makes a universal life policy different from a whole life policy?
A.) A fixed cash value
B.) A flexible premium schedule
C.) A fixed death benefit
, D.) The ability to take out a policy loan - B.) A flexible premium schedule
Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are
tax-deductible when paid for which of the following plans?
A.) Accidental Death and Dismemberment
B.) Personal Disability Income Plan
C.) Qualified long-Term Care Plan
D.) Group disability income plan - C.) Qualified long-Term Care Plan
Which of these statements concerning Traditional IRAs in CORRECT?
A.) Earnings are not taxable when withdrawn
B.) Earnings are taxable when withdrawn
C.) Contributions are never tax-deductible
D.) Contributions are always made by the employer - B.) Earnings are taxable when
withdrawn
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive?
A.) Adjustable life policy
B.) Modified life policy
C.) Endowment policy
D.) Universal life policy - C.) Endowment policy
Joe is a Medicare participant who receives his benefits through a Managed Health Care
Plan. Which Medicare plan does he have?
A.) Part A
B.) Part B
C.) Part C
D.) Part D - C.) Part C
How does one qualify as a fully-insured individual under Social Security disability
coverage?
A.) Individual has been credited with the appropriate number of quarters of coverage
B.) Individual is currently covered under Medicaid
C.) Individual is expected to be disabled for 5 months
D.) Individual is currently employed - A.) Individual has been credited with the
appropriate number of quarters of coverage
In a Long-term Care policy, activities of daily living (ADL's) can be each of the following
EXCEPT
A.) Talking
B.) Dressing
C.) Transferring
D.) Feeding oneself - A.) Talking
A producer's insurance license may ONLY be revoked by the
LIFE AND HEALTH | 2024 QUESTIONS AND
ANSWERS
Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy
covering all three of their lives. If Mike dies first, the policy proceeds
A.) Will no longer provide insurance protection
B.) Will go to Mike's estate
C.) Wwill be divided by probate
D.) Will not be paid until the last brother dies - A.) Will no longer provide insurance
protection
Susan is insured through her Group Health Insurance plan and changed her coverage
to an individual plan with the same insurer after her employment was terminated. This
change is called a(n)
A.) Crossover
B.) Conversion
C.) Exchange
D.) Extension of benefits - A.) Conversion
Which of the following is NOT a common exclusion for a medical expense policy?
A.) Physical Therapy
B.) Act of War
C.) On-the-Job Injury
D.) Self Inflicted Injury - A.) Physical Therapy
The acceptance of a credit life application requires the submission fo a certificate of
insurance to the insured within _____ days.
A.) 10
B.) 20
C.) 30
D.) 40 - C.) 30
In the state of Michigan, a licensed producer
A.) represents the insurer
B.) may modify insurance contracts
C.) approves insurance contracts
D.) represents the insured - A.) represents the insurer
A life insurance policy sold in Michigan may be contested by the insurer ONLY during
the first _____ year(s) of the contract.
,A.) one
B.) two
C.) three
D.) four - B.) two
Which of the following does Medicare Part D cover?
A.) intensive care coverage
B.) Doctor visits
C.) Prescription drugs
D.) Hospital coverage - C.) Prescription drugs
Which situation accurately describes a reduced paid-up nonforfeiture option?
A.) Policy has a decreased face amount
B.) Face amount of the new policy equals that of the original policy
C.) Cash value is surrendered to policy owner
D.) Premiums must continue to be paid - A.) Policy has a decrease face amount
An example of a presumptive disability would be
A.) a stroke
B.) deafness
C.) diabetes
D.) cancer - B.) deafness
Under Michigan Insurance Code, Chapter 45, financial loss can be defined as
A.) loss of income
B.) restrictive fees
C.) punitive penalties
D.) additional fines - A.) loss of income
A newborn must be covered under and existing health policy
A.) at the moment of birth
B.) within 7 days of birth
C.) within 10 days of birth
D.) when initial premium is paid for newborn - A.) at the moment of birth
All of these statements concerning whole life insurance are false EXCEPT
A.) Policy owner can take out a policy loan up to the face amount
B.) When a whole life policy is surrendered, income taxes may be owned
C.) Coverage is normally temporary
D.) The death benefit is not affected by outstanding loans - B.) When a whole life policy
is surrendered, income taxes may be owned
Which policy feature makes a universal life policy different from a whole life policy?
A.) A fixed cash value
B.) A flexible premium schedule
C.) A fixed death benefit
, D.) The ability to take out a policy loan - B.) A flexible premium schedule
Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are
tax-deductible when paid for which of the following plans?
A.) Accidental Death and Dismemberment
B.) Personal Disability Income Plan
C.) Qualified long-Term Care Plan
D.) Group disability income plan - C.) Qualified long-Term Care Plan
Which of these statements concerning Traditional IRAs in CORRECT?
A.) Earnings are not taxable when withdrawn
B.) Earnings are taxable when withdrawn
C.) Contributions are never tax-deductible
D.) Contributions are always made by the employer - B.) Earnings are taxable when
withdrawn
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive?
A.) Adjustable life policy
B.) Modified life policy
C.) Endowment policy
D.) Universal life policy - C.) Endowment policy
Joe is a Medicare participant who receives his benefits through a Managed Health Care
Plan. Which Medicare plan does he have?
A.) Part A
B.) Part B
C.) Part C
D.) Part D - C.) Part C
How does one qualify as a fully-insured individual under Social Security disability
coverage?
A.) Individual has been credited with the appropriate number of quarters of coverage
B.) Individual is currently covered under Medicaid
C.) Individual is expected to be disabled for 5 months
D.) Individual is currently employed - A.) Individual has been credited with the
appropriate number of quarters of coverage
In a Long-term Care policy, activities of daily living (ADL's) can be each of the following
EXCEPT
A.) Talking
B.) Dressing
C.) Transferring
D.) Feeding oneself - A.) Talking
A producer's insurance license may ONLY be revoked by the
