Michigan Life, Accident, and Health QUESTIONS &
ANSWERS(RATED A)
The Commissioner of Insurance is appointed by the Governor for a term of - ANSWER 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 - ANSWER 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 - ANSWER 180 days
Continuing Education (CE)
______ hours of CE every two years
, ______ hours must be in Ethics
______ day grace period to complete CE - ANSWER 24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - ANSWER Protects policy holders against
failure insolvent insurers
Controlled business - ANSWER 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 __________. - ANSWER Rebating
Defamation - ANSWER A written statement that is false and derogatory that is designed to injure
someone's reputation.
, The maximum fine for knowingly violating a cease and desist order is $________ and
__________________. - ANSWER $10,000 and possible license revocation
Insurance counselor - ANSWER Provides advice concerning an insurance policy and charges a fee for
that advice.
An applicant who has been denied an insurance license has _____ days to request a hearing to
protest the denial. - ANSWER 30 days
True / False
A producer may share commissions with another licensed producer - ANSWER True
True / False
A producer may not share commissions with a licensed nonresident producer - ANSWER False
If, after a hearing, the Commissioner believes a producer knowingly violated insurance licensing
laws, the Commissioner can: - ANSWER Fine the producer a max of $2,500 per violation
, A producer has a fiduciary responsibility to all of the following: - ANSWER - Insured on cancelled
policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and services? - ANSWER The
insurance product is not the producer's to barter; it belongs to the insured.
How often must the Commissioner examine the books, records, and documents of domestic
insurers? - ANSWER At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. - ANSWER 30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance policies, he may be
fined up to $_______ for all violations. - ANSWER $25,000
ANSWERS(RATED A)
The Commissioner of Insurance is appointed by the Governor for a term of - ANSWER 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 - ANSWER 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 - ANSWER 180 days
Continuing Education (CE)
______ hours of CE every two years
, ______ hours must be in Ethics
______ day grace period to complete CE - ANSWER 24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - ANSWER Protects policy holders against
failure insolvent insurers
Controlled business - ANSWER 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 __________. - ANSWER Rebating
Defamation - ANSWER A written statement that is false and derogatory that is designed to injure
someone's reputation.
, The maximum fine for knowingly violating a cease and desist order is $________ and
__________________. - ANSWER $10,000 and possible license revocation
Insurance counselor - ANSWER Provides advice concerning an insurance policy and charges a fee for
that advice.
An applicant who has been denied an insurance license has _____ days to request a hearing to
protest the denial. - ANSWER 30 days
True / False
A producer may share commissions with another licensed producer - ANSWER True
True / False
A producer may not share commissions with a licensed nonresident producer - ANSWER False
If, after a hearing, the Commissioner believes a producer knowingly violated insurance licensing
laws, the Commissioner can: - ANSWER Fine the producer a max of $2,500 per violation
, A producer has a fiduciary responsibility to all of the following: - ANSWER - Insured on cancelled
policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and services? - ANSWER The
insurance product is not the producer's to barter; it belongs to the insured.
How often must the Commissioner examine the books, records, and documents of domestic
insurers? - ANSWER At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. - ANSWER 30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance policies, he may be
fined up to $_______ for all violations. - ANSWER $25,000
