Michigan Life, Accident, and Health
Exam Questions and Answers 100%
Pass
The Commissioner of Insurance is appointed by the Governor for a term of - ✔✔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 - ✔✔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 - ✔✔180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
Katelyn Whitman, All Rights Reserved © 2025 1
,______ day grace period to complete CE - ✔✔24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - ✔✔Protects policy holders
against failure insolvent insurers
Controlled business - ✔✔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 __________. - ✔✔Rebating
Defamation - ✔✔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
__________________. - ✔✔$10,000 and possible license revocation
Insurance counselor - ✔✔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. - ✔✔30 days
True / False
Katelyn Whitman, All Rights Reserved © 2025 2
,A producer may share commissions with another licensed producer - ✔✔True
True / False
A producer may not share commissions with a licensed nonresident producer -
✔✔False
If, after a hearing, the Commissioner believes a producer knowingly violated insurance
licensing laws, the Commissioner can: - ✔✔Fine the producer a max of $2,500 per
violation
A producer has a fiduciary responsibility to all of the following: - ✔✔- 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? -
✔✔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? - ✔✔At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. - ✔✔30
days.
Katelyn Whitman, All Rights Reserved © 2025 3
, If a producer is convicted of routinely misrepresenting benefits in insurance policies, he
may be fined up to $_______ for all violations. - ✔✔$25,000
Under what type of policy does an insured have to be notified if current policy values
are insufficient to maintain the policy, given guaranteed interest and expense rates? -
✔✔Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: - ✔✔-
information material to the insurance policy
- a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an insured to drop
an existing policy and purchase a new policy is an example of _____________. -
✔✔Twisting
The minimum number of lives that must be covered under a group life insurance policy
in Michigan is ______. - ✔✔2 lives.
The maximum life insurance policy loan interest that may be charged on a fixed interest
loan is ______%. - ✔✔8%
In life insurance, all advertisements must be kept by the insurer for at least ________
months. - ✔✔48 months
Katelyn Whitman, All Rights Reserved © 2025 4
Exam Questions and Answers 100%
Pass
The Commissioner of Insurance is appointed by the Governor for a term of - ✔✔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 - ✔✔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 - ✔✔180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
Katelyn Whitman, All Rights Reserved © 2025 1
,______ day grace period to complete CE - ✔✔24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - ✔✔Protects policy holders
against failure insolvent insurers
Controlled business - ✔✔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 __________. - ✔✔Rebating
Defamation - ✔✔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
__________________. - ✔✔$10,000 and possible license revocation
Insurance counselor - ✔✔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. - ✔✔30 days
True / False
Katelyn Whitman, All Rights Reserved © 2025 2
,A producer may share commissions with another licensed producer - ✔✔True
True / False
A producer may not share commissions with a licensed nonresident producer -
✔✔False
If, after a hearing, the Commissioner believes a producer knowingly violated insurance
licensing laws, the Commissioner can: - ✔✔Fine the producer a max of $2,500 per
violation
A producer has a fiduciary responsibility to all of the following: - ✔✔- 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? -
✔✔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? - ✔✔At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. - ✔✔30
days.
Katelyn Whitman, All Rights Reserved © 2025 3
, If a producer is convicted of routinely misrepresenting benefits in insurance policies, he
may be fined up to $_______ for all violations. - ✔✔$25,000
Under what type of policy does an insured have to be notified if current policy values
are insufficient to maintain the policy, given guaranteed interest and expense rates? -
✔✔Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: - ✔✔-
information material to the insurance policy
- a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an insured to drop
an existing policy and purchase a new policy is an example of _____________. -
✔✔Twisting
The minimum number of lives that must be covered under a group life insurance policy
in Michigan is ______. - ✔✔2 lives.
The maximum life insurance policy loan interest that may be charged on a fixed interest
loan is ______%. - ✔✔8%
In life insurance, all advertisements must be kept by the insurer for at least ________
months. - ✔✔48 months
Katelyn Whitman, All Rights Reserved © 2025 4
