Michigan Credit Insurance Producer
Exam Graded A+
adverse selection(methods of handling risk) - ANSWER-the tendancy of less than
average risks to purchase or cont to be covered by insurance resulting increased claims
and reduced profitability
agent - ANSWER-solicit insurance collect premiums
amounts to be insured (Michigan regulation) - ANSWER-the initial amount of credit life
insurance cannot exceed the total amount of indebtedness
apparent(producers and general rules of agency) - ANSWER-covers the relationship
between the agent and the customer
authority and powers of producers(producers and general rules of agency) - ANSWER-
types of authority in an agency agreement between the producer and insurer
authorized insurers(types of insurers) - ANSWER-an insurer licensed or chartered to
transact insurance in mi a company that is admitted to do business in the state
auto dealers and manufacturers (factors for debtors and creditors to consider markets) -
ANSWER-offer credit insurance on boats , cars, mobile homes and recreational
vehicles
avoidance(methods of handling risk) - ANSWER-the act of avoiding or eluding risk
bank and savings and loan associations (factors for debtors and creditors to consider
markets) - ANSWER-offer the widest range of credit products due to the large variety of
services offered
benefit amount -closed end installment loans (qualifying for benefits) - ANSWER-
monthly payment defines the monthly disability benefit the maximum benefit at any time
equals the sum of the remaining payments
benefit amount lump sum benefit (qualifying for benefits) - ANSWER-outstanding
balance of the loan on the date off disability with a 90 day elimination period
benefit amount open end loans (qualifying for benefits) - ANSWER-following the
elimination period the monthly payment benefit is the minimum monthly payment due
benefit amount single payment loans (qualifying for benefits) - ANSWER-lump sum
equal to the outstanding balance of the loan
, benefit conditions (common exclusions) - ANSWER-must be a total loss vehicle must be
subject of a gap contact prior to date of loss
benefit period (qualifying for benefits) - ANSWER-the period of time during which
benefits will be paid following the elimination period
boycott coercion and intimidation(unfair insurance trade practices) - ANSWER-illegal
acts which intend to result in unreasonable restraint of trade or a monopoly in business
of insurance
cease and desist order ( disciplinary actions) - ANSWER-requires that a person refrain
from the unfair method of competition or deceptive act violation's punishable by a fine of
10k/violation
certificate of authority(state and federal regulation) - ANSWER-the charter or license
authorizing an insurer the right to conduct business as an admitted insurer and specifies
the lines of insurance which the insurer is authorized to transact
change of name and address (maintenance and duration) - ANSWER-producer must
notify the insurance bureau of any changes of ___ within 30 days of the change
claims processing (Michigan regulation) - ANSWER-the insured has 20 days to notify
the insurer of claim (or whatever period of time is reasonable). once notified the insurer
has 15 days to provide the insured with claim forms. the insured has 90 days from the
date of loss to complete the claim forms and attach supporting info. once the claim is
received the insurer must pay the claim promptly (typically 90 days). payment of claim
will be made to the insured who is also loss payee
closed end (types of credit covered) - ANSWER-borrowing a certain amount of money
for a specific period of time
commissions( producer regulation) - ANSWER-an agent may only share in __ with
another agent licensed in the same lines of insurance
company regulation (state and federal regulation) - ANSWER-__ by the commissioner
of insurance as it pertains to licensing solvency rates unfair claims settlements ect
competent parties ( elements of legal contract) - ANSWER-legal contract requires the
legal and mental competency of the parities legal age to enter into a valid contact is 18
or 21 in most states
concealment ( legal interpretations affecting contracts) - ANSWER-failure of the
applicant to disclose a known material fact in an application considered fraud
consideration ( elements of legal contract) - ANSWER-something of value exchanged
between the parties to the contract money and info represent value
Exam Graded A+
adverse selection(methods of handling risk) - ANSWER-the tendancy of less than
average risks to purchase or cont to be covered by insurance resulting increased claims
and reduced profitability
agent - ANSWER-solicit insurance collect premiums
amounts to be insured (Michigan regulation) - ANSWER-the initial amount of credit life
insurance cannot exceed the total amount of indebtedness
apparent(producers and general rules of agency) - ANSWER-covers the relationship
between the agent and the customer
authority and powers of producers(producers and general rules of agency) - ANSWER-
types of authority in an agency agreement between the producer and insurer
authorized insurers(types of insurers) - ANSWER-an insurer licensed or chartered to
transact insurance in mi a company that is admitted to do business in the state
auto dealers and manufacturers (factors for debtors and creditors to consider markets) -
ANSWER-offer credit insurance on boats , cars, mobile homes and recreational
vehicles
avoidance(methods of handling risk) - ANSWER-the act of avoiding or eluding risk
bank and savings and loan associations (factors for debtors and creditors to consider
markets) - ANSWER-offer the widest range of credit products due to the large variety of
services offered
benefit amount -closed end installment loans (qualifying for benefits) - ANSWER-
monthly payment defines the monthly disability benefit the maximum benefit at any time
equals the sum of the remaining payments
benefit amount lump sum benefit (qualifying for benefits) - ANSWER-outstanding
balance of the loan on the date off disability with a 90 day elimination period
benefit amount open end loans (qualifying for benefits) - ANSWER-following the
elimination period the monthly payment benefit is the minimum monthly payment due
benefit amount single payment loans (qualifying for benefits) - ANSWER-lump sum
equal to the outstanding balance of the loan
, benefit conditions (common exclusions) - ANSWER-must be a total loss vehicle must be
subject of a gap contact prior to date of loss
benefit period (qualifying for benefits) - ANSWER-the period of time during which
benefits will be paid following the elimination period
boycott coercion and intimidation(unfair insurance trade practices) - ANSWER-illegal
acts which intend to result in unreasonable restraint of trade or a monopoly in business
of insurance
cease and desist order ( disciplinary actions) - ANSWER-requires that a person refrain
from the unfair method of competition or deceptive act violation's punishable by a fine of
10k/violation
certificate of authority(state and federal regulation) - ANSWER-the charter or license
authorizing an insurer the right to conduct business as an admitted insurer and specifies
the lines of insurance which the insurer is authorized to transact
change of name and address (maintenance and duration) - ANSWER-producer must
notify the insurance bureau of any changes of ___ within 30 days of the change
claims processing (Michigan regulation) - ANSWER-the insured has 20 days to notify
the insurer of claim (or whatever period of time is reasonable). once notified the insurer
has 15 days to provide the insured with claim forms. the insured has 90 days from the
date of loss to complete the claim forms and attach supporting info. once the claim is
received the insurer must pay the claim promptly (typically 90 days). payment of claim
will be made to the insured who is also loss payee
closed end (types of credit covered) - ANSWER-borrowing a certain amount of money
for a specific period of time
commissions( producer regulation) - ANSWER-an agent may only share in __ with
another agent licensed in the same lines of insurance
company regulation (state and federal regulation) - ANSWER-__ by the commissioner
of insurance as it pertains to licensing solvency rates unfair claims settlements ect
competent parties ( elements of legal contract) - ANSWER-legal contract requires the
legal and mental competency of the parities legal age to enter into a valid contact is 18
or 21 in most states
concealment ( legal interpretations affecting contracts) - ANSWER-failure of the
applicant to disclose a known material fact in an application considered fraud
consideration ( elements of legal contract) - ANSWER-something of value exchanged
between the parties to the contract money and info represent value
