Michigan Life, Accident, and Health || All Solutions Are Accurate.
Retirement income annuity correct answers Deferred annuity with a decreasing term life
insurance rider. A retirement income annuity provides both a death benefit (with a decreasing
term rider) and the annuity's surrender value if the annuitant dies before retirement.
What type of eligible groups for health insurance consists of 2 or more employers or labor
unions? correct answers MET and MEWA. Multiple employer trusts and multiplier employer
welfare arrangements consist of 2 or more employers or labor unions seeking group health
insurance coverage.
An underwriter will consider which of the following conditions in making their decision to
approve an application for insurance? correct answers A condition that occurs prior to making an
application for insurance.
An underwriter should be informed about any conditions that existed prior to an application for
insurance.
Field underwriting is primarily useful to: correct answers Make observations that could impact
insurability.
The primary value of field underwriting, is that the agent has the opportunity to view the
applicant in his/her surroundings, in person, and make observations regarding insurability and
perhaps class of risk (i.e. is the applicant obese, does he/she have any obvious dangerous
hobbies, does he/she smoke).
Which of the following is a benefit of a prescription drug policy? correct answers Prescriptions
are for a set, lower price.
Under a prescription policy, prescription drugs are not only at a set price, but a much lower price
- usually $2, $3, or $5, regardless of the actual cost of the drug.
,For a non-contributory plan, how many of the employees must be offered coverage under the
group? correct answers 100%
A non-contributory plan is based on the employer paying the full cost of the program, which
means 100% of the employees are covered.
Any of the following is considered advertising for a health insurance company, EXCEPT: correct
answers Morbidity tables
Morbidity tables are used to determine rates for health products.
Which of the following is not an element of the nonforfeiture value of a whole life insurance
policy? correct answers Cash withdrawn does not reduce the face value of the life policy.
Cash withdrawn from a whole life policy DOES reduce the face value of the policy as well as the
cash value of the policy.
When the only logical beneficiary is a minor, all of the following options are available,
EXCEPT: correct answers The benefits can go directly to the estate of the insured.
In the event that the only logical beneficiary for a life policy is a minor, the guardian, trust and
insurance company holding the proceeds are all options available.
Steven currently earns $50,000 annually. He has calculated that he should have approximately
$1,500,000 in life insurance to be sure his family is guaranteed the lifestyle he would provide if
he dies. This approach is called: correct answers Human life value.
While there is not specific way to determine the worth of one life, using the income one may
earn over the course of ones life is one approach.
, When completing an application for insurance, an agent is allowed to do which of the following:
correct answers Witness the applicants signature.
The agent must be present to witness signatures. The other actions are either prohibited or
functions for others in the underwriting process.
A person becomes eligible for Medicare when: correct answers Part A is automatic for all
persons reaching Age 65.
When a person reaches age 65, they become eligible for Medicare part A, even if they continue
to work.
Collin intentionally surrendered a right on his contract known as waiver. What prevented him
from reclaiming the right? correct answers Estoppel.
Waiver is voluntarily surrendering a right, and estoppel is the legal process preventing the
reclaiming of that right.
Which of the following is usually the owner of the annuity? correct answers The annuitant.
The annuitant is the insured - or person on whose whole life the annuity contract has been
insured. The annuitant is usually also the owner of the annuity.
Term insurance provides: correct answers Pure protection and is the least expensive form of
insurance.
Which of the following is NOT an unfair method of competition or a deceptive act in the
business of insurance? correct answers Replacement.
Retirement income annuity correct answers Deferred annuity with a decreasing term life
insurance rider. A retirement income annuity provides both a death benefit (with a decreasing
term rider) and the annuity's surrender value if the annuitant dies before retirement.
What type of eligible groups for health insurance consists of 2 or more employers or labor
unions? correct answers MET and MEWA. Multiple employer trusts and multiplier employer
welfare arrangements consist of 2 or more employers or labor unions seeking group health
insurance coverage.
An underwriter will consider which of the following conditions in making their decision to
approve an application for insurance? correct answers A condition that occurs prior to making an
application for insurance.
An underwriter should be informed about any conditions that existed prior to an application for
insurance.
Field underwriting is primarily useful to: correct answers Make observations that could impact
insurability.
The primary value of field underwriting, is that the agent has the opportunity to view the
applicant in his/her surroundings, in person, and make observations regarding insurability and
perhaps class of risk (i.e. is the applicant obese, does he/she have any obvious dangerous
hobbies, does he/she smoke).
Which of the following is a benefit of a prescription drug policy? correct answers Prescriptions
are for a set, lower price.
Under a prescription policy, prescription drugs are not only at a set price, but a much lower price
- usually $2, $3, or $5, regardless of the actual cost of the drug.
,For a non-contributory plan, how many of the employees must be offered coverage under the
group? correct answers 100%
A non-contributory plan is based on the employer paying the full cost of the program, which
means 100% of the employees are covered.
Any of the following is considered advertising for a health insurance company, EXCEPT: correct
answers Morbidity tables
Morbidity tables are used to determine rates for health products.
Which of the following is not an element of the nonforfeiture value of a whole life insurance
policy? correct answers Cash withdrawn does not reduce the face value of the life policy.
Cash withdrawn from a whole life policy DOES reduce the face value of the policy as well as the
cash value of the policy.
When the only logical beneficiary is a minor, all of the following options are available,
EXCEPT: correct answers The benefits can go directly to the estate of the insured.
In the event that the only logical beneficiary for a life policy is a minor, the guardian, trust and
insurance company holding the proceeds are all options available.
Steven currently earns $50,000 annually. He has calculated that he should have approximately
$1,500,000 in life insurance to be sure his family is guaranteed the lifestyle he would provide if
he dies. This approach is called: correct answers Human life value.
While there is not specific way to determine the worth of one life, using the income one may
earn over the course of ones life is one approach.
, When completing an application for insurance, an agent is allowed to do which of the following:
correct answers Witness the applicants signature.
The agent must be present to witness signatures. The other actions are either prohibited or
functions for others in the underwriting process.
A person becomes eligible for Medicare when: correct answers Part A is automatic for all
persons reaching Age 65.
When a person reaches age 65, they become eligible for Medicare part A, even if they continue
to work.
Collin intentionally surrendered a right on his contract known as waiver. What prevented him
from reclaiming the right? correct answers Estoppel.
Waiver is voluntarily surrendering a right, and estoppel is the legal process preventing the
reclaiming of that right.
Which of the following is usually the owner of the annuity? correct answers The annuitant.
The annuitant is the insured - or person on whose whole life the annuity contract has been
insured. The annuitant is usually also the owner of the annuity.
Term insurance provides: correct answers Pure protection and is the least expensive form of
insurance.
Which of the following is NOT an unfair method of competition or a deceptive act in the
business of insurance? correct answers Replacement.
