Michigan Life and Health Exam with
100% Correct Answers
A plan in which an employer pays insurance benefits from a fund derived from the
employers current revenue is called - Answer-A self-funded plan
What is a requirement for any change in the insurance application - Answer-change
must be initialed by the applicant
Claims payable to a Disability Income insured, even when the insured can continue to
work, are the result of a - Answer-Presumptive disability
An example of an unfair claims settlement practices is - Answer-failing to promptly
provide a reasonable explanation for the denial of claims
A(n) ______ company is owned by its shareholders - Answer-stock
Under a contract of adhesion, - Answer-the terms must be accepted or rejected in full
An example of naming a beneficiary by class would be - Answer-"To the children born of
my union with Ned Jackson"
What settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - Answer-interest only
The difference between pre-certification and concurrent review is that pre-certification -
Answer-occurs before the treatment is provided
People with higher loss exposure have a tendency to purchase insurance more often in
those at average risk. This is called - Answer-adverse selection
Level premium permanent insurance accumulates a reserve that will eventually -
Answer-equal the face amount of the policy
What is an example of misrepresentation - Answer-providing incorrect, misleading,
incomplete, or materially untrue information in a license application
,In order for a contract to be valid, it must - Answer-contain an offer and acceptance
Kurt is an active duty service man who was recently killed in an accident while home on
leave. What military service exclusion clause would pay upon his death? - Answer-
results
Insurance companies determine risk exposure by - Answer-Law of large numbers and
risk pooling
what would disqualify a companies retirement plan from receiving favorable tax
treatment - Answer-it is temporary
in what form do disability income policy is typically pay benefits - Answer-periodic
income
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on
any money withdrawn. - Answer-income
what is known as an immediate specific event causing loss and giving rise to risk -
Answer-peril
The waiting period for a disability insurance policy - Answer-excludes payments for a
short-term illness or injury
The reinstatement provision in a health insurance policy is - Answer-mandatory
The open enrollment period for Medicare part B is - Answer-January 1 through March
31
Dorian exercised a nonforfeiture option by using his life policies cash value to purchase
an extended term insurance option. When the term insurance expires - Answer-The
protection ends
To be classified as a small employer in Michigan, an employer must employ how many
employees? - Answer-2-50
What is NOT taken into consideration when determining eligibility for Medicare benefits
- Answer-income
A spouse and a child can be added to the primary insured's coverage as what kind of
rider? - Answer-Family term
The power given to an individual producer that is not specifically addressed in his/her
contract is considered what type of authority? - Answer-implied
, An insurer has the right to screen applicants for HIV in what way - Answer-blood test for
HIV
if two business partners. take life insurance policies out on each other and name each
other as beneficiaries. and one of them dies while both are still married who receives
the policy proceeds? - Answer-the partner
Group health plans may deny participation based upon what? - Answer-member' part
time employment status
The waiver of premium does NOT include what provision - Answer-all future premiums
are waived if the insured recovers from the disability
an example of intimidation is - Answer-using threat or force to restrict fair trade in the
transaction of insurance
Matt is applying for life insurance and request a double indemnity writer. A double
indemnity rider will be payable to mats beneficiary if... - Answer-Matt dies instantly from
a car accident
according to the Taft Hartley act, group insurance premium payments made by an
employer MUST be paid to... - Answer-trust
an HMO that involves a partnership of physicians and other providers who practice out
of a central facility is called... - Answer-Group HMO
Tim purchases an insurance policy from a producer. The producer must present to Tim
a notice detailing privacy policies and practices. After this initial notice how often must
Tim be provided with another notice? - Answer-annually
what is Medicare part B known as - Answer-medical insurance
premium mode is a term used to describe... - Answer-frequency of the premium
payment
An example of a presumptive disability would be - Answer-deafness
an immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payments - Answer-1 month
The time limit for filing claim distributes is addressed in which provision of an accident
and health policy - Answer-legal actions
an insurer has the right to recover payment made to the insured from the negligent
party. what are these rights called? - Answer-subrogation
100% Correct Answers
A plan in which an employer pays insurance benefits from a fund derived from the
employers current revenue is called - Answer-A self-funded plan
What is a requirement for any change in the insurance application - Answer-change
must be initialed by the applicant
Claims payable to a Disability Income insured, even when the insured can continue to
work, are the result of a - Answer-Presumptive disability
An example of an unfair claims settlement practices is - Answer-failing to promptly
provide a reasonable explanation for the denial of claims
A(n) ______ company is owned by its shareholders - Answer-stock
Under a contract of adhesion, - Answer-the terms must be accepted or rejected in full
An example of naming a beneficiary by class would be - Answer-"To the children born of
my union with Ned Jackson"
What settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - Answer-interest only
The difference between pre-certification and concurrent review is that pre-certification -
Answer-occurs before the treatment is provided
People with higher loss exposure have a tendency to purchase insurance more often in
those at average risk. This is called - Answer-adverse selection
Level premium permanent insurance accumulates a reserve that will eventually -
Answer-equal the face amount of the policy
What is an example of misrepresentation - Answer-providing incorrect, misleading,
incomplete, or materially untrue information in a license application
,In order for a contract to be valid, it must - Answer-contain an offer and acceptance
Kurt is an active duty service man who was recently killed in an accident while home on
leave. What military service exclusion clause would pay upon his death? - Answer-
results
Insurance companies determine risk exposure by - Answer-Law of large numbers and
risk pooling
what would disqualify a companies retirement plan from receiving favorable tax
treatment - Answer-it is temporary
in what form do disability income policy is typically pay benefits - Answer-periodic
income
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on
any money withdrawn. - Answer-income
what is known as an immediate specific event causing loss and giving rise to risk -
Answer-peril
The waiting period for a disability insurance policy - Answer-excludes payments for a
short-term illness or injury
The reinstatement provision in a health insurance policy is - Answer-mandatory
The open enrollment period for Medicare part B is - Answer-January 1 through March
31
Dorian exercised a nonforfeiture option by using his life policies cash value to purchase
an extended term insurance option. When the term insurance expires - Answer-The
protection ends
To be classified as a small employer in Michigan, an employer must employ how many
employees? - Answer-2-50
What is NOT taken into consideration when determining eligibility for Medicare benefits
- Answer-income
A spouse and a child can be added to the primary insured's coverage as what kind of
rider? - Answer-Family term
The power given to an individual producer that is not specifically addressed in his/her
contract is considered what type of authority? - Answer-implied
, An insurer has the right to screen applicants for HIV in what way - Answer-blood test for
HIV
if two business partners. take life insurance policies out on each other and name each
other as beneficiaries. and one of them dies while both are still married who receives
the policy proceeds? - Answer-the partner
Group health plans may deny participation based upon what? - Answer-member' part
time employment status
The waiver of premium does NOT include what provision - Answer-all future premiums
are waived if the insured recovers from the disability
an example of intimidation is - Answer-using threat or force to restrict fair trade in the
transaction of insurance
Matt is applying for life insurance and request a double indemnity writer. A double
indemnity rider will be payable to mats beneficiary if... - Answer-Matt dies instantly from
a car accident
according to the Taft Hartley act, group insurance premium payments made by an
employer MUST be paid to... - Answer-trust
an HMO that involves a partnership of physicians and other providers who practice out
of a central facility is called... - Answer-Group HMO
Tim purchases an insurance policy from a producer. The producer must present to Tim
a notice detailing privacy policies and practices. After this initial notice how often must
Tim be provided with another notice? - Answer-annually
what is Medicare part B known as - Answer-medical insurance
premium mode is a term used to describe... - Answer-frequency of the premium
payment
An example of a presumptive disability would be - Answer-deafness
an immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payments - Answer-1 month
The time limit for filing claim distributes is addressed in which provision of an accident
and health policy - Answer-legal actions
an insurer has the right to recover payment made to the insured from the negligent
party. what are these rights called? - Answer-subrogation
