1|Page
FINAL EXAM-MICHIGAN LIFE AND HEALTH |
COMPREHENSIVE Q&A FOR CERTIFICATION
SUCCESS (2025)
What amount will be paid under a policy where the insured misstated his/her
age? - correct-answer-an amount the premium would have purchased at the
correct age
the acceptance of a credit life application requires the submission of a certificate
of insurance to the insured within_____ days - correct-answer-30 days
which of these is considered to be a Living benefit option in a life insurance policy
- correct-answer-Accelerated death benefit
ABC insurance agency is entering each applicant who purchases insurance through
their agency into a drawing to win a free trip. this is an unlawful insurance
practice known as - correct-answer-illegal inducement
,2|Page
For what purpose is a life insurance application backdates - correct-answer-to
reduce the premium
An error was made on Mary's life insurance application. Which of the following
areas are errors commonly made on applications for which the incontestable
clause does NOT apply? - correct-answer-Age
Dorian exercised a nonforfeiture option by using his life policy's cash value to
purchase an extended term insurance option. When the term insurance expires, -
correct-answer-the protection ends
what activity does NOT require an insurance producer's license - correct-answer-
underwriting
making a statement that is false or maliciously critical of the financial conditions of
an insurer is known as - correct-answer-defamation
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits.
Which of these benefit options would he choose? - correct-answer-Guaranteed
lifetime withdrawal benefit
,3|Page
How many employees must an employer have for a terminated employee to be
eligible for COBRA - correct-answer-20
a hospital or medical expense policy will typically cover dental treatment expenses
under which circumstance - correct-answer-dental treatment is needed to repair
an injury
HIPAA considers which of the following as "individually identifiable health
information"? - correct-answer-a persons health claim information
who assume the investment risk with a fixed annuity contract - correct-answer-
the insurer
Medical Expense insurance would cover - correct-answer-an injury occurring at
the insured's residence
When an insured has a major medical plan with first dollar coverage, how does
this impact the benefits paid - correct-answer-No deducible payment is required
, 4|Page
Key Person Disability insurance pays benefits to the - correct-answer-employer
In order to activate the reinstatement clause of a lapsed life insurance policy, the
insured MUST - correct-answer-provide evidence of insurability to the insurer
Bob and Tom start a business. Since each partner contributes an important
element to the success of the business, they decide to take life insurance policies
out on each other, and name each other as beneficiaries. Eventually, they retire
and dissolve the business. Bob dies 12 months later. The policies continue in force
with no change. Both partners are still married at the time of Bob's death. In this
situation, who will receive Bob's policy proceeds? - correct-answer-Tom
if an employee contributes 50% toward the disability plan premium provided by
an employer, what would be considered the taxable income of a $1,000 monthly
disability benefit - correct-answer-$500
A rider that assures premiums will be paid on a juvenile policy until the child
reaches a specific age is called - correct-answer-Payout rider
FINAL EXAM-MICHIGAN LIFE AND HEALTH |
COMPREHENSIVE Q&A FOR CERTIFICATION
SUCCESS (2025)
What amount will be paid under a policy where the insured misstated his/her
age? - correct-answer-an amount the premium would have purchased at the
correct age
the acceptance of a credit life application requires the submission of a certificate
of insurance to the insured within_____ days - correct-answer-30 days
which of these is considered to be a Living benefit option in a life insurance policy
- correct-answer-Accelerated death benefit
ABC insurance agency is entering each applicant who purchases insurance through
their agency into a drawing to win a free trip. this is an unlawful insurance
practice known as - correct-answer-illegal inducement
,2|Page
For what purpose is a life insurance application backdates - correct-answer-to
reduce the premium
An error was made on Mary's life insurance application. Which of the following
areas are errors commonly made on applications for which the incontestable
clause does NOT apply? - correct-answer-Age
Dorian exercised a nonforfeiture option by using his life policy's cash value to
purchase an extended term insurance option. When the term insurance expires, -
correct-answer-the protection ends
what activity does NOT require an insurance producer's license - correct-answer-
underwriting
making a statement that is false or maliciously critical of the financial conditions of
an insurer is known as - correct-answer-defamation
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits.
Which of these benefit options would he choose? - correct-answer-Guaranteed
lifetime withdrawal benefit
,3|Page
How many employees must an employer have for a terminated employee to be
eligible for COBRA - correct-answer-20
a hospital or medical expense policy will typically cover dental treatment expenses
under which circumstance - correct-answer-dental treatment is needed to repair
an injury
HIPAA considers which of the following as "individually identifiable health
information"? - correct-answer-a persons health claim information
who assume the investment risk with a fixed annuity contract - correct-answer-
the insurer
Medical Expense insurance would cover - correct-answer-an injury occurring at
the insured's residence
When an insured has a major medical plan with first dollar coverage, how does
this impact the benefits paid - correct-answer-No deducible payment is required
, 4|Page
Key Person Disability insurance pays benefits to the - correct-answer-employer
In order to activate the reinstatement clause of a lapsed life insurance policy, the
insured MUST - correct-answer-provide evidence of insurability to the insurer
Bob and Tom start a business. Since each partner contributes an important
element to the success of the business, they decide to take life insurance policies
out on each other, and name each other as beneficiaries. Eventually, they retire
and dissolve the business. Bob dies 12 months later. The policies continue in force
with no change. Both partners are still married at the time of Bob's death. In this
situation, who will receive Bob's policy proceeds? - correct-answer-Tom
if an employee contributes 50% toward the disability plan premium provided by
an employer, what would be considered the taxable income of a $1,000 monthly
disability benefit - correct-answer-$500
A rider that assures premiums will be paid on a juvenile policy until the child
reaches a specific age is called - correct-answer-Payout rider
