FINAL EXAM-MICHIGAN LIFE AND HEALTH / STUDY GUIDE / LATEST
VERSION /QUESTIONS AND CORRECT ANSWERS / A GRADE SCORE
SOLUTION.
1. What amount will be paid under a policy where the insured misstated his/her age?
v v v v v v v v v v v v v vv
vvv answers>>> an amount the premium would have purchased at the correct age
vv v v v v v v v v v v
2. the acceptance of a credit life application requires the submission of a certificate of insurance
v v v v v v v v v v v v v v
to the insured within
v v v v days vv
vvv answers>>> 30 days vvv v
3. which of these is considered to be a Living benefit option in a life insurance policy
v v v v v v v v v v v v v v v vv
vvv answers>>> Accelerated death benefit
vvv v v
4. loans obtained by a policy owner against the cash value of a life insurance policy
v v v v v v v v v v v v v v vv
vvvv answers>>> would not be treated as taxable income
vvv v v v v v v
1 v/ v33
,5. A long term care policy typically provides all of the following levels of care EXCEPT
v v v v v v v v v v v v v v v
vvvvv answers>>> acute care vvv v
6. the elimination period under a hospital indemnity plan is
v v v v v v v v v
vvv answers>>> the specific # of days an insured must wait before becoming eligible to receive benefits for
v vv v v v v v v v v v v v v v v v
v each hospitalization
v
7. what is an insurance policy's grace period?
v v v v v v vv
vvvv answers>>> Period of time after the premium is due but the policy remains in force
v vv v v v v v v v v v v v v v
8. How do interest earnings accumulate in a deferred annuity
v v v v v v v v vv
vvvv answers>>> On a tax-deferred basis v vv v v v
9. a licensee who is required to take continuing education Must include how many ethics coursework
v v v v v v v v v v v v v v
v hours vv
vvvv answers>>> 3 vvv
10. the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value
v v v v v v v v v v v v v v
the amount of
v v v vv
vvvvv answers>>> Past due premiums that have not been paid by the end of the grace period
v vv v v v v v v v v v v v v v v
11. health insurance involves two perils, accident and
v v v v v v v vv
vvv answers>>> sickness v vv
12. Who is responsible for assembling the policy forms for insureds
v v v v v v v v v vv
2 v/ v33
,vvvvv answers>>> Insurance carriers v vv v
13. a securities license is required for a life insurance producer to sell
v v v v v v v v v v v vv
vvvvv answers>>> variable life insurancev vv v v
14. Which of the following is NOT an illegal inducement
v v v v v v v v vvv
vvvvanswers>>> giving the insured an article of merchandise printed with the producers name costing 5$
v vv v v v v v v v v v v v v v
15. Which of the following is NOT a federal requirement of a qualified plan?
v v v v v v v v v v v v vvv
vanswers>>> employee must be able to make unlimited contributions
vv v v v v v v v
16. Which v dividend option would an insurer invest the policy owner's money and add any interest
v v v v v v v v v v v v v
earnings as the dividends accrue?
v v v v v vv
vvvvanswers>>> Accumulation at inter- est option
vv v v v v
17. a health insurance policy will typically cover
v v v v v v vvv
vanswers>>> preventative health services v vv v v
18. a life insurance policy owner was injured in a car accident which results in a total and permanent
v v v v v v v v v v v v v v v v v
disability. which rider would pay a monthly amount because of this disability?
v v v v v v v v v v v v vv
vvvvanswers>>> Disability income rider vvv v v
3 v/ v33
, 19. in addition to the actual policy, an entire contract includes which of the following?
v v v v v v v v v v v v v vv
vvvv answers>>> the application vvv v
20. field underwriting preformed by the producer involves
v v v v v v vvv
vvv answers>>> completing the ap- plication and collecting initial premium
v vv v v v v v v v
21. Kathy pays a monthly premium on her health insurance policy. How long is her grace period?
v v v v v v v v v v v v v v v vv
vv answers>>> 10 days vvv v
22. Pierre is covered by his employer's group major medical plan. His em- ployer pays for 75% of
v v v v v v v v v v v v v v v v
v the premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under
v v v v v v v v v v v v v v v v v
v this plan? v vvv
answers>>> 0$ benefits that fall under a major medical plan are considered to be a reimbursement for a loss,
vvv v v v v v v v v v v v v v v v v v
v and is not taxable as income
v v v v v
23. After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
v v v v v v v v v v v v v v v v v
vv
vvvv answers>>> file a written proof of loss vvv v v v v v
24. Under long term care insurance, which of the following MUST an insurer offer to each policy
v v v v v v v v v v v v v v v
v owner at the time of purchase?
v v v v v vvv
vvvvv answers>>> An inflation protection feature vvv v v v
25. What is the primary factor that determines the benefits paid under a disability income
v v v v v v v v v v v v v
4 v/ v33
VERSION /QUESTIONS AND CORRECT ANSWERS / A GRADE SCORE
SOLUTION.
1. What amount will be paid under a policy where the insured misstated his/her age?
v v v v v v v v v v v v v vv
vvv answers>>> an amount the premium would have purchased at the correct age
vv v v v v v v v v v v
2. the acceptance of a credit life application requires the submission of a certificate of insurance
v v v v v v v v v v v v v v
to the insured within
v v v v days vv
vvv answers>>> 30 days vvv v
3. which of these is considered to be a Living benefit option in a life insurance policy
v v v v v v v v v v v v v v v vv
vvv answers>>> Accelerated death benefit
vvv v v
4. loans obtained by a policy owner against the cash value of a life insurance policy
v v v v v v v v v v v v v v vv
vvvv answers>>> would not be treated as taxable income
vvv v v v v v v
1 v/ v33
,5. A long term care policy typically provides all of the following levels of care EXCEPT
v v v v v v v v v v v v v v v
vvvvv answers>>> acute care vvv v
6. the elimination period under a hospital indemnity plan is
v v v v v v v v v
vvv answers>>> the specific # of days an insured must wait before becoming eligible to receive benefits for
v vv v v v v v v v v v v v v v v v
v each hospitalization
v
7. what is an insurance policy's grace period?
v v v v v v vv
vvvv answers>>> Period of time after the premium is due but the policy remains in force
v vv v v v v v v v v v v v v v
8. How do interest earnings accumulate in a deferred annuity
v v v v v v v v vv
vvvv answers>>> On a tax-deferred basis v vv v v v
9. a licensee who is required to take continuing education Must include how many ethics coursework
v v v v v v v v v v v v v v
v hours vv
vvvv answers>>> 3 vvv
10. the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value
v v v v v v v v v v v v v v
the amount of
v v v vv
vvvvv answers>>> Past due premiums that have not been paid by the end of the grace period
v vv v v v v v v v v v v v v v v
11. health insurance involves two perils, accident and
v v v v v v v vv
vvv answers>>> sickness v vv
12. Who is responsible for assembling the policy forms for insureds
v v v v v v v v v vv
2 v/ v33
,vvvvv answers>>> Insurance carriers v vv v
13. a securities license is required for a life insurance producer to sell
v v v v v v v v v v v vv
vvvvv answers>>> variable life insurancev vv v v
14. Which of the following is NOT an illegal inducement
v v v v v v v v vvv
vvvvanswers>>> giving the insured an article of merchandise printed with the producers name costing 5$
v vv v v v v v v v v v v v v v
15. Which of the following is NOT a federal requirement of a qualified plan?
v v v v v v v v v v v v vvv
vanswers>>> employee must be able to make unlimited contributions
vv v v v v v v v
16. Which v dividend option would an insurer invest the policy owner's money and add any interest
v v v v v v v v v v v v v
earnings as the dividends accrue?
v v v v v vv
vvvvanswers>>> Accumulation at inter- est option
vv v v v v
17. a health insurance policy will typically cover
v v v v v v vvv
vanswers>>> preventative health services v vv v v
18. a life insurance policy owner was injured in a car accident which results in a total and permanent
v v v v v v v v v v v v v v v v v
disability. which rider would pay a monthly amount because of this disability?
v v v v v v v v v v v v vv
vvvvanswers>>> Disability income rider vvv v v
3 v/ v33
, 19. in addition to the actual policy, an entire contract includes which of the following?
v v v v v v v v v v v v v vv
vvvv answers>>> the application vvv v
20. field underwriting preformed by the producer involves
v v v v v v vvv
vvv answers>>> completing the ap- plication and collecting initial premium
v vv v v v v v v v
21. Kathy pays a monthly premium on her health insurance policy. How long is her grace period?
v v v v v v v v v v v v v v v vv
vv answers>>> 10 days vvv v
22. Pierre is covered by his employer's group major medical plan. His em- ployer pays for 75% of
v v v v v v v v v v v v v v v v
v the premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under
v v v v v v v v v v v v v v v v v
v this plan? v vvv
answers>>> 0$ benefits that fall under a major medical plan are considered to be a reimbursement for a loss,
vvv v v v v v v v v v v v v v v v v v
v and is not taxable as income
v v v v v
23. After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
v v v v v v v v v v v v v v v v v
vv
vvvv answers>>> file a written proof of loss vvv v v v v v
24. Under long term care insurance, which of the following MUST an insurer offer to each policy
v v v v v v v v v v v v v v v
v owner at the time of purchase?
v v v v v vvv
vvvvv answers>>> An inflation protection feature vvv v v v
25. What is the primary factor that determines the benefits paid under a disability income
v v v v v v v v v v v v v
4 v/ v33
