Michigan Life Accident & Health Exam
2025/2026 Exam Questions with 100%
Correct Answers | Latest Update
What is considered to be the primary reason for buying life insurance? - 🧠
ANSWER ✔✔Provide death benefits
Karen is a producer who has obtained personal information about a client
without having a legitimate reason to do so. Under the McCarran-Feguson
Act, what is the minimum penalty for this? - 🧠 ANSWER ✔✔$10,000 or up
to 1 year in jail
A nonparticipating company is sometimes called a(n) - 🧠 ANSWER
✔✔Stock insurer, because policyholders do not participate in dividends
resulting from stock ownership.
,The Fair Credit and Reporting Act's main purpose is to - 🧠 ANSWER
✔✔Protect Consumers with guidelines regarding credit reporting and
distribution
What is the primary purpose of a rating service such as A.M Best? - 🧠
ANSWER ✔✔Determine financial strength of an insurance company
Fraternal Benefit Society has each of the following characteristics
EXCEPT?
- Incorporated
- Without capital stock
- exist for profit
- exist for the benefit of its members - 🧠 ANSWER ✔✔Exist for profit, FBS
are not for profit and exist for the benefit of its members.
An insurer's ability to make unpredictable payouts to policyowners is called
- 🧠 ANSWER ✔✔Liquidity
The Do Not Call Registry offers exemptions for calls placed from all of the
following EXCEPT
- Charities
,- Political Organizations
- Insurance Sales Calls
- Surveys - 🧠 ANSWER ✔✔Insurance Sales Calls
A plan in which an employer pays insurance benefits from a fund derived
from the employer's current revenues is called? - 🧠 ANSWER ✔✔A self-
funded plan
An insurer's claim settlement practices are regulated by the - 🧠 ANSWER
✔✔State Insurance Departments
What is known as the immediate specific event causing loss and giving risk
to risk? - 🧠 ANSWER ✔✔Peril
When a house burns down what would the Peril be? When someone dies
what would the peril be? - 🧠 ANSWER ✔✔Fire, Death
How do insurers predict the increase of individual risks? - 🧠 ANSWER
✔✔Law of Large Numbers
Insurance companies determine risk exposure by which of the following? -
🧠 ANSWER ✔✔Law of Large Numbers and Risk Pooling
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
3
, Insurance represents the process of risk ________________. - 🧠 ANSWER
✔✔Transference
All of the following are examples of pure risk EXCEPT
-Losing Money at a Casino
-Injured while playing football
-Falling at a casino and breaking a hip
-Jewelry stolen during a home robbery - 🧠 ANSWER ✔✔Losing Money at a
Casino, because that is speculative risk. Pure risk means loss is the only
possible outcome.
Insurable interest does NOT occur in which of the following relationships? -
🧠 ANSWER ✔✔Business owner and business client
According to life insurance contract law, insurable interest exists - 🧠
ANSWER ✔✔at the time of application
According to the principle of Utmost Good Faith, the insured will answer
questions on the application to the best of their knowledge and pay the
required premium, while the insurer will deal fairly with the insured and it's -
🧠 ANSWER ✔✔promises made
2025/2026 Exam Questions with 100%
Correct Answers | Latest Update
What is considered to be the primary reason for buying life insurance? - 🧠
ANSWER ✔✔Provide death benefits
Karen is a producer who has obtained personal information about a client
without having a legitimate reason to do so. Under the McCarran-Feguson
Act, what is the minimum penalty for this? - 🧠 ANSWER ✔✔$10,000 or up
to 1 year in jail
A nonparticipating company is sometimes called a(n) - 🧠 ANSWER
✔✔Stock insurer, because policyholders do not participate in dividends
resulting from stock ownership.
,The Fair Credit and Reporting Act's main purpose is to - 🧠 ANSWER
✔✔Protect Consumers with guidelines regarding credit reporting and
distribution
What is the primary purpose of a rating service such as A.M Best? - 🧠
ANSWER ✔✔Determine financial strength of an insurance company
Fraternal Benefit Society has each of the following characteristics
EXCEPT?
- Incorporated
- Without capital stock
- exist for profit
- exist for the benefit of its members - 🧠 ANSWER ✔✔Exist for profit, FBS
are not for profit and exist for the benefit of its members.
An insurer's ability to make unpredictable payouts to policyowners is called
- 🧠 ANSWER ✔✔Liquidity
The Do Not Call Registry offers exemptions for calls placed from all of the
following EXCEPT
- Charities
,- Political Organizations
- Insurance Sales Calls
- Surveys - 🧠 ANSWER ✔✔Insurance Sales Calls
A plan in which an employer pays insurance benefits from a fund derived
from the employer's current revenues is called? - 🧠 ANSWER ✔✔A self-
funded plan
An insurer's claim settlement practices are regulated by the - 🧠 ANSWER
✔✔State Insurance Departments
What is known as the immediate specific event causing loss and giving risk
to risk? - 🧠 ANSWER ✔✔Peril
When a house burns down what would the Peril be? When someone dies
what would the peril be? - 🧠 ANSWER ✔✔Fire, Death
How do insurers predict the increase of individual risks? - 🧠 ANSWER
✔✔Law of Large Numbers
Insurance companies determine risk exposure by which of the following? -
🧠 ANSWER ✔✔Law of Large Numbers and Risk Pooling
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
3
, Insurance represents the process of risk ________________. - 🧠 ANSWER
✔✔Transference
All of the following are examples of pure risk EXCEPT
-Losing Money at a Casino
-Injured while playing football
-Falling at a casino and breaking a hip
-Jewelry stolen during a home robbery - 🧠 ANSWER ✔✔Losing Money at a
Casino, because that is speculative risk. Pure risk means loss is the only
possible outcome.
Insurable interest does NOT occur in which of the following relationships? -
🧠 ANSWER ✔✔Business owner and business client
According to life insurance contract law, insurable interest exists - 🧠
ANSWER ✔✔at the time of application
According to the principle of Utmost Good Faith, the insured will answer
questions on the application to the best of their knowledge and pay the
required premium, while the insurer will deal fairly with the insured and it's -
🧠 ANSWER ✔✔promises made
