Final Exam-Michigan Life and Health
questions and answers 2024\2025 A+
Grade
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
loans obtained by a policy owner against the cash value of a life insurance policy
- correct answer would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT
- correct answer acute care
the elimination period under a hospital indemnity plan is
- correct answer the specific # of days an insured must wait before becoming eligible to receive benefits
for each hospitalization
what is an insurance policy's grace period?
- correct answer Period of time after the premium is due but the policy remains in force
How do interest earnings accumulate in a deferred annuity
- correct answer On a tax-deferred basis
,a licensee who is required to take continuing education Must include how many ethics coursework
hours
- correct answer 3
the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the
amount of
- correct answer Past due premiums that have not been paid by the end of the grace period
health insurance involves two perils, accident and ______
- correct answer sickness
Who is responsible for assembling the policy forms for insureds
- correct answer Insurance carriers
a securities license is required for a life insurance producer to sell
- correct answer variable life insurance
Which of the following is NOT an illegal inducement
- correct answer giving the insured an article of merchandise printed with the producers name costing
5$
Which of the following is NOT a federal requirement of a qualified plan?
- correct answer employee must be able to make unlimited contributions
Which dividend option would an insurer invest the policy owner's money and add any interest earnings
as the dividends accrue?
- correct answer Accumulation at interest option
a health insurance policy will typically cover
- correct answer preventative health services
, a life insurance policy owner was injured in a car accident which results in a total and permanent
disability. which rider would pay a monthly amount because of this disability?
- correct answer Disability income rider
in addition to the actual policy, an entire contract includes which of the following?
- correct answer the application
field underwriting preformed by the producer involves
- correct answer completing the application and collecting initial premium
Kathy pays a monthly premium on her health insurance policy. How long is her grace period?
- correct answer 10 days
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the
premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this
plan?
- correct answer 0$
-benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and is
not taxable as income
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
- correct answer file a written proof of loss
Under long term care insurance, which of the following MUST an insurer offer to each policy owner at
the time of purchase?
- correct answer An inflation protection feature
What is the primary factor that determines the benefits paid under a disability income policy?
- correct answer Wages
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?
- correct answer No tax payment needed
questions and answers 2024\2025 A+
Grade
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
loans obtained by a policy owner against the cash value of a life insurance policy
- correct answer would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT
- correct answer acute care
the elimination period under a hospital indemnity plan is
- correct answer the specific # of days an insured must wait before becoming eligible to receive benefits
for each hospitalization
what is an insurance policy's grace period?
- correct answer Period of time after the premium is due but the policy remains in force
How do interest earnings accumulate in a deferred annuity
- correct answer On a tax-deferred basis
,a licensee who is required to take continuing education Must include how many ethics coursework
hours
- correct answer 3
the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the
amount of
- correct answer Past due premiums that have not been paid by the end of the grace period
health insurance involves two perils, accident and ______
- correct answer sickness
Who is responsible for assembling the policy forms for insureds
- correct answer Insurance carriers
a securities license is required for a life insurance producer to sell
- correct answer variable life insurance
Which of the following is NOT an illegal inducement
- correct answer giving the insured an article of merchandise printed with the producers name costing
5$
Which of the following is NOT a federal requirement of a qualified plan?
- correct answer employee must be able to make unlimited contributions
Which dividend option would an insurer invest the policy owner's money and add any interest earnings
as the dividends accrue?
- correct answer Accumulation at interest option
a health insurance policy will typically cover
- correct answer preventative health services
, a life insurance policy owner was injured in a car accident which results in a total and permanent
disability. which rider would pay a monthly amount because of this disability?
- correct answer Disability income rider
in addition to the actual policy, an entire contract includes which of the following?
- correct answer the application
field underwriting preformed by the producer involves
- correct answer completing the application and collecting initial premium
Kathy pays a monthly premium on her health insurance policy. How long is her grace period?
- correct answer 10 days
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the
premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this
plan?
- correct answer 0$
-benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and is
not taxable as income
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
- correct answer file a written proof of loss
Under long term care insurance, which of the following MUST an insurer offer to each policy owner at
the time of purchase?
- correct answer An inflation protection feature
What is the primary factor that determines the benefits paid under a disability income policy?
- correct answer Wages
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?
- correct answer No tax payment needed
