Final Exam - Michigan Life and Health EXAM (updated 2025) Questions &
Answers | Latest Already Graded A+ UPDATE 2025|2026
defamation - Answer: Making a statement that is false or maliciously critical of the financial
condition of an insurer is known as
Business overhead expense policy - Answer: Which type of business insurance is meant to cover
the costs of continuing to do business while the owner is disabled?
the protection ends - Answer: 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,
must have an appointed guardian - Answer: To receive proceeds from a death benefit, a minor
The insurer's obligation to pay a death benefit upon an approved death claim - Answer: Under a
life insurance policy, what does the insuring clause state?
When contribution or participation rules have been violated - Answer: When can a group health
policy renewal be denied according to the Health Insurance Portability and Accountability Act
(HIPAA)?
It allows for cash advances to be paid against the death benefit if the insured becomes
terminally ill - Answer: What is the purpose for having an accelerated death benefit on a life
insurance policy?
Variable universal policy - Answer: Which type of life insurance offers flexible premiums, a
flexible death benefit, and the choice of how the cash value will be invested?
1 month - Answer: An immediate annuity has been purchased with a single premium. When
does the annuitant typically begin receiving benefit payments?
,Final Exam - Michigan Life and Health EXAM (updated 2025) Questions &
Answers | Latest Already Graded A+ UPDATE 2025|2026
an authorized agency makes a written request to the insurer during an insurance fraud
investigation - Answer: Consumer privacy regulations permit the release of an insured's financial
information when
the right to return the policy for a full refund within a specified number of days - Answer: The
free-look provision gives the policyowner
Net death benefit will be reduced if the loan is not repaid - Answer: Joanne has a $100,000
whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000
against the cash value. Which of the following statements is TRUE?
modified application with a new signature - Answer: Tara the producer is delivering a specified
disease insurance policy to a new policyowner. Upon delivery, she may be expected to collect all
of the following EXCEPT a(n)
Annuitization phase - Answer: Which of the following is considered to be the period when the
accumulated value in an annuity is paid out?
Department of Insurance and Financial Services (DIFS) - Answer: The entity that has the power
to revoke a producer's insurance license is the
The shorter the payment period, the higher the premium - Answer: The statement which best
describes the relationship between the premiums of a whole life policy and the premium
payment period is
universal life - Answer: A life insurance policy that is subject to a contract interest rate is
referred to as
Average age - Answer: Which of these factors would an insurer consider when determining
whether to accept a group life plan?
,Final Exam - Michigan Life and Health EXAM (updated 2025) Questions &
Answers | Latest Already Graded A+ UPDATE 2025|2026
is eligible for coverage upon hire - Answer: According to HIPAA, when an insured individual
leaves an employer and immediately begins working for a new company that offers group
health insurance, the individual
$5,000 - Answer: An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20
coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to
pay?
Guaranteed insurability rider - Answer: Barbara's policy includes a rider which allows her to
purchase additional insurance at specific dates or events without evidence of insurability. This
rider is called a(n)
Pay age-corrected benefits - Answer: What is an insurer required to do when faced with an error
made under the Misstatement of Age provision?
twisting - Answer: The unfair trade practice of replacing an insurance policy from one insurer to
another based on misrepresentation is called
Life annuity - Answer: Which type of annuity stops all payments upon the death of the
annuitant?
liquidity - Answer: An insurer's ability to make unpredictable payouts to policyowners is called
Exclusion Ratio - Answer: The taxable portion of each annuity payment is calculated using which
method?
adverse selection - Answer: Group dental plans will frequently place a limit on annual benefits
in order to minimize
, Final Exam - Michigan Life and Health EXAM (updated 2025) Questions &
Answers | Latest Already Graded A+ UPDATE 2025|2026
subrogation - Answer: An insurer has the right to recover payment made to the insured from
the negligent party. These rights are called
The greater of the accumulated cash value or the total premium paid - Answer: What will the
beneficiary receive if an annuitant dies during the accumulation period?
time deductible - Answer: A disability elimination period is best described as a
have a legitimate non-insurance purpose - Answer: An association wanting to buy insurance
under a group health plan MUST
Talking - Answer: In a Long-Term Care policy, activities of daily living (ADL's) can be each of the
following EXCEPT
Stock purchase - Answer: All of the following are exempt from the 10% tax penalty for early
qualified plan withdrawals EXCEPT
represents the insurer - Answer: In the state of Michigan, a licensed producer
Giving the insured an article of merchandise printed with the producer's name costing $5 -
Answer: Which of the following is NOT an illegal inducement?
100% of his health insurance costs can be deducted from his gross income - Answer: Lorenzo is
self employed with an S corporation. He is unmarried and had a net profit for the tax year. What
are the tax ramifications of his health insurance premiums paid for the year?
Answers | Latest Already Graded A+ UPDATE 2025|2026
defamation - Answer: Making a statement that is false or maliciously critical of the financial
condition of an insurer is known as
Business overhead expense policy - Answer: Which type of business insurance is meant to cover
the costs of continuing to do business while the owner is disabled?
the protection ends - Answer: 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,
must have an appointed guardian - Answer: To receive proceeds from a death benefit, a minor
The insurer's obligation to pay a death benefit upon an approved death claim - Answer: Under a
life insurance policy, what does the insuring clause state?
When contribution or participation rules have been violated - Answer: When can a group health
policy renewal be denied according to the Health Insurance Portability and Accountability Act
(HIPAA)?
It allows for cash advances to be paid against the death benefit if the insured becomes
terminally ill - Answer: What is the purpose for having an accelerated death benefit on a life
insurance policy?
Variable universal policy - Answer: Which type of life insurance offers flexible premiums, a
flexible death benefit, and the choice of how the cash value will be invested?
1 month - Answer: An immediate annuity has been purchased with a single premium. When
does the annuitant typically begin receiving benefit payments?
,Final Exam - Michigan Life and Health EXAM (updated 2025) Questions &
Answers | Latest Already Graded A+ UPDATE 2025|2026
an authorized agency makes a written request to the insurer during an insurance fraud
investigation - Answer: Consumer privacy regulations permit the release of an insured's financial
information when
the right to return the policy for a full refund within a specified number of days - Answer: The
free-look provision gives the policyowner
Net death benefit will be reduced if the loan is not repaid - Answer: Joanne has a $100,000
whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000
against the cash value. Which of the following statements is TRUE?
modified application with a new signature - Answer: Tara the producer is delivering a specified
disease insurance policy to a new policyowner. Upon delivery, she may be expected to collect all
of the following EXCEPT a(n)
Annuitization phase - Answer: Which of the following is considered to be the period when the
accumulated value in an annuity is paid out?
Department of Insurance and Financial Services (DIFS) - Answer: The entity that has the power
to revoke a producer's insurance license is the
The shorter the payment period, the higher the premium - Answer: The statement which best
describes the relationship between the premiums of a whole life policy and the premium
payment period is
universal life - Answer: A life insurance policy that is subject to a contract interest rate is
referred to as
Average age - Answer: Which of these factors would an insurer consider when determining
whether to accept a group life plan?
,Final Exam - Michigan Life and Health EXAM (updated 2025) Questions &
Answers | Latest Already Graded A+ UPDATE 2025|2026
is eligible for coverage upon hire - Answer: According to HIPAA, when an insured individual
leaves an employer and immediately begins working for a new company that offers group
health insurance, the individual
$5,000 - Answer: An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20
coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to
pay?
Guaranteed insurability rider - Answer: Barbara's policy includes a rider which allows her to
purchase additional insurance at specific dates or events without evidence of insurability. This
rider is called a(n)
Pay age-corrected benefits - Answer: What is an insurer required to do when faced with an error
made under the Misstatement of Age provision?
twisting - Answer: The unfair trade practice of replacing an insurance policy from one insurer to
another based on misrepresentation is called
Life annuity - Answer: Which type of annuity stops all payments upon the death of the
annuitant?
liquidity - Answer: An insurer's ability to make unpredictable payouts to policyowners is called
Exclusion Ratio - Answer: The taxable portion of each annuity payment is calculated using which
method?
adverse selection - Answer: Group dental plans will frequently place a limit on annual benefits
in order to minimize
, Final Exam - Michigan Life and Health EXAM (updated 2025) Questions &
Answers | Latest Already Graded A+ UPDATE 2025|2026
subrogation - Answer: An insurer has the right to recover payment made to the insured from
the negligent party. These rights are called
The greater of the accumulated cash value or the total premium paid - Answer: What will the
beneficiary receive if an annuitant dies during the accumulation period?
time deductible - Answer: A disability elimination period is best described as a
have a legitimate non-insurance purpose - Answer: An association wanting to buy insurance
under a group health plan MUST
Talking - Answer: In a Long-Term Care policy, activities of daily living (ADL's) can be each of the
following EXCEPT
Stock purchase - Answer: All of the following are exempt from the 10% tax penalty for early
qualified plan withdrawals EXCEPT
represents the insurer - Answer: In the state of Michigan, a licensed producer
Giving the insured an article of merchandise printed with the producer's name costing $5 -
Answer: Which of the following is NOT an illegal inducement?
100% of his health insurance costs can be deducted from his gross income - Answer: Lorenzo is
self employed with an S corporation. He is unmarried and had a net profit for the tax year. What
are the tax ramifications of his health insurance premiums paid for the year?
