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MICHIGAN LIFE AND HEALTH INSURANCE
PRACTICE EXAM ACTUAL PREP QUESTIONS
AND WELL REVISED ANSWERS - LATEST AND
COMPLETE UPDATE WITH VERIFIED
SOLUTIONS – ASSURES PASS
1. Which of the following is true about a life insurance policy in Michigan?
a) The policyholder is not required to provide any information about their
health.
b) An individual must be a resident of Michigan to apply for life insurance.
c) The policyholder must submit a medical exam only if their coverage amount
is over $500,000.
d) The policyholder's age may impact the premiums they pay.
- ANSWER: d) The policyholder's age may impact the premiums they pay.
2. In Michigan, a life insurance policy’s contestability period is typically how
many years?
a) 1 year
b) 2 years
c) 3 years
d) 5 years
- ANSWER: b) 2 years
3. What is the main purpose of a Health Maintenance Organization (HMO) in
Michigan?
a) Provide comprehensive coverage for life and health insurance.
b) Limit access to healthcare providers to a specific network of doctors and
hospitals.
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c) Offer the same flexibility in healthcare options as Preferred Provider
Organizations (PPO).
d) Focus solely on health insurance without providing any life insurance
coverage.
- ANSWER: b) Limit access to healthcare providers to a specific network of
doctors and hospitals.
4. Which type of health insurance policy requires the insured to pay a portion of
the medical expenses, such as co-pays and deductibles?
a) Indemnity Plan
b) Health Savings Account (HSA)
c) Health Maintenance Organization (HMO)
d) Managed Care Plan
- ANSWER: a) Indemnity Plan
5. Which of the following is an example of a nonforfeiture option in a life
insurance policy?
a) Waiver of Premium
b) Extended Term Insurance
c) Accelerated Death Benefit
d) Automatic Premium Loan
- ANSWER: b) Extended Term Insurance
6. In Michigan, a health insurance policy must provide coverage for which of the
following?
a) Elective cosmetic surgery
b) Maternity care for all policies
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c) Hospitalization for mental illness
d) Treatment of pre-existing conditions without any waiting period
- ANSWER: c) Hospitalization for mental illness
7. In Michigan, the required grace period for an individual health insurance policy
is typically:
a) 7 days
b) 10 days
c) 15 days
d) 30 days
- ANSWER: d) 30 days
8. A policyholder of a life insurance policy in Michigan decides to cancel their
policy within the free-look period. What will happen?
a) The insurer will refund the full premium minus administrative fees.
b) The policyholder will receive a refund of all premiums paid without any
penalties.
c) The insurer will retain a portion of the premium based on policy length.
d) The insurer will deny any refund but offer a different policy instead.
- ANSWER: b) The policyholder will receive a refund of all premiums paid
without any penalties.
9. Which of the following statements is true regarding group health insurance
policies in Michigan?
a) Group health insurance must cover pre-existing conditions without any
waiting period.
b) Group policies may exclude coverage for some individuals if they do not
meet eligibility requirements.
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c) Individual coverage is always cheaper than group coverage.
d) All group policies are required to cover mental health treatment in full.
- ANSWER: b) Group policies may exclude coverage for some individuals if they
do not meet eligibility requirements.
10. Which of the following is an example of a tax-deferred retirement account that
may be used to pay for medical expenses in Michigan?
a) Roth IRA
b) Health Savings Account (HSA)
c) 401(k) Plan
d) Pension Plan
- ANSWER: b) Health Savings Account (HSA)
11. Which of the following is the primary purpose of life insurance?
a) To provide a retirement income for the policyholder.
b) To provide financial protection for beneficiaries after the policyholder’s
death.
c) To provide savings and investment options for the policyholder.
d) To cover medical expenses during the policyholder’s lifetime.
- ANSWER: b) To provide financial protection for beneficiaries after the
policyholder’s death.
12. Which of the following would typically be excluded from a health insurance
policy in Michigan?
a) Emergency care
b) Pre-existing conditions
c) Maternity care
MICHIGAN LIFE AND HEALTH INSURANCE
PRACTICE EXAM ACTUAL PREP QUESTIONS
AND WELL REVISED ANSWERS - LATEST AND
COMPLETE UPDATE WITH VERIFIED
SOLUTIONS – ASSURES PASS
1. Which of the following is true about a life insurance policy in Michigan?
a) The policyholder is not required to provide any information about their
health.
b) An individual must be a resident of Michigan to apply for life insurance.
c) The policyholder must submit a medical exam only if their coverage amount
is over $500,000.
d) The policyholder's age may impact the premiums they pay.
- ANSWER: d) The policyholder's age may impact the premiums they pay.
2. In Michigan, a life insurance policy’s contestability period is typically how
many years?
a) 1 year
b) 2 years
c) 3 years
d) 5 years
- ANSWER: b) 2 years
3. What is the main purpose of a Health Maintenance Organization (HMO) in
Michigan?
a) Provide comprehensive coverage for life and health insurance.
b) Limit access to healthcare providers to a specific network of doctors and
hospitals.
,2|Page
c) Offer the same flexibility in healthcare options as Preferred Provider
Organizations (PPO).
d) Focus solely on health insurance without providing any life insurance
coverage.
- ANSWER: b) Limit access to healthcare providers to a specific network of
doctors and hospitals.
4. Which type of health insurance policy requires the insured to pay a portion of
the medical expenses, such as co-pays and deductibles?
a) Indemnity Plan
b) Health Savings Account (HSA)
c) Health Maintenance Organization (HMO)
d) Managed Care Plan
- ANSWER: a) Indemnity Plan
5. Which of the following is an example of a nonforfeiture option in a life
insurance policy?
a) Waiver of Premium
b) Extended Term Insurance
c) Accelerated Death Benefit
d) Automatic Premium Loan
- ANSWER: b) Extended Term Insurance
6. In Michigan, a health insurance policy must provide coverage for which of the
following?
a) Elective cosmetic surgery
b) Maternity care for all policies
,3|Page
c) Hospitalization for mental illness
d) Treatment of pre-existing conditions without any waiting period
- ANSWER: c) Hospitalization for mental illness
7. In Michigan, the required grace period for an individual health insurance policy
is typically:
a) 7 days
b) 10 days
c) 15 days
d) 30 days
- ANSWER: d) 30 days
8. A policyholder of a life insurance policy in Michigan decides to cancel their
policy within the free-look period. What will happen?
a) The insurer will refund the full premium minus administrative fees.
b) The policyholder will receive a refund of all premiums paid without any
penalties.
c) The insurer will retain a portion of the premium based on policy length.
d) The insurer will deny any refund but offer a different policy instead.
- ANSWER: b) The policyholder will receive a refund of all premiums paid
without any penalties.
9. Which of the following statements is true regarding group health insurance
policies in Michigan?
a) Group health insurance must cover pre-existing conditions without any
waiting period.
b) Group policies may exclude coverage for some individuals if they do not
meet eligibility requirements.
, 4|Page
c) Individual coverage is always cheaper than group coverage.
d) All group policies are required to cover mental health treatment in full.
- ANSWER: b) Group policies may exclude coverage for some individuals if they
do not meet eligibility requirements.
10. Which of the following is an example of a tax-deferred retirement account that
may be used to pay for medical expenses in Michigan?
a) Roth IRA
b) Health Savings Account (HSA)
c) 401(k) Plan
d) Pension Plan
- ANSWER: b) Health Savings Account (HSA)
11. Which of the following is the primary purpose of life insurance?
a) To provide a retirement income for the policyholder.
b) To provide financial protection for beneficiaries after the policyholder’s
death.
c) To provide savings and investment options for the policyholder.
d) To cover medical expenses during the policyholder’s lifetime.
- ANSWER: b) To provide financial protection for beneficiaries after the
policyholder’s death.
12. Which of the following would typically be excluded from a health insurance
policy in Michigan?
a) Emergency care
b) Pre-existing conditions
c) Maternity care
