MICHIGAN LIFE AND HEALTH FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS UPDATED
2025/2026 A COMPLETE SOLUTION BEST RATED A+ FOR
SUCCESS
a hospital or medical expense policy will typically cover dental treatment expenses under which
circumstance - CORRECT ANSWERS dental treatment is needed to repair an injury
HIPAA considers which of the following as "individually identifiable health information"? -
CORRECT ANSWERS a persons health claim information
who assume the investment risk with a fixed annuity contract - CORRECT ANSWERS the
insurer
Medical Expense insurance would cover - CORRECT ANSWERS an injury occurring at
the insured's residence
When an insured has a major medical plan with first dollar coverage, how does this impact the
benefits paid - CORRECT ANSWERS No deducible payment is required
Key Person Disability insurance pays benefits to the - CORRECT ANSWERS employer
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST
- CORRECT ANSWERS provide evidence of insurability to the insurer
Bob and Tom start a business. Since each partner contributes an important element to the
success of the business, they decide to take life insurance policies out on each other, and name
each other as beneficiaries. Eventually, they retire and dissolve the business. Bob dies 12
months later. The policies continue in force with no change. Both partners are still married at
the time of Bob's death. In this situation, who will receive Bob's policy proceeds? - CORRECT
ANSWERS Tom
,MICHIGAN LIFE AND HEALTH FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS UPDATED
2025/2026 A COMPLETE SOLUTION BEST RATED A+ FOR
SUCCESS
if an employee contributes 50% toward the disability plan premium provided by an employer,
what would be considered the taxable income of a $1,000 monthly disability benefit -
CORRECT ANSWERS $500
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific
age is called - CORRECT ANSWERS Payout rider
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary? - CORRECT ANSWERS Life income
An example of a presumptive disability would be - CORRECT ANSWERS deafness
in MI, legal action can be taken against an insurer for failure to pay LIFE insurance claims for a
period not to exceed - CORRECT ANSWERS 6 years
Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? - CORRECT ANSWERS accidental bodily injury provision
Providing incorrect, misleading, incomplete, or materially untrue information in the license
application is - CORRECT ANSWERS misrepresentation
All of these are characteristics of a major medical expense policy EXCEPT - CORRECT
ANSWERS Elimination Periods
-The elimination period is the period of time between the onset of a disability, and the time you
are eligible for benefits. It is typically a characteristic of disability policies, not major medical
expense policies.
,MICHIGAN LIFE AND HEALTH FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS UPDATED
2025/2026 A COMPLETE SOLUTION BEST RATED A+ FOR
SUCCESS
A producer's license has been suspended due to the failure of completing required continuing
education credits. The license may be activated by completing the CE requirement within how
many days of the renewal date? - CORRECT ANSWERS 90
The type of multiple protection coverage that pays on the death of the last person is called a(n)
- CORRECT ANSWERS Survivorship Life Policy
A rehabilitation benefit is intended to - CORRECT ANSWERS Prepare the insured to
return to employment
Under the subrogation clause, legal action can be taken by the insurer against the -
CORRECT ANSWERS Responsible Third Party
Which of these is NOT subject to income taxation under a Modified Endowment Contract
(MEC)? - CORRECT ANSWERS Death Benefit
When determining the exact cause of death from an accident, which of the following actions by
the insurer takes precedence? - CORRECT ANSWERS Autopsy
In order to save on premiums, a Life Insurance policy can legally be backdated up to -
CORRECT ANSWERS 6 months
What will the beneficiary if an annuitant dies during the accumulation period? - CORRECT
ANSWERS The greater of the accumulated cash value or the total premium paid
, MICHIGAN LIFE AND HEALTH FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS UPDATED
2025/2026 A COMPLETE SOLUTION BEST RATED A+ FOR
SUCCESS
The typical long-term care insurance is designed to provide a minimum of __ year(s) of
coverage - CORRECT ANSWERS Juan
When calculating the amount of life insurance needed for an income earner, what has to be
determined when using the Needs Approach? - CORRECT ANSWERS The family's
financial objectives if the income earner were to die or become disabled
-When using the Needs Approach to determine the amount fo life insurance needed for the
income earner, it is necessary to determine the family's financial objectives in the event of
death or disability of the income earner
Which of these statements about Medicaid is CORRECT - CORRECT ANSWERS Funded
by federal, state and local taxes
Susan is insured through her Group Health Insurance plan and changed her coverage to an
individual plan with the same insurer after her employment was terminated. This change is
called a(n) - CORRECT ANSWERS Conversion
The unfair trade practice of using threat or force to restrict fair trade in the transaction of
insurance is called - CORRECT ANSWERS Intimidation
James is the insured on a life insurance policy where his age was misstated on the application.
Which of the following is CORRECT regarding the death benefit amount? - CORRECT
ANSWERS The death benefit paid will be what the premium would have purchased at the
correct age
AND CORRECT DETAILED ANSWERS UPDATED
2025/2026 A COMPLETE SOLUTION BEST RATED A+ FOR
SUCCESS
a hospital or medical expense policy will typically cover dental treatment expenses under which
circumstance - CORRECT ANSWERS dental treatment is needed to repair an injury
HIPAA considers which of the following as "individually identifiable health information"? -
CORRECT ANSWERS a persons health claim information
who assume the investment risk with a fixed annuity contract - CORRECT ANSWERS the
insurer
Medical Expense insurance would cover - CORRECT ANSWERS an injury occurring at
the insured's residence
When an insured has a major medical plan with first dollar coverage, how does this impact the
benefits paid - CORRECT ANSWERS No deducible payment is required
Key Person Disability insurance pays benefits to the - CORRECT ANSWERS employer
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST
- CORRECT ANSWERS provide evidence of insurability to the insurer
Bob and Tom start a business. Since each partner contributes an important element to the
success of the business, they decide to take life insurance policies out on each other, and name
each other as beneficiaries. Eventually, they retire and dissolve the business. Bob dies 12
months later. The policies continue in force with no change. Both partners are still married at
the time of Bob's death. In this situation, who will receive Bob's policy proceeds? - CORRECT
ANSWERS Tom
,MICHIGAN LIFE AND HEALTH FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS UPDATED
2025/2026 A COMPLETE SOLUTION BEST RATED A+ FOR
SUCCESS
if an employee contributes 50% toward the disability plan premium provided by an employer,
what would be considered the taxable income of a $1,000 monthly disability benefit -
CORRECT ANSWERS $500
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific
age is called - CORRECT ANSWERS Payout rider
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary? - CORRECT ANSWERS Life income
An example of a presumptive disability would be - CORRECT ANSWERS deafness
in MI, legal action can be taken against an insurer for failure to pay LIFE insurance claims for a
period not to exceed - CORRECT ANSWERS 6 years
Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? - CORRECT ANSWERS accidental bodily injury provision
Providing incorrect, misleading, incomplete, or materially untrue information in the license
application is - CORRECT ANSWERS misrepresentation
All of these are characteristics of a major medical expense policy EXCEPT - CORRECT
ANSWERS Elimination Periods
-The elimination period is the period of time between the onset of a disability, and the time you
are eligible for benefits. It is typically a characteristic of disability policies, not major medical
expense policies.
,MICHIGAN LIFE AND HEALTH FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS UPDATED
2025/2026 A COMPLETE SOLUTION BEST RATED A+ FOR
SUCCESS
A producer's license has been suspended due to the failure of completing required continuing
education credits. The license may be activated by completing the CE requirement within how
many days of the renewal date? - CORRECT ANSWERS 90
The type of multiple protection coverage that pays on the death of the last person is called a(n)
- CORRECT ANSWERS Survivorship Life Policy
A rehabilitation benefit is intended to - CORRECT ANSWERS Prepare the insured to
return to employment
Under the subrogation clause, legal action can be taken by the insurer against the -
CORRECT ANSWERS Responsible Third Party
Which of these is NOT subject to income taxation under a Modified Endowment Contract
(MEC)? - CORRECT ANSWERS Death Benefit
When determining the exact cause of death from an accident, which of the following actions by
the insurer takes precedence? - CORRECT ANSWERS Autopsy
In order to save on premiums, a Life Insurance policy can legally be backdated up to -
CORRECT ANSWERS 6 months
What will the beneficiary if an annuitant dies during the accumulation period? - CORRECT
ANSWERS The greater of the accumulated cash value or the total premium paid
, MICHIGAN LIFE AND HEALTH FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS UPDATED
2025/2026 A COMPLETE SOLUTION BEST RATED A+ FOR
SUCCESS
The typical long-term care insurance is designed to provide a minimum of __ year(s) of
coverage - CORRECT ANSWERS Juan
When calculating the amount of life insurance needed for an income earner, what has to be
determined when using the Needs Approach? - CORRECT ANSWERS The family's
financial objectives if the income earner were to die or become disabled
-When using the Needs Approach to determine the amount fo life insurance needed for the
income earner, it is necessary to determine the family's financial objectives in the event of
death or disability of the income earner
Which of these statements about Medicaid is CORRECT - CORRECT ANSWERS Funded
by federal, state and local taxes
Susan is insured through her Group Health Insurance plan and changed her coverage to an
individual plan with the same insurer after her employment was terminated. This change is
called a(n) - CORRECT ANSWERS Conversion
The unfair trade practice of using threat or force to restrict fair trade in the transaction of
insurance is called - CORRECT ANSWERS Intimidation
James is the insured on a life insurance policy where his age was misstated on the application.
Which of the following is CORRECT regarding the death benefit amount? - CORRECT
ANSWERS The death benefit paid will be what the premium would have purchased at the
correct age
