Certification Exam Michigan Life Pre-licensing
If a producer diverts funds from an insurer, he/she may be b) fraud
found guilty of
a) malfeasance
b) fraud
c) misappropriation
d) subrogation
Michigan requires that a licensee complete __ hours of 3
continuing education on the subject of ethics every
reporting period.
4
3
1
2
Paul the producer has provided a false statement in a) Fraud
relation to an insurance claim. Which illegal act has been
committed?
a) Fraud
b) Intimidation
c) Subrogation
d) Rebating
Producer commissions may NOT be paid to c) licensed producers not appointed by an insurer
a) non-resident producers
b) licensed and appointed producers who are sharing
commissions
c) licensed producers not appointed by an insurer
d) licensed and appointed producers
The act of _________ insurance does NOT require an c) underwriting
individual to hold an insurance producer license.
a) soliciting
b) negotiating
c) underwriting
d) selling
The act of using misrepresentation to induce an insured d) twisting
person to terminate an existing policy and purchase a new
policy is referred to as
a) intimidation
b) defamation
c) subrogation
d) twisting
Tim purchases an insurance policy from a producer. The c) annually
producer must present to Tim a notice detailing privacy
policies and practices. After this initial notice, Tim must be
provided another notice
a) every three years
b) every six months
c) annually
d) every two years
Upon finding a producer guilty of forgery, the b) Require the producer to notify his/her clients
Commissioner may take all of the following actions
EXCEPT?
a) Place producer on probation
b) Require the producer to notify his/her clients
c) Impose a civil fine
d) Revoke producer's license
, Certification Exam Michigan Life Pre-licensing
Which of the following is an example of the illegal act of c) Making a statement that is false or maliciously critical of the financial condition of
defamation? an insurer
a) Offering a premium rebate, gift, or a special advantage
of any kind to consumers as an inducement to purchase a
contract of insurance
b) Using threat or force to restrict fair trade in the
transaction of insurance
c) Making a statement that is false or maliciously critical of
the financial condition of an insurer
d) Replacing an insurance policy from one insurer to
another based on misrepresentation
Which of these actions would NOT result in a producer's a) Not maintaining an adequate level of sales
license revocation?
a) Not maintaining an adequate level of sales
b) Making material misrepresentations on the license
application
c) Failing to pay state income tax
d) Felony conviction
A producer has allowed his/her license to lapse by failing 90
to complete the required continuing education credits. The
license may be reinstated by completing the requirement
within ___ days of the renewal date.
45
90
120
60
A producer is hired to sell insurance for an insurer. Upon 15
submission of the agency contract application, the
producer MUST be appointed by the insurer within ___
days.
7
21
30
15
A producer may give an insurance applicant an article of $5
merchandise having an invoice value of ____ or less.
$25
$50
$5
$15
A producer's fiduciary duty requires that c) premiums are forwarded to the insurer on a timely basis
a) premiums be deposited in an interest-bearing account
b) premiums be commingled with personal funds
c) premiums are forwarded to the insurer on a timely basis
d) premiums are maintained in a personal bank account
until remittance to insurer
A(n) ______ company is owned exclusively b) stock
by shareholders.
a) interactive
b) stock
c) mutual
d) mixed
ABC Insurance Agency is entering each applicant who d) illegal inducement
purchases insurance through their agency into a drawing
to win a free trip. This is an unlawful insurance practice
known as
a) false advertising
b) concealment
c) fraud
d) illegal inducement
If a producer diverts funds from an insurer, he/she may be b) fraud
found guilty of
a) malfeasance
b) fraud
c) misappropriation
d) subrogation
Michigan requires that a licensee complete __ hours of 3
continuing education on the subject of ethics every
reporting period.
4
3
1
2
Paul the producer has provided a false statement in a) Fraud
relation to an insurance claim. Which illegal act has been
committed?
a) Fraud
b) Intimidation
c) Subrogation
d) Rebating
Producer commissions may NOT be paid to c) licensed producers not appointed by an insurer
a) non-resident producers
b) licensed and appointed producers who are sharing
commissions
c) licensed producers not appointed by an insurer
d) licensed and appointed producers
The act of _________ insurance does NOT require an c) underwriting
individual to hold an insurance producer license.
a) soliciting
b) negotiating
c) underwriting
d) selling
The act of using misrepresentation to induce an insured d) twisting
person to terminate an existing policy and purchase a new
policy is referred to as
a) intimidation
b) defamation
c) subrogation
d) twisting
Tim purchases an insurance policy from a producer. The c) annually
producer must present to Tim a notice detailing privacy
policies and practices. After this initial notice, Tim must be
provided another notice
a) every three years
b) every six months
c) annually
d) every two years
Upon finding a producer guilty of forgery, the b) Require the producer to notify his/her clients
Commissioner may take all of the following actions
EXCEPT?
a) Place producer on probation
b) Require the producer to notify his/her clients
c) Impose a civil fine
d) Revoke producer's license
, Certification Exam Michigan Life Pre-licensing
Which of the following is an example of the illegal act of c) Making a statement that is false or maliciously critical of the financial condition of
defamation? an insurer
a) Offering a premium rebate, gift, or a special advantage
of any kind to consumers as an inducement to purchase a
contract of insurance
b) Using threat or force to restrict fair trade in the
transaction of insurance
c) Making a statement that is false or maliciously critical of
the financial condition of an insurer
d) Replacing an insurance policy from one insurer to
another based on misrepresentation
Which of these actions would NOT result in a producer's a) Not maintaining an adequate level of sales
license revocation?
a) Not maintaining an adequate level of sales
b) Making material misrepresentations on the license
application
c) Failing to pay state income tax
d) Felony conviction
A producer has allowed his/her license to lapse by failing 90
to complete the required continuing education credits. The
license may be reinstated by completing the requirement
within ___ days of the renewal date.
45
90
120
60
A producer is hired to sell insurance for an insurer. Upon 15
submission of the agency contract application, the
producer MUST be appointed by the insurer within ___
days.
7
21
30
15
A producer may give an insurance applicant an article of $5
merchandise having an invoice value of ____ or less.
$25
$50
$5
$15
A producer's fiduciary duty requires that c) premiums are forwarded to the insurer on a timely basis
a) premiums be deposited in an interest-bearing account
b) premiums be commingled with personal funds
c) premiums are forwarded to the insurer on a timely basis
d) premiums are maintained in a personal bank account
until remittance to insurer
A(n) ______ company is owned exclusively b) stock
by shareholders.
a) interactive
b) stock
c) mutual
d) mixed
ABC Insurance Agency is entering each applicant who d) illegal inducement
purchases insurance through their agency into a drawing
to win a free trip. This is an unlawful insurance practice
known as
a) false advertising
b) concealment
c) fraud
d) illegal inducement
