MICHIGAN LIFE, ACCIDENT, AND HEALTH EXAM WITH
COMPLETE QUESTIONS AND ANSWERS
The Commissioner of Insurance is appointed by the Governor for a term of -
ANSWER-4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - ANSWER-Correct answer: C - licensing of producers
A temporary license issued to close the affairs of a deceased producer may be
issued for up to _____ days at the discretion of the Commissioner - ANSWER-180
days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - ANSWER-24 total hours every two
years
3 hours in ethics
90 day grace period
,Michigan Life and Health Insurance Guaranty Association - ANSWER-Protects
policy holders against failure insolvent insurers
Controlled business - ANSWER-It is permitted provided it does not exceed 15%
of the premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a
gift equal to 50% of the commission. This is an example of __________. -
ANSWER-Rebating
Defamation - ANSWER-A written statement that is false and derogatory that is
designed to injure someone's reputation.
The maximum fine for knowingly violating a cease and desist order is $________
and __________________. - ANSWER-$10,000 and possible license revocation
Insurance counselor - ANSWER-Provides advice concerning an insurance policy
and charges a fee for that advice.
An applicant who has been denied an insurance license has _____ days to
request a hearing to protest the denial. - ANSWER-30 days
True / False
A producer may share commissions with another licensed producer - ANSWER-
True
,True / False
A producer may not share commissions with a licensed nonresident producer -
ANSWER-False
If, after a hearing, the Commissioner believes a producer knowingly violated
insurance licensing laws, the Commissioner can: - ANSWER-Fine the producer a
max of $2,500 per violation
A producer has a fiduciary responsibility to all of the following: - ANSWER--
Insured on cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and
services? - ANSWER-The insurance product is not the producer's to barter; it
belongs to the insured.
How often must the Commissioner examine the books, records, and documents
of domestic insurers? - ANSWER-At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. -
ANSWER-30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations. - ANSWER-$25,000
, Under what type of policy does an insured have to be notified if current policy
values are insufficient to maintain the policy, given guaranteed interest and
expense rates? - ANSWER-Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: -
ANSWER-- information material to the insurance policy
- a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an insured
to drop an existing policy and purchase a new policy is an example of
_____________. - ANSWER-Twisting
The minimum number of lives that must be covered under a group life insurance
policy in Michigan is ______. - ANSWER-2 lives.
The maximum life insurance policy loan interest that may be charged on a fixed
interest loan is ______%. - ANSWER-8%
In life insurance, all advertisements must be kept by the insurer for at least
________ months. - ANSWER-48 months
The maximum life insurance policy loan interest that may be charged on an
adjustable rate loan is ______%. - ANSWER-18%
True/ False
COMPLETE QUESTIONS AND ANSWERS
The Commissioner of Insurance is appointed by the Governor for a term of -
ANSWER-4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - ANSWER-Correct answer: C - licensing of producers
A temporary license issued to close the affairs of a deceased producer may be
issued for up to _____ days at the discretion of the Commissioner - ANSWER-180
days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - ANSWER-24 total hours every two
years
3 hours in ethics
90 day grace period
,Michigan Life and Health Insurance Guaranty Association - ANSWER-Protects
policy holders against failure insolvent insurers
Controlled business - ANSWER-It is permitted provided it does not exceed 15%
of the premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a
gift equal to 50% of the commission. This is an example of __________. -
ANSWER-Rebating
Defamation - ANSWER-A written statement that is false and derogatory that is
designed to injure someone's reputation.
The maximum fine for knowingly violating a cease and desist order is $________
and __________________. - ANSWER-$10,000 and possible license revocation
Insurance counselor - ANSWER-Provides advice concerning an insurance policy
and charges a fee for that advice.
An applicant who has been denied an insurance license has _____ days to
request a hearing to protest the denial. - ANSWER-30 days
True / False
A producer may share commissions with another licensed producer - ANSWER-
True
,True / False
A producer may not share commissions with a licensed nonresident producer -
ANSWER-False
If, after a hearing, the Commissioner believes a producer knowingly violated
insurance licensing laws, the Commissioner can: - ANSWER-Fine the producer a
max of $2,500 per violation
A producer has a fiduciary responsibility to all of the following: - ANSWER--
Insured on cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and
services? - ANSWER-The insurance product is not the producer's to barter; it
belongs to the insured.
How often must the Commissioner examine the books, records, and documents
of domestic insurers? - ANSWER-At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. -
ANSWER-30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations. - ANSWER-$25,000
, Under what type of policy does an insured have to be notified if current policy
values are insufficient to maintain the policy, given guaranteed interest and
expense rates? - ANSWER-Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: -
ANSWER-- information material to the insurance policy
- a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an insured
to drop an existing policy and purchase a new policy is an example of
_____________. - ANSWER-Twisting
The minimum number of lives that must be covered under a group life insurance
policy in Michigan is ______. - ANSWER-2 lives.
The maximum life insurance policy loan interest that may be charged on a fixed
interest loan is ______%. - ANSWER-8%
In life insurance, all advertisements must be kept by the insurer for at least
________ months. - ANSWER-48 months
The maximum life insurance policy loan interest that may be charged on an
adjustable rate loan is ______%. - ANSWER-18%
True/ False
