FINAL EXAM MICHIGAN LIFE AND HEALTH
ACTUAL EXAM PAPER 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ the acceptance of a credit life application requires the submission
of a certificate of insurance to the insured within_____ days. Answer:
30 days
◉ which of these is considered to be a Living benefit option in a life
insurance policy. Answer: Accelerated death benefit
◉ loans obtained by a policy owner against the cash value of a life
insurance policy. Answer: would not be treated as taxable income
◉ A long term care policy typically provides all of the following
levels of care EXCEPT. Answer: acute care
◉ the elimination period under a hospital indemnity plan is.
Answer: the specific # of days an insured must wait before becoming
eligible to receive benefits for each hospitalization
◉ what is an insurance policy's grace period?. Answer: Period of
time after the premium is due but the policy remains in force
,◉ How do interest earnings accumulate in a deferred annuity.
Answer: On a tax-deferred basis
◉ a licensee who is required to take continuing education Must
include how many ethics coursework hours. Answer: 3
◉ the automatic premium loan provision authorizes an insurer to
withdraw from a policy's cash value the amount of. Answer: Past due
premiums that have not been paid by the end of the grace period
◉ health insurance involves two perils, accident and ______. Answer:
sickness
◉ Who is responsible for assembling the policy forms for insureds.
Answer: Insurance carriers
◉ a securities license is required for a life insurance producer to sell.
Answer: variable life insurance
◉ Which of the following is NOT an illegal inducement. Answer:
giving the insured an article of merchandise printed with the
producers name costing 5$
,◉ Which of the following is NOT a federal requirement of a qualified
plan?. Answer: employee must be able to make unlimited
contributions
◉ Which dividend option would an insurer invest the policy owner's
money and add any interest earnings as the dividends accrue?.
Answer: Accumulation at interest option
◉ a health insurance policy will typically cover. Answer:
preventative health services
◉ a life insurance policy owner was injured in a car accident which
results in a total and permanent disability. which rider would pay a
monthly amount because of this disability?. Answer: Disability
income rider
◉ in addition to the actual policy, an entire contract includes which
of the following?. Answer: the application
◉ field underwriting preformed by the producer involves. Answer:
completing the application and collecting initial premium
◉ Kathy pays a monthly premium on her health insurance policy.
How long is her grace period?. Answer: 10 days
, ◉ Pierre is covered by his employer's group major medical plan. His
employer pays for 75% of the premium and he pays for 25%. How
much would a $10,000 benefit be taxable as income under this
plan?. Answer: 0$
-benefits that fall under a major medical plan are considered to be a
reimbursement for a loss, and is not taxable as income
◉ After an insured gives notice of loss, what must he/she do if the
insurer does not furnish forms?. Answer: file a written proof of loss
◉ Under long term care insurance, which of the following MUST an
insurer offer to each policy owner at the time of purchase?. Answer:
An inflation protection feature
◉ What is the primary factor that determines the benefits paid
under a disability income policy?. Answer: Wages
◉ What is the tax liability for employer contributions in Health
Savings Accounts (HSA's)?. Answer: No tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
ACTUAL EXAM PAPER 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ the acceptance of a credit life application requires the submission
of a certificate of insurance to the insured within_____ days. Answer:
30 days
◉ which of these is considered to be a Living benefit option in a life
insurance policy. Answer: Accelerated death benefit
◉ loans obtained by a policy owner against the cash value of a life
insurance policy. Answer: would not be treated as taxable income
◉ A long term care policy typically provides all of the following
levels of care EXCEPT. Answer: acute care
◉ the elimination period under a hospital indemnity plan is.
Answer: the specific # of days an insured must wait before becoming
eligible to receive benefits for each hospitalization
◉ what is an insurance policy's grace period?. Answer: Period of
time after the premium is due but the policy remains in force
,◉ How do interest earnings accumulate in a deferred annuity.
Answer: On a tax-deferred basis
◉ a licensee who is required to take continuing education Must
include how many ethics coursework hours. Answer: 3
◉ the automatic premium loan provision authorizes an insurer to
withdraw from a policy's cash value the amount of. Answer: Past due
premiums that have not been paid by the end of the grace period
◉ health insurance involves two perils, accident and ______. Answer:
sickness
◉ Who is responsible for assembling the policy forms for insureds.
Answer: Insurance carriers
◉ a securities license is required for a life insurance producer to sell.
Answer: variable life insurance
◉ Which of the following is NOT an illegal inducement. Answer:
giving the insured an article of merchandise printed with the
producers name costing 5$
,◉ Which of the following is NOT a federal requirement of a qualified
plan?. Answer: employee must be able to make unlimited
contributions
◉ Which dividend option would an insurer invest the policy owner's
money and add any interest earnings as the dividends accrue?.
Answer: Accumulation at interest option
◉ a health insurance policy will typically cover. Answer:
preventative health services
◉ a life insurance policy owner was injured in a car accident which
results in a total and permanent disability. which rider would pay a
monthly amount because of this disability?. Answer: Disability
income rider
◉ in addition to the actual policy, an entire contract includes which
of the following?. Answer: the application
◉ field underwriting preformed by the producer involves. Answer:
completing the application and collecting initial premium
◉ Kathy pays a monthly premium on her health insurance policy.
How long is her grace period?. Answer: 10 days
, ◉ Pierre is covered by his employer's group major medical plan. His
employer pays for 75% of the premium and he pays for 25%. How
much would a $10,000 benefit be taxable as income under this
plan?. Answer: 0$
-benefits that fall under a major medical plan are considered to be a
reimbursement for a loss, and is not taxable as income
◉ After an insured gives notice of loss, what must he/she do if the
insurer does not furnish forms?. Answer: file a written proof of loss
◉ Under long term care insurance, which of the following MUST an
insurer offer to each policy owner at the time of purchase?. Answer:
An inflation protection feature
◉ What is the primary factor that determines the benefits paid
under a disability income policy?. Answer: Wages
◉ What is the tax liability for employer contributions in Health
Savings Accounts (HSA's)?. Answer: No tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
