LIFE, ACCIDENT AND HEALTH
(MICHIGAN ) ACTUAL FINAL
EXAM QUESTIONS AND
CORRECT ANSWERS LATEST
STUDY GUIDE 2026/2027 GRADED
A+ .
,1. What amount will be paid under a policy where the insured misstated his/her age? ✓✓ Correct answer an amount the premium
would have purchased at the correct age
2. the acceptance of a credit life application requires the submission of a certificate of insurance to the
insured within days ✓✓ Correct answer 30 days
3. which of these is considered to be a Living benefit option in a life insurance policy ✓✓ Correct answer Accelerated death
benefit
4. loans obtained by a policy owner against the cash value of a life insurance policy ✓✓ Correct answer would not be
treated as taxable income
5. A long term care policy typically provides all of the following levels of care EXCEPT ✓✓ Correct answer acute
care
6. the elimination period under a hospital indemnity plan is ✓✓ Correct answer the specific # of days an insured must wait before
becoming eligible to receive benefits for each hospitalization
7. what is an insurance policy's grace period? ✓✓ Correct answer Period of time after the premium is due but the policy remains in force
8. How do interest earnings accumulate in a deferred annuity ✓✓ Correct answer On a tax-deferred basis
9. a licensee who is required to take continuing education Must include how many ethics coursework hours ✓
✓ Correct answer 3
10. the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of
✓✓ Correct answer Past due premiums that have not been paid by the end of the grace period
11. health insurance involves two perils, accident and ✓✓ Correct answer sickness
12. Who is responsible for assembling the policy forms for insureds ✓✓ Correct answer Insurance carriers
13. a securities license is required for a life insurance producer to sell ✓✓ Correct answer variable life insurance
14. Which of the following is NOT an illegal inducement ✓✓ Correct answer giving the insured an article of merchandise printed
with the producers name costing 5$
15. Which of the following is NOT a federal requirement of a qualified plan? ✓✓ Correct answer -
employee must be able to make unlimited contributions
16. Which dividend option would an insurer invest the policy owner's money and add any interest earnings as the
dividends accrue? ✓✓ Correct answer Accumulation at interest option
17. a health insurance policy will typically cover ✓✓ Correct answer preventative health services
, 18. 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? ✓✓ Correct answer Disability income rider
19. in addition to the actual policy, an entire contract includes which of the following? ✓✓ Correct answer the
application
20. field underwriting preformed by the producer involves ✓✓ Correct answer completing the application and collecting initial
premium
21. Kathy pays a monthly premium on her health insurance policy. How long is her grace period? ✓✓ Correct
answer 10 days
22. 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 $10,000 benefit be taxable as income under this plan? ✓✓ Correct answer
0$
-benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and is not taxable as income
23. After an insured gives notice of loss, what must he/she do if the insurer
does not furnish forms? ✓✓ Correct answer file a written proof of loss
24. Under long term care insurance, which of the following MUST an insurer offer to each policy owner at the time
of purchase? ✓✓ Correct answer An inflation protection feature
25. What is the primary factor that determines the benefits paid under a dis- ability income policy? ✓✓
Correct answer Wages
26. What is the tax liability for employer contributions in Health Savings Ac- counts (HSA's)? ✓✓ Correct answer
No tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
27. In the state of MI, properly filed health claims are not timely paid require the insurer to pay simple interest
from a date 60 days from satisfactory proof of loss at the rate of? ✓✓ Correct answer 12% annum
28. In MI, legal action can be taken against an insurer for failure to pay HEALTH insurance claims for a period not to
exceed ✓✓ Correct answer 3 years
29. Donald is the primary insured of life insurance policy and adds a children's term rider. What is the advantage of
adding this rider? ✓✓ Correct answer Can be converted to permanent
(MICHIGAN ) ACTUAL FINAL
EXAM QUESTIONS AND
CORRECT ANSWERS LATEST
STUDY GUIDE 2026/2027 GRADED
A+ .
,1. What amount will be paid under a policy where the insured misstated his/her age? ✓✓ Correct answer an amount the premium
would have purchased at the correct age
2. the acceptance of a credit life application requires the submission of a certificate of insurance to the
insured within days ✓✓ Correct answer 30 days
3. which of these is considered to be a Living benefit option in a life insurance policy ✓✓ Correct answer Accelerated death
benefit
4. loans obtained by a policy owner against the cash value of a life insurance policy ✓✓ Correct answer would not be
treated as taxable income
5. A long term care policy typically provides all of the following levels of care EXCEPT ✓✓ Correct answer acute
care
6. the elimination period under a hospital indemnity plan is ✓✓ Correct answer the specific # of days an insured must wait before
becoming eligible to receive benefits for each hospitalization
7. what is an insurance policy's grace period? ✓✓ Correct answer Period of time after the premium is due but the policy remains in force
8. How do interest earnings accumulate in a deferred annuity ✓✓ Correct answer On a tax-deferred basis
9. a licensee who is required to take continuing education Must include how many ethics coursework hours ✓
✓ Correct answer 3
10. the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of
✓✓ Correct answer Past due premiums that have not been paid by the end of the grace period
11. health insurance involves two perils, accident and ✓✓ Correct answer sickness
12. Who is responsible for assembling the policy forms for insureds ✓✓ Correct answer Insurance carriers
13. a securities license is required for a life insurance producer to sell ✓✓ Correct answer variable life insurance
14. Which of the following is NOT an illegal inducement ✓✓ Correct answer giving the insured an article of merchandise printed
with the producers name costing 5$
15. Which of the following is NOT a federal requirement of a qualified plan? ✓✓ Correct answer -
employee must be able to make unlimited contributions
16. Which dividend option would an insurer invest the policy owner's money and add any interest earnings as the
dividends accrue? ✓✓ Correct answer Accumulation at interest option
17. a health insurance policy will typically cover ✓✓ Correct answer preventative health services
, 18. 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? ✓✓ Correct answer Disability income rider
19. in addition to the actual policy, an entire contract includes which of the following? ✓✓ Correct answer the
application
20. field underwriting preformed by the producer involves ✓✓ Correct answer completing the application and collecting initial
premium
21. Kathy pays a monthly premium on her health insurance policy. How long is her grace period? ✓✓ Correct
answer 10 days
22. 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 $10,000 benefit be taxable as income under this plan? ✓✓ Correct answer
0$
-benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and is not taxable as income
23. After an insured gives notice of loss, what must he/she do if the insurer
does not furnish forms? ✓✓ Correct answer file a written proof of loss
24. Under long term care insurance, which of the following MUST an insurer offer to each policy owner at the time
of purchase? ✓✓ Correct answer An inflation protection feature
25. What is the primary factor that determines the benefits paid under a dis- ability income policy? ✓✓
Correct answer Wages
26. What is the tax liability for employer contributions in Health Savings Ac- counts (HSA's)? ✓✓ Correct answer
No tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
27. In the state of MI, properly filed health claims are not timely paid require the insurer to pay simple interest
from a date 60 days from satisfactory proof of loss at the rate of? ✓✓ Correct answer 12% annum
28. In MI, legal action can be taken against an insurer for failure to pay HEALTH insurance claims for a period not to
exceed ✓✓ Correct answer 3 years
29. Donald is the primary insured of life insurance policy and adds a children's term rider. What is the advantage of
adding this rider? ✓✓ Correct answer Can be converted to permanent
