Michigan Life and Health Final Exam Questions and Correct Answers

Michigan Life and Health Final Exam
Questions and Correct Answers
Question 1
Which of the following is NOT a federal requirement of a qualified plan?
Correct Answer
employee must be able to make unlimited contributions



Question 2
Which of these annuities require premium payments that vary from year to year?
Correct Answer
flexible premium deferred annuity



Question 3
when an insurance licensee changes his or her address under the Michigan insurance
code, who must be notified?
Correct Answer
The commissioner of the department of insurance



Question 4
An insured individual and the policy's beneficiary die from the same accident. The
common disaster provision states the insurer will continue as if
Correct Answer
the insured outlived the beneficiary



Question 5
Which form of insurer has shareholders?
Correct Answer
Stock Company




Page 1 of 49

,Question 6
Which of the following individuals is REQUIRED to be licensed as an insurance
counselor in the State of Michigan?
Correct Answer
A person providing insurance advice to a person or business for a fee



Question 7
In the michigan insurance code, chapter 45, insurance fraud defines financial loss as
all of the following except

Correct Answer
additional premiums



Question 8
An insurance company needs to obtain personal information from a third party
concerning an applicant. Which law do all insurers and their producers need to
comply with?
Correct Answer
Fair Credit Reporting Act



Question 9
Which settlement option pays a stated amount to an annuitant, but no residual value
to a beneficiary?
Correct Answer
Life income



Question 10
The unfair trade practice of using threat or force to restrict fair trade in the transaction
of insurance is called

Correct Answer
Intimidation




Page 2 of 49

,Question 11
"Maximum benefits" refers to the
Correct Answer
upper limit of the total lifetime benefits the insurance company will pay



Question 12
Continued coverage under COBRA would be provided to all of the following EXCEPT
Correct Answer
a covered employee is terminated for gross misconduct



Question 13
An example of a presumptive disability would be
Correct Answer
deafness



Question 14
A fee for service health insurance plan will normally cover
Correct Answer
a disease



Question 15
a limited payment whole life policy provides
Correct Answer
lifetime protections




Page 3 of 49

, Question 16
Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15
years after the policy's inception date, how much will her beneficiary receive?
Correct Answer
nothing

the policy was only valid for 10 years



Question 17
what happens to interest earned if the annuitant dies before the payout start date?
Correct Answer
it is taxable



Question 18
an immediate annuity has been purchased with a single premium. when does the
annuitant typically begin receiving benefit payments
Correct Answer
1 month



Question 19
A provision that allows a policy owner to temporarily give up ownership rights to
secure a loan is called a(n)
Correct Answer
collateral assignment



Question 20
a field underwriter's main task is
Correct Answer
to ensure an applicants medical information is accurate and complete




Page 4 of 49