Final Exam-Michigan Life And Health Questions And Correct Verified Answers

FINAL EXAM-MICHIGAN LIFE AND HEALTH
QUESTIONS AND CORRECT VERIFIED
ANSWERS
WhatA2amountA2willA2beA2paidA2underA2aA2policyA2whereA2theA2insuredA2misstatedA2his/
herA2age?A2-A2Ans--
anA2amountA2theA2premiumA2wouldA2haveA2purchasedA2atA2theA2correctA2age

theA2acceptanceA2ofA2aA2creditA2lifeA2applicationA2requiresA2theA2submissionA2ofA2aA2certifi
cateA2ofA2insuranceA2toA2theA2insuredA2within_____A2daysA2-A2Ans--30A2days

whichA2ofA2theseA2isA2consideredA2toA2beA2aA2LivingA2benefitA2optionA2inA2aA2lifeA2insuranc
eA2policyA2-A2Ans--AcceleratedA2deathA2benefit

loansA2obtainedA2byA2aA2policyA2ownerA2againstA2theA2cashA2valueA2ofA2aA2lifeA2insuranceA
2policyA2-A2Ans--wouldA2notA2beA2treatedA2asA2taxableA2income


AA2longA2termA2careA2policyA2typicallyA2providesA2allA2ofA2theA2followingA2levelsA2ofA2careA2
EXCEPTA2-A2Ans--acuteA2care

theA2eliminationA2periodA2underA2aA2hospitalA2indemnityA2planA2isA2-A2Ans--
theA2specificA2#A2ofA2daysA2anA2insuredA2mustA2waitA2beforeA2becomingA2eligibleA2toA2rece
iveA2benefitsA2forA2eachA2hospitalization

whatA2isA2anA2insuranceA2policy'sA2graceA2period?A2-A2Ans--
PeriodA2ofA2timeA2afterA2theA2premiumA2isA2dueA2butA2theA2policyA2remainsA2inA2force

HowA2doA2interestA2earningsA2accumulateA2inA2aA2deferredA2annuityA2-A2Ans--OnA2aA2tax-
deferredA2basis

aA2licenseeA2whoA2isA2requiredA2toA2takeA2continuingA2educationA2MustA2includeA2howA2m
anyA2ethicsA2courseworkA2hoursA2-A2Ans--3

theA2automaticA2premiumA2loanA2provisionA2authorizesA2anA2insurerA2toA2withdrawA2fromA2
aA2policy'sA2cashA2valueA2theA2amountA2ofA2-A2Ans--
PastA2dueA2premiumsA2thatA2haveA2notA2beenA2paidA2byA2theA2endA2ofA2theA2graceA2perio
d

healthA2insuranceA2involvesA2twoA2perils,A2accidentA2andA2______A2-A2Ans--sickness

WhoA2isA2responsibleA2forA2assemblingA2theA2policyA2formsA2forA2insuredsA2-A2Ans--
InsuranceA2carriers

,aA2securitiesA2licenseA2isA2requiredA2forA2aA2lifeA2insuranceA2producerA2toA2sellA2-A2Ans--
variableA2lifeA2insurance

WhichA2ofA2theA2followingA2isA2NOTA2anA2illegalA2inducementA2-A2Ans--
givingA2theA2insuredA2anA2articleA2ofA2merchandiseA2printedA2withA2theA2producersA2name
A2costingA25$


WhichA2ofA2theA2followingA2isA2NOTA2aA2federalA2requirementA2ofA2aA2qualifiedA2plan?A2-
A2Ans--employeeA2mustA2beA2ableA2toA2makeA2unlimitedA2contributions


WhichA2dividendA2optionA2wouldA2anA2insurerA2investA2theA2policyA2owner'sA2moneyA2andA
2addA2anyA2interestA2earningsA2asA2theA2dividendsA2accrue?A2-A2Ans--
AccumulationA2atA2interestA2option

aA2healthA2insuranceA2policyA2willA2typicallyA2coverA2-A2Ans--
preventativeA2healthA2services

aA2lifeA2insuranceA2policyA2ownerA2wasA2injuredA2inA2aA2carA2accidentA2whichA2resultsA2inA2
aA2totalA2andA2permanentA2disability.A2whichA2riderA2wouldA2payA2aA2monthlyA2amountA2be
causeA2ofA2thisA2disability?A2-A2Ans--DisabilityA2incomeA2rider

inA2additionA2toA2theA2actualA2policy,A2anA2entireA2contractA2includesA2whichA2ofA2theA2follo
wing?A2-A2Ans--theA2application

fieldA2underwritingA2preformedA2byA2theA2producerA2involvesA2-A2Ans--
completingA2theA2applicationA2andA2collectingA2initialA2premium

KathyA2paysA2aA2monthlyA2premiumA2onA2herA2healthA2insuranceA2policy.A2HowA2longA2isA2
herA2graceA2period?A2-A2Ans--10A2days

PierreA2isA2coveredA2byA2hisA2employer'sA2groupA2majorA2medicalA2plan.A2HisA2employerA2
paysA2forA275%A2ofA2theA2premiumA2andA2heA2paysA2forA225%.A2HowA2muchA2wouldA2aA2$
10,000A2benefitA2beA2taxableA2asA2incomeA2underA2thisA2plan?A2-A2Ans--0$

-
benefitsA2thatA2fallA2underA2aA2majorA2medicalA2planA2areA2consideredA2toA2beA2aA2reimbur
sementA2forA2aA2loss,A2andA2isA2notA2taxableA2asA2income

AfterA2anA2insuredA2givesA2noticeA2ofA2loss,A2whatA2mustA2he/
sheA2doA2ifA2theA2insurerA2doesA2notA2furnishA2forms?A2-A2Ans--
fileA2aA2writtenA2proofA2ofA2loss

UnderA2longA2termA2careA2insurance,A2whichA2ofA2theA2followingA2MUSTA2anA2insurerA2off
erA2toA2eachA2policyA2ownerA2atA2theA2timeA2ofA2purchase?A2-A2Ans--
AnA2inflationA2protectionA2feature

, WhatA2isA2theA2primaryA2factorA2thatA2determinesA2theA2benefitsA2paidA2underA2aA2disabilit
yA2incomeA2policy?A2-A2Ans--Wages

WhatA2isA2theA2taxA2liabilityA2forA2employerA2contributionsA2inA2HealthA2SavingsA2Accounts
A2(HSA's)?A2-A2Ans--NoA2taxA2paymentA2needed


-EmployerA2paidA2contributionsA2toA2HSA'sA2areA2taxA2freeA2toA2theA2employee

InA2theA2stateA2ofA2MI,A2properlyA2filedA2healthA2claimsA2areA2notA2timelyA2paidA2requireA2th
eA2insurerA2toA2payA2simpleA2interestA2fromA2aA2dateA260A2daysA2fromA2satisfactoryA2proofA
2ofA2lossA2atA2theA2rateA2of?A2-A2Ans--12%A2annum


InA2MI,A2legalA2actionA2canA2beA2takenA2againstA2anA2insurerA2forA2failureA2toA2payA2HEAL
THA2insuranceA2claimsA2forA2aA2periodA2notA2toA2exceedA2-A2Ans--3A2years

DonaldA2isA2theA2primaryA2insuredA2ofA2lifeA2insuranceA2policyA2andA2addsA2aA2children'sA2
termA2rider.A2WhatA2isA2theA2advantageA2ofA2addingA2thisA2rider?A2-A2Ans--
CanA2beA2convertedA2toA2permanentA2coverageA2withoutA2evidenceA2ofA2insurabilityA2

-
AnA2advantageA2ofA2aA2children'sA2termA2riderA2isA2theA2abilityA2toA2convertA2toA2permanen
tA2insuranceA2withoutA2evidenceA2ofA2insurability

WhenA2anA2insuredA2changesA2toA2aA2moreA2hazardousA2occupation,A2whichA2disabilityA2
policyA2provisionA2allowsA2anA2insurerA2toA2adjustA2policyA2benefitsA2andA2rates?A2-A2Ans--
ChangeA2ofA2occupationA2provision

TheA2unfairA2tradeA2practiceA2ofA2replacingA2anA2insuranceA2policyA2fromA2oneA2insurerA2t
oA2anotherA2basedA2onA2misrepresentationA2isA2called?A2-A2Ans--Twisting

WhichA2typeA2ofA2coverageA2paysA2anA2amountA2perA2dayA2forA2hospitalizationA2directlyA2t
oA2theA2insuredA2regardlessA2ofA2theA2insured'sA2otherA2healthA2insurance?A2-A2Ans--
HospitalA2Indemnity

WhatA2kindA2ofA2lifeA2insuranceA2policyA2coversA2twoA2orA2moreA2peopleA2withA2theA2death
A2benefitA2payableA2uponA2theA2lastA2person'sA2death?A2-A2Ans--
LastA2SurvivorA2LifeA2Insurance

WhichA2ofA2theseA2premiumA2paymentA2frequenciesA2isA2notA2typicallyA2availableA2toA2aA2
policyowner?A2-A2Ans--Bi-weekly

VariableA2lifeA2insuranceA2andA2UniversalA2lifeA2insuranceA2areA2veryA2similar.A2WhichA2of
A2theseA2featuresA2areA2heldA2exclusivelyA2byA2variableA2universalA2lifeA2insurance?A2-
A2Ans--
PolicyownerA2hasA2theA2rightA2toA2selectA2theA2investmentA2whichA2willA2provideA2theA2gre
atestA2return