Michigan Life, Accident, and Health 2023 EXAM WITH CORRECT ANSWERS

Michigan Life, Accident, and Health 2023 EXAM WITH CORRECT ANSWERS The Commissioner of Insurance is appointed by the Governor for a term of - ANSWERS 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 - ANSWERS 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 - ANSWERS 180 days Continuing Education (CE) ______ hours of CE every two years ______ hours must be in Ethics ______ day grace period to complete CE - ANSWERS 24 total hours every two years 3 hours in ethics 90 day grace period Michigan Life and Health Insurance Guaranty Association - ANSWERS Protects policy holders against failure insolvent insurers Controlled business - ANSWERS 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 __________. - ANSWERS Rebating Defamation - ANSWERS 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 __________________. - ANSWERS $10,000 and possible license revocation Insurance counselor - ANSWERS 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. - ANSWERS 30 days True / False A producer may share commissions with another licensed producer - ANSWERS True True / False A producer may not share commissions with a licensed nonresident producer - ANSWERS False If, after a hearing, the Commissioner believes a producer knowingly violated insurance licensing laws, the Commissioner can: - ANSWERS Fine the producer a max of $2,500 per violation A producer has a fiduciary responsibility to all of the following: - ANSWERS - 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? - ANSWERS 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? - ANSWERS At least once every 5 years A producer has _____ days to respond to charges of violating insurance laws. - ANSWERS 30 days. If a producer is convicted of routinely misrepresenting benefits in insurance policies, he may be fined up to $_______ for all violations. - ANSWERS $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? - ANSWERS Universal Life Insurance An advertisement for a life insurance policy must include all of the following: - ANSWERS - 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 _____________. - ANSWERS Twisting The minimum number of lives that must be covered under a group life insurance policy in Michigan is ______. - ANSWERS 2 lives. The maximum life insurance policy loan interest that may be charged on a fixed interest loan is ______%. - ANSWERS 8% In life insurance, all advertisements must be kept by the insurer for at least ________ months. - ANSWERS 48 months The maximum life insurance policy loan interest that may be charged on an adjustable rate loan is ______%. - ANSWERS 18% True/ False A long-term care policy can exclude all of the following: - Alcoholism - Drug addiction - Alzheimer's disease - Self-inflicted injury - ANSWERS False A long-term care policy can exclude all alcoholism, drug addiction, and self-inflicted injury. Alzheimer's disease cannot be excluded. True/False A long-term care application must include questions that reveal when the proposed coverage will replace other existing health or long-term care coverage. - ANSWERS True True/False A Medicare supplement policy can indemnify against losses resulting from accidents on a different basis than losses resulting from sickness. - ANSWERS False - Medicare supplements must indemnify the same way for accidents and sickness. True/False A Medicare supplement policy must cover intermediate outpatient care for substance abuse. - ANSWERS True - Intermediate care for substance abuse includes inpatient treatment for drug addiction and alcohol abuse In Michigan, the free-look or trial examination period for a LTC policy is ______ days. - ANSWERS 30 True/False