Chapter Exam - Michigan Laws and Rules Questions and Answers Rated A+

Chapter Exam - Michigan Laws and Rules Questions and Answers Rated A+ Which form of insurer has shareholders? Stock company In order to save on premiums, a Life Insurance policy can legally be backdated up to 6 months A licensee who informs an insured of inaccurate terms, benefits, or advantages of any policy is committing which of the following violations? Misrepresentation A producer who knowingly submits a FALSE statement in support of a claim may be found guilty of fraud Which of the following gifts from a producer would NOT be considered rebating? $5 pen Under Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as loss of income The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as twisting Group insurance premium payments made by an employer under the terms of a Taft-Hartley Trust are paid directly to the trust When the insured gives birth, coverage for eligible newly born children consists of coverage of injury or sickness including birth abnormalities Who has the option to renew a small employer health plan? Employer An insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. This is considered to be an unfair claim settlement practice Making a statement that is false or maliciously critical of the financial condition of an insurer is known as defamation Under an expense-incurred individual health policy, what is the MAXIMUM length of time after issuance of the policy that an insurer can exclude coverage for a pre-existing condition? 12 months For what purpose is a life insurance application backdated? To reduce the premium The unfair trade practice of replacing an insurance policy from one insurer to another based on misrepresentation is called twisting