Final Exam - Michigan Life and Health All Possible Questions and Answers with complete

Making a statement that is false or maliciously critical of the financial condition of an insurer is known as - Answer-defamation Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled? - Answer-Business overhead expense policy Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires, - Answer-the protection ends To receive proceeds from a death benefit, a minor - Answer-must have an appointed guardian Under a life insurance policy, what does the insuring clause state? - Answer-The insurer's obligation to pay a death benefit upon an approved death claim When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)? - Answer-When contribution or participation rules have been violated What is the purpose for having an accelerated death benefit on a life insurance policy? - Answer-It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? - Answer-Variable universal policy An immediate annuity has been purchased with a single premium. When does the annuitant typically begin receiving benefit payments? - Answer-1 month Consumer privacy regulations permit the release of an insured's financial information when - Answer-an authorized agency makes a written request to the insurer during an insurance fraud investigationThe free-look provision gives the policyowner - Answer-the right to return the policy for a full refund within a specified number of days Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE? - Answer-Net death benefit will be reduced if the loan is not repaid Tara the producer is delivering a specified disease insurance policy to a new policyowner. Upon delivery, she may be expected to collect all of the following EXCEPT a(n) - Answer-modified application with a new signature Which of the following is considered to be the period when the accumulated value in an annuity is paid out? - Answer-Annuitization phase The entity that has the power to revoke a producer's insurance license is the - Answer-Department of Insurance and Financial Services (DIFS) The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is - Answer-The shorter the payment period, the higher the premium A life insurance policy that is subject to a contract interest rate is referred to as - Answer-universal life Which of these factors would an insurer consider when determining whether to accept a group life plan? - Answer-Average age According to HIPAA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual - Answer-is eligible for coverage upon hire An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay? - Answer-$5,000