MICHIGAN LIFE AND
[Date] HEALTH FINAL EXAM
,Michigan
MICHIGAN LIFE AND HEALTH FINAL EXAM
What amount will be paid under a policy where the insured misstated his/her age?
Correct Answer: an amount the premium would have purchased at the correct age
the acceptance of a credit life application requires the submission of a certificate of insurance to the
insured within days
Correct Answer: 30 days
which of these is considered to be a Living benefit option in a life insurance policy
Correct Answer: Accelerated death benefit
loans obtained by a policy owner against the cash value of a life insurance policy
Correct Answer: would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT
Correct Answer: acute care
the elimination period under a hospital indemnity plan is
Correct Answer: the specific # of days an insured must wait before becoming eligible to receive
benefits for each hospitalization
what is an insurance policy's grace period?
Correct Answer: Period of time after the premium is due but the policy remains in force
How do interest earnings accumulate in a deferred annuity
Correct Answer: On a tax-deferred basis
a licensee who is required to take continuing education Must include how many ethics coursework
hours
Correct Answer: 3
the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value
the amount of
Correct Answer: Past due premiums that have not been paid by the end of the grace period
health insurance involves two perils, accident and
Correct Answer: sickness
Who is responsible for assembling the policy forms for insureds
Correct Answer: Insurance carriers
Michigan
,Michigan
a securities license is required for a life insurance producer to sell
Correct Answer: variable life insurance
Which of the following is NOT an illegal inducement
Correct Answer: giving the insured an article of merchandise printed with the producers name
costing 5$
Which of the following is NOT a federal requirement of a qualified plan?
Correct Answer: employee must be able to make unlimited contributions
Which dividend option would an insurer invest the policy owner's money and add any interest
earnings as the dividends accrue?
Correct Answer: Accumulation at interest option
a health insurance policy will typically cover
Correct Answer: preventative health services
a life insurance policy owner was injured in a car accident which results in a total and permanent
disability. which rider would pay a monthly amount because of this disability?
Correct Answer: Disability income rider
in addition to the actual policy, an entire contract includes which of the following?
Correct Answer: the application
field underwriting preformed by the producer involves
Correct Answer: completing the application and collecting initial premium
Kathy pays a monthly premium on her health insurance policy. How long is her grace period?
Correct Answer: 10 days
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the
premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this
plan?
Correct Answer: 0$
-benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and
is not taxable as income
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
Michigan
, Michigan
Correct Answer: file a written proof of loss
Under long term care insurance, which of the following MUST an insurer offer to each policy
owner at the time of purchase?
Correct Answer: An inflation protection feature
What is the primary factor that determines the benefits paid under a disability income policy?
Correct Answer: Wages
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?
Correct Answer: No tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
In the state of MI, properly filed health claims are not timely paid require the insurer to pay simple
interest from a date 60 days from satisfactory proof of loss at the rate of?
Correct Answer: 12% annum
In MI, legal action can be taken against an insurer for failure to pay HEALTH insurance claims for
a period not to exceed
Correct Answer: 3 years
Donald is the primary insured of life insurance policy and adds a children's term rider. What is the
advantage of adding this rider?
Correct Answer: Can be converted to permanent coverage without evidence of insurability
-An advantage of a children's term rider is the ability to convert to permanent insurance without
evidence of insurability
When an insured changes to a more hazardous occupation, which disability policy provision allows
an insurer to adjust policy benefits and rates?
Correct Answer: Change of occupation provision
The unfair trade practice of replacing an insurance policy from one insurer to another based on
misrepresentation is called?
Correct Answer: Twisting
Which type of coverage pays an amount per day for hospitalization directly to the insured
regardless of the insured's other health insurance?
Correct Answer: Hospital Indemnity
What kind of life insurance policy covers two or more people with the death benefit payable upon
the last person's death?
Michigan
[Date] HEALTH FINAL EXAM
,Michigan
MICHIGAN LIFE AND HEALTH FINAL EXAM
What amount will be paid under a policy where the insured misstated his/her age?
Correct Answer: an amount the premium would have purchased at the correct age
the acceptance of a credit life application requires the submission of a certificate of insurance to the
insured within days
Correct Answer: 30 days
which of these is considered to be a Living benefit option in a life insurance policy
Correct Answer: Accelerated death benefit
loans obtained by a policy owner against the cash value of a life insurance policy
Correct Answer: would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT
Correct Answer: acute care
the elimination period under a hospital indemnity plan is
Correct Answer: the specific # of days an insured must wait before becoming eligible to receive
benefits for each hospitalization
what is an insurance policy's grace period?
Correct Answer: Period of time after the premium is due but the policy remains in force
How do interest earnings accumulate in a deferred annuity
Correct Answer: On a tax-deferred basis
a licensee who is required to take continuing education Must include how many ethics coursework
hours
Correct Answer: 3
the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value
the amount of
Correct Answer: Past due premiums that have not been paid by the end of the grace period
health insurance involves two perils, accident and
Correct Answer: sickness
Who is responsible for assembling the policy forms for insureds
Correct Answer: Insurance carriers
Michigan
,Michigan
a securities license is required for a life insurance producer to sell
Correct Answer: variable life insurance
Which of the following is NOT an illegal inducement
Correct Answer: giving the insured an article of merchandise printed with the producers name
costing 5$
Which of the following is NOT a federal requirement of a qualified plan?
Correct Answer: employee must be able to make unlimited contributions
Which dividend option would an insurer invest the policy owner's money and add any interest
earnings as the dividends accrue?
Correct Answer: Accumulation at interest option
a health insurance policy will typically cover
Correct Answer: preventative health services
a life insurance policy owner was injured in a car accident which results in a total and permanent
disability. which rider would pay a monthly amount because of this disability?
Correct Answer: Disability income rider
in addition to the actual policy, an entire contract includes which of the following?
Correct Answer: the application
field underwriting preformed by the producer involves
Correct Answer: completing the application and collecting initial premium
Kathy pays a monthly premium on her health insurance policy. How long is her grace period?
Correct Answer: 10 days
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the
premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this
plan?
Correct Answer: 0$
-benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and
is not taxable as income
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
Michigan
, Michigan
Correct Answer: file a written proof of loss
Under long term care insurance, which of the following MUST an insurer offer to each policy
owner at the time of purchase?
Correct Answer: An inflation protection feature
What is the primary factor that determines the benefits paid under a disability income policy?
Correct Answer: Wages
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?
Correct Answer: No tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
In the state of MI, properly filed health claims are not timely paid require the insurer to pay simple
interest from a date 60 days from satisfactory proof of loss at the rate of?
Correct Answer: 12% annum
In MI, legal action can be taken against an insurer for failure to pay HEALTH insurance claims for
a period not to exceed
Correct Answer: 3 years
Donald is the primary insured of life insurance policy and adds a children's term rider. What is the
advantage of adding this rider?
Correct Answer: Can be converted to permanent coverage without evidence of insurability
-An advantage of a children's term rider is the ability to convert to permanent insurance without
evidence of insurability
When an insured changes to a more hazardous occupation, which disability policy provision allows
an insurer to adjust policy benefits and rates?
Correct Answer: Change of occupation provision
The unfair trade practice of replacing an insurance policy from one insurer to another based on
misrepresentation is called?
Correct Answer: Twisting
Which type of coverage pays an amount per day for hospitalization directly to the insured
regardless of the insured's other health insurance?
Correct Answer: Hospital Indemnity
What kind of life insurance policy covers two or more people with the death benefit payable upon
the last person's death?
Michigan
