Final Exam - Michigan Life and Health
Questions and Answers 100% Pass
defamation - ✔✔Making a statement that is false or maliciously critical of the financial
condition of an insurer is known as
Business overhead expense policy - ✔✔Which type of business insurance is meant to
cover the costs of continuing to do business while the owner is disabled?
the protection ends - ✔✔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,
must have an appointed guardian - ✔✔To receive proceeds from a death benefit, a
minor
The insurer's obligation to pay a death benefit upon an approved death claim -
✔✔Under a life insurance policy, what does the insuring clause state?
When contribution or participation rules have been violated - ✔✔When can a group
health policy renewal be denied according to the Health Insurance Portability and
Accountability Act (HIPAA)?
Katelyn Whitman, All Rights Reserved © 2025 1
,It allows for cash advances to be paid against the death benefit if the insured becomes
terminally ill - ✔✔What is the purpose for having an accelerated death benefit on a life
insurance policy?
Variable universal policy - ✔✔Which type of life insurance offers flexible premiums, a
flexible death benefit, and the choice of how the cash value will be invested?
1 month - ✔✔An immediate annuity has been purchased with a single premium. When
does the annuitant typically begin receiving benefit payments?
an authorized agency makes a written request to the insurer during an insurance fraud
investigation - ✔✔Consumer privacy regulations permit the release of an insured's
financial information when
the right to return the policy for a full refund within a specified number of days -
✔✔The free-look provision gives the policyowner
Net death benefit will be reduced if the loan is not repaid - ✔✔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?
modified application with a new signature - ✔✔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)
Katelyn Whitman, All Rights Reserved © 2025 2
,Annuitization phase - ✔✔Which of the following is considered to be the period when
the accumulated value in an annuity is paid out?
Department of Insurance and Financial Services (DIFS) - ✔✔The entity that has the
power to revoke a producer's insurance license is the
The shorter the payment period, the higher the premium - ✔✔The statement which best
describes the relationship between the premiums of a whole life policy and the
premium payment period is
universal life - ✔✔A life insurance policy that is subject to a contract interest rate is
referred to as
Average age - ✔✔Which of these factors would an insurer consider when determining
whether to accept a group life plan?
is eligible for coverage upon hire - ✔✔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
$5,000 - ✔✔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?
Katelyn Whitman, All Rights Reserved © 2025 3
, Guaranteed insurability rider - ✔✔Barbara's policy includes a rider which allows her to
purchase additional insurance at specific dates or events without evidence of
insurability. This rider is called a(n)
Pay age-corrected benefits - ✔✔What is an insurer required to do when faced with an
error made under the Misstatement of Age provision?
twisting - ✔✔The unfair trade practice of replacing an insurance policy from one
insurer to another based on misrepresentation is called
Life annuity - ✔✔Which type of annuity stops all payments upon the death of the
annuitant?
liquidity - ✔✔An insurer's ability to make unpredictable payouts to policyowners is
called
Exclusion Ratio - ✔✔The taxable portion of each annuity payment is calculated using
which method?
adverse selection - ✔✔Group dental plans will frequently place a limit on annual
benefits in order to minimize
subrogation - ✔✔An insurer has the right to recover payment made to the insured from
the negligent party. These rights are called
Katelyn Whitman, All Rights Reserved © 2025 4
Questions and Answers 100% Pass
defamation - ✔✔Making a statement that is false or maliciously critical of the financial
condition of an insurer is known as
Business overhead expense policy - ✔✔Which type of business insurance is meant to
cover the costs of continuing to do business while the owner is disabled?
the protection ends - ✔✔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,
must have an appointed guardian - ✔✔To receive proceeds from a death benefit, a
minor
The insurer's obligation to pay a death benefit upon an approved death claim -
✔✔Under a life insurance policy, what does the insuring clause state?
When contribution or participation rules have been violated - ✔✔When can a group
health policy renewal be denied according to the Health Insurance Portability and
Accountability Act (HIPAA)?
Katelyn Whitman, All Rights Reserved © 2025 1
,It allows for cash advances to be paid against the death benefit if the insured becomes
terminally ill - ✔✔What is the purpose for having an accelerated death benefit on a life
insurance policy?
Variable universal policy - ✔✔Which type of life insurance offers flexible premiums, a
flexible death benefit, and the choice of how the cash value will be invested?
1 month - ✔✔An immediate annuity has been purchased with a single premium. When
does the annuitant typically begin receiving benefit payments?
an authorized agency makes a written request to the insurer during an insurance fraud
investigation - ✔✔Consumer privacy regulations permit the release of an insured's
financial information when
the right to return the policy for a full refund within a specified number of days -
✔✔The free-look provision gives the policyowner
Net death benefit will be reduced if the loan is not repaid - ✔✔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?
modified application with a new signature - ✔✔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)
Katelyn Whitman, All Rights Reserved © 2025 2
,Annuitization phase - ✔✔Which of the following is considered to be the period when
the accumulated value in an annuity is paid out?
Department of Insurance and Financial Services (DIFS) - ✔✔The entity that has the
power to revoke a producer's insurance license is the
The shorter the payment period, the higher the premium - ✔✔The statement which best
describes the relationship between the premiums of a whole life policy and the
premium payment period is
universal life - ✔✔A life insurance policy that is subject to a contract interest rate is
referred to as
Average age - ✔✔Which of these factors would an insurer consider when determining
whether to accept a group life plan?
is eligible for coverage upon hire - ✔✔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
$5,000 - ✔✔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?
Katelyn Whitman, All Rights Reserved © 2025 3
, Guaranteed insurability rider - ✔✔Barbara's policy includes a rider which allows her to
purchase additional insurance at specific dates or events without evidence of
insurability. This rider is called a(n)
Pay age-corrected benefits - ✔✔What is an insurer required to do when faced with an
error made under the Misstatement of Age provision?
twisting - ✔✔The unfair trade practice of replacing an insurance policy from one
insurer to another based on misrepresentation is called
Life annuity - ✔✔Which type of annuity stops all payments upon the death of the
annuitant?
liquidity - ✔✔An insurer's ability to make unpredictable payouts to policyowners is
called
Exclusion Ratio - ✔✔The taxable portion of each annuity payment is calculated using
which method?
adverse selection - ✔✔Group dental plans will frequently place a limit on annual
benefits in order to minimize
subrogation - ✔✔An insurer has the right to recover payment made to the insured from
the negligent party. These rights are called
Katelyn Whitman, All Rights Reserved © 2025 4
