Michigan Life and Health Exam Questions
and Answers All Correct
A hospital or medical expense policy will typically cover dental treatment expenses
under which circumstance? - Answer-Dental treatment is needed to repair an injury
When are group disability benefits considered to be tax-free to the insured? - Answer-
When the recipient pays the premiums
Which of the following types of deductibles would apply a single deductible to both
medical and dental insurance coverage? - Answer-Integrated Deductible
A whole life insurance policy accumulates cash value that becomes - Answer-the policy
loan value which the insured may borrow against
Loss of income insurance provides - Answer-An individual the means to replace wages.
People with higher loss exposure have the tendency to purchase insurance more often
than those at average risk. This is called? - Answer-adverse selection
In order for a contract to be valid, it must: - Answer-Contain an offer, acceptance, and
consideration.
Which of the following is NOT taken into consideration when determining eligibility for
Medicare benefits? - Answer-income
The type of multiple protection coverage that pays on the death of the last person is
called what? - Answer-Survivorship life policy
Which of these is NOT a characteristic of the Accelerated Death Benefit option? -
Answer-The benefit can be offered as a rider at a specific extra cost or may be at no
cost
Premiums paid that exceed 7 ½% of an insured's Adjusted Gross Income (AGI) are tax-
deductible when paid for which of the following plans? - Answer-Qualified Long-Term
Care plan
, insurable interest does NOT occur in which of the following relationships? - Answer-
business owner and business client
an applicant intentionally lying to an insurance company on an application in order to
obtain a cheaper premium is an example of? - Answer-fraud
under which circumstance may a deferred insurance commission be paid to an
individual - Answer-individual was licensed producer at the time of the sale
An annuitant dies during the distribution period. What kind of annuity will return to a
beneficiary the difference between the annuity value and the income payments already
made? - Answer-refund annuity
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty.
This transaction is called a(n) - Answer-1035 exchange
a life insurance application may be backdated to - Answer-save on premiums
Newborn coverage under health insurance policies MUST include coverage for -
Answer-birth abnormalities
When a preferred provider organization (PPO) insured goes out-of-network, which of
the following actions occur? - Answer-the insurer will pay a reduced amount
under the consolidated omnibus budget reconciliation act (COBRA), a terminated
employee's benefits must - Answer-be the same and the premium cannot exceed 102%
A baby is born to a husband and wife covered under a family accident and health
insurance policy. If the newborn is covered at birth, the first payment for the additional
coverage would become due in days. - Answer-31 days
Sonya applied for a health insurance policy on April 1. Her agent submitted the
information to the insurance company on April 6. She paid the premium on May 15 with
the policy indicating the effective date being May 30. On which date would Sonya have
coverage? - Answer-May 30
What is an insurer required to do when faced with an error made under the
Misstatement of Age provision? - Answer-Pay age-corrected benefits
A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - Answer-
nonforfeiture provision
a health insurance policy that allows an insurer to change the policy owners premiums,
but NOT cancel the policy is called a - Answer-guaranteed renewable policy
and Answers All Correct
A hospital or medical expense policy will typically cover dental treatment expenses
under which circumstance? - Answer-Dental treatment is needed to repair an injury
When are group disability benefits considered to be tax-free to the insured? - Answer-
When the recipient pays the premiums
Which of the following types of deductibles would apply a single deductible to both
medical and dental insurance coverage? - Answer-Integrated Deductible
A whole life insurance policy accumulates cash value that becomes - Answer-the policy
loan value which the insured may borrow against
Loss of income insurance provides - Answer-An individual the means to replace wages.
People with higher loss exposure have the tendency to purchase insurance more often
than those at average risk. This is called? - Answer-adverse selection
In order for a contract to be valid, it must: - Answer-Contain an offer, acceptance, and
consideration.
Which of the following is NOT taken into consideration when determining eligibility for
Medicare benefits? - Answer-income
The type of multiple protection coverage that pays on the death of the last person is
called what? - Answer-Survivorship life policy
Which of these is NOT a characteristic of the Accelerated Death Benefit option? -
Answer-The benefit can be offered as a rider at a specific extra cost or may be at no
cost
Premiums paid that exceed 7 ½% of an insured's Adjusted Gross Income (AGI) are tax-
deductible when paid for which of the following plans? - Answer-Qualified Long-Term
Care plan
, insurable interest does NOT occur in which of the following relationships? - Answer-
business owner and business client
an applicant intentionally lying to an insurance company on an application in order to
obtain a cheaper premium is an example of? - Answer-fraud
under which circumstance may a deferred insurance commission be paid to an
individual - Answer-individual was licensed producer at the time of the sale
An annuitant dies during the distribution period. What kind of annuity will return to a
beneficiary the difference between the annuity value and the income payments already
made? - Answer-refund annuity
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty.
This transaction is called a(n) - Answer-1035 exchange
a life insurance application may be backdated to - Answer-save on premiums
Newborn coverage under health insurance policies MUST include coverage for -
Answer-birth abnormalities
When a preferred provider organization (PPO) insured goes out-of-network, which of
the following actions occur? - Answer-the insurer will pay a reduced amount
under the consolidated omnibus budget reconciliation act (COBRA), a terminated
employee's benefits must - Answer-be the same and the premium cannot exceed 102%
A baby is born to a husband and wife covered under a family accident and health
insurance policy. If the newborn is covered at birth, the first payment for the additional
coverage would become due in days. - Answer-31 days
Sonya applied for a health insurance policy on April 1. Her agent submitted the
information to the insurance company on April 6. She paid the premium on May 15 with
the policy indicating the effective date being May 30. On which date would Sonya have
coverage? - Answer-May 30
What is an insurer required to do when faced with an error made under the
Misstatement of Age provision? - Answer-Pay age-corrected benefits
A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - Answer-
nonforfeiture provision
a health insurance policy that allows an insurer to change the policy owners premiums,
but NOT cancel the policy is called a - Answer-guaranteed renewable policy
