Final Exam - Michigan Life and Health EXAM (updated 2025) Questions
Answers | Latest Already Graded A+ UPDATE 2025|2026
1. defamation Making a statement that is false or maliciously critical of the financial condition
of an insurer is known as
2. Business overhead Which type of business insurance is meant to cover the costs of continuing to
expense policy do business while the owner is disabled?
3. the protection Dorian exercised a nonforfeiture option by using his life policy's cash value to
ends purchase an extended term insurance option. When the term insurance expires,
4. must have an ap- To receive proceeds from a death benefit, a minor
pointed guardian
5. The insurer's Under a life insurance policy, what does the insuring clause state?
obligation to pay
a death benefit
upon an approved
death claim
6. When contribu- When can a group health policy renewal be denied according to the Health
tion or participa- Insurance Portability and Accountability Act (HIPAA)?
tion rules have
been violated
7. It allows for cash What is the purpose for having an accelerated death benefit on a life insurance
advances to be policy?
paid against the
death benefit if the
insured becomes
terminally ill
8. Variable universal Which type of life insurance offers flexible premiums, a flexible death benefit,
policy and the choice of how the cash value will be invested?
, Final Exam - Michigan Life and Health EXAM (updated 2025) Questions
Answers | Latest Already Graded A+ UPDATE 2025|2026
9. 1 month An immediate annuity has been purchased with a single premium. When does
the annuitant typically begin receiving benefit payments?
10. an authorized Consumer privacy regulations permit the release of an insured's financial infor-
agency makes a mation when
written request to
the insurer during
an insurance fraud
investigation
11. the right to return The free-look provision gives the policyowner
the policy for a
full refund within
a specified num-
ber of days
12. Net death benefit Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash
will be reduced if value. She would like to borrow $15,000 against the cash value. Which of the
the loan is not re- following statements is TRUE?
paid
13. modified applica- Tara the producer is delivering a specified disease insurance policy to a new
tion with a new sig- policyowner. Upon delivery, she may be expected to collect all of the following
nature EXCEPT a(n)
14. Annuitization Which of the following is considered to be the period when the accumulated
phase value in an annuity is paid out?
15. Department of In- The entity that has the power to revoke a producer's insurance license is the
surance and Finan-
cial Services (DIFS)
16.
, Final Exam - Michigan Life and Health EXAM (updated 2025) Questions
Answers | Latest Already Graded A+ UPDATE 2025|2026
The shorter the The statement which best describes the relationship between the premiums of
payment period, a whole life policy and the premium payment period is
the higher the pre-
mium
17. universal life A life insurance policy that is subject to a contract interest rate is referred to as
18. Average age Which of these factors would an insurer consider when determining whether
to accept a group life plan?
19. is eligible for cov- According to HIPAA, when an insured individual leaves an employer and imme-
erage upon hire diately begins working for a new company that offers group health insurance,
the individual
20. $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?
21. Guaranteed insur- Barbara's policy includes a rider which allows her to purchase additional insur-
ability rider ance at specific dates or events without evidence of insurability. This rider is
called a(n)
22. Pay age-corrected What is an insurer required to do when faced with an error made under the
benefits Misstatement of Age provision?
23. twisting The unfair trade practice of replacing an insurance policy from one insurer to
another based on misrepresentation is called
24. Life annuity Which type of annuity stops all payments upon the death of the annuitant?
25. liquidity An insurer's ability to make unpredictable payouts to policyowners is called
26. Exclusion Ratio The taxable portion of each annuity payment is calculated using which method?
, Final Exam - Michigan Life and Health EXAM (updated 2025) Questions
Answers | Latest Already Graded A+ UPDATE 2025|2026
27. adverse selection Group dental plans will frequently place a limit on annual benefits in order to
minimize
28. subrogation An insurer has the right to recover payment made to the insured from the
negligent party. These rights are called
29. The greater of the What will the beneficiary receive if an annuitant dies during the accumulation
accumulated cash period?
value or the total
premium paid
30. time deductible A disability elimination period is best described as a
31. have a legiti- An association wanting to buy insurance under a group health plan MUST
mate non-insur-
ance purpose
32. Talking In a Long-Term Care policy, activities of daily living (ADL's) can be each of the
following EXCEPT
33. Stock purchase All of the following are exempt from the 10% tax penalty for early qualified plan
withdrawals EXCEPT
34. represents the in- In the state of Michigan, a licensed producer
surer
35. Giving the insured Which of the following is NOT an illegal inducement?
an article of mer-
chandise printed
with the produc-
er's name costing
$5
Answers | Latest Already Graded A+ UPDATE 2025|2026
1. defamation Making a statement that is false or maliciously critical of the financial condition
of an insurer is known as
2. Business overhead Which type of business insurance is meant to cover the costs of continuing to
expense policy do business while the owner is disabled?
3. the protection Dorian exercised a nonforfeiture option by using his life policy's cash value to
ends purchase an extended term insurance option. When the term insurance expires,
4. must have an ap- To receive proceeds from a death benefit, a minor
pointed guardian
5. The insurer's Under a life insurance policy, what does the insuring clause state?
obligation to pay
a death benefit
upon an approved
death claim
6. When contribu- When can a group health policy renewal be denied according to the Health
tion or participa- Insurance Portability and Accountability Act (HIPAA)?
tion rules have
been violated
7. It allows for cash What is the purpose for having an accelerated death benefit on a life insurance
advances to be policy?
paid against the
death benefit if the
insured becomes
terminally ill
8. Variable universal Which type of life insurance offers flexible premiums, a flexible death benefit,
policy and the choice of how the cash value will be invested?
, Final Exam - Michigan Life and Health EXAM (updated 2025) Questions
Answers | Latest Already Graded A+ UPDATE 2025|2026
9. 1 month An immediate annuity has been purchased with a single premium. When does
the annuitant typically begin receiving benefit payments?
10. an authorized Consumer privacy regulations permit the release of an insured's financial infor-
agency makes a mation when
written request to
the insurer during
an insurance fraud
investigation
11. the right to return The free-look provision gives the policyowner
the policy for a
full refund within
a specified num-
ber of days
12. Net death benefit Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash
will be reduced if value. She would like to borrow $15,000 against the cash value. Which of the
the loan is not re- following statements is TRUE?
paid
13. modified applica- Tara the producer is delivering a specified disease insurance policy to a new
tion with a new sig- policyowner. Upon delivery, she may be expected to collect all of the following
nature EXCEPT a(n)
14. Annuitization Which of the following is considered to be the period when the accumulated
phase value in an annuity is paid out?
15. Department of In- The entity that has the power to revoke a producer's insurance license is the
surance and Finan-
cial Services (DIFS)
16.
, Final Exam - Michigan Life and Health EXAM (updated 2025) Questions
Answers | Latest Already Graded A+ UPDATE 2025|2026
The shorter the The statement which best describes the relationship between the premiums of
payment period, a whole life policy and the premium payment period is
the higher the pre-
mium
17. universal life A life insurance policy that is subject to a contract interest rate is referred to as
18. Average age Which of these factors would an insurer consider when determining whether
to accept a group life plan?
19. is eligible for cov- According to HIPAA, when an insured individual leaves an employer and imme-
erage upon hire diately begins working for a new company that offers group health insurance,
the individual
20. $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?
21. Guaranteed insur- Barbara's policy includes a rider which allows her to purchase additional insur-
ability rider ance at specific dates or events without evidence of insurability. This rider is
called a(n)
22. Pay age-corrected What is an insurer required to do when faced with an error made under the
benefits Misstatement of Age provision?
23. twisting The unfair trade practice of replacing an insurance policy from one insurer to
another based on misrepresentation is called
24. Life annuity Which type of annuity stops all payments upon the death of the annuitant?
25. liquidity An insurer's ability to make unpredictable payouts to policyowners is called
26. Exclusion Ratio The taxable portion of each annuity payment is calculated using which method?
, Final Exam - Michigan Life and Health EXAM (updated 2025) Questions
Answers | Latest Already Graded A+ UPDATE 2025|2026
27. adverse selection Group dental plans will frequently place a limit on annual benefits in order to
minimize
28. subrogation An insurer has the right to recover payment made to the insured from the
negligent party. These rights are called
29. The greater of the What will the beneficiary receive if an annuitant dies during the accumulation
accumulated cash period?
value or the total
premium paid
30. time deductible A disability elimination period is best described as a
31. have a legiti- An association wanting to buy insurance under a group health plan MUST
mate non-insur-
ance purpose
32. Talking In a Long-Term Care policy, activities of daily living (ADL's) can be each of the
following EXCEPT
33. Stock purchase All of the following are exempt from the 10% tax penalty for early qualified plan
withdrawals EXCEPT
34. represents the in- In the state of Michigan, a licensed producer
surer
35. Giving the insured Which of the following is NOT an illegal inducement?
an article of mer-
chandise printed
with the produc-
er's name costing
$5
