Michigan Life and Health Final Exam
With Practice Questions And Correct
Answers||Latest Exam||Graded A+
What amount will be paid under a policy where the insured misstated his/her age? -
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 -ANSWER 30 days
which of these is considered to be a Living benefit option in a life insurance policy -
ANSWER Accelerated death benefit
loans obtained by a policy owner against the cash value of a life insurance policy -
ANSWER would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT -
ANSWER acute care
the elimination period under a hospital indemnity plan is -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? -ANSWER Period of time after the premium
is due but the policy remains in force
How do interest earnings accumulate in a deferred annuity -ANSWER On a tax-deferred
basis
a licensee who is required to take continuing education Must include how many ethics
coursework hours -ANSWER 3
the automatic premium loan provision authorizes an insurer to withdraw from a policy's
cash value the amount of -ANSWER Past due premiums that have not been paid by the
end of the grace period
health insurance involves two perils, accident and ______ -ANSWER sickness
Who is responsible for assembling the policy forms for insureds -ANSWER Insurance
carriers
a securities license is required for a life insurance producer to sell -ANSWER variable life
insurance
,Which of the following is NOT an illegal inducement -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? -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? -ANSWER Accumulation at interest option
a health insurance policy will typically cover -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?
-ANSWER Disability income rider
in addition to the actual policy, an entire contract includes which of the following? -
ANSWER the application
field underwriting preformed by the producer involves -ANSWER completing the
application and collecting initial premium
Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? -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 $10,000 benefit be
taxable as income under this plan? -ANSWER 0$
-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? -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? -ANSWER An inflation protection feature
What is the primary factor that determines the benefits paid under a disability income
policy? -ANSWER Wages
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? -
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? -
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 -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? -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? -ANSWER Change of
occupation provision
The unfair trade practice of replacing an insurance policy from one insurer to another
based on misrepresentation is called? -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? -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? -ANSWER Last Survivor Life Insurance
Which of these premium payment frequencies is not typically available to a
policyowner? -ANSWER Bi-weekly
Variable life insurance and Universal life insurance are very similar. Which of these
features are held exclusively by variable universal life insurance? -ANSWER
Policyowner has the right to select the investment which will provide the greatest return
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 investigation
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? -ANSWER Endowment Policy
According to the Michigan Insurance Code, which of the following MUST a producer do
when replacing a Life Insurance Policy? -ANSWER Submit to the replacing insurer a list
of all Life Insurance policies or annuity contracts proposed to be replaced
With Practice Questions And Correct
Answers||Latest Exam||Graded A+
What amount will be paid under a policy where the insured misstated his/her age? -
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 -ANSWER 30 days
which of these is considered to be a Living benefit option in a life insurance policy -
ANSWER Accelerated death benefit
loans obtained by a policy owner against the cash value of a life insurance policy -
ANSWER would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT -
ANSWER acute care
the elimination period under a hospital indemnity plan is -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? -ANSWER Period of time after the premium
is due but the policy remains in force
How do interest earnings accumulate in a deferred annuity -ANSWER On a tax-deferred
basis
a licensee who is required to take continuing education Must include how many ethics
coursework hours -ANSWER 3
the automatic premium loan provision authorizes an insurer to withdraw from a policy's
cash value the amount of -ANSWER Past due premiums that have not been paid by the
end of the grace period
health insurance involves two perils, accident and ______ -ANSWER sickness
Who is responsible for assembling the policy forms for insureds -ANSWER Insurance
carriers
a securities license is required for a life insurance producer to sell -ANSWER variable life
insurance
,Which of the following is NOT an illegal inducement -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? -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? -ANSWER Accumulation at interest option
a health insurance policy will typically cover -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?
-ANSWER Disability income rider
in addition to the actual policy, an entire contract includes which of the following? -
ANSWER the application
field underwriting preformed by the producer involves -ANSWER completing the
application and collecting initial premium
Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? -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 $10,000 benefit be
taxable as income under this plan? -ANSWER 0$
-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? -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? -ANSWER An inflation protection feature
What is the primary factor that determines the benefits paid under a disability income
policy? -ANSWER Wages
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? -
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? -
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 -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? -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? -ANSWER Change of
occupation provision
The unfair trade practice of replacing an insurance policy from one insurer to another
based on misrepresentation is called? -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? -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? -ANSWER Last Survivor Life Insurance
Which of these premium payment frequencies is not typically available to a
policyowner? -ANSWER Bi-weekly
Variable life insurance and Universal life insurance are very similar. Which of these
features are held exclusively by variable universal life insurance? -ANSWER
Policyowner has the right to select the investment which will provide the greatest return
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 investigation
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? -ANSWER Endowment Policy
According to the Michigan Insurance Code, which of the following MUST a producer do
when replacing a Life Insurance Policy? -ANSWER Submit to the replacing insurer a list
of all Life Insurance policies or annuity contracts proposed to be replaced
