1|Page
MICHIGAN LIFE, ACCIDENT, AND HEALTH EXAM
WITH COMPLETE QUESTIONS AND ANSWERS
LATEST 2026
The Commissioner of Insurance is appointed by the Governor for a term
of - CORRECT ANSWER = 4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - CORRECT ANSWER = Correct answer: C -
licensing of producers
A temporary license issued to close the affairs of a deceased producer
may be issued for up to _____ days at the discretion of the
Commissioner - CORRECT ANSWER = 180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
pg. 1
,2|Page
______ day grace period to complete CE - CORRECT ANSWER = 24 total
hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - CORRECT
ANSWER = Protects policy holders against failure insolvent insurers
Controlled business - CORRECT ANSWER = It is permitted provided it
does not exceed 15% of the premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer
promises a gift equal to 50% of the commission. This is an example of
__________. - CORRECT ANSWER = Rebating
Defamation - CORRECT ANSWER = A written statement that is false and
derogatory that is designed to injure someone's reputation.
The maximum fine for knowingly violating a cease and desist order is
$________ and __________________. - CORRECT ANSWER = $10,000
and possible license revocation
Insurance counselor - CORRECT ANSWER = Provides advice concerning
an insurance policy and charges a fee for that advice.
pg. 2
,3|Page
An applicant who has been denied an insurance license has _____ days
to request a hearing to protest the denial. - CORRECT ANSWER = 30
days
True / False
A producer may share commissions with another licensed producer -
CORRECT ANSWER = True
True / False
A producer may not share commissions with a licensed nonresident
producer - CORRECT ANSWER = False
If, after a hearing, the Commissioner believes a producer knowingly
violated insurance licensing laws, the Commissioner can: - CORRECT
ANSWER = Fine the producer a max of $2,500 per violation
A producer has a fiduciary responsibility to all of the following: -
CORRECT ANSWER = - Insured on cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods
and services? - CORRECT ANSWER = The insurance product is not the
producer's to barter; it belongs to the insured.
pg. 3
, 4|Page
How often must the Commissioner examine the books, records, and
documents of domestic insurers? - CORRECT ANSWER = At least once
every 5 years
A producer has _____ days to respond to charges of violating insurance
laws. - CORRECT ANSWER = 30 days.
If a producer is convicted of routinely misrepresenting benefits in
insurance policies, he may be fined up to $_______ for all violations. -
CORRECT ANSWER = $25,000
Under what type of policy does an insured have to be notified if current
policy values are insufficient to maintain the policy, given guaranteed
interest and expense rates? - CORRECT ANSWER = Universal Life
Insurance
An advertisement for a life insurance policy must include all of the
following: - CORRECT ANSWER = - information material to the
insurance policy
- a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an
insured to drop an existing policy and purchase a new policy is an
example of _____________. - CORRECT ANSWER = Twisting
pg. 4
MICHIGAN LIFE, ACCIDENT, AND HEALTH EXAM
WITH COMPLETE QUESTIONS AND ANSWERS
LATEST 2026
The Commissioner of Insurance is appointed by the Governor for a term
of - CORRECT ANSWER = 4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - CORRECT ANSWER = Correct answer: C -
licensing of producers
A temporary license issued to close the affairs of a deceased producer
may be issued for up to _____ days at the discretion of the
Commissioner - CORRECT ANSWER = 180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
pg. 1
,2|Page
______ day grace period to complete CE - CORRECT ANSWER = 24 total
hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - CORRECT
ANSWER = Protects policy holders against failure insolvent insurers
Controlled business - CORRECT ANSWER = It is permitted provided it
does not exceed 15% of the premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer
promises a gift equal to 50% of the commission. This is an example of
__________. - CORRECT ANSWER = Rebating
Defamation - CORRECT ANSWER = A written statement that is false and
derogatory that is designed to injure someone's reputation.
The maximum fine for knowingly violating a cease and desist order is
$________ and __________________. - CORRECT ANSWER = $10,000
and possible license revocation
Insurance counselor - CORRECT ANSWER = Provides advice concerning
an insurance policy and charges a fee for that advice.
pg. 2
,3|Page
An applicant who has been denied an insurance license has _____ days
to request a hearing to protest the denial. - CORRECT ANSWER = 30
days
True / False
A producer may share commissions with another licensed producer -
CORRECT ANSWER = True
True / False
A producer may not share commissions with a licensed nonresident
producer - CORRECT ANSWER = False
If, after a hearing, the Commissioner believes a producer knowingly
violated insurance licensing laws, the Commissioner can: - CORRECT
ANSWER = Fine the producer a max of $2,500 per violation
A producer has a fiduciary responsibility to all of the following: -
CORRECT ANSWER = - Insured on cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods
and services? - CORRECT ANSWER = The insurance product is not the
producer's to barter; it belongs to the insured.
pg. 3
, 4|Page
How often must the Commissioner examine the books, records, and
documents of domestic insurers? - CORRECT ANSWER = At least once
every 5 years
A producer has _____ days to respond to charges of violating insurance
laws. - CORRECT ANSWER = 30 days.
If a producer is convicted of routinely misrepresenting benefits in
insurance policies, he may be fined up to $_______ for all violations. -
CORRECT ANSWER = $25,000
Under what type of policy does an insured have to be notified if current
policy values are insufficient to maintain the policy, given guaranteed
interest and expense rates? - CORRECT ANSWER = Universal Life
Insurance
An advertisement for a life insurance policy must include all of the
following: - CORRECT ANSWER = - information material to the
insurance policy
- a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an
insured to drop an existing policy and purchase a new policy is an
example of _____________. - CORRECT ANSWER = Twisting
pg. 4
