FINAL EXAM-MICHIGAN LIFE AND HEALTH STUDY GUIDE LATEST
VERSION QUESTIONS AND CORRECT ANSWERS A GRADE SCORE
SOLUTION
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
VERSION QUESTIONS AND CORRECT ANSWERS A GRADE SCORE
SOLUTION
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
