Michigan Life, Accident, and Health
Exam Questions And Answers
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
______ day grace period to complete CE - correct answer ✅24 total
hours every two years
3 hours in ethics
90 day grace period
,Michigan Life, Accident, and Health
Exam Questions And Answers
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.
An applicant who has been denied an insurance license has _____ days
to request a hearing to protest the denial. - correct answer ✅30 days
,Michigan Life, Accident, and Health
Exam Questions And Answers
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.
, Michigan Life, Accident, and Health
Exam Questions And Answers
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
Exam Questions And Answers
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
______ day grace period to complete CE - correct answer ✅24 total
hours every two years
3 hours in ethics
90 day grace period
,Michigan Life, Accident, and Health
Exam Questions And Answers
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.
An applicant who has been denied an insurance license has _____ days
to request a hearing to protest the denial. - correct answer ✅30 days
,Michigan Life, Accident, and Health
Exam Questions And Answers
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.
, Michigan Life, Accident, and Health
Exam Questions And Answers
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
