MICHIGAN LIFE AND HEALTH INSURANCE
ACTUAL FINAL EXAM WITH 220
QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ ||MICHIGAN LIFE,
DEATH AND HEALTH INSURANCE LATEST
2024-2025 |GUARANTEED SUCCESS!!
The Commissioner of Insurance is appointed by the Governor for a term of -
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 - 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 - ANSWER-
180 days
A producer has a fiduciary responsibility to all of the following: - ANSWER- -
Insured on canceled 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?
- ANSWER- The insurance product is not the producers to barter; it belongs to the
insured.
How often must the Commissioner examine the books, records, and documents of
domestic insurers? - ANSWER- At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. -
ANSWER- 30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations. - 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? - ANSWER- Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: -
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
_____________. - ANSWER- Twisting
The minimum number of lives that must be covered under a group life insurance
policy in Michigan is ______. - ANSWER- 2 lives.
,The maximum life insurance policy loan interest that may be charged on a fixed-
interest loan is ______%. - ANSWER- 8%
In life insurance, all advertisements must be kept by the insurer for at least
________ months. - ANSWER- 48 months
The maximum life insurance policy loan interest that may be charged on an
adjustable rate loan is ______%. - ANSWER- 18%
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - ANSWER- 24 total hours every two
years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - ANSWER- Protects
policyholders against failure insolvent insurers
Controlled business - ANSWER- It is permitted provided it does not exceed 15%
of the premiums written in 12 months
To motivate a buyer to sign an insurance application, a producer promises a gift
equal to 50% of the commission. This is an example of __________. - ANSWER-
Rebating
, Defamation - 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 __________________. - ANSWER- $10,000 and possible license revocation
Insurance counselor - 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. - ANSWER- 30 days
True / False
A producer may share commissions with another licensed producer - ANSWER-
True
True / False
A producer may not share commissions with a licensed nonresident producer -
ANSWER- False
If, after a hearing, the Commissioner believes a producer knowingly violated
insurance licensing laws, the Commissioner can: - ANSWER- Fine the producer a
max of $2,500 per violation
True/ False
A long-term care policy can exclude all of the following:
- Alcoholism
ACTUAL FINAL EXAM WITH 220
QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ ||MICHIGAN LIFE,
DEATH AND HEALTH INSURANCE LATEST
2024-2025 |GUARANTEED SUCCESS!!
The Commissioner of Insurance is appointed by the Governor for a term of -
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 - 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 - ANSWER-
180 days
A producer has a fiduciary responsibility to all of the following: - ANSWER- -
Insured on canceled 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?
- ANSWER- The insurance product is not the producers to barter; it belongs to the
insured.
How often must the Commissioner examine the books, records, and documents of
domestic insurers? - ANSWER- At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. -
ANSWER- 30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations. - 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? - ANSWER- Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: -
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
_____________. - ANSWER- Twisting
The minimum number of lives that must be covered under a group life insurance
policy in Michigan is ______. - ANSWER- 2 lives.
,The maximum life insurance policy loan interest that may be charged on a fixed-
interest loan is ______%. - ANSWER- 8%
In life insurance, all advertisements must be kept by the insurer for at least
________ months. - ANSWER- 48 months
The maximum life insurance policy loan interest that may be charged on an
adjustable rate loan is ______%. - ANSWER- 18%
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - ANSWER- 24 total hours every two
years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - ANSWER- Protects
policyholders against failure insolvent insurers
Controlled business - ANSWER- It is permitted provided it does not exceed 15%
of the premiums written in 12 months
To motivate a buyer to sign an insurance application, a producer promises a gift
equal to 50% of the commission. This is an example of __________. - ANSWER-
Rebating
, Defamation - 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 __________________. - ANSWER- $10,000 and possible license revocation
Insurance counselor - 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. - ANSWER- 30 days
True / False
A producer may share commissions with another licensed producer - ANSWER-
True
True / False
A producer may not share commissions with a licensed nonresident producer -
ANSWER- False
If, after a hearing, the Commissioner believes a producer knowingly violated
insurance licensing laws, the Commissioner can: - ANSWER- Fine the producer a
max of $2,500 per violation
True/ False
A long-term care policy can exclude all of the following:
- Alcoholism
