Michigan Life, Accident, and Health
Exam Questions and Answers 100%
Pass
Retirement income annuity - ✔✔Deferred annuity with a decreasing term life insurance
rider. A retirement income annuity provides both a death benefit (with a decreasing
term rider) and the annuity's surrender value if the annuitant dies before retirement.
What type of eligible groups for health insurance consists of 2 or more employers or
labor unions? - ✔✔MET and MEWA. Multiple employer trusts and multiplier employer
welfare arrangements consist of 2 or more employers or labor unions seeking group
health insurance coverage.
An underwriter will consider which of the following conditions in making their
decision to approve an application for insurance? - ✔✔A condition that occurs prior to
making an application for insurance.
An underwriter should be informed about any conditions that existed prior to an
application for insurance.
Katelyn Whitman, All Rights Reserved © 2025 1
,Field underwriting is primarily useful to: - ✔✔Make observations that could impact
insurability.
The primary value of field underwriting, is that the agent has the opportunity to view
the applicant in his/her surroundings, in person, and make observations regarding
insurability and perhaps class of risk (i.e. is the applicant obese, does he/she have any
obvious dangerous hobbies, does he/she smoke).
Which of the following is a benefit of a prescription drug policy? - ✔✔Prescriptions are
for a set, lower price.
Under a prescription policy, prescription drugs are not only at a set price, but a much
lower price - usually $2, $3, or $5, regardless of the actual cost of the drug.
For a non-contributory plan, how many of the employees must be offered coverage
under the group? - ✔✔100%
A non-contributory plan is based on the employer paying the full cost of the program,
which means 100% of the employees are covered.
Katelyn Whitman, All Rights Reserved © 2025 2
,Any of the following is considered advertising for a health insurance company,
EXCEPT: - ✔✔Morbidity tables
Morbidity tables are used to determine rates for health products.
Which of the following is not an element of the nonforfeiture value of a whole life
insurance policy? - ✔✔Cash withdrawn does not reduce the face value of the life policy.
Cash withdrawn from a whole life policy DOES reduce the face value of the policy as
well as the cash value of the policy.
When the only logical beneficiary is a minor, all of the following options are available,
EXCEPT: - ✔✔The benefits can go directly to the estate of the insured.
In the event that the only logical beneficiary for a life policy is a minor, the guardian,
trust and insurance company holding the proceeds are all options available.
Steven currently earns $50,000 annually. He has calculated that he should have
approximately $1,500,000 in life insurance to be sure his family is guaranteed the
lifestyle he would provide if he dies. This approach is called: - ✔✔Human life value.
Katelyn Whitman, All Rights Reserved © 2025 3
, While there is not specific way to determine the worth of one life, using the income one
may earn over the course of ones life is one approach.
When completing an application for insurance, an agent is allowed to do which of the
following: - ✔✔Witness the applicants signature.
The agent must be present to witness signatures. The other actions are either prohibited
or functions for others in the underwriting process.
A person becomes eligible for Medicare when: - ✔✔Part A is automatic for all persons
reaching Age 65.
When a person reaches age 65, they become eligible for Medicare part A, even if they
continue to work.
Collin intentionally surrendered a right on his contract known as waiver. What
prevented him from reclaiming the right? - ✔✔Estoppel.
Waiver is voluntarily surrendering a right, and estoppel is the legal process preventing
the reclaiming of that right.
Which of the following is usually the owner of the annuity? - ✔✔The annuitant.
Katelyn Whitman, All Rights Reserved © 2025 4
Exam Questions and Answers 100%
Pass
Retirement income annuity - ✔✔Deferred annuity with a decreasing term life insurance
rider. A retirement income annuity provides both a death benefit (with a decreasing
term rider) and the annuity's surrender value if the annuitant dies before retirement.
What type of eligible groups for health insurance consists of 2 or more employers or
labor unions? - ✔✔MET and MEWA. Multiple employer trusts and multiplier employer
welfare arrangements consist of 2 or more employers or labor unions seeking group
health insurance coverage.
An underwriter will consider which of the following conditions in making their
decision to approve an application for insurance? - ✔✔A condition that occurs prior to
making an application for insurance.
An underwriter should be informed about any conditions that existed prior to an
application for insurance.
Katelyn Whitman, All Rights Reserved © 2025 1
,Field underwriting is primarily useful to: - ✔✔Make observations that could impact
insurability.
The primary value of field underwriting, is that the agent has the opportunity to view
the applicant in his/her surroundings, in person, and make observations regarding
insurability and perhaps class of risk (i.e. is the applicant obese, does he/she have any
obvious dangerous hobbies, does he/she smoke).
Which of the following is a benefit of a prescription drug policy? - ✔✔Prescriptions are
for a set, lower price.
Under a prescription policy, prescription drugs are not only at a set price, but a much
lower price - usually $2, $3, or $5, regardless of the actual cost of the drug.
For a non-contributory plan, how many of the employees must be offered coverage
under the group? - ✔✔100%
A non-contributory plan is based on the employer paying the full cost of the program,
which means 100% of the employees are covered.
Katelyn Whitman, All Rights Reserved © 2025 2
,Any of the following is considered advertising for a health insurance company,
EXCEPT: - ✔✔Morbidity tables
Morbidity tables are used to determine rates for health products.
Which of the following is not an element of the nonforfeiture value of a whole life
insurance policy? - ✔✔Cash withdrawn does not reduce the face value of the life policy.
Cash withdrawn from a whole life policy DOES reduce the face value of the policy as
well as the cash value of the policy.
When the only logical beneficiary is a minor, all of the following options are available,
EXCEPT: - ✔✔The benefits can go directly to the estate of the insured.
In the event that the only logical beneficiary for a life policy is a minor, the guardian,
trust and insurance company holding the proceeds are all options available.
Steven currently earns $50,000 annually. He has calculated that he should have
approximately $1,500,000 in life insurance to be sure his family is guaranteed the
lifestyle he would provide if he dies. This approach is called: - ✔✔Human life value.
Katelyn Whitman, All Rights Reserved © 2025 3
, While there is not specific way to determine the worth of one life, using the income one
may earn over the course of ones life is one approach.
When completing an application for insurance, an agent is allowed to do which of the
following: - ✔✔Witness the applicants signature.
The agent must be present to witness signatures. The other actions are either prohibited
or functions for others in the underwriting process.
A person becomes eligible for Medicare when: - ✔✔Part A is automatic for all persons
reaching Age 65.
When a person reaches age 65, they become eligible for Medicare part A, even if they
continue to work.
Collin intentionally surrendered a right on his contract known as waiver. What
prevented him from reclaiming the right? - ✔✔Estoppel.
Waiver is voluntarily surrendering a right, and estoppel is the legal process preventing
the reclaiming of that right.
Which of the following is usually the owner of the annuity? - ✔✔The annuitant.
Katelyn Whitman, All Rights Reserved © 2025 4
