INSURANCE FINAL EXAM 2025 GRADED A
WITH VERIFIED QUESTIONS AND
CORRECT ANSWERS
Which of the following is an example of a producer's Fiduciary duty? - CORRECT
ANSWER-Recording receipt and remittance of premiums due to the insurance
company
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is
tax deductible. Which of the following may be considered a medical expense under this rule? -
CORRECT ANSWER-Long Term Care Insurance premiums
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
CORRECT ANSWER-10 Days
Which of these annuities require premium payments that vary from year to year? - CORRECT
ANSWER-Flexible premium deferred annuity
A life insurance application may be backdated to - CORRECT ANSWER-Save on premiums
A life insurance policy that has premiums fully paid up within a stated time period is called -
CORRECT ANSWER-Limited payment insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - CORRECT ANSWER-During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
What types of life insurance are normally used for key employee indemnification? - CORRECT
ANSWER-term, whole, and universal life insurance
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions
EXCEPT? - CORRECT ANSWER-Require the producer to notify his/her clients
Underwriters can acquire information from all of the following sources EXCEPT - CORRECT ANSWER-
genetic testing
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - CORRECT
ANSWER-No tax payment needed
Which of the following provides Medicare supplement policies? - CORRECT ANSWER-Private
insurance companies
,A life insurance applicant in Michigan may backdate the applicant for up to
____ months - CORRECT ANSWER-6
A waiver of premium rider allows an insured to waive premium payments if the
insured is - CORRECT ANSWER-Completely and permanently disabled
Under Michigan Law, which of the following would NOT be considered an illegal
inducement? - CORRECT ANSWER-A promotional item with the producer's
name and address valued at $5.00
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is
tax deductible. Which of the following may be considered a medical expense under this rule? -
CORRECT ANSWER-Long Term Care Insurance premiums
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
CORRECT ANSWER-10 Days
Which of these annuities require premium payments that vary from year to year? - CORRECT
ANSWER-Flexible premium deferred annuity
A life insurance application may be backdated to - CORRECT ANSWER-Save on premiums
A life insurance policy that has premiums fully paid up within a stated time period is called -
CORRECT ANSWER-Limited payment insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - CORRECT ANSWER-During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
What types of life insurance are normally used for key employee indemnification? - CORRECT
ANSWER-term, whole, and universal life insurance
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions
EXCEPT? - CORRECT ANSWER-Require the producer to notify his/her clients
Underwriters can acquire information from all of the following sources EXCEPT - CORRECT ANSWER-
genetic testing
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - CORRECT
ANSWER-No tax payment needed
Which of the following provides Medicare supplement policies? - CORRECT ANSWER-Private
insurance companies
,In the state of Michigan, a licensed producer - CORRECT ANSWER-Represents
the insurer
A new born must be covered under an existing health insurance policy -
CORRECT ANSWER-at the moment of birth
All of the following are qualifications for establishing a health savings account
(HSA) EXCEPT - CORRECT ANSWER-Enrolled in a health plan with a prescription
drug benefit
A life insurance policy sold in Michigan may be contested by the insurer ONLY
during the first ____ year(s) of the contract. - CORRECT ANSWER-two
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is
tax deductible. Which of the following may be considered a medical expense under this rule? -
CORRECT ANSWER-Long Term Care Insurance premiums
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
CORRECT ANSWER-10 Days
Which of these annuities require premium payments that vary from year to year? - CORRECT
ANSWER-Flexible premium deferred annuity
A life insurance application may be backdated to - CORRECT ANSWER-Save on premiums
A life insurance policy that has premiums fully paid up within a stated time period is called -
CORRECT ANSWER-Limited payment insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - CORRECT ANSWER-During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
What types of life insurance are normally used for key employee indemnification? - CORRECT
ANSWER-term, whole, and universal life insurance
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions
EXCEPT? - CORRECT ANSWER-Require the producer to notify his/her clients
Underwriters can acquire information from all of the following sources EXCEPT - CORRECT ANSWER-
genetic testing
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - CORRECT
ANSWER-No tax payment needed
Which of the following provides Medicare supplement policies? - CORRECT ANSWER-Private
insurance companies
, Krissa purchases a 10-year level term life insurance policy that has a death
benefit of $200,000. Which of these statements is true? - CORRECT ANSWER-
The face amount and premium will remain constant over the 10-year period
Which of the following is considered to be an alternative to a life settlement? -
CORRECT ANSWER-Accelerated death benefit rider
Ted has a health insurance plan that requires him to pay a specific sum out of
pocket before any benefits are paid in a calendar year. Which of these does his
health plan have? - CORRECT ANSWER-Calendar-year deductible
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is
tax deductible. Which of the following may be considered a medical expense under this rule? -
CORRECT ANSWER-Long Term Care Insurance premiums
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
CORRECT ANSWER-10 Days
Which of these annuities require premium payments that vary from year to year? - CORRECT
ANSWER-Flexible premium deferred annuity
A life insurance application may be backdated to - CORRECT ANSWER-Save on premiums
A life insurance policy that has premiums fully paid up within a stated time period is called -
CORRECT ANSWER-Limited payment insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - CORRECT ANSWER-During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
What types of life insurance are normally used for key employee indemnification? - CORRECT
ANSWER-term, whole, and universal life insurance
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions
EXCEPT? - CORRECT ANSWER-Require the producer to notify his/her clients
Underwriters can acquire information from all of the following sources EXCEPT - CORRECT ANSWER-
genetic testing
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - CORRECT
ANSWER-No tax payment needed
Which of the following provides Medicare supplement policies? - CORRECT ANSWER-Private
insurance companies
WITH VERIFIED QUESTIONS AND
CORRECT ANSWERS
Which of the following is an example of a producer's Fiduciary duty? - CORRECT
ANSWER-Recording receipt and remittance of premiums due to the insurance
company
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is
tax deductible. Which of the following may be considered a medical expense under this rule? -
CORRECT ANSWER-Long Term Care Insurance premiums
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
CORRECT ANSWER-10 Days
Which of these annuities require premium payments that vary from year to year? - CORRECT
ANSWER-Flexible premium deferred annuity
A life insurance application may be backdated to - CORRECT ANSWER-Save on premiums
A life insurance policy that has premiums fully paid up within a stated time period is called -
CORRECT ANSWER-Limited payment insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - CORRECT ANSWER-During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
What types of life insurance are normally used for key employee indemnification? - CORRECT
ANSWER-term, whole, and universal life insurance
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions
EXCEPT? - CORRECT ANSWER-Require the producer to notify his/her clients
Underwriters can acquire information from all of the following sources EXCEPT - CORRECT ANSWER-
genetic testing
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - CORRECT
ANSWER-No tax payment needed
Which of the following provides Medicare supplement policies? - CORRECT ANSWER-Private
insurance companies
,A life insurance applicant in Michigan may backdate the applicant for up to
____ months - CORRECT ANSWER-6
A waiver of premium rider allows an insured to waive premium payments if the
insured is - CORRECT ANSWER-Completely and permanently disabled
Under Michigan Law, which of the following would NOT be considered an illegal
inducement? - CORRECT ANSWER-A promotional item with the producer's
name and address valued at $5.00
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is
tax deductible. Which of the following may be considered a medical expense under this rule? -
CORRECT ANSWER-Long Term Care Insurance premiums
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
CORRECT ANSWER-10 Days
Which of these annuities require premium payments that vary from year to year? - CORRECT
ANSWER-Flexible premium deferred annuity
A life insurance application may be backdated to - CORRECT ANSWER-Save on premiums
A life insurance policy that has premiums fully paid up within a stated time period is called -
CORRECT ANSWER-Limited payment insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - CORRECT ANSWER-During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
What types of life insurance are normally used for key employee indemnification? - CORRECT
ANSWER-term, whole, and universal life insurance
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions
EXCEPT? - CORRECT ANSWER-Require the producer to notify his/her clients
Underwriters can acquire information from all of the following sources EXCEPT - CORRECT ANSWER-
genetic testing
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - CORRECT
ANSWER-No tax payment needed
Which of the following provides Medicare supplement policies? - CORRECT ANSWER-Private
insurance companies
,In the state of Michigan, a licensed producer - CORRECT ANSWER-Represents
the insurer
A new born must be covered under an existing health insurance policy -
CORRECT ANSWER-at the moment of birth
All of the following are qualifications for establishing a health savings account
(HSA) EXCEPT - CORRECT ANSWER-Enrolled in a health plan with a prescription
drug benefit
A life insurance policy sold in Michigan may be contested by the insurer ONLY
during the first ____ year(s) of the contract. - CORRECT ANSWER-two
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is
tax deductible. Which of the following may be considered a medical expense under this rule? -
CORRECT ANSWER-Long Term Care Insurance premiums
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
CORRECT ANSWER-10 Days
Which of these annuities require premium payments that vary from year to year? - CORRECT
ANSWER-Flexible premium deferred annuity
A life insurance application may be backdated to - CORRECT ANSWER-Save on premiums
A life insurance policy that has premiums fully paid up within a stated time period is called -
CORRECT ANSWER-Limited payment insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - CORRECT ANSWER-During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
What types of life insurance are normally used for key employee indemnification? - CORRECT
ANSWER-term, whole, and universal life insurance
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions
EXCEPT? - CORRECT ANSWER-Require the producer to notify his/her clients
Underwriters can acquire information from all of the following sources EXCEPT - CORRECT ANSWER-
genetic testing
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - CORRECT
ANSWER-No tax payment needed
Which of the following provides Medicare supplement policies? - CORRECT ANSWER-Private
insurance companies
, Krissa purchases a 10-year level term life insurance policy that has a death
benefit of $200,000. Which of these statements is true? - CORRECT ANSWER-
The face amount and premium will remain constant over the 10-year period
Which of the following is considered to be an alternative to a life settlement? -
CORRECT ANSWER-Accelerated death benefit rider
Ted has a health insurance plan that requires him to pay a specific sum out of
pocket before any benefits are paid in a calendar year. Which of these does his
health plan have? - CORRECT ANSWER-Calendar-year deductible
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is
tax deductible. Which of the following may be considered a medical expense under this rule? -
CORRECT ANSWER-Long Term Care Insurance premiums
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
CORRECT ANSWER-10 Days
Which of these annuities require premium payments that vary from year to year? - CORRECT
ANSWER-Flexible premium deferred annuity
A life insurance application may be backdated to - CORRECT ANSWER-Save on premiums
A life insurance policy that has premiums fully paid up within a stated time period is called -
CORRECT ANSWER-Limited payment insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - CORRECT ANSWER-During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
What types of life insurance are normally used for key employee indemnification? - CORRECT
ANSWER-term, whole, and universal life insurance
Upon finding a producer guilty of forgery, the Commissioner may take all of the following actions
EXCEPT? - CORRECT ANSWER-Require the producer to notify his/her clients
Underwriters can acquire information from all of the following sources EXCEPT - CORRECT ANSWER-
genetic testing
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - CORRECT
ANSWER-No tax payment needed
Which of the following provides Medicare supplement policies? - CORRECT ANSWER-Private
insurance companies
