Ducks Unlimited Final tests with correct answers.
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)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 - (Answer)180 days
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 policy holders against
failure insolvent insurers
Controlled business - (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 __________. - (Answer)Rebating
,Ducks Unlimited Final tests with correct answers.
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
A producer has a fiduciary responsibility to all of the following: - (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? - (Answer)The
insurance product is not the producer's to barter; it belongs to the insured.
, Ducks Unlimited Final tests with correct answers.
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 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)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 - (Answer)180 days
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 policy holders against
failure insolvent insurers
Controlled business - (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 __________. - (Answer)Rebating
,Ducks Unlimited Final tests with correct answers.
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
A producer has a fiduciary responsibility to all of the following: - (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? - (Answer)The
insurance product is not the producer's to barter; it belongs to the insured.
, Ducks Unlimited Final tests with correct answers.
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
