MICHIGAN LIFE AND HEALTH
INSURANCE EXAM QUESTIONS
AND ANSWERS
Insured - Answer- The person or organization that is protected by insurance the party to
be indemnified
Insurer - Answer- An entity that indemnifies against losses, provides benefits, or renders
services (also known as "company" or "insurance company").
Insuring Clause - Answer- A general statement that identifies the basic agreement
between the insurance company and the insured, usually located on the first page of the
policy.
Integrated LTC Rider - Answer- A rider that is added to a life insurance policy to pay
long-term care benefits. The amount of benefits available for LTC depends upon the life
insurance benefits available; however, the benefits paid toward LTC will reduce the life
insurance policy's benefits.
intentional injury - Answer- An act that is intended to cause injury. Self-inflicted injuries
are not covered under accident insurance; intentional injuries inflicted on the insured by
another are covered.
Intermediaries - Answer- Organization that processes Inpatient outpatient claims on
individuals by hospitals, skilled nursing facilities, home health agencies hospices in
certain other providers at of the health insurance
Investigative Consumer Report - Answer- Similar to consumer reports in that they also
provide information on the consumer's character, reputation, and habits.
Issue Age - Answer- The individual's age when a policy is issued.
Joint Life - Answer- A single policy that is designed to insure two or more lives.
Juvenile Life - Answer- Any life insurance written on the life of a minor.
lapse - Answer- Termination of policy, because the premium has not been paid by the
end of the grace period
,Law of Large Numbers - Answer- A principal, stating that the larger of the number of
similar exposure units considered the more closely the loss is reportable equal the
underlying probability of loss
legal reserves - Answer- The accounting measurement of the ensures future obligation
to pay claims to the policy owners
Level Premium - Answer- A policy premium that remains the same over the period of
time premiums are paid.
life expectancy - Answer- Average number of years remaining for person I've given age
to live as shown on the mortality table
Limited Pay Whole Life - Answer- A variation of whole life insurance that charges a level
annual premium and provides a level, guaranteed death benefit to the insured's age 100
and will endow for the face amount if the insured lives to age 100. Limited-pay life is
designed so that the premiums for coverage will be completely paid-up well before age
100.
Limited Policies - Answer- Health insurance policies that cover only specific accidents or
diseases.
limiting charge - Answer- The maximum amount a physician may charge a Medicare
beneficiary for a covered service if the physician does not accept assignment of the
Medicare approved amount.
liquidation - Answer- Selling assets as a method of raising capital
Living Benefits Rider - Answer- A rider attached to a life insurance policy that provides
LTC benefits or benefits for the terminally ill by using available life insurance benefits.
Lloyds associations - Answer- Organizations that provide support facilities for
underwriters or groups of individuals that accept insurance risk.
Loan value - Answer- The amount of money in insured can borrow using the cash value
of his/her life insurance policy as collateral
long term care - Answer- Health and social services provided under the supervision of
physical and medical health professionals for persons with chronic disease or
disabilities. Care is usually provided in a long-term care facility, which is a state licenses
facility to provides services.
Long-Term Disability Insurance - Answer- A type of individual or group insurance that
provides coverage for illness until the insured reaches age 65 and for life in the case of
an accident.
, loss - Answer- The reduction decrease or disappearance of value of the person or
property insured in a policy by peril insured against
Loss of Income Insurance - Answer- Insurance that pays benefits for inability to work
because of disability resulting from accidental bodily injury or sickness.
lump sum - Answer- Settlement method that pays the beneficiary the entire proceeds of
a life insurance policy in one payment rather than in installments.
Major Medical Insurance - Answer- A type of health insurance that usually carries a
large deductible and pays covered expenses up to a high limit whether the insured is in
or out of the hospital.
maturity date - Answer- The date, when the face amount of the life insurance becomes
payable
Medicaid - Answer- Medical benefits program jointly administered by the individual
states and federal government
Medical Expense Insurance - Answer- A type of insurance that pays benefits for
medical, surgical, and hospital costs.
Medical Information Bureau (MIB) - Answer- An information database that stores the
health histories of individuals who have applied for insurance in the past. Most
insurance companies subscribe to this database for underwriting purposes.
Medical savings account - Answer- An employer-funded account linked to a high
deductible medical insurance plan.
Medigap - Answer- Medicare supplement plans issued by private insurance companies
that are designed to fill some of the gaps in Medicare.
Misrepresentation - Answer- A false statement or lie that can render the contract void.
Mode of Payment - Answer- The method of premium payment, whether annually,
semiannually, quarterly, or monthly.
morbidity rate - Answer- The ratio of the incidence of sickness to the number of wealth
persons in a given group of people over period of time
Morbidity Table - Answer- A table showing the incidence of sickness at specified ages.
mortality table - Answer- A table showing the probability of death at specified ages.
INSURANCE EXAM QUESTIONS
AND ANSWERS
Insured - Answer- The person or organization that is protected by insurance the party to
be indemnified
Insurer - Answer- An entity that indemnifies against losses, provides benefits, or renders
services (also known as "company" or "insurance company").
Insuring Clause - Answer- A general statement that identifies the basic agreement
between the insurance company and the insured, usually located on the first page of the
policy.
Integrated LTC Rider - Answer- A rider that is added to a life insurance policy to pay
long-term care benefits. The amount of benefits available for LTC depends upon the life
insurance benefits available; however, the benefits paid toward LTC will reduce the life
insurance policy's benefits.
intentional injury - Answer- An act that is intended to cause injury. Self-inflicted injuries
are not covered under accident insurance; intentional injuries inflicted on the insured by
another are covered.
Intermediaries - Answer- Organization that processes Inpatient outpatient claims on
individuals by hospitals, skilled nursing facilities, home health agencies hospices in
certain other providers at of the health insurance
Investigative Consumer Report - Answer- Similar to consumer reports in that they also
provide information on the consumer's character, reputation, and habits.
Issue Age - Answer- The individual's age when a policy is issued.
Joint Life - Answer- A single policy that is designed to insure two or more lives.
Juvenile Life - Answer- Any life insurance written on the life of a minor.
lapse - Answer- Termination of policy, because the premium has not been paid by the
end of the grace period
,Law of Large Numbers - Answer- A principal, stating that the larger of the number of
similar exposure units considered the more closely the loss is reportable equal the
underlying probability of loss
legal reserves - Answer- The accounting measurement of the ensures future obligation
to pay claims to the policy owners
Level Premium - Answer- A policy premium that remains the same over the period of
time premiums are paid.
life expectancy - Answer- Average number of years remaining for person I've given age
to live as shown on the mortality table
Limited Pay Whole Life - Answer- A variation of whole life insurance that charges a level
annual premium and provides a level, guaranteed death benefit to the insured's age 100
and will endow for the face amount if the insured lives to age 100. Limited-pay life is
designed so that the premiums for coverage will be completely paid-up well before age
100.
Limited Policies - Answer- Health insurance policies that cover only specific accidents or
diseases.
limiting charge - Answer- The maximum amount a physician may charge a Medicare
beneficiary for a covered service if the physician does not accept assignment of the
Medicare approved amount.
liquidation - Answer- Selling assets as a method of raising capital
Living Benefits Rider - Answer- A rider attached to a life insurance policy that provides
LTC benefits or benefits for the terminally ill by using available life insurance benefits.
Lloyds associations - Answer- Organizations that provide support facilities for
underwriters or groups of individuals that accept insurance risk.
Loan value - Answer- The amount of money in insured can borrow using the cash value
of his/her life insurance policy as collateral
long term care - Answer- Health and social services provided under the supervision of
physical and medical health professionals for persons with chronic disease or
disabilities. Care is usually provided in a long-term care facility, which is a state licenses
facility to provides services.
Long-Term Disability Insurance - Answer- A type of individual or group insurance that
provides coverage for illness until the insured reaches age 65 and for life in the case of
an accident.
, loss - Answer- The reduction decrease or disappearance of value of the person or
property insured in a policy by peril insured against
Loss of Income Insurance - Answer- Insurance that pays benefits for inability to work
because of disability resulting from accidental bodily injury or sickness.
lump sum - Answer- Settlement method that pays the beneficiary the entire proceeds of
a life insurance policy in one payment rather than in installments.
Major Medical Insurance - Answer- A type of health insurance that usually carries a
large deductible and pays covered expenses up to a high limit whether the insured is in
or out of the hospital.
maturity date - Answer- The date, when the face amount of the life insurance becomes
payable
Medicaid - Answer- Medical benefits program jointly administered by the individual
states and federal government
Medical Expense Insurance - Answer- A type of insurance that pays benefits for
medical, surgical, and hospital costs.
Medical Information Bureau (MIB) - Answer- An information database that stores the
health histories of individuals who have applied for insurance in the past. Most
insurance companies subscribe to this database for underwriting purposes.
Medical savings account - Answer- An employer-funded account linked to a high
deductible medical insurance plan.
Medigap - Answer- Medicare supplement plans issued by private insurance companies
that are designed to fill some of the gaps in Medicare.
Misrepresentation - Answer- A false statement or lie that can render the contract void.
Mode of Payment - Answer- The method of premium payment, whether annually,
semiannually, quarterly, or monthly.
morbidity rate - Answer- The ratio of the incidence of sickness to the number of wealth
persons in a given group of people over period of time
Morbidity Table - Answer- A table showing the incidence of sickness at specified ages.
mortality table - Answer- A table showing the probability of death at specified ages.
