MICHIGAN LIFE INSURANCE
STATE EXAM QUESTIONS AND
ANSWERS
When two or more health insurance plans cover a claimant, the order in which the plans
will pay benefits depends on all of the following factors except: - Answer- Whether the
incontestable period has expired
John's child must have his teeth straightened. Is group dental policy covers 60% of
orthodontic care, 100% if endodontic cars, and 75% if periodontal care. What percent of
cost will the insurer pay for the child's care? - Answer- 60%
Elimination periods usually arise in the context of what type of policies? - Answer-
Disability insurance and long-term care insurance policies
By submitting a life insurance application without the first premium, applicant Larry is
doing which of the following? - Answer- Inviting the insurer to make an offer
In calculating their mortality charges, Life insurers today generally use: - Answer- The
2001 CSO table
To determine how much life insurance a person needs, an agent will examine the
individuals current income, assets and liabilities, goals, current expenses, and risk
profile. What is this approach to determining the right amount of life insurance called? -
Answer- The needs approach
Joahnna has a traditional medical expense insurance policy. She pays each health-care
provider for services rendered, and the insurer reimburses her for the cost incurred.
What type of policy is this? - Answer- Free-for-service
Under which of the following types of life insurance policies does an insured have the
right to determine the amount and frequency of premium payments in the face value of
the policy? - Answer- Universal life insurance
Which of the following parties to a deferred annuity contract has the right to decide on
the contract's annuitization date? - Answer- The annuity owner
A life insurance policy dividend is: - Answer- An amount returned to a policy owner out
of an insurance companies surplus funds, effectively representing unused premiums
, Dolores is planning to buy a deferred annuity. When can she select a settlement option?
- Answer- She can choose the settlement option when the deferred contract annuitized
or when she buys the annuity.
Beside surrendering policy for its cash value, what is the only other non-forfeiture option
available to a policy owner when a universal life (UL) Insurance policy lapses or is
surrendered? - Answer- Continue coverage as long as the cash value will support it
In converting a term life insurance policy to a permanent policy, the premium for the
permanent policy is determined on what basis? - Answer- Either the attained age basis
or original age basis
Angelina is the beneficiary of her mothers group life insurance policy. At her mothers
death, Angelina decides to receive the proceeds under a life with term certain
settlement option. Which portion of the benefit payments, if any, Will be subject to
taxation? - Answer- The portion representing the interest on the death proceeds is
taxable
BBC Corporation employs 300 workers and offers a group health insurance plan for its
eligible employees. Although the plan may exclude a pre-existing conditions from
coverage, must cover them up within how many months after the effective date of
coverage? - Answer- 6 months
The basic purpose of a two-tiered fixed annuity is to: - Answer- Reward owners who
annuitize their a deferred annuity with a higher rate of interest than those who surrender
their annuity or take periodic withdrawals.
Under the integrated option of a long-term care rider the beneficiary receives the
remainder of the face amount as the death benefit at the insured's death. In this way,
the long-term care integrated option is similar to which of the following? - Answer- An
accelerated benefit rider
Many payees worry about using the straight life income option because they know that if
they die after receiving only a single income payment, The insurer makes no further
payment. To address this concern, The insurance industry created which of the
following? - Answer- Life income settlement options guaranteeing that a certain
minimum number of payments will be made or a specific minimum amount will be paid
If the insured under a life insurance policy commits suicide three years after the policy
was issued, what will be done with the insurers response - Answer- The full death
benefit will be paid
Which statement about maximum benefit periods in disability income policies is not
correct? - Answer- Benefit periods In short-term disability income policies are limited to
five years
STATE EXAM QUESTIONS AND
ANSWERS
When two or more health insurance plans cover a claimant, the order in which the plans
will pay benefits depends on all of the following factors except: - Answer- Whether the
incontestable period has expired
John's child must have his teeth straightened. Is group dental policy covers 60% of
orthodontic care, 100% if endodontic cars, and 75% if periodontal care. What percent of
cost will the insurer pay for the child's care? - Answer- 60%
Elimination periods usually arise in the context of what type of policies? - Answer-
Disability insurance and long-term care insurance policies
By submitting a life insurance application without the first premium, applicant Larry is
doing which of the following? - Answer- Inviting the insurer to make an offer
In calculating their mortality charges, Life insurers today generally use: - Answer- The
2001 CSO table
To determine how much life insurance a person needs, an agent will examine the
individuals current income, assets and liabilities, goals, current expenses, and risk
profile. What is this approach to determining the right amount of life insurance called? -
Answer- The needs approach
Joahnna has a traditional medical expense insurance policy. She pays each health-care
provider for services rendered, and the insurer reimburses her for the cost incurred.
What type of policy is this? - Answer- Free-for-service
Under which of the following types of life insurance policies does an insured have the
right to determine the amount and frequency of premium payments in the face value of
the policy? - Answer- Universal life insurance
Which of the following parties to a deferred annuity contract has the right to decide on
the contract's annuitization date? - Answer- The annuity owner
A life insurance policy dividend is: - Answer- An amount returned to a policy owner out
of an insurance companies surplus funds, effectively representing unused premiums
, Dolores is planning to buy a deferred annuity. When can she select a settlement option?
- Answer- She can choose the settlement option when the deferred contract annuitized
or when she buys the annuity.
Beside surrendering policy for its cash value, what is the only other non-forfeiture option
available to a policy owner when a universal life (UL) Insurance policy lapses or is
surrendered? - Answer- Continue coverage as long as the cash value will support it
In converting a term life insurance policy to a permanent policy, the premium for the
permanent policy is determined on what basis? - Answer- Either the attained age basis
or original age basis
Angelina is the beneficiary of her mothers group life insurance policy. At her mothers
death, Angelina decides to receive the proceeds under a life with term certain
settlement option. Which portion of the benefit payments, if any, Will be subject to
taxation? - Answer- The portion representing the interest on the death proceeds is
taxable
BBC Corporation employs 300 workers and offers a group health insurance plan for its
eligible employees. Although the plan may exclude a pre-existing conditions from
coverage, must cover them up within how many months after the effective date of
coverage? - Answer- 6 months
The basic purpose of a two-tiered fixed annuity is to: - Answer- Reward owners who
annuitize their a deferred annuity with a higher rate of interest than those who surrender
their annuity or take periodic withdrawals.
Under the integrated option of a long-term care rider the beneficiary receives the
remainder of the face amount as the death benefit at the insured's death. In this way,
the long-term care integrated option is similar to which of the following? - Answer- An
accelerated benefit rider
Many payees worry about using the straight life income option because they know that if
they die after receiving only a single income payment, The insurer makes no further
payment. To address this concern, The insurance industry created which of the
following? - Answer- Life income settlement options guaranteeing that a certain
minimum number of payments will be made or a specific minimum amount will be paid
If the insured under a life insurance policy commits suicide three years after the policy
was issued, what will be done with the insurers response - Answer- The full death
benefit will be paid
Which statement about maximum benefit periods in disability income policies is not
correct? - Answer- Benefit periods In short-term disability income policies are limited to
five years
