MICHIGAN LIFE AND HEALTH EXAM
2025 QUESTIONS AND ANSWERS
Insurable interest does NOT occur in which of the following relationships? - ANS business
owner and business client
an applicant intentionally lying to an insurance company on an application in order to obtain a
cheaper premium is an example of? - ANS fraud
under which circumstance may a deferred insurance commission be paid to an individual -
ANS individual was licensed producer at the time of the sale
An annuitant dies during the distribution period. What kind of annuity will return to a
beneficiary the difference between the annuity value and the income payments already made?
- ANS refund annuity
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This
transaction is called a(n) - ANS 1035 exchange
a life insurance application may be backdated to - ANS save on premiums
Newborn coverage under health insurance policies MUST include coverage for - ANS birth
abnormalities
1 @COPYRIGHT THESTAR 2025/2026
,When a preferred provider organization (PPO) insured goes out-of-network, which of the
following actions occur? - ANS the insurer will pay a reduced amount
under the consolidated omnibus budget reconciliation act (COBRA), a terminated employee's
benefits must - ANS be the same and the premium cannot exceed 102%
A baby is born to a husband and wife covered under a family accident and health insurance
policy. If the newborn is covered at birth, the first payment for the additional coverage would
become due in days. - ANS 31 days
Sonya applied for a health insurance policy on April 1. Her agent submitted the information to
the insurance company on April 6. She paid the premium on May 15 with the policy indicating
the effective date being May 30. On which date would Sonya have coverage? - ANS May 30
What is an insurer required to do when faced with an error made under the Misstatement of
Age provision? - ANS Pay age-corrected benefits
An insurer would be committing Unfair Discrimination if coverage was denied based upon -
ANS marital status
A life insurance policyowner was injured in an automobile accident which results in a total and
permanent disability. Which rider would pay a monthly amount because of this disability? -
ANS Disability income rider
_____ is NOT an element of a valid contract - ANS countersignature
Which of the following is NOT a valid reason for an insurer to refuse renewal of a small
employer group plan? - ANS claims were higher than expected
2 @COPYRIGHT THESTAR 2025/2026
, Upon finding a producer guilty of forgery, the commissioner may take all of the following
actions EXCEPT - ANS Require the producer to notify his/her clients
An endorsement found in an insurance plan which modifies the provisions of the policy is called
a(n) - ANS rider
Coming from an insurance point of view, which of the following is the main risk associated with
disability? - ANS loss of income
Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax
consequences? - ANS 60
One of the most important considerations when replacing health insurance would be the -
ANS exclusions of a new policy
Which of the following statements is NOT true regarding a Critical Illness Plan? -
ANS Coverage is limited to a single devastating disease
How is Medicare Part B funded? - ANS general tax revenue and user premiums
for individual health insurance, coverage for pre-existing conditions may be excluded for up to
___ months after issuance of the policy - ANS 12
A universal life policy owner must receive a notice of cash surrender value at least every
__________ - ANS year
Claims payable to a Disability Income insured, even when the insured can continue to work, are
the result of a - ANS presumptive disability
3 @COPYRIGHT THESTAR 2025/2026
2025 QUESTIONS AND ANSWERS
Insurable interest does NOT occur in which of the following relationships? - ANS business
owner and business client
an applicant intentionally lying to an insurance company on an application in order to obtain a
cheaper premium is an example of? - ANS fraud
under which circumstance may a deferred insurance commission be paid to an individual -
ANS individual was licensed producer at the time of the sale
An annuitant dies during the distribution period. What kind of annuity will return to a
beneficiary the difference between the annuity value and the income payments already made?
- ANS refund annuity
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This
transaction is called a(n) - ANS 1035 exchange
a life insurance application may be backdated to - ANS save on premiums
Newborn coverage under health insurance policies MUST include coverage for - ANS birth
abnormalities
1 @COPYRIGHT THESTAR 2025/2026
,When a preferred provider organization (PPO) insured goes out-of-network, which of the
following actions occur? - ANS the insurer will pay a reduced amount
under the consolidated omnibus budget reconciliation act (COBRA), a terminated employee's
benefits must - ANS be the same and the premium cannot exceed 102%
A baby is born to a husband and wife covered under a family accident and health insurance
policy. If the newborn is covered at birth, the first payment for the additional coverage would
become due in days. - ANS 31 days
Sonya applied for a health insurance policy on April 1. Her agent submitted the information to
the insurance company on April 6. She paid the premium on May 15 with the policy indicating
the effective date being May 30. On which date would Sonya have coverage? - ANS May 30
What is an insurer required to do when faced with an error made under the Misstatement of
Age provision? - ANS Pay age-corrected benefits
An insurer would be committing Unfair Discrimination if coverage was denied based upon -
ANS marital status
A life insurance policyowner was injured in an automobile accident which results in a total and
permanent disability. Which rider would pay a monthly amount because of this disability? -
ANS Disability income rider
_____ is NOT an element of a valid contract - ANS countersignature
Which of the following is NOT a valid reason for an insurer to refuse renewal of a small
employer group plan? - ANS claims were higher than expected
2 @COPYRIGHT THESTAR 2025/2026
, Upon finding a producer guilty of forgery, the commissioner may take all of the following
actions EXCEPT - ANS Require the producer to notify his/her clients
An endorsement found in an insurance plan which modifies the provisions of the policy is called
a(n) - ANS rider
Coming from an insurance point of view, which of the following is the main risk associated with
disability? - ANS loss of income
Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax
consequences? - ANS 60
One of the most important considerations when replacing health insurance would be the -
ANS exclusions of a new policy
Which of the following statements is NOT true regarding a Critical Illness Plan? -
ANS Coverage is limited to a single devastating disease
How is Medicare Part B funded? - ANS general tax revenue and user premiums
for individual health insurance, coverage for pre-existing conditions may be excluded for up to
___ months after issuance of the policy - ANS 12
A universal life policy owner must receive a notice of cash surrender value at least every
__________ - ANS year
Claims payable to a Disability Income insured, even when the insured can continue to work, are
the result of a - ANS presumptive disability
3 @COPYRIGHT THESTAR 2025/2026
