Michigan Credit Insurance Producer Questions And Answers Graded A+

acting without a license ( producer regulation) - a person may not sell solicit or negotiate insurance in the state of Michigan for any line of insurance unless licensed for that qualifications; exceptions include administrative employees working for an agent a home office employee ect adverse selection(methods of handling risk) - the tendancy of less than average risks to purchase or cont to be covered by insurance resulting increased claims and reduced profitability agent - solicit insurance collect premiums amounts to be insured (Michigan regulation) - the initial amount of credit life insurance cannot exceed the total amount of indebtedness apparent(producers and general rules of agency) - covers the relationship between the agent and the customer authority and powers of producers(producers and general rules of agency) - types of authority in an agency agreement between the producer and insurer authorized insurers(types of insurers) - an insurer licensed or chartered to transact insurance in mi a company that is admitted to do business in the state auto dealers and manufacturers (factors for debtors and creditors to consider markets) - offer credit insurance on boats , cars, mobile homes and recreational vehicles avoidance(methods of handling risk) - the act of avoiding or eluding risk bank and savings and loan associations (factors for debtors and creditors to consider markets) - offer the widest range of credit products due to the large variety of services offeredbenefit amount -closed end installment loans (qualifying for benefits) - monthly payment defines the monthly disability benefit the maximum benefit at any time equals the sum of the remaining payments benefit amount lump sum benefit (qualifying for benefits) - outstanding balance of the loan on the date off disability with a 90 day elimination period benefit amount open end loans (qualifying for benefits) - following the elimination period the monthly payment benefit is the minimum monthly payment due benefit amount single payment loans (qualifying for benefits) - lump sum equal to the outstanding balance of the loan benefit conditions (common exclusions) - must be a total loss vehicle must be subject of a gap contact prior to date of loss benefit period (qualifying for benefits) - the period of time during which benefits will be paid following the elimination period boycott coercion and intimidation(unfair insurance trade practices) - illegal acts which intend to result in unreasonable restraint of trade or a monopoly in business of insurance