Michigan Life And Health Final Exam Questions & Answers, 100% Rated
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Course
Michigan Life And Health
Institution
Michigan Life And Health
Michigan Life And Health Final Exam Questions & Answers, 100% Rated-What amount will be paid under a policy where the insured misstated his/her age? - an amount the premium would have purchased at the correct age
the acceptance of a credit life application requires the submission of a certificat...
Michigan Life And Health Final Exam Questions &
Answers, 100% Rated
What amount will be paid under a policy where the insured misstated his/her age? - an amount
the premium would have purchased at the correct age
the acceptance of a credit life application requires the submission of a certificate of insurance to
the insured within_____ days - 30 days
which of these is considered to be a Living benefit option in a life insurance policy - Accelerated
death benefit
loans obtained by a policy owner against the cash value of a life insurance policy - would not be
treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT - acute
care
the elimination period under a hospital indemnity plan is - the specific # of days an insured must
wait before becoming eligible to receive benefits for each hospitalization
what is an insurance policy's grace period? - Period of time after the premium is due but the
policy remains in force
How do interest earnings accumulate in a deferred annuity - On a tax-deferred basis
a licensee who is required to take continuing education Must include how many ethics
coursework hours - 3
the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash
value the amount of - Past due premiums that have not been paid by the end of the grace period
health insurance involves two perils, accident and ______ - sickness
Who is responsible for assembling the policy forms for insureds - Insurance carriers
a securities license is required for a life insurance producer to sell - variable life insurance
Which of the following is NOT an illegal inducement - giving the insured an article of
merchandise printed with the producers name costing 5$
Which of the following is NOT a federal requirement of a qualified plan? - employee must be
able to make unlimited contributions
,Which dividend option would an insurer invest the policy owner's money and add any interest
earnings as the dividends accrue? - Accumulation at interest option
a health insurance policy will typically cover - preventative health services
a life insurance policy owner was injured in a car accident which results in a total and permanent
disability. which rider would pay a monthly amount because of this disability? - Disability
income rider
in addition to the actual policy, an entire contract includes which of the following? - the
application
field underwriting preformed by the producer involves - completing the application and
collecting initial premium
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
10 days
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the
premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under
this plan? - 0$
-benefits that fall under a major medical plan are considered to be a reimbursement for a loss,
and is not taxable as income
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms? -
file a written proof of loss
Under long term care insurance, which of the following MUST an insurer offer to each policy
owner at the time of purchase? - An inflation protection feature
What is the primary factor that determines the benefits paid under a disability income policy? -
Wages
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - No
tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
In the state of MI, properly filed health claims are not timely paid require the insurer to pay
simple interest from a date 60 days from satisfactory proof of loss at the rate of? - 12% annum
In MI, legal action can be taken against an insurer for failure to pay HEALTH insurance claims
for a period not to exceed - 3 years
,Donald is the primary insured of life insurance policy and adds a children's term rider. What is
the advantage of adding this rider? - Can be converted to permanent coverage without evidence
of insurability
-An advantage of a children's term rider is the ability to convert to permanent insurance without
evidence of insurability
When an insured changes to a more hazardous occupation, which disability policy provision
allows an insurer to adjust policy benefits and rates? - Change of occupation provision
The unfair trade practice of replacing an insurance policy from one insurer to another based on
misrepresentation is called? - Twisting
Which type of coverage pays an amount per day for hospitalization directly to the insured
regardless of the insured's other health insurance? - Hospital Indemnity
What kind of life insurance policy covers two or more people with the death benefit payable
upon the last person's death? - Last Survivor Life Insurance
Which of these premium payment frequencies is not typically available to a policyowner? - Bi-
weekly
Variable life insurance and Universal life insurance are very similar. Which of these features are
held exclusively by variable universal life insurance? - Policyowner has the right to select the
investment which will provide the greatest return
Consumer privacy regulations permit the release of an insured's financial information when? -
An authorized agency makes a written request to the insurer during an insurance fraud
investigation
Which type of life insurance policy pays the face amount at the end of the specified period if the
insured is still alive? - Endowment Policy
According to the Michigan Insurance Code, which of the following MUST a producer do when
replacing a Life Insurance Policy? - Submit to the replacing insurer a list of all Life Insurance
policies or annuity contracts proposed to be replaced
A policy owner suffers an injury the renders him incapable of performing one or more important
job duties. Any decrease in income resulting from this injury would make him eligible for
benefits under which provision? - Partial Disability
A pharmacy benefit covers prescription drugs derived from list called a(n) - Drug Formulary
All of the following are examples of a Business Continuation Plan except - Deferred
Compensation
, Which of the following actions MUST be taken by producers - Pay premiums due to insurers on
a timely basis
Rob has a benefit at work which enables him to defer his current receipt of income and have it
paid at a later date, when he will probably be in a lower tax bracket. Which benefit fits his
description? - Deferred Compensation Option
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an
employee to do? - In the event of employment termination, group health insurance can be kept if
the employee pays the premiums
Distribution from a Health Savings Account (HSA) for qualified medical expenses are - Tax Free
An indemnity plan limitation that will pay the dental bills after a small amount is paid by the
insured is called - Coinsurance
A notice of cash surrender value must be sent to a Universal Life policy owner - At least
Annually
The term which describes the fact that both parties of a contract may NOT receive the same
value is referred to as - Aleatory
Which of the following gifts from a producers would NOT be considered rebating? - $5 pen
Which of these riders will pay a death benefit if the insured's spouse dies? - Family Term
Insurance Rider
Which form of insurer has shareholders? - Stock Company
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called - A self funded plan
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the
consumer price index has gone up 4%, how much may Ron increase the face value of the policy?
- $4,000
-$100,000 * .04=$4,000
A change in an insurance application requires - an initial made by the applicant
An applicant intentionally lying to an insurance company on an application in order to obtain a
cheaper premium is an example of
rebating
coercion
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