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FINAL EXAM-MICHIGAN LIFE AND HEALTH
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FINAL EXAM-MICHIGAN LIFE AND HEALTH
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FINAL EXAM-MICHIGAN LIFE AND HEALTHWhat amount will be paid under a policy where the insured misstated his/her age? -
Answers -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 - Answers -30 days
Which of these is considered to be a Living benefit option in a life insurance policy -
Answers -Accelerated death benefit
Loans obtained by a policy owner against the cash value of a life insurance policy -
Answers -would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT -
Answers -acute care
The elimination period under a hospital indemnity plan is - Answers -the specific # of
days an insured must wait before becoming eligible to receive benefits for each
hospitalization
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? -
Answers -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 - Answers -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? - Answers -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? - Answers -Change of
occupation provision
The unfair trade practice of replacing an insurance policy from one insurer to another
based on misrepresentation is called? - Answers -Twisting
,Which type of coverage pays an amount per day for hospitalization directly to the
insured regardless of the insured's other health insurance? - Answers -Hospital
Indemnity
What kind of life insurance policy covers two or more people with the death benefit
payable upon the last person's death? - Answers -Last Survivor Life Insurance
Which of these premium payment frequencies is not typically available to a
policyowner? - Answers -Bi-weekly
Variable life insurance and Universal life insurance are very similar. Which of these
features are held exclusively by variable universal life insurance? - Answers -
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? - Answers -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? - Answers -Endowment Policy
According to the Michigan Insurance Code, which of the following MUST a producer do
when replacing a Life Insurance Policy? - Answers -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? - Answers -Partial Disability
A pharmacy benefit covers prescription drugs derived from list called a(n) - Answers -
Drug Formulary
All of the following are examples of a Business Continuation Plan except - Answers -
Deferred Compensation
Which of the following actions MUST be taken by producers - Answers -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? - Answers -Deferred Compensation Option
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985
allow an employee to do? - Answers -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 -
Answers -Tax Free
An indemnity plan limitation that will pay the dental bills after a small amount is paid by
the insured is called - Answers -Coinsurance
A notice of cash surrender value must be sent to a Universal Life policy owner -
Answers -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 - Answers -Aleatory
Which of the following gifts from a producers would NOT be considered rebating? -
Answers -$5 pen
Which of these riders will pay a death benefit if the insured's spouse dies? - Answers -
Family Term Insurance Rider
Which form of insurer has shareholders? - Answers -Stock Company
A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues is called - Answers -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? - Answers -$4,000
-$100,000 * .04=$4,000
A change in an insurance application requires - Answers -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
Fraud
Twisting - Answers -fraud
The period in which there are no social security benefits for the surviving spouse is
called the - Answers -blackout period
-the blackout period begins when the youngest. Child turns 16 and continues until the
spouse reaches age 60, at the earliest. If there are no eligible children with the surviving
spouse when the breadwinner dies, the blackout period starts immediately
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