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Michigan Life, Accident, and Health Exam with correct Answers
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Michigan Life, Accident, and Health Exam with correct Answers
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Michigan Life, Accident, and HealthExam with correct Answers
The Commissioner of Insurance is appointed by the Governor for a term of - Answer -4
years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - Answer -Correct answer: C - licensing of producers
A temporary license issued to close the affairs of a deceased producer may be issued
for up to _____ days at the discretion of the Commissioner - Answer -180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - Answer -24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - Answer -Protects policy
holders against failure insolvent insurers
Controlled business - Answer -It is permitted provided it does not exceed 15% of the
premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a gift
equal to 50% of the commission. This is an example of __________. - Answer -
Rebating
Defamation - Answer -A written statement that is false and derogatory that is designed
to injure someone's reputation.
The maximum fine for knowingly violating a cease and desist order is $________ and
__________________. - Answer -$10,000 and possible license revocation
,Insurance counselor - Answer -Provides advice concerning an insurance policy and
charges a fee for that advice.
An applicant who has been denied an insurance license has _____ days to request a
hearing to protest the denial. - Answer -30 days
True / False
A producer may share commissions with another licensed producer - Answer -True
True / False
A producer may not share commissions with a licensed nonresident producer - Answer -
False
If, after a hearing, the Commissioner believes a producer knowingly violated insurance
licensing laws, the Commissioner can: - Answer -Fine the producer a max of $2,500 per
violation
A producer has a fiduciary responsibility to all of the following: - Answer -- Insured on
cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and services? -
Answer -The insurance product is not the producer's to barter; it belongs to the insured.
How often must the Commissioner examine the books, records, and documents of
domestic insurers? - Answer -At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. - Answer
-30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance policies, he
may be fined up to $_______ for all violations. - Answer -$25,000
Under what type of policy does an insured have to be notified if current policy values are
insufficient to maintain the policy, given guaranteed interest and expense rates? -
Answer -Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: - Answer --
information material to the insurance policy
- a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an insured to drop
an existing policy and purchase a new policy is an example of _____________. -
Answer -Twisting
, The minimum number of lives that must be covered under a group life insurance policy
in Michigan is ______. - Answer -2 lives.
The maximum life insurance policy loan interest that may be charged on a fixed interest
loan is ______%. - Answer -8%
In life insurance, all advertisements must be kept by the insurer for at least ________
months. - Answer -48 months
The maximum life insurance policy loan interest that may be charged on an adjustable
rate loan is ______%. - Answer -18%
True/ False
A long-term care policy can exclude all of the following:
- Alcoholism
- Drug addiction
- Alzheimer's disease
- Self-inflicted injury - Answer -False
A long-term care policy can exclude all alcoholism, drug addiction, and self-inflicted
injury. Alzheimer's disease cannot be excluded.
True/False
A long-term care application must include questions that reveal when the proposed
coverage will replace other existing health or long-term care coverage. - Answer -True
True/False
A Medicare supplement policy can indemnify against losses resulting from accidents on
a different basis than losses resulting from sickness. - Answer -False - Medicare
supplements must indemnify the same way for accidents and sickness.
True/False
A Medicare supplement policy must cover intermediate outpatient care for substance
abuse. - Answer -True - Intermediate care for substance abuse includes inpatient
treatment for drug addiction and alcohol abuse
In Michigan, the free-look or trial examination period for a LTC policy is ______ days. -
Answer -30
True/False
All LTC policy owners must be offered a cost-of-living benefit adjustment option. -
Answer -True
Health insurance is in force for newborns from birth and notification must be given within
_____ days of birth for coverage to extend beyond that point. - Answer -31 days
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