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Unit 23 Michigan Laws and Regulations Pertinent to Life and Health Insurance Exam Questions and Answers 2024
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Unit 23 Michigan Laws and Regulations Pertinent to Life and Health Insurance
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Unit 23: Michigan Laws and RegulationsPertinent to Life and Health Insurance
From which source does the Michigan Life and Health Insurance Guaranty Association
obtain its funds? - Answer -Assessments of Association memebers
An insurer incorportated under the laws of Illinois with its home office in Chicago and
not licensed in the state of Michigan would be identified as: - Answer -an unauthorized
foreign insurer
What is the MAXIMUM amount of credit insurance that an insured can buy? - Answer -
the amount of the indebtedness
Which of the following statements is CORRECT concerning preexisting conditions and
long-term care policies? - Answer -A preexisting condition is one for which treatment ws
recommended or received within 6 months before the effective date of ceverage
In Michigan, who is ultimately responsible for make sure the content of an insurance
advertisement meets state law requirements? - Answer -insurer
How long is the Commissioner's term of office? - Answer -four years
In Michigan, all property and casualty insurers are responsible for - Answer -the acts of
their appointed producers
The effective date of credit insurance coverage is the date the: - Answer -debt was
incurred
Which of the following statements regarding health insurance advertising and
preexisting conditions is CORRECT? - Answer -It is misleading to state that a
preexisting condition may not affect the issuance of a policy
Julie is seeking a career in the insurance industry and wants to get her license. Which
of the following may prevent Julie from obtaining her license in Michigan? - Answer -
Julie is 17 years old and turning 18 in the same year that she applied for her license
, Enforcement of the Michigan insurance regulations is the responsibility of the: - Answer
-commissioner
The commissioner can examine the books, records, documents, and papers of foreign
insurance companies - Answer -at any time
In regards to health care benefits, anyone insurance who commits a fradulent insurance
act is guilty of a felony and subject to - Answer -imprisonment for up to four years and/or
a fine of up to $50,000
Credit life insurance coverage pays a lump sum benefit - Answer -upon the debtor's
death
When the commissioner orders an administrative hearing, the agent charged with
violating the insurance laws must be given how much notice before the hearing takes
place? - Answer -10 days
All of the following statements are TRUE regarding the Commissioner EXCEPT the
Commissioner - Answer -may hold stock in any insurer and have an indirect role in
management of insurer's affairs
If benefits are not paid on a timely basis to the insured, the insurer must pay the insured
(60 days after the proof of loss) - Answer -12% interest on the claim
Which of the following CORRECTLY describes sales aids used by insurance
producers? - Answer -they are regulated as advertisements and must be truthful
Which of the following statements is CORRECT concerning a terminated appointment?
- Answer -it removes the producer's authority to represent a specific insurer
When applying for a producers license, a business entity must do all of the following
EXCEPT - Answer -take and pass the license examination
(A business entity is incapable of taking a licensing exam)
Implying that policy dividends are guaranteed as an inducement for an insured to drop
existing insurance and purchase new insurance is - Answer -twisting
Which of the following individuals is NOT exempt from licensure in Michigan? - Answer -
Tina who works for an insurance producer on insurance sales and receives 10% of his
commisisons
To motivate a buyer to sign an application for insurance, a producer promises a gift
equal to one-half of the commissions. This is an example of: - Answer -rebating
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