©SOPHIABENNETT
EXAM_SOLUTIONS GUARANTEED SUCCESS 2024/2025 ACADEMIC YEAR
©SOPHIABENNETT 9/3/24 2024/2025
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
Final Exam - Michigan Life and Health
Study Guide with Complete Solutions
defamation - Answer✔️✔️-Making a statement that is false or maliciously critical of the
financial condition of an insurer is known as
Business overhead expense policy - Answer✔️✔️-Which type of business insurance is
meant to cover the costs of continuing to do business while the owner is disabled?
the protection ends - Answer✔️✔️-Dorian exercised a nonforfeiture option by using his
life policy's cash value to purchase an extended term insurance option. When the term
insurance expires,
must have an appointed guardian - Answer✔️✔️-To receive proceeds from a death
benefit, a minor
The insurer's obligation to pay a death benefit upon an approved death claim -
Answer✔️✔️-Under a life insurance policy, what does the insuring clause state?
When contribution or participation rules have been violated - Answer✔️✔️-When can a
group health policy renewal be denied according to the Health Insurance Portability and
Accountability Act (HIPAA)?
It allows for cash advances to be paid against the death benefit if the insured becomes
terminally ill - Answer✔️✔️-What is the purpose for having an accelerated death benefit
on a life insurance policy?
Page | 1
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
Variable universal policy - Answer✔️✔️-Which type of life insurance offers flexible
premiums, a flexible death benefit, and the choice of how the cash value will be
invested?
1 month - Answer✔️✔️-An immediate annuity has been purchased with a single premium.
When does the annuitant typically begin receiving benefit payments?
an authorized agency makes a written request to the insurer during an insurance fraud
investigation - Answer✔️✔️-Consumer privacy regulations permit the release of an
insured's financial information when
the right to return the policy for a full refund within a specified number of days -
Answer✔️✔️-The free-look provision gives the policyowner
Net death benefit will be reduced if the loan is not repaid - Answer✔️✔️-Joanne has a
$100,000 whole life policy with an accumulated $25,000 of cash value. She would like
to borrow $15,000 against the cash value. Which of the following statements is TRUE?
modified application with a new signature - Answer✔️✔️-Tara the producer is delivering a
specified disease insurance policy to a new policyowner. Upon delivery, she may be
expected to collect all of the following EXCEPT a(n)
Annuitization phase - Answer✔️✔️-Which of the following is considered to be the period
when the accumulated value in an annuity is paid out?
Department of Insurance and Financial Services (DIFS) - Answer✔️✔️-The entity that has
the power to revoke a producer's insurance license is the
Page | 2
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
The shorter the payment period, the higher the premium - Answer✔️✔️-The statement
which best describes the relationship between the premiums of a whole life policy and
the premium payment period is
universal life - Answer✔️✔️-A life insurance policy that is subject to a contract interest
rate is referred to as
Average age - Answer✔️✔️-Which of these factors would an insurer consider when
determining whether to accept a group life plan?
is eligible for coverage upon hire - Answer✔️✔️-According to HIPAA, when an insured
individual leaves an employer and immediately begins working for a new company that
offers group health insurance, the individual
$5,000 - Answer✔️✔️-An insured has a stop-loss limit of $5,000, a deductible of $500,
and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much
will the insured have to pay?
Guaranteed insurability rider - Answer✔️✔️-Barbara's policy includes a rider which allows
her to purchase additional insurance at specific dates or events without evidence of
insurability. This rider is called a(n)
Pay age-corrected benefits - Answer✔️✔️-What is an insurer required to do when faced
with an error made under the Misstatement of Age provision?
twisting - Answer✔️✔️-The unfair trade practice of replacing an insurance policy from one
insurer to another based on misrepresentation is called
Life annuity - Answer✔️✔️-Which type of annuity stops all payments upon the death of
the annuitant?
Page | 3
EXAM_SOLUTIONS GUARANTEED SUCCESS 2024/2025 ACADEMIC YEAR
©SOPHIABENNETT 9/3/24 2024/2025
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
Final Exam - Michigan Life and Health
Study Guide with Complete Solutions
defamation - Answer✔️✔️-Making a statement that is false or maliciously critical of the
financial condition of an insurer is known as
Business overhead expense policy - Answer✔️✔️-Which type of business insurance is
meant to cover the costs of continuing to do business while the owner is disabled?
the protection ends - Answer✔️✔️-Dorian exercised a nonforfeiture option by using his
life policy's cash value to purchase an extended term insurance option. When the term
insurance expires,
must have an appointed guardian - Answer✔️✔️-To receive proceeds from a death
benefit, a minor
The insurer's obligation to pay a death benefit upon an approved death claim -
Answer✔️✔️-Under a life insurance policy, what does the insuring clause state?
When contribution or participation rules have been violated - Answer✔️✔️-When can a
group health policy renewal be denied according to the Health Insurance Portability and
Accountability Act (HIPAA)?
It allows for cash advances to be paid against the death benefit if the insured becomes
terminally ill - Answer✔️✔️-What is the purpose for having an accelerated death benefit
on a life insurance policy?
Page | 1
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
Variable universal policy - Answer✔️✔️-Which type of life insurance offers flexible
premiums, a flexible death benefit, and the choice of how the cash value will be
invested?
1 month - Answer✔️✔️-An immediate annuity has been purchased with a single premium.
When does the annuitant typically begin receiving benefit payments?
an authorized agency makes a written request to the insurer during an insurance fraud
investigation - Answer✔️✔️-Consumer privacy regulations permit the release of an
insured's financial information when
the right to return the policy for a full refund within a specified number of days -
Answer✔️✔️-The free-look provision gives the policyowner
Net death benefit will be reduced if the loan is not repaid - Answer✔️✔️-Joanne has a
$100,000 whole life policy with an accumulated $25,000 of cash value. She would like
to borrow $15,000 against the cash value. Which of the following statements is TRUE?
modified application with a new signature - Answer✔️✔️-Tara the producer is delivering a
specified disease insurance policy to a new policyowner. Upon delivery, she may be
expected to collect all of the following EXCEPT a(n)
Annuitization phase - Answer✔️✔️-Which of the following is considered to be the period
when the accumulated value in an annuity is paid out?
Department of Insurance and Financial Services (DIFS) - Answer✔️✔️-The entity that has
the power to revoke a producer's insurance license is the
Page | 2
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
The shorter the payment period, the higher the premium - Answer✔️✔️-The statement
which best describes the relationship between the premiums of a whole life policy and
the premium payment period is
universal life - Answer✔️✔️-A life insurance policy that is subject to a contract interest
rate is referred to as
Average age - Answer✔️✔️-Which of these factors would an insurer consider when
determining whether to accept a group life plan?
is eligible for coverage upon hire - Answer✔️✔️-According to HIPAA, when an insured
individual leaves an employer and immediately begins working for a new company that
offers group health insurance, the individual
$5,000 - Answer✔️✔️-An insured has a stop-loss limit of $5,000, a deductible of $500,
and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much
will the insured have to pay?
Guaranteed insurability rider - Answer✔️✔️-Barbara's policy includes a rider which allows
her to purchase additional insurance at specific dates or events without evidence of
insurability. This rider is called a(n)
Pay age-corrected benefits - Answer✔️✔️-What is an insurer required to do when faced
with an error made under the Misstatement of Age provision?
twisting - Answer✔️✔️-The unfair trade practice of replacing an insurance policy from one
insurer to another based on misrepresentation is called
Life annuity - Answer✔️✔️-Which type of annuity stops all payments upon the death of
the annuitant?
Page | 3
