life and health michigan
The Michigan Life and Health Insurance Guaranty Association will pay the obligations of an insolvent
insurer up to what amount for a single claim for hospital and surgical benefits? - ✔✔answers✔✔The
association's liability is equal to the insurer's contractual obligation had it not become insolvent, up to
$500,000 per life for basic hospital, medical and surgical insurance benefits.
How long must a life insurer maintain files containing the advertisements it has used? -
✔✔answers✔✔All advertisements must be maintained for at least 4 years.
Regulations governing replacement of life insurance policies would apply to which of the following policy
types? - ✔✔answers✔✔The following types of policies are exempt from replacement regulations:
Replacements by the same insurer that issued the existing policy; Credit life insurance administered by
group-type methods; Group life insurance policies; Policies is issued in connection with a pension, profit
sharing, individual retirement account or other benefit plan qualifying for an income tax deduction of
premiums; Nonconvertible term policies which cannot be renewed and which would expire within 5
years.
An insurer replacing a life policy must notify the existing insurer of the proposed replacement within
how many business days of receiving an application? - ✔✔answers✔✔The replacing insurer's duties
include notifying each insurer whose insurance is being replaced within 3 business days and, upon
request, furnishing a copy of any proposals and comparison statements.
A lapsed life insurance policy may be reinstated for up to how many years following premium default? -
✔✔answers✔✔A lapsed life insurance policy may be reinstated within 3 years of lapse, upon evidence of
insurability and payment of arrears of all premium due, including interest.
In Michigan, the Free Look period for life policies is set at how many days? - ✔✔answers✔✔The free
look period of Michigan is 10 days.
How many credit hours of continuing education must a producer complete to maintain his/her license
during each renewal period? - ✔✔answers✔✔To maintain a producer's license, each licensee must
,complete a minimum of 24 credit hours of approved insurance continuing education courses every 2
years.
How many days after terminating the appointment of an agent must an insurer notify the Commissioner
of the termination? - ✔✔answers✔✔An insurer who terminates an appointment, employment, or other
relationship of producer must notify the Commissioner within 30 days after the effective date of the
termination.
How many days after appointing an agent must an insurer notify Commissioner of the appointment? -
✔✔answers✔✔An insurer must file a notice of appointment within 15 days after the contract is
executed or the first application for insurance is submitted.
Which of the following is not a limited line of insurance in Michigan? - ✔✔answers✔✔Limited lines
include Marine insurance, Credit insurance, Surety and fidelity insurance, Legal expense insurance,
Livestock insurance, Malpractice insurance, and Plate glass insurance
Which of the following is not a prerequisite to apply for a producer's license in Michigan? -
✔✔answers✔✔There is no requirement other than an applicant prosses a diploma or degree.
How many credit hours of CE must be devoted to ethics during each renewal period? -
✔✔answers✔✔Each licensee must complete a minimum of 24 credit hours, 3 hours of which must be in
ethics, of approved insurance continuing education (CE) courses every 2 years.
The fine for knowingly violating a cease and desist order is what amount per infraction? -
✔✔answers✔✔If a person knowingly violates a cease and desist order, the Commissioner may order a
civil fine of up to $20,000 for each violation, or a suspension or revocation of the person's license, or
both. Fines may not exceed an aggregate of $100,000.
All of the following would be eligible to have their prelicensing requirements waived by the
Commissioner except an applicant who: - ✔✔answers✔✔The commissioner may waive the exam or
prelicensing requirements for an applicant who applies for limited license, has been a licensed insurance
producer within the preceding 12 months, has obtained the CPCU, CLU, CIC or other professional
designations, or has an associate's, bachelor's, or master's degree with a concentration in insurance from
an approved institution.
Within how many days must a producer notify the Commissioner of a change of address. -
✔✔answers✔✔Licensees must notify the Commissioner of any changes in mailing or electronic mail
address within 30 days after the change.
,Which of the following is not grounds for license revocation? - ✔✔answers✔✔Over insuring a risk is not
grounds for license revocation.
Producer A tells his clients, falsely, that a rival insurer does not pay claims in a timely fashion. This is an
example of what Unfair Trade Practice? - ✔✔answers✔✔Defamation includes making any false or
maliciously critical statement regarding the financial condition of any person or business entity, with the
intent to injure.
Charging different rates or providing different benefits to insured of the same actuarial class or hazard
category is which of the following? - ✔✔answers✔✔It is an unfair trade practice to change different
rates for individuals of the same class and life expectancy for life and health insurance policies.
Which of the following is not considered an Unfair Trade Practice? - ✔✔answers✔✔While there is an
unfair trade practice called misrepresentation, representation is simply the assertion of material fact on
a policy application.
Producer B tells applicants that if they buy their insurance with her agency, she'll refund the first month's
premium. This is an example of what Unfair Trade Practice? - ✔✔answers✔✔Rebating is the offer of any
rebate of premiums due, any special favor in dividends or other benefits, or any valuable consideration
or inducement not specified in the policy.
Which of the following is not a required objective of an insurer's information security program? -
✔✔answers✔✔The insurer's responsibility is safeguarding consumer privacy involves administrative,
technical, and physical safeguards for the protection of customer information. Prosecution of violators is
the responsibility of law enforcement.
The Michigan Life an Health Insurance Guaranty Association will pay the obligations of an insolvent
insurer up to what amount for a single claim for LTC benefits? - ✔✔answers✔✔The association's liability
is equal to the insurer's contractual obligation had it not become insolvent, up to $300,000 per life for
disability income or LTC.
In Michigan, what is the minimum grace period for life insurance policies? - ✔✔answers✔✔The grace
period for individual life insurance policies may not be less than 30 days.
, After how many years does an individual life policy become inconstestable? - ✔✔answers✔✔An
individual life insurance policy is incontestable after it has been in force during the lifetime of the insured
2 years from its date of issue except for nonpayment of premiums.
An employee must apply for conversion from group life to individual life within how many days after the
group coverage terminated? - ✔✔answers✔✔The insured will be entitled, without evidence of
insurability, to an individual policy upon application within 31 days of the termination date.
How long after reinstatement will a health policy reinstate coverage for sickness? - ✔✔answers✔✔A
reinstated policy will immediately cover accidental injury and will begin to cover sickness 10 days after
the reinstatement date.
Which of the following is an optional provision for health insurance policies in Michigan? -
✔✔answers✔✔Other optional provisions include other insurance, misstatement or age, conformity with
state statues and illegal occupation.
A small employer is one that employs no more than how many employees? - ✔✔answers✔✔In
Michigan, a small employer is one who employs at least 2 but not more than 50 eligible employees on at
least half of its working days.
Which of the following is not an exception to the requirement that small employer health plans be
guaranteed renewable? - ✔✔answers✔✔Guaranteed renewal is not required in cases of fraud or
intentional misrepresentation; Nonpayment of premium; Noncompliance with minimum participation
requirements; The small employer carrier ceasing to offer that particular type of coverage in the market;
The sole proprietor or small employer moving outside the coverage area.
In Michigan, the Free Look period for LTC polices is set at 30 days? - ✔✔answers✔✔The free look period
for an LTC policy is 30 days.
In a legal sense, an insurance premium is the insured's - ✔✔answers✔✔Consideration
An insurance contract - ✔✔answers✔✔Transfers risk from the insured to the insurer
