Exam (elaborations)
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 HEALTHDefamation - Answers -Making a statement that is false or maliciously critical of the
financial condition of an insurer is known as
Business overhead expense policy - Answers -Which type of business insurance is
meant to cover the costs of continuing to do business while the owner is disabled?
The protection ends - Answers -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,
Pay age-corrected benefits - Answers -What is an insurer required to do when faced
with an error made under the Misstatement of Age provision?
Twisting - Answers -The unfair trade practice of replacing an insurance policy from one
insurer to another based on misrepresentation is called
Life annuity - Answers -Which type of annuity stops all payments upon the death of the
annuitant?
Liquidity - Answers -An insurer's ability to make unpredictable payouts to policyowners
is called
Exclusion Ratio - Answers -The taxable portion of each annuity payment is calculated
using which method?
Adverse selection - Answers -Group dental plans will frequently place a limit on annual
benefits in order to minimize
Subrogation - Answers -An insurer has the right to recover payment made to the
insured from the negligent party. These rights are called
The greater of the accumulated cash value or the total premium paid - Answers -What
will the beneficiary receive if an annuitant dies during the accumulation period?
Time deductible - Answers -A disability elimination period is best described as a
Have a legitimate non-insurance purpose - Answers -An association wanting to buy
insurance under a group health plan MUST
Talking - Answers -In a Long-Term Care policy, activities of daily living (ADL's) can be
each of the following EXCEPT
Stock purchase - Answers -All of the following are exempt from the 10% tax penalty for
early qualified plan withdrawals EXCEPT
,Represents the insurer - Answers -In the state of Michigan, a licensed producer
Giving the insured an article of merchandise printed with the producer's name costing
$5 - Answers -Which of the following is NOT an illegal inducement?
100% of his health insurance costs can be deducted from his gross income - Answers -
Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for
the tax year. What are the tax ramifications of his health insurance premiums paid for
the year?
Long Term Care Insurance premiums - Answers -The IRS states that a taxpayer's
medical expenses that exceed 7.5% of their adjusted gross income is tax deductible.
Which of the following may be considered a medical expense under this rule?
Specified amount of money - Answers -What does a life insurance policy guarantee to
the stated beneficiary upon the death of the insured?
12% per annum - Answers -In the state of Michigan, properly filed health claims that 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
It must include outpatient prescription drug coverage - Answers -A Medicare
Supplement policy issued in the state of Michigan is required to provide each of the
following EXCEPT
Seeks temporary protection and lower premiums - Answers -Term insurance is
appropriate for someone who
A disease - Answers -A fee for service health insurance plan will normally cover
Integrated deductible - Answers -Which of the following types of deductibles would
apply a single deductible to both medical and dental insurance coverage?
2 years - Answers -When can a life policy no longer be cancelled for nonfraudulent
misstatements after its date of issue?
2-50 employees - Answers -In Michigan, a small employer is comprised of
Group - Answers -A master contract and certificate of coverage can be found in which
type of policy?
Producing an inadequate amount of new premium - Answers -All of the following
occurrences may result in license revocation EXCEPT
, Deductible - Answers -Jennifer is required to pay a specific sum out of pocket before
any benefits are paid in a year. Her health policy most likely contains a(n)
Mutual - Answers -A type of insurer that is owned by its policyowners is called
When the recipient pays the premiums - Answers -When are group disability benefits
considered to be tax-free to the insured?
No deductible payment is required - Answers -When an insured has a major medical
plan with first dollar coverage, how does this impact the benefits paid?
Entire Contract - Answers -What is the name of the provision which states that a copy of
the application must be attached to the policy when issued?
Intimidation - Answers -The unfair trade practice of using threat or force to restrict fair
trade in the transaction of insurance is called
Hospital indemnity - Answers -Which type of coverage pays an amount per day for
hospitalization directly to the insured regardless of the insured's other health insurance?
Premiums paid plus interest earned is returned to the beneficiary - Answers -Andy the
annuitant dies before the annuity start date. Which of the following is a TRUE
statement?
Benefits are limited to a specific maximum dollar amount per procedure - Answers -With
a scheduled dental policy, how are covered expenses paid?
A coinsurance is normally applied to benefits paid
A deductible must be met by the insured before benefits are paid
Benefits are limited to a specific maximum dollar amount per procedure
Covered expenses are fully reimbursed to the insured
1 year - Answers -The typical long-term care insurance policy is designed to provide a
minimum of __ year(s) of coverage.
1
3
5
7
Noncancellable - Answers -Disability Income plans which require that the insurer can
NEVER change or alter premium rates are usually considered
Guaranteed Renewable
Optionally Renewable
Conditionally Renewable
Noncancellable
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