Final Exam-Michigan Life and Health Exam Questions And Answers
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Course
Xcel
Institution
Xcel
Final Exam-Michigan Life and Health Exam Questions And Answers
What amount will be paid under a policy where the insured misstated his/her age? - ANS an amount the premium would have purchased at the correct age
the acceptance of a credit life application requires the submission of a certif...
What amount will be paid under a policy where the insured misstated his/her age? -
ANS an amount the premium would have purchased at the correct age
the acceptance of a credit life application requires the submission of a certificate of
insurance to the insured within_____ days - ANS 30 days
K
which of these is considered to be a Living benefit option in a life insurance policy -
C
ANS Accelerated death benefit
loans obtained by a policy owner against the cash value of a life insurance policy - ANS
LO
would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT -
ANS acute care
YC
the elimination period under a hospital indemnity plan is - ANS the specific # of days
an insured must wait before becoming eligible to receive benefits for each
hospitalization
what is an insurance policy's grace period? - ANS Period of time after the premium is
D
due but the policy remains in force
U
How do interest earnings accumulate in a deferred annuity - ANS On a tax-deferred
basis
ST
a licensee who is required to take continuing education Must include how many ethics
coursework hours - ANS 3
the automatic premium loan provision authorizes an insurer to withdraw from a policy's
cash value the amount of - ANS Past due premiums that have not been paid by the
end of the grace period
health insurance involves two perils, accident and ______ - ANS sickness
,Who is responsible for assembling the policy forms for insureds - ANS Insurance
carriers
a securities license is required for a life insurance producer to sell - ANS variable life
insurance
Which of the following is NOT an illegal inducement - ANS giving the insured an article
of merchandise printed with the producers name costing 5$
Which of the following is NOT a federal requirement of a qualified plan? - ANS
K
employee must be able to make unlimited contributions
C
Which dividend option would an insurer invest the policy owner's money and add any
interest earnings as the dividends accrue? - ANS Accumulation at interest option
LO
a health insurance policy will typically cover - ANS preventative health services
a life insurance policy owner was injured in a car accident which results in a total and
permanent disability. which rider would pay a monthly amount because of this disability?
- ANS Disability income rider
YC
in addition to the actual policy, an entire contract includes which of the following? - ANS
the application
field underwriting preformed by the producer involves - ANS completing the application
D
and collecting initial premium
U
Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - ANS 10 days
ST
Pierre is covered by his employer's group major medical plan. His employer pays for
75% of the premium and he pays for 25%. How much would a $10,000 benefit be
taxable as income under this plan? - ANS 0$
-benefits that fall under a major medical plan are considered to be a reimbursement for
a loss, and is not taxable as income
After an insured gives notice of loss, what must he/she do if the insurer does not furnish
forms? - ANS file a written proof of loss
, Under long term care insurance, which of the following MUST an insurer offer to each
policy owner at the time of purchase? - ANS An inflation protection feature
What is the primary factor that determines the benefits paid under a disability income
policy? - ANS Wages
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? -
ANS No tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
K
In the state of MI, properly filed health claims are not timely paid require the insurer to
C
pay simple interest from a date 60 days from satisfactory proof of loss at the rate of? -
ANS 12% annum
LO
In MI, legal action can be taken against an insurer for failure to pay HEALTH insurance
claims for a period not to exceed - ANS 3 years
Donald is the primary insured of life insurance policy and adds a children's term rider.
What is the advantage of adding this rider? - ANS Can be converted to permanent
YC
coverage without evidence of insurability
-An advantage of a children's term rider is the ability to convert to permanent insurance
without evidence of insurability
D
When an insured changes to a more hazardous occupation, which disability policy
provision allows an insurer to adjust policy benefits and rates? - ANS Change of
U
occupation provision
The unfair trade practice of replacing an insurance policy from one insurer to another
ST
based on misrepresentation is called? - ANS Twisting
Which type of coverage pays an amount per day for hospitalization directly to the
insured regardless of the insured's other health insurance? - ANS Hospital Indemnity
What kind of life insurance policy covers two or more people with the death benefit
payable upon the last person's death? - ANS Last Survivor Life Insurance
Which of these premium payment frequencies is not typically available to a
policyowner? - ANS Bi-weekly
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