Download Michigan Life and Health Final Exam Questions and Answers (Latest Update 2024) 200 Questio and more Exams Nursing in PDF only on Docsity!
Answers (Latest Update 2024) 200 Questions
defamation - Correct Answer ✅Making a statement that is false or maliciously critical of the financial condition of an insurer is known as Business overhead expense policy - Correct 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 - Correct 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 - Correct Answer ✅To receive proceeds from a death benefit, a minor The insurer's obligation to pay a death benefit upon an approved death claim - Correct Answer ✅Under a life insurance policy, what does the insuring clause state?
Answers (Latest Update 2024) 200 Questions
When contribution or participation rules have been violated - Correct 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 - Correct Answer ✅What is the purpose for having an accelerated death benefit on a life insurance policy? Variable universal policy - Correct 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 - Correct 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 - Correct Answer ✅Consumer privacy regulations permit the release of an insured's financial information when
Answers (Latest Update 2024) 200 Questions
The shorter the payment period, the higher the premium - Correct Answer ✅The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is universal life - Correct Answer ✅A life insurance policy that is subject to a contract interest rate is referred to as Average age - Correct Answer ✅Which of these factors would an insurer consider when determining whether to accept a group life plan? is eligible for coverage upon hire - Correct 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 - Correct 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?
Answers (Latest Update 2024) 200 Questions
Guaranteed insurability rider - Correct 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 - Correct Answer ✅What is an insurer required to do when faced with an error made under the Misstatement of Age provision? twisting - Correct Answer ✅The unfair trade practice of replacing an insurance policy from one insurer to another based on misrepresentation is called Life annuity - Correct Answer ✅Which type of annuity stops all payments upon the death of the annuitant? liquidity - Correct Answer ✅An insurer's ability to make unpredictable payouts to policyowners is called Exclusion Ratio - Correct Answer ✅The taxable portion of each annuity payment is calculated using which method?
Answers (Latest Update 2024) 200 Questions
Stock purchase - Correct Answer ✅All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT represents the insurer - Correct Answer ✅In the state of Michigan, a licensed producer Giving the insured an article of merchandise printed with the producer's name costing $5 - Correct Answer ✅Which of the following is NOT an illegal inducement? 100% of his health insurance costs can be deducted from his gross income - Correct Answer ✅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 - Correct Answer ✅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?
Answers (Latest Update 2024) 200 Questions
Specified amount of money - Correct Answer ✅What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? 12% per annum - Correct Answer ✅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 - Correct Answer ✅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 - Correct Answer ✅Term insurance is appropriate for someone who a disease - Correct Answer ✅A fee for service health insurance plan will normally cover
Answers (Latest Update 2024) 200 Questions
mutual - Correct Answer ✅A type of insurer that is owned by its policyowners is called When the recipient pays the premiums - Correct Answer ✅When are group disability benefits considered to be tax-free to the insured? No deductible payment is required - Correct Answer ✅When an insured has a major medical plan with first dollar coverage, how does this impact the benefits paid? Entire Contract - Correct Answer ✅What is the name of the provision which states that a copy of the application must be attached to the policy when issued? intimidation - Correct Answer ✅The unfair trade practice of using threat or force to restrict fair trade in the transaction of insurance is called Hospital indemnity - Correct Answer ✅Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance?
Answers (Latest Update 2024) 200 Questions
Premiums paid plus interest earned is returned to the beneficiary - Correct Answer ✅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 - Correct Answer ✅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 - Correct Answer ✅The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage. 1 3 5 7
Answers (Latest Update 2024) 200 Questions
Determines what is paid by the primary and secondary insurers in the event of a claim - Correct Answer ✅In group health care, what is the purpose of the coordination of benefits provision? Determines where an insured goes to receive treatment Determines what is paid by the primary and secondary insurers in the event of a claim Ensures that a health provider receives the proper benefit amount owed Determines which parent's plan covers a dependent cHild an unfair claim settlement practice - Correct Answer ✅An insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. This is considered to be $500 - Correct Answer ✅If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1,000 monthly disability benefit? Annuities are intended to create an estate - Correct Answer ✅Which of these is NOT considered to be a purpose of an annuity? Annuities are intended to create an estate
Answers (Latest Update 2024) 200 Questions
Annuities are intended to liquidate an estate Annuities are intended for the tax-free growth of principal Annuities are intended to distribute accumulated principal The policy's effective date is earlier than the present - Correct Answer ✅What happens when an insurance policy is backdated? The policy's elimination period is waived The time frame for reinstating a lapsed policy is extended The policy's probation period is earlier than the present The policy's effective date is earlier than the present 3 - Correct Answer ✅A licensee who is required to take continuing education MUST include how many ethics coursework hours? Universal life - Correct Answer ✅A partial surrender is allowed in which of the following life policies? Survivorship life policy - Correct Answer ✅Which type of multiple protection policy pays on the death of the last person?
Answers (Latest Update 2024) 200 Questions
Family term - Correct Answer ✅A spouse and child can be added to the primary insured's coverage as what kind of rider? A business entity soliciting insurance - Correct Answer ✅Which of the following is REQUIRED to be licensed as an insurance producer? be the same and the premium cannot exceed 102% - Correct Answer ✅Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must The applicant's medical history may be analyzed and reported - Correct Answer ✅Which of the following statements is CORRECT regarding an individual applying for life or health insurance? temporary relief to the patient's primary caregiver - Correct Answer ✅Respite care is able to provide Not tax deductible - Correct Answer ✅How are contributions made to a Roth IRA handled for tax purposes?
Answers (Latest Update 2024) 200 Questions
adverse selection - Correct Answer ✅An underwriter's primary responsibility to an insurer is to protect against at least annually - Correct Answer ✅A notice of cash surrender value must be sent to a Universal Life policyowner Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties - Correct Answer ✅What is implied authority defined as? require the producer to notify their clients - Correct Answer ✅If a producer is found guilty of forging another's name to an application for insurance, the insurance commissioner may do all of the following EXCEPT Estate conservation - Correct Answer ✅Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called? elimination periods - Correct Answer ✅All of these are characteristics of a major medical expense policy EXCEPT
Answers (Latest Update 2024) 200 Questions
Employer - Correct Answer ✅The policyholder for a group health benefit plan is considered to be the Immediately - Correct Answer ✅When MUST a newborn child be covered under an existing health insurance policy? In the event of employment termination, group health insurance can be kept if the employee pays the premiums - Correct Answer ✅What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do? A life insurance contract which accumulates cash values higher than the IRS will allow - Correct Answer ✅A Modified Endowment Contract (MEC) is best described as Unpaid premium - Correct Answer ✅Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation?
Answers (Latest Update 2024) 200 Questions
Waiver of Premium - Correct Answer ✅All of the following riders can increase the death benefit amount EXCEPT Loss of income - Correct Answer ✅Coming from an insurance point of view, which of the following is the main risk associated with disability? optionally renewable - Correct Answer ✅Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be Irrevocable beneficiary - Correct Answer ✅A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation? preferred risk - Correct Answer ✅An insurance applicant with a below- average likelihood of loss is typically considered to be a The family's financial objectives if the income earner were to die or become disabled - Correct Answer ✅When calculating the amount of life insurance
