Download Michigan Life and Health Final Exam Questions and Answers (Latest Update 2024) 240 Questio and more Exams Nursing in PDF only on Docsity!
Answers (Latest Update 2024) 240 Questions
What amount will be paid under a policy where the insured misstated his/her age? - Correct Answer ✅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 - Correct Answer ✅30 days which of these is considered to be a Living benefit option in a life insurance policy - Correct Answer ✅Accelerated death benefit loans obtained by a policy owner against the cash value of a life insurance policy - Correct Answer ✅would not be treated as taxable income A long term care policy typically provides all of the following levels of care EXCEPT - Correct Answer ✅acute care the elimination period under a hospital indemnity plan is - Correct Answer ✅the specific # of days an insured must wait before becoming eligible to receive benefits for each hospitalization
Answers (Latest Update 2024) 240 Questions
what is an insurance policy's grace period? - Correct Answer ✅Period of time after the premium is due but the policy remains in force How do interest earnings accumulate in a deferred annuity - Correct Answer ✅On a tax-deferred basis a licensee who is required to take continuing education Must include how many ethics coursework hours - Correct Answer ✅ 3 the automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of - Correct Answer ✅Past due premiums that have not been paid by the end of the grace period health insurance involves two perils, accident and ______ - Correct Answer ✅sickness Who is responsible for assembling the policy forms for insureds - Correct Answer ✅Insurance carriers
Answers (Latest Update 2024) 240 Questions
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? - Correct Answer ✅Disability income rider in addition to the actual policy, an entire contract includes which of the following? - Correct Answer ✅the application field underwriting preformed by the producer involves - Correct Answer ✅completing the application and collecting initial premium Kathy pays a monthly premium on her health insurance policy. How long is her grace period? - Correct Answer ✅10 days 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 $10,000 benefit be taxable as income under this plan? - Correct Answer ✅0$ -benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and is not taxable as income
Answers (Latest Update 2024) 240 Questions
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms? - Correct Answer ✅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? - Correct Answer ✅An inflation protection feature What is the primary factor that determines the benefits paid under a disability income policy? - Correct Answer ✅Wages What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - Correct Answer ✅No tax payment needed -Employer paid contributions to HSA's are tax free to the employee In the state of MI, properly filed health claims 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? - Correct Answer ✅12% annum
Answers (Latest Update 2024) 240 Questions
What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? - Correct Answer ✅Last Survivor Life Insurance Which of these premium payment frequencies is not typically available to a policyowner? - Correct Answer ✅Bi-weekly Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance? - Correct Answer ✅Policyowner has the right to select the investment which will provide the greatest return Consumer privacy regulations permit the release of an insured's financial information when? - Correct Answer ✅An authorized agency makes a written request to the insurer during an insurance fraud investigation Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? - Correct Answer ✅Endowment Policy
Answers (Latest Update 2024) 240 Questions
According to the Michigan Insurance Code, which of the following MUST a producer do when replacing a Life Insurance Policy? - Correct Answer ✅Submit to the replacing insurer a list of all Life Insurance policies or annuity contracts proposed to be replaced A policy owner suffers an injury the renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? - Correct Answer ✅Partial Disability A pharmacy benefit covers prescription drugs derived from list called a(n) - Correct Answer ✅Drug Formulary All of the following are examples of a Business Continuation Plan except - Correct Answer ✅Deferred Compensation Which of the following actions MUST be taken by producers - Correct Answer ✅Pay premiums due to insurers on a timely basis
Answers (Latest Update 2024) 240 Questions
The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as - Correct Answer ✅Aleatory Which of the following gifts from a producers would NOT be considered rebating? - Correct Answer ✅$5 pen Which of these riders will pay a death benefit if the insured's spouse dies? - Correct Answer ✅Family Term Insurance Rider Which form of insurer has shareholders? - Correct Answer ✅Stock Company A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called - Correct Answer ✅A self funded plan Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? - Correct Answer ✅$4,
Answers (Latest Update 2024) 240 Questions
A change in an insurance application requires - Correct Answer ✅an initial made by the applicant An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of rebating coercion fraud twisting - Correct Answer ✅fraud the period in which there are no social security benefits for the surviving spouse is called the - Correct Answer ✅blackout period -the blackout period begins when the youngest. child turns 16 and continues until the spouse reaches age 60, at the earliest. if there are no eligible children with the surviving spouse when the breadwinner dies, the blackout period starts immediately
Answers (Latest Update 2024) 240 Questions
circumstances can the son remain on the fathers coverage after the age of
- Correct Answer ✅with written proof of disability and dependency How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability. - Correct Answer ✅12 months Health insurance will typically cover which of the following perils - Correct Answer ✅injury due to accident a person who is a nonsmoker, of average weight, and excellent health would most likely be in which risk classification? - Correct Answer ✅preferred A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilization - Correct Answer ✅benefit limits which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death. - Correct Answer ✅Human Life value
Answers (Latest Update 2024) 240 Questions
to receive proceeds from a death benefit, a minor - Correct Answer ✅must have an appointed guardian A partial surrender is allowed in which of the following policies - Correct Answer ✅Universal life what is the automatic continuance of insurance coverage referred to as? - Correct Answer ✅renewal Major Medical insurance will typically cover medical expenses that result from - Correct Answer ✅a negative reaction to prescribed medication What is considered to be the primary reason for buying life insurance - Correct Answer ✅provide death benefits to qualify for a resident producer license in the state of MI, an individual - Correct Answer ✅must complete the requires pre-licensing education within 12 months of licensing application
Answers (Latest Update 2024) 240 Questions
For what purpose is a life insurance application backdates - Correct Answer ✅to reduce the premium An error was made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply? - Correct Answer ✅Age 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, - Correct Answer ✅the protection ends what activity does NOT require an insurance producer's license - Correct Answer ✅underwriting making a statement that is false or maliciously critical of the financial conditions of an insurer is known as - Correct Answer ✅defamation
Answers (Latest Update 2024) 240 Questions
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit options would he choose? - Correct Answer ✅Guaranteed lifetime withdrawal benefit How many employees must an employer have for a terminated employee to be eligible for COBRA - Correct Answer ✅ 20 a hospital or medical expense policy will typically cover dental treatment expenses under which circumstance - Correct Answer ✅dental treatment is needed to repair an injury HIPAA considers which of the following as "individually identifiable health information"? - Correct Answer ✅a persons health claim information who assume the investment risk with a fixed annuity contract - Correct Answer ✅the insurer Medical Expense insurance would cover - Correct Answer ✅an injury occurring at the insured's residence
Answers (Latest Update 2024) 240 Questions
if an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1, monthly disability benefit - Correct Answer ✅$ A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called - Correct Answer ✅Payout rider Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - Correct Answer ✅Life income An example of a presumptive disability would be - Correct Answer ✅deafness in MI, legal action can be taken against an insurer for failure to pay LIFE insurance claims for a period not to exceed - Correct Answer ✅6 years Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental? - Correct Answer ✅accidental bodily injury provision
Answers (Latest Update 2024) 240 Questions
Providing incorrect, misleading, incomplete, or materially untrue information in the license application is - Correct Answer ✅misrepresentation All of these are characteristics of a major medical expense policy EXCEPT - Correct Answer ✅Elimination Periods -The elimination period is the period of time between the onset of a disability, and the time you are eligible for benefits. It is typically a characteristic of disability policies, not major medical expense policies. A producer's license has been suspended due to the failure of completing required continuing education credits. The license may be activated by completing the CE requirement within how many days of the renewal date? - Correct Answer ✅ 90 The type of multiple protection coverage that pays on the death of the last person is called a(n) - Correct Answer ✅Survivorship Life Policy A rehabilitation benefit is intended to - Correct Answer ✅Prepare the insured to return to employment
