MICHIGAN LIFE, ACCIDENT, AND
HEALTH EXAM QUESTIONS &
VERIFIED CORRECT ANSWERS
The Commissioner of Insurance is appointed by the Governor for a term of -
CORRECT ANSWER 4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - CORRECT ANSWER Correct answer: C - licensing of
producers
A temporary license issued to close the affairs of a deceased producer may be issued
for up to _____ days at the discretion of the Commissioner - CORRECT ANSWER 180
days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - CORRECT ANSWER 24 total hours every
two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - CORRECT ANSWER
Protects policy holders against failure insolvent insurers
Controlled business - CORRECT ANSWER It is permitted provided it does not exceed
15% of the premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a gift
equal to 50% of the commission. This is an example of __________. - CORRECT
ANSWER Rebating
Defamation - CORRECT ANSWER A written statement that is false and derogatory
that is designed to injure someone's reputation.
,The maximum fine for knowingly violating a cease and desist order is $________ and
__________________. - CORRECT ANSWER $10,000 and possible license
revocation
Insurance counselor - CORRECT ANSWER Provides advice concerning an insurance
policy and charges a fee for that advice.
An applicant who has been denied an insurance license has _____ days to request a
hearing to protest the denial. - CORRECT ANSWER 30 days
True / False
A producer may share commissions with another licensed producer - CORRECT
ANSWER True
True / False
A producer may not share commissions with a licensed nonresident producer -
CORRECT ANSWER False
If, after a hearing, the Commissioner believes a producer knowingly violated insurance
licensing laws, the Commissioner can: - CORRECT ANSWER Fine the producer a max
of $2,500 per violation
A producer has a fiduciary responsibility to all of the following: - CORRECT ANSWER -
Insured on cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and services? -
CORRECT ANSWER The insurance product is not the producer's to barter; it belongs
to the insured.
How often must the Commissioner examine the books, records, and documents of
domestic insurers? - CORRECT ANSWER At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. -
CORRECT ANSWER 30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance policies, he
may be fined up to $_______ for all violations. - CORRECT ANSWER $25,000
Under what type of policy does an insured have to be notified if current policy values are
insufficient to maintain the policy, given guaranteed interest and expense rates? -
CORRECT ANSWER Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: -
CORRECT ANSWER - information material to the insurance policy
, - a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an insured to drop
an existing policy and purchase a new policy is an example of _____________. -
CORRECT ANSWER Twisting
The minimum number of lives that must be covered under a group life insurance policy
in Michigan is ______. - CORRECT ANSWER 2 lives.
The maximum life insurance policy loan interest that may be charged on a fixed interest
loan is ______%. - CORRECT ANSWER 8%
In life insurance, all advertisements must be kept by the insurer for at least ________
months. - CORRECT ANSWER 48 months
The maximum life insurance policy loan interest that may be charged on an adjustable
rate loan is ______%. - CORRECT ANSWER 18%
True/ False
A long-term care policy can exclude all of the following:
- Alcoholism
- Drug addiction
- Alzheimer's disease
- Self-inflicted injury - CORRECT ANSWER False
A long-term care policy can exclude all alcoholism, drug addiction, and self-inflicted
injury. Alzheimer's disease cannot be excluded.
True/False
A long-term care application must include questions that reveal when the proposed
coverage will replace other existing health or long-term care coverage. - CORRECT
ANSWER True
True/False
A Medicare supplement policy can indemnify against losses resulting from accidents on
a different basis than losses resulting from sickness. - CORRECT ANSWER False -
Medicare supplements must indemnify the same way for accidents and sickness.
True/False
A Medicare supplement policy must cover intermediate outpatient care for substance
abuse. - CORRECT ANSWER True - Intermediate care for substance abuse includes
inpatient treatment for drug addiction and alcohol abuse
In Michigan, the free-look or trial examination period for a LTC policy is ______ days. -
CORRECT ANSWER 30
HEALTH EXAM QUESTIONS &
VERIFIED CORRECT ANSWERS
The Commissioner of Insurance is appointed by the Governor for a term of -
CORRECT ANSWER 4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - CORRECT ANSWER Correct answer: C - licensing of
producers
A temporary license issued to close the affairs of a deceased producer may be issued
for up to _____ days at the discretion of the Commissioner - CORRECT ANSWER 180
days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - CORRECT ANSWER 24 total hours every
two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - CORRECT ANSWER
Protects policy holders against failure insolvent insurers
Controlled business - CORRECT ANSWER It is permitted provided it does not exceed
15% of the premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a gift
equal to 50% of the commission. This is an example of __________. - CORRECT
ANSWER Rebating
Defamation - CORRECT ANSWER A written statement that is false and derogatory
that is designed to injure someone's reputation.
,The maximum fine for knowingly violating a cease and desist order is $________ and
__________________. - CORRECT ANSWER $10,000 and possible license
revocation
Insurance counselor - CORRECT ANSWER Provides advice concerning an insurance
policy and charges a fee for that advice.
An applicant who has been denied an insurance license has _____ days to request a
hearing to protest the denial. - CORRECT ANSWER 30 days
True / False
A producer may share commissions with another licensed producer - CORRECT
ANSWER True
True / False
A producer may not share commissions with a licensed nonresident producer -
CORRECT ANSWER False
If, after a hearing, the Commissioner believes a producer knowingly violated insurance
licensing laws, the Commissioner can: - CORRECT ANSWER Fine the producer a max
of $2,500 per violation
A producer has a fiduciary responsibility to all of the following: - CORRECT ANSWER -
Insured on cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and services? -
CORRECT ANSWER The insurance product is not the producer's to barter; it belongs
to the insured.
How often must the Commissioner examine the books, records, and documents of
domestic insurers? - CORRECT ANSWER At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws. -
CORRECT ANSWER 30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance policies, he
may be fined up to $_______ for all violations. - CORRECT ANSWER $25,000
Under what type of policy does an insured have to be notified if current policy values are
insufficient to maintain the policy, given guaranteed interest and expense rates? -
CORRECT ANSWER Universal Life Insurance
An advertisement for a life insurance policy must include all of the following: -
CORRECT ANSWER - information material to the insurance policy
, - a description of the type of policy advertised
- the identity of the insurer
Implying that policy dividends are guaranteed as an inducement for an insured to drop
an existing policy and purchase a new policy is an example of _____________. -
CORRECT ANSWER Twisting
The minimum number of lives that must be covered under a group life insurance policy
in Michigan is ______. - CORRECT ANSWER 2 lives.
The maximum life insurance policy loan interest that may be charged on a fixed interest
loan is ______%. - CORRECT ANSWER 8%
In life insurance, all advertisements must be kept by the insurer for at least ________
months. - CORRECT ANSWER 48 months
The maximum life insurance policy loan interest that may be charged on an adjustable
rate loan is ______%. - CORRECT ANSWER 18%
True/ False
A long-term care policy can exclude all of the following:
- Alcoholism
- Drug addiction
- Alzheimer's disease
- Self-inflicted injury - CORRECT ANSWER False
A long-term care policy can exclude all alcoholism, drug addiction, and self-inflicted
injury. Alzheimer's disease cannot be excluded.
True/False
A long-term care application must include questions that reveal when the proposed
coverage will replace other existing health or long-term care coverage. - CORRECT
ANSWER True
True/False
A Medicare supplement policy can indemnify against losses resulting from accidents on
a different basis than losses resulting from sickness. - CORRECT ANSWER False -
Medicare supplements must indemnify the same way for accidents and sickness.
True/False
A Medicare supplement policy must cover intermediate outpatient care for substance
abuse. - CORRECT ANSWER True - Intermediate care for substance abuse includes
inpatient treatment for drug addiction and alcohol abuse
In Michigan, the free-look or trial examination period for a LTC policy is ______ days. -
CORRECT ANSWER 30
