MICHIGAN LIFE, ACCIDENT, AND HEALTH EXAM | QUESTIONS AND
ANSWERS | VERIFIED ANSWERS GRADED A+ | LATEST EXAM
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:
- 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%
ANSWERS | VERIFIED ANSWERS GRADED A+ | LATEST EXAM
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:
- 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%
