MICHIGAN LIFE INSURANCE UPDATED 2026 SCRIPTED
EXAM QUESTIONS AND ANSWERS RATED A+
✔✔Multi line insurer - ✔✔This is an insurance company or independent agent that
provides a "one stop shop" for businesses or individuals who are seeking coverage for
all of their insurance needs. For example, Minnie, large insurer, offer individual policies
for automobile, homeowner, long-term care, life, and health insurance needs.
✔✔Mutual insurance company - ✔✔This is an insurance company this characterized by
having no Stock, being owned by their policy owners, and typically issuing participating
insurance
✔✔Non-admitted (unauthorized) insurer - ✔✔This is a policy that's typically issued by
stock companies. This type of policy doesn't allow policy owners to participate in
dividends or to elect the board of directors.
✔✔Non-participating policy - ✔✔This is a policy that's typically issued by stock
companies. This type of policy doesn't allow policy owners to participate in dividends or
to elect the board of directors.
✔✔Participating policy - ✔✔This is an insurance policy the pace policy dividends to
policy owners. By receiving dividends, policy owners share in the companies, divisible
surplus, and also elect the companies board of directors.
✔✔Personal producing general agency PPGA - ✔✔This is an agency that represents
one or more specific insurer. A PPGA is a similar agency system, but PPGA don't
recruit, train, or supervise career agents
✔✔Policy owner - ✔✔This is the person who's responsible for the payment of premiums
and who possesses all ownership rights of the contract. Typically, the policy owner is
also the insured.
✔✔Private (commercial) insurer - ✔✔This is insurer that's owned by private citizens or
groups that offer one or Morr insurance lines. Commercial insurers are not government
owned.
✔✔Producer - ✔✔This is an individual whose licensed by one or more states to sell,
solicit, or transact insurance in a given state
✔✔Proposed insured - ✔✔This is the person whose life will be covered by an insurance
policy. (She also insured.)
✔✔Public adjuster - ✔✔This person acts on behalf of a consumer who settling
insurance claim
,✔✔Reciprocal insurer - ✔✔This is an unincorporated organization in which all members
in sure one another. An attorney in fact manages it.
✔✔Reinsurance - ✔✔This is the acceptance by one or more insurers (referred to as
reinsurers) of a portion of the risk being underwritten by another insurer that has
contracted with a consumer to cover the entire risk
✔✔Reinsurer - ✔✔This is a company that provides financial protection to insurance
companies. Reinsurers handle risks that are too large for insurance companies to cover
on their own and make it possible for insurer to obtain more business and they would
otherwise be able to obtain.
✔✔Risk retention group - ✔✔This is a group owned liability, insurer that assumes and
spreads product liability and other forms of commercial liability risks among its members
✔✔Sales department - ✔✔This department acquires clients through one on one
meetings in which consumers complete applications
✔✔Self insurer - ✔✔This is a company that establishes a self funded plan to cover
potential losses rather than transferring the risk to an insurance company
✔✔Service representatives - ✔✔These are customer service employees. Service
representatives are not required to obtain a license because they neither sell nor solicit
coverage, and they don't bind coverage.
✔✔Solicitors - ✔✔These are the individuals who solicit and schedule sales meetings
between consumers, and the producers for whom they work. Some states separately
licensed these individuals.
✔✔Stock insurance company - ✔✔This is an insurance company that's owned and
controlled by a group of stockholders (or shareholders) investment in the company
provides the safety margin necessary in the issuance of guaranteed, fixed, premium,
non-participating policies
✔✔Surplus lines insurance - ✔✔This is a nontraditional insurance. It's only available for
a surplus lines insurer. This type of insurance provides coverage for substandard or
unusual risks and is not available through private or commercial carriers.
✔✔Unauthorized insurer - ✔✔This is a non-admitted insurer
✔✔Underwriting department - ✔✔This is the department with an insurance company
this responsible for reviewing applications, approving, or declining applications, and
assigning risk classifications
, ✔✔Private insurance - ✔✔Private citizens or groups own commercial insurance
companies, which may be proprietary or cooperative. An example of a proprietary
insurer is a profit, motivated stock company. These private insurers offer individual,
group, industrial, or blanket insurance policies.
✔✔Government (social insurance) - ✔✔Government federal and state governments.
Also offer a variety of coverage. Federal and state government provided insurance
programs are commonly referred to as social insurance. Social insurance programs
range from crop insurance to FD FDIC insurance on bank deposits.
✔✔Self insurers - ✔✔Are those self insurance is not a method of transferring risk, it's an
important concept to understand. Rather than transfer risk to insurance company, a self
insure establishes a self funded plan to cover potential losses. Large companies often
use self insurance for funding, pension plans, and some health insurance plans. He self
insurer will often utilize an insurance company to provide insurance above a specified,
maximum loss level, but the self insure will bear the amount of loss below the maximum
amount.
✔✔1868 - Paul V, Virginia - ✔✔As a decided by the US Supreme Court, this case
involved one states attempt to regulate an insurance company that was domicile in
another state. The Supreme Court decided against the insurance company, ruling the
sale, and the issuance of insurance is not interstate commerce, thereby upholding a
states right to regulate insurance
✔✔1944 - United States V. South eastern underwriters Association. - ✔✔Supreme
Court revisited the issue of state versus federal regulations of the insurance industry. In
the SEUA case, the Supreme Court ruled that the insurance industry is a form of
interstate commerce that's regulated by the federal government and subject to a series
of federal laws which often conflict with existing state laws. Although this decision not
affect states power to regulate insurance, it did notify state laws they conflicted with
federal legislation.
✔✔1945 - the McCarran - Ferguson act - ✔✔The terminal created by the SEUA case
prompted Congress to enact public law 15, the McCarran - Ferguson act. This law
made it clear that the states continued participation in the regulation of insurance was in
the public best interest. However, it also made possible the application of federal
antitrust laws to the extent that the insurance business is not regulated by state law.this
act led each state to revise its insurance laws to to federal statutes. The insurance
industry is considered to be state regulated. Any person who violates McCarran -
Ferguson act faces a fine of $10,000 or up to one year in jail.
✔✔1958 - intervention by the FTC - ✔✔In the mid 1950s, the federal trade commission
sought to control the health insurance industries advertising and sales literature.
Imagine 58, the Supreme Court held at the McCarran - Ferguson act disallows such
EXAM QUESTIONS AND ANSWERS RATED A+
✔✔Multi line insurer - ✔✔This is an insurance company or independent agent that
provides a "one stop shop" for businesses or individuals who are seeking coverage for
all of their insurance needs. For example, Minnie, large insurer, offer individual policies
for automobile, homeowner, long-term care, life, and health insurance needs.
✔✔Mutual insurance company - ✔✔This is an insurance company this characterized by
having no Stock, being owned by their policy owners, and typically issuing participating
insurance
✔✔Non-admitted (unauthorized) insurer - ✔✔This is a policy that's typically issued by
stock companies. This type of policy doesn't allow policy owners to participate in
dividends or to elect the board of directors.
✔✔Non-participating policy - ✔✔This is a policy that's typically issued by stock
companies. This type of policy doesn't allow policy owners to participate in dividends or
to elect the board of directors.
✔✔Participating policy - ✔✔This is an insurance policy the pace policy dividends to
policy owners. By receiving dividends, policy owners share in the companies, divisible
surplus, and also elect the companies board of directors.
✔✔Personal producing general agency PPGA - ✔✔This is an agency that represents
one or more specific insurer. A PPGA is a similar agency system, but PPGA don't
recruit, train, or supervise career agents
✔✔Policy owner - ✔✔This is the person who's responsible for the payment of premiums
and who possesses all ownership rights of the contract. Typically, the policy owner is
also the insured.
✔✔Private (commercial) insurer - ✔✔This is insurer that's owned by private citizens or
groups that offer one or Morr insurance lines. Commercial insurers are not government
owned.
✔✔Producer - ✔✔This is an individual whose licensed by one or more states to sell,
solicit, or transact insurance in a given state
✔✔Proposed insured - ✔✔This is the person whose life will be covered by an insurance
policy. (She also insured.)
✔✔Public adjuster - ✔✔This person acts on behalf of a consumer who settling
insurance claim
,✔✔Reciprocal insurer - ✔✔This is an unincorporated organization in which all members
in sure one another. An attorney in fact manages it.
✔✔Reinsurance - ✔✔This is the acceptance by one or more insurers (referred to as
reinsurers) of a portion of the risk being underwritten by another insurer that has
contracted with a consumer to cover the entire risk
✔✔Reinsurer - ✔✔This is a company that provides financial protection to insurance
companies. Reinsurers handle risks that are too large for insurance companies to cover
on their own and make it possible for insurer to obtain more business and they would
otherwise be able to obtain.
✔✔Risk retention group - ✔✔This is a group owned liability, insurer that assumes and
spreads product liability and other forms of commercial liability risks among its members
✔✔Sales department - ✔✔This department acquires clients through one on one
meetings in which consumers complete applications
✔✔Self insurer - ✔✔This is a company that establishes a self funded plan to cover
potential losses rather than transferring the risk to an insurance company
✔✔Service representatives - ✔✔These are customer service employees. Service
representatives are not required to obtain a license because they neither sell nor solicit
coverage, and they don't bind coverage.
✔✔Solicitors - ✔✔These are the individuals who solicit and schedule sales meetings
between consumers, and the producers for whom they work. Some states separately
licensed these individuals.
✔✔Stock insurance company - ✔✔This is an insurance company that's owned and
controlled by a group of stockholders (or shareholders) investment in the company
provides the safety margin necessary in the issuance of guaranteed, fixed, premium,
non-participating policies
✔✔Surplus lines insurance - ✔✔This is a nontraditional insurance. It's only available for
a surplus lines insurer. This type of insurance provides coverage for substandard or
unusual risks and is not available through private or commercial carriers.
✔✔Unauthorized insurer - ✔✔This is a non-admitted insurer
✔✔Underwriting department - ✔✔This is the department with an insurance company
this responsible for reviewing applications, approving, or declining applications, and
assigning risk classifications
, ✔✔Private insurance - ✔✔Private citizens or groups own commercial insurance
companies, which may be proprietary or cooperative. An example of a proprietary
insurer is a profit, motivated stock company. These private insurers offer individual,
group, industrial, or blanket insurance policies.
✔✔Government (social insurance) - ✔✔Government federal and state governments.
Also offer a variety of coverage. Federal and state government provided insurance
programs are commonly referred to as social insurance. Social insurance programs
range from crop insurance to FD FDIC insurance on bank deposits.
✔✔Self insurers - ✔✔Are those self insurance is not a method of transferring risk, it's an
important concept to understand. Rather than transfer risk to insurance company, a self
insure establishes a self funded plan to cover potential losses. Large companies often
use self insurance for funding, pension plans, and some health insurance plans. He self
insurer will often utilize an insurance company to provide insurance above a specified,
maximum loss level, but the self insure will bear the amount of loss below the maximum
amount.
✔✔1868 - Paul V, Virginia - ✔✔As a decided by the US Supreme Court, this case
involved one states attempt to regulate an insurance company that was domicile in
another state. The Supreme Court decided against the insurance company, ruling the
sale, and the issuance of insurance is not interstate commerce, thereby upholding a
states right to regulate insurance
✔✔1944 - United States V. South eastern underwriters Association. - ✔✔Supreme
Court revisited the issue of state versus federal regulations of the insurance industry. In
the SEUA case, the Supreme Court ruled that the insurance industry is a form of
interstate commerce that's regulated by the federal government and subject to a series
of federal laws which often conflict with existing state laws. Although this decision not
affect states power to regulate insurance, it did notify state laws they conflicted with
federal legislation.
✔✔1945 - the McCarran - Ferguson act - ✔✔The terminal created by the SEUA case
prompted Congress to enact public law 15, the McCarran - Ferguson act. This law
made it clear that the states continued participation in the regulation of insurance was in
the public best interest. However, it also made possible the application of federal
antitrust laws to the extent that the insurance business is not regulated by state law.this
act led each state to revise its insurance laws to to federal statutes. The insurance
industry is considered to be state regulated. Any person who violates McCarran -
Ferguson act faces a fine of $10,000 or up to one year in jail.
✔✔1958 - intervention by the FTC - ✔✔In the mid 1950s, the federal trade commission
sought to control the health insurance industries advertising and sales literature.
Imagine 58, the Supreme Court held at the McCarran - Ferguson act disallows such
