FINAL EXAM MICHIGAN LIFE AND HEALTH
CERTIFICATION EVALUATION 2026
COMPREHENSIVE QUESTIONS ANSWERS
◉ Guaranteed insurability rider. 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. Answer: What is an insurer required
to do when faced with an error made under the Misstatement of Age
provision?
◉ twisting. Answer: The unfair trade practice of replacing an
insurance policy from one insurer to another based on
misrepresentation is called
◉ Life annuity. Answer: Which type of annuity stops all payments
upon the death of the annuitant?
◉ liquidity. Answer: An insurer's ability to make unpredictable
payouts to policyowners is called
,◉ Exclusion Ratio. Answer: The taxable portion of each annuity
payment is calculated using which method?
◉ adverse selection. Answer: Group dental plans will frequently
place a limit on annual benefits in order to minimize
◉ subrogation. Answer: An insurer has the right to recover payment
made to the insured from the negligent party. These rights are called
◉ The greater of the accumulated cash value or the total premium
paid. Answer: What will the beneficiary receive if an annuitant dies
during the accumulation period?
◉ time deductible. Answer: A disability elimination period is best
described as a
◉ have a legitimate non-insurance purpose. Answer: An association
wanting to buy insurance under a group health plan MUST
◉ Talking. Answer: In a Long-Term Care policy, activities of daily
living (ADL's) can be each of the following EXCEPT
◉ Stock purchase. Answer: All of the following are exempt from the
10% tax penalty for early qualified plan withdrawals EXCEPT
,◉ represents the insurer. Answer: In the state of Michigan, a licensed
producer
◉ Giving the insured an article of merchandise printed with the
producer's name costing $5. Answer: Which of the following is NOT
an illegal inducement?
◉ 100% of his health insurance costs can be deducted from his
gross income. 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. 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?
◉ Specified amount of money. Answer: What does a life insurance
policy guarantee to the stated beneficiary upon the death of the
insured?
◉ 12% per annum. 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. 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. Answer: Term
insurance is appropriate for someone who
◉ a disease. Answer: A fee for service health insurance plan will
normally cover
◉ Integrated deductible. Answer: Which of the following types of
deductibles would apply a single deductible to both medical and
dental insurance coverage?
◉ 2 years. Answer: When can a life policy no longer be cancelled for
nonfraudulent misstatements after its date of issue?
◉ 2-50 employees. Answer: In Michigan, a small employer is
comprised of
CERTIFICATION EVALUATION 2026
COMPREHENSIVE QUESTIONS ANSWERS
◉ Guaranteed insurability rider. 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. Answer: What is an insurer required
to do when faced with an error made under the Misstatement of Age
provision?
◉ twisting. Answer: The unfair trade practice of replacing an
insurance policy from one insurer to another based on
misrepresentation is called
◉ Life annuity. Answer: Which type of annuity stops all payments
upon the death of the annuitant?
◉ liquidity. Answer: An insurer's ability to make unpredictable
payouts to policyowners is called
,◉ Exclusion Ratio. Answer: The taxable portion of each annuity
payment is calculated using which method?
◉ adverse selection. Answer: Group dental plans will frequently
place a limit on annual benefits in order to minimize
◉ subrogation. Answer: An insurer has the right to recover payment
made to the insured from the negligent party. These rights are called
◉ The greater of the accumulated cash value or the total premium
paid. Answer: What will the beneficiary receive if an annuitant dies
during the accumulation period?
◉ time deductible. Answer: A disability elimination period is best
described as a
◉ have a legitimate non-insurance purpose. Answer: An association
wanting to buy insurance under a group health plan MUST
◉ Talking. Answer: In a Long-Term Care policy, activities of daily
living (ADL's) can be each of the following EXCEPT
◉ Stock purchase. Answer: All of the following are exempt from the
10% tax penalty for early qualified plan withdrawals EXCEPT
,◉ represents the insurer. Answer: In the state of Michigan, a licensed
producer
◉ Giving the insured an article of merchandise printed with the
producer's name costing $5. Answer: Which of the following is NOT
an illegal inducement?
◉ 100% of his health insurance costs can be deducted from his
gross income. 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. 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?
◉ Specified amount of money. Answer: What does a life insurance
policy guarantee to the stated beneficiary upon the death of the
insured?
◉ 12% per annum. 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. 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. Answer: Term
insurance is appropriate for someone who
◉ a disease. Answer: A fee for service health insurance plan will
normally cover
◉ Integrated deductible. Answer: Which of the following types of
deductibles would apply a single deductible to both medical and
dental insurance coverage?
◉ 2 years. Answer: When can a life policy no longer be cancelled for
nonfraudulent misstatements after its date of issue?
◉ 2-50 employees. Answer: In Michigan, a small employer is
comprised of
