FINAL EXAM MICHIGAN LIFE AND HEALTH
FINAL PAPER 2026 COMPLETE ANSWERS
VERIFIED
◉ Consumer privacy regulations permit the release of an insured's
financial information when. 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. Answer:
Endowment Policy
◉ According to the Michigan Insurance Code, which of the following
MUST a producer do when replacing a Life Insurance Policy?.
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?. Answer: Partial Disability
,◉ A pharmacy benefit covers prescription drugs derived from list
called a(n). Answer: Drug Formulary
◉ All of the following are examples of a Business Continuation Plan
except. Answer: Deferred Compensation
◉ Which of the following actions MUST be taken by producers.
Answer: Pay premiums due to insurers on a timely basis
◉ Rob has a benefit at work which enables him to defer his current
receipt of income and have it paid at a later date, when he will
probably be in a lower tax bracket. Which benefit fits his
description?. Answer: Deferred Compensation Option
◉ What does the Consolidated Omnibus Budget Reconciliation Act
(COBRA) of 1985 allow an employee to do?. Answer: In the event of
employment termination, group health insurance can be kept if the
employee pays the premiums
◉ Distribution from a Health Savings Account (HSA) for qualified
medical expenses are. Answer: Tax Free
◉ An indemnity plan limitation that will pay the dental bills after a
small amount is paid by the insured is called. Answer: Coinsurance
,◉ A notice of cash surrender value must be sent to a Universal Life
policy owner. Answer: At least Annually
◉ The term which describes the fact that both parties of a contract
may NOT receive the same value is referred to as. Answer: Aleatory
◉ Which of the following gifts from a producers would NOT be
considered rebating?. Answer: $5 pen
◉ Which of these riders will pay a death benefit if the insured's
spouse dies?. Answer: Family Term Insurance Rider
◉ Which form of insurer has shareholders?. Answer: Stock Company
◉ A plan in which an employer pays insurance benefits from a fund
derived from the employer's current revenues is called. 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?. Answer: $4,000
-$100,000 * .04=$4,000
, ◉ A change in an insurance application requires. 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. Answer: fraud
◉ the period in which there are no social security benefits for the
surviving spouse is called the. 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
◉ In the state of MI, a licensed producer. Answer: represents the
insurer
◉ when an insurance licensee changes his or her address under the
Michigan insurance code, who must be notified?. Answer: The
commissioner of the department of insurance
FINAL PAPER 2026 COMPLETE ANSWERS
VERIFIED
◉ Consumer privacy regulations permit the release of an insured's
financial information when. 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. Answer:
Endowment Policy
◉ According to the Michigan Insurance Code, which of the following
MUST a producer do when replacing a Life Insurance Policy?.
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?. Answer: Partial Disability
,◉ A pharmacy benefit covers prescription drugs derived from list
called a(n). Answer: Drug Formulary
◉ All of the following are examples of a Business Continuation Plan
except. Answer: Deferred Compensation
◉ Which of the following actions MUST be taken by producers.
Answer: Pay premiums due to insurers on a timely basis
◉ Rob has a benefit at work which enables him to defer his current
receipt of income and have it paid at a later date, when he will
probably be in a lower tax bracket. Which benefit fits his
description?. Answer: Deferred Compensation Option
◉ What does the Consolidated Omnibus Budget Reconciliation Act
(COBRA) of 1985 allow an employee to do?. Answer: In the event of
employment termination, group health insurance can be kept if the
employee pays the premiums
◉ Distribution from a Health Savings Account (HSA) for qualified
medical expenses are. Answer: Tax Free
◉ An indemnity plan limitation that will pay the dental bills after a
small amount is paid by the insured is called. Answer: Coinsurance
,◉ A notice of cash surrender value must be sent to a Universal Life
policy owner. Answer: At least Annually
◉ The term which describes the fact that both parties of a contract
may NOT receive the same value is referred to as. Answer: Aleatory
◉ Which of the following gifts from a producers would NOT be
considered rebating?. Answer: $5 pen
◉ Which of these riders will pay a death benefit if the insured's
spouse dies?. Answer: Family Term Insurance Rider
◉ Which form of insurer has shareholders?. Answer: Stock Company
◉ A plan in which an employer pays insurance benefits from a fund
derived from the employer's current revenues is called. 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?. Answer: $4,000
-$100,000 * .04=$4,000
, ◉ A change in an insurance application requires. 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. Answer: fraud
◉ the period in which there are no social security benefits for the
surviving spouse is called the. 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
◉ In the state of MI, a licensed producer. Answer: represents the
insurer
◉ when an insurance licensee changes his or her address under the
Michigan insurance code, who must be notified?. Answer: The
commissioner of the department of insurance
