FINAL EXAM MICHIGAN LIFE AND HEALTH TEST
PAPER 2026 STUDY GUIDE REVIEW
◉ $10,000. Answer: Karen is a producer who has obtained personal
information about a client without having a legitimate reason to do
so. Under the McCarran-Ferguson Act, what is the minimum penalty
for this?
$0
$5,000
$10,000
$15,000
◉ Personal income. Answer: Which of these factors is NOT taken
into consideration when determining the cost of a long-term care
policy?
Health of applicant
Amount of benefits provided
Age of applicant
,Personal income
◉ commercial aviation. Answer: Life insurance policies will
normally pay for losses arising from
commercial aviation
war
suicide
hazardous jobs
◉ Consideration clause. Answer: Which type of clause describes the
following statement: "We have issued the policy in consideration of
the representations in your applications and payment of the first-
term
premium".
Premium clause
Consideration clause
Adhesion clause
,Contestability clause
◉ Gatekeeper. Answer: Which of these will typically authorize
treatment from a specialist?
Administrator
Policyowner
Insurance company
Gatekeeper
◉ cost. Answer: Which of these is affected by the frequency of an
insurance policy's premium payments?
Settlement options
Cash value
Death benefit
Cost
◉ Managed care plan. Answer: Which of the following is considered
to be a point of service (POS) plan?
Preferred provider organization
, Managed care plan
Protected care provider
Restricted provider organization
◉ statements made in the application and the
premium. Answer: In a life or health insurance contract,
"consideration" would be the
offer and acceptance
premium only
statements made in the application and the
premium
statements made in the application only
◉ Submit to the replacing insurer a list of all Life Insurance policies
or annuity contracts proposed to be replaced. Answer: According to
the Michigan Insurance Code, which of the following MUST a
producer do when replacing a Life Insurance policy?
PAPER 2026 STUDY GUIDE REVIEW
◉ $10,000. Answer: Karen is a producer who has obtained personal
information about a client without having a legitimate reason to do
so. Under the McCarran-Ferguson Act, what is the minimum penalty
for this?
$0
$5,000
$10,000
$15,000
◉ Personal income. Answer: Which of these factors is NOT taken
into consideration when determining the cost of a long-term care
policy?
Health of applicant
Amount of benefits provided
Age of applicant
,Personal income
◉ commercial aviation. Answer: Life insurance policies will
normally pay for losses arising from
commercial aviation
war
suicide
hazardous jobs
◉ Consideration clause. Answer: Which type of clause describes the
following statement: "We have issued the policy in consideration of
the representations in your applications and payment of the first-
term
premium".
Premium clause
Consideration clause
Adhesion clause
,Contestability clause
◉ Gatekeeper. Answer: Which of these will typically authorize
treatment from a specialist?
Administrator
Policyowner
Insurance company
Gatekeeper
◉ cost. Answer: Which of these is affected by the frequency of an
insurance policy's premium payments?
Settlement options
Cash value
Death benefit
Cost
◉ Managed care plan. Answer: Which of the following is considered
to be a point of service (POS) plan?
Preferred provider organization
, Managed care plan
Protected care provider
Restricted provider organization
◉ statements made in the application and the
premium. Answer: In a life or health insurance contract,
"consideration" would be the
offer and acceptance
premium only
statements made in the application and the
premium
statements made in the application only
◉ Submit to the replacing insurer a list of all Life Insurance policies
or annuity contracts proposed to be replaced. Answer: According to
the Michigan Insurance Code, which of the following MUST a
producer do when replacing a Life Insurance policy?
