SIMULATION TESTBANK QUESTIONS
WITH 100% CORRECT ANSWERS
What is the formal name for a Social Security? - Answer- Old-Age, Survivors, and
Disability Insurance
The IRS states that a taxpayers 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 that rule - Answer- Long-term care insurance premiums
Bill requires some nursing care and supervision, but not full-time care. Which of these
nursing home options would best serve him. - Answer- assisted living
Which of these factors is not taken into account when determining a applicant's life
insurance needs? - Answer- Automobile
Mike has inherited his father's traditional IRA as beneficiary he will pay blank taxes on
any money withdrawn - Answer- Income
Which of the following nursing home options would best suit a individual who needs
some nursing care and supervision but not full-time care - Answer- Assisted living
facilities
When a qualified plan starts making payments to its recipient, which of the following
choices best describes the portion of each distribution that is taxable - Answer- gains
Which of these retirement plans do not qualify for a federal income tax deduction -
Answer- Roth IRA
A Medicare supplement policy is - Answer- designed to fill in the gaps of Part A and Part
B Medicare
The period in which there are no Social Security benefits for the surviving spouse is
called a - Answer- Blackout.
All of the following are considered appropriate use uses of life insurance for business
purposes except - Answer- Protecting the business by covering entry-level employees
with life insurance
,Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependence - Answer- Human life value approach
Who is the individual paid on a fee for service basis? - Answer- provider
How do ensures predict the increase of individual risk? - Answer- Law of large numbers
If a producer diverse funds from a insurer, he/C may be found guilty of - Answer- Fraud
In the Michigan insurance code, chapter 45 insurance fraud defines financial loss as all
of the following except - Answer- additional premiums
Michigan requires that a licensee complete how many hours of continuing education on
the subject of ethics every reporting period - Answer- Three
Term purchases a insurance policy from a producer. The producer must present to Tim,
a notice detailing privacy policies, and practices after this initial income Tim must be
provided another notice. - Answer- Annually
Under which circumstance do consumer privacy regulations allow a insured financial
information to be released - Answer- A authorized agency makes a written request to
the insurer during a insurance fraud investigation
Upon finding a producer, guilty of forgery, the commissioner may take all of the
following actions except - Answer- Require the producer to notify his/clients
Upon receiving a producer, complaint the commissioner may immediately - Answer-
issue a cease and desist order
Which of the following is an example of a producers fiduciary duty - Answer- Recording
receipt and remittance of premiums due to the insurance company
Which of the following is a example of the illegal act of defamation - Answer- Making a
statement that is false or maliciously critical of the financial condition of a insurer
Which of the following is not the responsibility of a producer - Answer- Represent the
insured
Which of these is best example of misrepresentation - Answer- providing incorrect,
misleading, incomplete, or materially untrue information in the license application
A baby is born to a husband and wife covered under a family accident and health
insurance policy if the newborn is covered at birth, the first payment for the additional
coverage would become due and how many days - Answer- 31
, The Medicare supplement policy issued in the state of Michigan is required to provide
each of the following, except - Answer- It must include outpatient prescription drug
coverage
A producer is hired to sell insurance for a insurer upon submission of the agency
contract application. The producer must be appointed by the insure within how many
days. - Answer- 15
A insurer is required to offer which of the following to each long-term care applicant at
the time of purchase - Answer- Inflation protection
A producers insurance license may only be revoked by the - Answer- Department of
Insurance and Financial Services (DIFS)
A blank company is owned exclusively by shareholders - Answer- Stock
According to the Taft-Hartley act group insurance premium payments made by a
employer, must be paid to the - Answer- Trust
In determining whether a pre-existing condition applies, the enrolling cannot have more
than how many days gap in health insurance - Answer- 63
In Michigan legal action can be taken up to how many years against a insurer for failure
to pay health insurance claims after proof of loss - Answer- Three years
The blank reserves the right to renew a small employer health plan - Answer- Employer
To be eligible for small employer group coverage, a employee must work a minimum of
how many hours in a typical week - Answer- 17.5
A insurance producer license is required for which of the following - Answer- A business
entity soliciting insurance
Which of the following is included in the entire contract according to the entire contract
provision - Answer- application
A ensure would be committing unfair, discrimination, if coverage was denied based
upon - Answer- Sex
A insurer would be committing unfair discrimination, if coverage was denied based upon
- Answer- Marital status
Angie, the insured had made a deliberate lie to the insured in order to obtain a lower
premium. This action is considered an act of. - Answer- Fraud
WITH 100% CORRECT ANSWERS
What is the formal name for a Social Security? - Answer- Old-Age, Survivors, and
Disability Insurance
The IRS states that a taxpayers 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 that rule - Answer- Long-term care insurance premiums
Bill requires some nursing care and supervision, but not full-time care. Which of these
nursing home options would best serve him. - Answer- assisted living
Which of these factors is not taken into account when determining a applicant's life
insurance needs? - Answer- Automobile
Mike has inherited his father's traditional IRA as beneficiary he will pay blank taxes on
any money withdrawn - Answer- Income
Which of the following nursing home options would best suit a individual who needs
some nursing care and supervision but not full-time care - Answer- Assisted living
facilities
When a qualified plan starts making payments to its recipient, which of the following
choices best describes the portion of each distribution that is taxable - Answer- gains
Which of these retirement plans do not qualify for a federal income tax deduction -
Answer- Roth IRA
A Medicare supplement policy is - Answer- designed to fill in the gaps of Part A and Part
B Medicare
The period in which there are no Social Security benefits for the surviving spouse is
called a - Answer- Blackout.
All of the following are considered appropriate use uses of life insurance for business
purposes except - Answer- Protecting the business by covering entry-level employees
with life insurance
,Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependence - Answer- Human life value approach
Who is the individual paid on a fee for service basis? - Answer- provider
How do ensures predict the increase of individual risk? - Answer- Law of large numbers
If a producer diverse funds from a insurer, he/C may be found guilty of - Answer- Fraud
In the Michigan insurance code, chapter 45 insurance fraud defines financial loss as all
of the following except - Answer- additional premiums
Michigan requires that a licensee complete how many hours of continuing education on
the subject of ethics every reporting period - Answer- Three
Term purchases a insurance policy from a producer. The producer must present to Tim,
a notice detailing privacy policies, and practices after this initial income Tim must be
provided another notice. - Answer- Annually
Under which circumstance do consumer privacy regulations allow a insured financial
information to be released - Answer- A authorized agency makes a written request to
the insurer during a insurance fraud investigation
Upon finding a producer, guilty of forgery, the commissioner may take all of the
following actions except - Answer- Require the producer to notify his/clients
Upon receiving a producer, complaint the commissioner may immediately - Answer-
issue a cease and desist order
Which of the following is an example of a producers fiduciary duty - Answer- Recording
receipt and remittance of premiums due to the insurance company
Which of the following is a example of the illegal act of defamation - Answer- Making a
statement that is false or maliciously critical of the financial condition of a insurer
Which of the following is not the responsibility of a producer - Answer- Represent the
insured
Which of these is best example of misrepresentation - Answer- providing incorrect,
misleading, incomplete, or materially untrue information in the license application
A baby is born to a husband and wife covered under a family accident and health
insurance policy if the newborn is covered at birth, the first payment for the additional
coverage would become due and how many days - Answer- 31
, The Medicare supplement policy issued in the state of Michigan is required to provide
each of the following, except - Answer- It must include outpatient prescription drug
coverage
A producer is hired to sell insurance for a insurer upon submission of the agency
contract application. The producer must be appointed by the insure within how many
days. - Answer- 15
A insurer is required to offer which of the following to each long-term care applicant at
the time of purchase - Answer- Inflation protection
A producers insurance license may only be revoked by the - Answer- Department of
Insurance and Financial Services (DIFS)
A blank company is owned exclusively by shareholders - Answer- Stock
According to the Taft-Hartley act group insurance premium payments made by a
employer, must be paid to the - Answer- Trust
In determining whether a pre-existing condition applies, the enrolling cannot have more
than how many days gap in health insurance - Answer- 63
In Michigan legal action can be taken up to how many years against a insurer for failure
to pay health insurance claims after proof of loss - Answer- Three years
The blank reserves the right to renew a small employer health plan - Answer- Employer
To be eligible for small employer group coverage, a employee must work a minimum of
how many hours in a typical week - Answer- 17.5
A insurance producer license is required for which of the following - Answer- A business
entity soliciting insurance
Which of the following is included in the entire contract according to the entire contract
provision - Answer- application
A ensure would be committing unfair, discrimination, if coverage was denied based
upon - Answer- Sex
A insurer would be committing unfair discrimination, if coverage was denied based upon
- Answer- Marital status
Angie, the insured had made a deliberate lie to the insured in order to obtain a lower
premium. This action is considered an act of. - Answer- Fraud
