Michigan Life, Accident, and Health Actual
Exam Study Questions with 100% Correct
Answers | Brand New Version
1. The Commissioner of Insurance is appointed by the Governor for a term of -
ANSWER 4 years
2. All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - ANSWER Correct answer: C - licensing of
producers
3. A producer has _____ days to respond to charges of violating insurance
laws. - ANSWER 30 days.
4. If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations. - ANSWER
$25,000
5. Under what type of policy does an insured have to be notified if current
policy values are insufficient to maintain the policy, given guaranteed
interest and expense rates? - ANSWER Universal Life Insurance
6. An advertisement for a life insurance policy must include all of the
following: - ANSWER - information material to the insurance policy
- a description of the type of policy advertised
- the identity of the insurer
,7. Implying that policy dividends are guaranteed as an inducement for an
insured to drop an existing policy and purchase a new policy is an example
of _____________. - ANSWER Twisting
8. The minimum number of lives that must be covered under a group life
insurance policy in Michigan is ______. - ANSWER 2 lives.
9. The maximum life insurance policy loan interest that may be charged on a
fixed interest loan is ______%. - ANSWER 8%
10.In life insurance, all advertisements must be kept by the insurer for at least
________ months. - ANSWER 48 months
11.The maximum life insurance policy loan interest that may be charged on an
adjustable rate loan is ______%. - ANSWER 18%
12.True/ False
A long-term care policy can exclude all of the following:
- Alcoholism
- Drug addiction
- Alzheimer's disease
- Self-inflicted injury - ANSWER False
A long-term care policy can exclude all alcoholism, drug addiction, and self-
inflicted injury. Alzheimer's disease cannot be excluded.
13.True/False
,A long-term care application must include questions that reveal when the
proposed coverage will replace other existing health or long-term care
coverage. - ANSWER True
14.True/False
A Medicare supplement policy can indemnify against losses resulting from
accidents on a different basis than losses resulting from sickness. - ANSWER
False - Medicare supplements must indemnify the same way for accidents and
sickness.
15.True/False
A Medicare supplement policy must cover intermediate outpatient care for
substance abuse. - ANSWER True - Intermediate care for substance abuse
includes inpatient treatment for drug addiction and alcohol abuse
16.In Michigan, the free-look or trial examination period for a LTC policy is
______ days. - ANSWER 30
17.True/False
All LTC policy owners must be offered a cost-of-living benefit adjustment
option. - ANSWER True
18.Health insurance is in force for newborns from birth and notification must be
given within _____ days of birth for coverage to extend beyond that point. -
ANSWER 31 days
19.An individual that is continually insured under a group policy for at least
____ months may convert to an individual policy upon policy termination. -
ANSWER 3 months
, 20.A person becomes eligible for the federal Medicare program at the age of
____. Coverage must be requested within _____ days before or after the
applicant's birthday. - ANSWER 65 years old, 90 days
21.The Medicare maximum preexisting condition exclusion period is ____
months. - ANSWER 6 months
22.The free-look period for Medicare supplements and LTC policies is ____
days. - ANSWER 30 days
23.An employee who works at least _____ hours weekly must be considered an
eligible employee for small employer medical plans. - ANSWER 30 hours /
week
24.A temporary license issued to close the affairs of a deceased producer may
be issued for up to _____ days at the discretion of the Commissioner -
ANSWER 180 days
25.Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - ANSWER 24 total hours every two
years
3 hours in ethics
90 day grace period
26.Michigan Life and Health Insurance Guaranty Association - ANSWER
Protects policy holders against failure insolvent insurers
Exam Study Questions with 100% Correct
Answers | Brand New Version
1. The Commissioner of Insurance is appointed by the Governor for a term of -
ANSWER 4 years
2. All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums - ANSWER Correct answer: C - licensing of
producers
3. A producer has _____ days to respond to charges of violating insurance
laws. - ANSWER 30 days.
4. If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations. - ANSWER
$25,000
5. Under what type of policy does an insured have to be notified if current
policy values are insufficient to maintain the policy, given guaranteed
interest and expense rates? - ANSWER Universal Life Insurance
6. An advertisement for a life insurance policy must include all of the
following: - ANSWER - information material to the insurance policy
- a description of the type of policy advertised
- the identity of the insurer
,7. Implying that policy dividends are guaranteed as an inducement for an
insured to drop an existing policy and purchase a new policy is an example
of _____________. - ANSWER Twisting
8. The minimum number of lives that must be covered under a group life
insurance policy in Michigan is ______. - ANSWER 2 lives.
9. The maximum life insurance policy loan interest that may be charged on a
fixed interest loan is ______%. - ANSWER 8%
10.In life insurance, all advertisements must be kept by the insurer for at least
________ months. - ANSWER 48 months
11.The maximum life insurance policy loan interest that may be charged on an
adjustable rate loan is ______%. - ANSWER 18%
12.True/ False
A long-term care policy can exclude all of the following:
- Alcoholism
- Drug addiction
- Alzheimer's disease
- Self-inflicted injury - ANSWER False
A long-term care policy can exclude all alcoholism, drug addiction, and self-
inflicted injury. Alzheimer's disease cannot be excluded.
13.True/False
,A long-term care application must include questions that reveal when the
proposed coverage will replace other existing health or long-term care
coverage. - ANSWER True
14.True/False
A Medicare supplement policy can indemnify against losses resulting from
accidents on a different basis than losses resulting from sickness. - ANSWER
False - Medicare supplements must indemnify the same way for accidents and
sickness.
15.True/False
A Medicare supplement policy must cover intermediate outpatient care for
substance abuse. - ANSWER True - Intermediate care for substance abuse
includes inpatient treatment for drug addiction and alcohol abuse
16.In Michigan, the free-look or trial examination period for a LTC policy is
______ days. - ANSWER 30
17.True/False
All LTC policy owners must be offered a cost-of-living benefit adjustment
option. - ANSWER True
18.Health insurance is in force for newborns from birth and notification must be
given within _____ days of birth for coverage to extend beyond that point. -
ANSWER 31 days
19.An individual that is continually insured under a group policy for at least
____ months may convert to an individual policy upon policy termination. -
ANSWER 3 months
, 20.A person becomes eligible for the federal Medicare program at the age of
____. Coverage must be requested within _____ days before or after the
applicant's birthday. - ANSWER 65 years old, 90 days
21.The Medicare maximum preexisting condition exclusion period is ____
months. - ANSWER 6 months
22.The free-look period for Medicare supplements and LTC policies is ____
days. - ANSWER 30 days
23.An employee who works at least _____ hours weekly must be considered an
eligible employee for small employer medical plans. - ANSWER 30 hours /
week
24.A temporary license issued to close the affairs of a deceased producer may
be issued for up to _____ days at the discretion of the Commissioner -
ANSWER 180 days
25.Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - ANSWER 24 total hours every two
years
3 hours in ethics
90 day grace period
26.Michigan Life and Health Insurance Guaranty Association - ANSWER
Protects policy holders against failure insolvent insurers
