Xcel Solutions Final Exam - Michigan
Life and Health questions and answers
Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life
policy covering all three of their lives. If Mike dies first, the policy proceeds
A.) Will no longer provide insurance protection
B.) Will go to Mike's estate
C.) Wwill be divided by probate
D.) Will not be paid until the last brother dies - ANSWER>>A.) Will no longer
provide insurance protection
Susan is insured through her Group Health Insurance plan and changed her
coverage to an individual plan with the same insurer after her employment was
terminated. This change is called a(n)
A.) Crossover
B.) Conversion
C.) Exchange
D.) Extension of benefits - ANSWER>>A.) Conversion
Which of the following is NOT a common exclusion for a medical expense policy?
A.) Physical Therapy
B.) Act of War
C.) On-the-Job Injury
D.) Self Inflicted Injury - ANSWER>>A.) Physical Therapy
The acceptance of a credit life application requires the submission fo a certificate
of insurance to the insured within _____ days.
A.) 10
B.) 20
C.) 30
D.) 40 - ANSWER>>C.) 30
,In the state of Michigan, a licensed producer
A.) represents the insurer
B.) may modify insurance contracts
C.) approves insurance contracts
D.) represents the insured - ANSWER>>A.) represents the insurer
A life insurance policy sold in Michigan may be contested by the insurer ONLY
during the first _____ year(s) of the contract.
A.) one
B.) two
C.) three
D.) four - ANSWER>>B.) two
Which of the following does Medicare Part D cover?
A.) intensive care coverage
B.) Doctor visits
C.) Prescription drugs
D.) Hospital coverage - ANSWER>>C.) Prescription drugs
Which situation accurately describes a reduced paid-up nonforfeiture option?
A.) Policy has a decreased face amount
B.) Face amount of the new policy equals that of the original policy
C.) Cash value is surrendered to policy owner
D.) Premiums must continue to be paid - ANSWER>>A.) Policy has a decrease face
amount
An example of a presumptive disability would be
A.) a stroke
B.) deafness
C.) diabetes
D.) cancer - ANSWER>>B.) deafness
Under Michigan Insurance Code, Chapter 45, financial loss can be defined as
, A.) loss of income
B.) restrictive fees
C.) punitive penalties
D.) additional fines - ANSWER>>A.) loss of income
A newborn must be covered under and existing health policy
A.) at the moment of birth
B.) within 7 days of birth
C.) within 10 days of birth
D.) when initial premium is paid for newborn - ANSWER>>A.) at the moment of
birth
All of these statements concerning whole life insurance are false EXCEPT
A.) Policy owner can take out a policy loan up to the face amount
B.) When a whole life policy is surrendered, income taxes may be owned
C.) Coverage is normally temporary
D.) The death benefit is not affected by outstanding loans - ANSWER>>B.) When a
whole life policy is surrendered, income taxes may be owned
Which policy feature makes a universal life policy different from a whole life
policy?
A.) A fixed cash value
B.) A flexible premium schedule
C.) A fixed death benefit
D.) The ability to take out a policy loan - ANSWER>>B.) A flexible premium
schedule
Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI)
are tax-deductible when paid for which of the following plans?
A.) Accidental Death and Dismemberment
B.) Personal Disability Income Plan
C.) Qualified long-Term Care Plan
D.) Group disability income plan - ANSWER>>C.) Qualified long-Term Care Plan
Life and Health questions and answers
Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life
policy covering all three of their lives. If Mike dies first, the policy proceeds
A.) Will no longer provide insurance protection
B.) Will go to Mike's estate
C.) Wwill be divided by probate
D.) Will not be paid until the last brother dies - ANSWER>>A.) Will no longer
provide insurance protection
Susan is insured through her Group Health Insurance plan and changed her
coverage to an individual plan with the same insurer after her employment was
terminated. This change is called a(n)
A.) Crossover
B.) Conversion
C.) Exchange
D.) Extension of benefits - ANSWER>>A.) Conversion
Which of the following is NOT a common exclusion for a medical expense policy?
A.) Physical Therapy
B.) Act of War
C.) On-the-Job Injury
D.) Self Inflicted Injury - ANSWER>>A.) Physical Therapy
The acceptance of a credit life application requires the submission fo a certificate
of insurance to the insured within _____ days.
A.) 10
B.) 20
C.) 30
D.) 40 - ANSWER>>C.) 30
,In the state of Michigan, a licensed producer
A.) represents the insurer
B.) may modify insurance contracts
C.) approves insurance contracts
D.) represents the insured - ANSWER>>A.) represents the insurer
A life insurance policy sold in Michigan may be contested by the insurer ONLY
during the first _____ year(s) of the contract.
A.) one
B.) two
C.) three
D.) four - ANSWER>>B.) two
Which of the following does Medicare Part D cover?
A.) intensive care coverage
B.) Doctor visits
C.) Prescription drugs
D.) Hospital coverage - ANSWER>>C.) Prescription drugs
Which situation accurately describes a reduced paid-up nonforfeiture option?
A.) Policy has a decreased face amount
B.) Face amount of the new policy equals that of the original policy
C.) Cash value is surrendered to policy owner
D.) Premiums must continue to be paid - ANSWER>>A.) Policy has a decrease face
amount
An example of a presumptive disability would be
A.) a stroke
B.) deafness
C.) diabetes
D.) cancer - ANSWER>>B.) deafness
Under Michigan Insurance Code, Chapter 45, financial loss can be defined as
, A.) loss of income
B.) restrictive fees
C.) punitive penalties
D.) additional fines - ANSWER>>A.) loss of income
A newborn must be covered under and existing health policy
A.) at the moment of birth
B.) within 7 days of birth
C.) within 10 days of birth
D.) when initial premium is paid for newborn - ANSWER>>A.) at the moment of
birth
All of these statements concerning whole life insurance are false EXCEPT
A.) Policy owner can take out a policy loan up to the face amount
B.) When a whole life policy is surrendered, income taxes may be owned
C.) Coverage is normally temporary
D.) The death benefit is not affected by outstanding loans - ANSWER>>B.) When a
whole life policy is surrendered, income taxes may be owned
Which policy feature makes a universal life policy different from a whole life
policy?
A.) A fixed cash value
B.) A flexible premium schedule
C.) A fixed death benefit
D.) The ability to take out a policy loan - ANSWER>>B.) A flexible premium
schedule
Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI)
are tax-deductible when paid for which of the following plans?
A.) Accidental Death and Dismemberment
B.) Personal Disability Income Plan
C.) Qualified long-Term Care Plan
D.) Group disability income plan - ANSWER>>C.) Qualified long-Term Care Plan
