1g|gPg ag gg e
MICHIGAN LIFE INSURANCE STATE PRACTICE EX
g g g g g
AM/ MOST RECENT VERSION FOR MICHIGAN INS
g g g g g g
UARANCE STATE EXAM ALL 170 QUESTIONS AND
g g g g g g g
CORRECT ANSWERS/ GRADED A+
g g g
Whichgmedicalgplangcoversgdoctorgvisitsgwhilegtheginsuredgisgingtheghospitalgandgphysic
algtherapygtreatmentsgfollowinggreleasegfromgtheghospital?g-
gANSWER:gComprehnsivegmajorgmedicalginsurance
HowgmanygdaysgisgthegfreeglookgperiodgforgagMedicaregsupplementgpolicy?g-
gANSWER:g30gdays
Angannuity'sgbasicgpurposegisgto:g-
gANSWER:gLiquidategagsumgofgmoneygandgprotectgagainstgoutlivinggonesgincome
Aghealthginsurancegpolicygmustgcovergchildrenguntilgwhichgage?g-gANSWER:g26
Macygisgcoveredgbyghisgownggroupghealthginsurancegplangasgwellgasgbyghisgwife'sggr
oupgplan.gWhichgprovisiongingMacy'sgplangwillgpreventgoverginsurance?g-
gANSWER:gCoordinationgofgbenefits
Someonegwhogappliesgforgangindividualgdisabilitygincomegpolicygwho'sginggoodghea
lth,gnogriskyghabits,gworksgaglowgriskgjobgandghasgnogfamilyghistorygofgdisabilitygisgli
kelygtogbegclassifiedgasga:g-gANSWER:gPreferredgrisk
Aftergagcommissionergissuedgagceasegandgdesistgorder,gagentgsmithgcontinuedgtogoff
ergillegalginducementsgtoginsurancegprospectsgingviolationgofgthegorder.gWhichgpenal
tygcangthegcommissionergimpose?g-
gANSWER:gAgfinegupgtog$20,000gandglicensegrevocation
,2g|gPg ag gg e
XYZginsurersgrevivedgagclaimgandgdeterminedgthatgagbenefitgwasgpayablegongJuneg1.gWi
thinghowgmanygdaysgmustghegpaygthegclaim?g-gANSWER:g60
Aglifeginsurergisgpermittedgtogemploygwhichgifgthegfollowinggpersonsgtogadminister
gfundsgheldgingtheginsurer'sgseparategaccount?g-
gANSWER:gAgpersongconvictedgofgmovinggtrafficgviolations
WhatgisgnotgangoptionalgprovisiongofghealthginsurancegpoliciesgissuedgingMichigan?
- ANSWER:gChangegofgbeneficiary
Whatgrequirementsgmustgangindividualgmeetgtogbegappointedgasgthegcommissioner
gofginsurance?g-gANSWER:gResidentgifgMichigan
Whengcan'tgugaccelerategthegbenefitsgundergagwholeglifegpolicy?g-gANSWER:
Someoneginjuredgingagcargaccidentgbutgisgexpectedgworkgingagmonth
Whatgarrangementgbestgsuitsgaglifeginsurancegapplicantsggoalgofgkeepinggthegpolicy
goutgofgtheirgestate?g-
gANSWER:gDesignategangirrevocablegtrustgtogbegthegownergofgthegpolicy.
Ifgsomeonegliesgaboutgtheirgagegongaglifeginsurancegapplicationgwhatgwillgtheginsurer
gdo?g-gANSWER:gAdjustgthegbenefits
Whengwouldgbegthegbestgtimegtogsurrendergagmarket-value-
adjustedgannuitygduringgthegsurrendergchangegperiod?g-
gANSWER:gWhengcurrentgmarketginterestgratesgareglowergthangtheygweregwhength
egannuitygwasgissued
Undergtraditionalgwholeglifeginsurancegplans,gpolicygloansgcangbegasghighgasgwhatgperce
ntgofgcashgvalue?g-gANSWER:g100g%
,3g|gPg ag gg e
Someonegownsgag$750,000glifeginsurancegpolicygandgreceivedgag$200gcheckgforgherg
firstgdividendgpaymentgfromgalphaginsurers.gHowgwillgthisgdividendgpaymentgbegtre
atedgforgincomegtaxgpurposes?g-gANSWER:gNotgsubjectgtogincomegtax
Togcalculategtheggrossgpremiumgchargedgtoglifeginsurancegpolicygowners,gactuaries:
- ANSWER:gAddgexpensegloadgtogthegnetgpremium
Thegcommissionergofginsurancegcangexaminegthegbusinessgtransactions,gaccounts,ga
ndgrecordsgofginsurersgandgproducersgasgoftengasgnecessarygbutgmustgdogsogatgleastgo
nceghowgmanygyears?g-gANSWER:g5
Aglifeginsurancegpolicygmaturedgorgendowsgwhengit'sgguaranteedgcashgvaluegequalsgi
t'sgfacegamount.gWithgangendowmentgcontract,gwhengdoesgthegpolicygendow?g-
gANSWER:gWellgbeforegageg120,gusuallyg65
Whengcollectinggpersonalgfinancialgorghealthginformation,ganginsurancegcompanygisg
NOTgsupposegto:g-
gANSWER:gProvidegindividualsgwithgcopiesgofgdocumentsgdisclosedgtogothergparti
es
Questgpublishingghasgsixgemployeesgandgappliesgforgaggroupghealthgplan.gWhatgmay
gtheginsurergdogwhengunderwritinggthegpolicy?g-
gANSWER:gRequiregthegemployeesgtogprovidegevidencegofginsurability
Angaccidentalgdeathgandgdismembermentgpolicygwillgpayg$10,000gforgtheglossgofgo
negarmgandg$30,000gforgtheglossgofgonegeye.gOngwhichgbasisgisgthegpolicygwritten?
- ANSWER:gValued
, 4g|gPg ag gg e
Davegownsgagsmallgbusiness.gHegwantsgdisabilitygcoveragegthatgwouldgpaygroutine
gbusinessgexpensesgifghegisgunablegtogwork.gWhatgkindgofginsurancegwouldgsuitgthi
sgneed?g-gANSWER:gBusinessgoverheadgexpenseginsurance
Togensuregthatgaggroupglifeginsurancegplangisgnotgdiscriminatory,gwhatgmustgthegplang
do?g-gANSWER:gBenefitgasgleastg70%gifgallgemployees
Forgpurposesgofggroupghealthginsurance,gagsmallgemployergisgdefinedgingMichigangas
ganygperks.gOrgentitygthatgemploysgnogmoregthanghowgmanygemployees?g-
gANSWER:g50
Allisonghasgagmedicalgplangthatgallowsghergtogchooseganygprovidergshegwishes.gSheg
mostglikelygisgunitedgundergwhichgofgthegfollowing?g-
gANSWER:gTraditionalgmedicalgexpensegplan
ThegHMOgclaimsgprocessg-
gANSWER:gClaimgformsgaregnotgnecessarygwhengagnetworkgprovidergperformsgtheg
health-caregservices
Billgfailedgtogsatisfygthegcontinuinggeducationgrequirementsgtogkeepghisgproducersglicens
egingMichigan.gOnegyearglatergdecidegtogrenewghisglicense.gCanghegdogso?g-
gANSWER:gNo;ghegmustgapplygforgagnewglicense.
OngJulyg1,gangemployergmakesgthegmaximumgannualgcontributiongtogemployeesghea
lthgsavingsgaccount.gTwogweeksglatergFranklin'sgquitsghisgjob.gWhatgisgcorrectgaboutg
thegcontributiongheghas?g-gANSWER:gFranklingwillgretaingthegfunds
Marcosglifeginsurancegpolicygcontainsgaglong-
termgcaregrider.gIfgMarcogeventuallygrequiresglong-
termgcaregwhatgisgtruegaboutghisgmonthlygbenefits?g-
gANSWER:gTheygwillgmostglikelygbegbasedgongagpercentagegofgthegfacegamountgof
ginsurance
MICHIGAN LIFE INSURANCE STATE PRACTICE EX
g g g g g
AM/ MOST RECENT VERSION FOR MICHIGAN INS
g g g g g g
UARANCE STATE EXAM ALL 170 QUESTIONS AND
g g g g g g g
CORRECT ANSWERS/ GRADED A+
g g g
Whichgmedicalgplangcoversgdoctorgvisitsgwhilegtheginsuredgisgingtheghospitalgandgphysic
algtherapygtreatmentsgfollowinggreleasegfromgtheghospital?g-
gANSWER:gComprehnsivegmajorgmedicalginsurance
HowgmanygdaysgisgthegfreeglookgperiodgforgagMedicaregsupplementgpolicy?g-
gANSWER:g30gdays
Angannuity'sgbasicgpurposegisgto:g-
gANSWER:gLiquidategagsumgofgmoneygandgprotectgagainstgoutlivinggonesgincome
Aghealthginsurancegpolicygmustgcovergchildrenguntilgwhichgage?g-gANSWER:g26
Macygisgcoveredgbyghisgownggroupghealthginsurancegplangasgwellgasgbyghisgwife'sggr
oupgplan.gWhichgprovisiongingMacy'sgplangwillgpreventgoverginsurance?g-
gANSWER:gCoordinationgofgbenefits
Someonegwhogappliesgforgangindividualgdisabilitygincomegpolicygwho'sginggoodghea
lth,gnogriskyghabits,gworksgaglowgriskgjobgandghasgnogfamilyghistorygofgdisabilitygisgli
kelygtogbegclassifiedgasga:g-gANSWER:gPreferredgrisk
Aftergagcommissionergissuedgagceasegandgdesistgorder,gagentgsmithgcontinuedgtogoff
ergillegalginducementsgtoginsurancegprospectsgingviolationgofgthegorder.gWhichgpenal
tygcangthegcommissionergimpose?g-
gANSWER:gAgfinegupgtog$20,000gandglicensegrevocation
,2g|gPg ag gg e
XYZginsurersgrevivedgagclaimgandgdeterminedgthatgagbenefitgwasgpayablegongJuneg1.gWi
thinghowgmanygdaysgmustghegpaygthegclaim?g-gANSWER:g60
Aglifeginsurergisgpermittedgtogemploygwhichgifgthegfollowinggpersonsgtogadminister
gfundsgheldgingtheginsurer'sgseparategaccount?g-
gANSWER:gAgpersongconvictedgofgmovinggtrafficgviolations
WhatgisgnotgangoptionalgprovisiongofghealthginsurancegpoliciesgissuedgingMichigan?
- ANSWER:gChangegofgbeneficiary
Whatgrequirementsgmustgangindividualgmeetgtogbegappointedgasgthegcommissioner
gofginsurance?g-gANSWER:gResidentgifgMichigan
Whengcan'tgugaccelerategthegbenefitsgundergagwholeglifegpolicy?g-gANSWER:
Someoneginjuredgingagcargaccidentgbutgisgexpectedgworkgingagmonth
Whatgarrangementgbestgsuitsgaglifeginsurancegapplicantsggoalgofgkeepinggthegpolicy
goutgofgtheirgestate?g-
gANSWER:gDesignategangirrevocablegtrustgtogbegthegownergofgthegpolicy.
Ifgsomeonegliesgaboutgtheirgagegongaglifeginsurancegapplicationgwhatgwillgtheginsurer
gdo?g-gANSWER:gAdjustgthegbenefits
Whengwouldgbegthegbestgtimegtogsurrendergagmarket-value-
adjustedgannuitygduringgthegsurrendergchangegperiod?g-
gANSWER:gWhengcurrentgmarketginterestgratesgareglowergthangtheygweregwhength
egannuitygwasgissued
Undergtraditionalgwholeglifeginsurancegplans,gpolicygloansgcangbegasghighgasgwhatgperce
ntgofgcashgvalue?g-gANSWER:g100g%
,3g|gPg ag gg e
Someonegownsgag$750,000glifeginsurancegpolicygandgreceivedgag$200gcheckgforgherg
firstgdividendgpaymentgfromgalphaginsurers.gHowgwillgthisgdividendgpaymentgbegtre
atedgforgincomegtaxgpurposes?g-gANSWER:gNotgsubjectgtogincomegtax
Togcalculategtheggrossgpremiumgchargedgtoglifeginsurancegpolicygowners,gactuaries:
- ANSWER:gAddgexpensegloadgtogthegnetgpremium
Thegcommissionergofginsurancegcangexaminegthegbusinessgtransactions,gaccounts,ga
ndgrecordsgofginsurersgandgproducersgasgoftengasgnecessarygbutgmustgdogsogatgleastgo
nceghowgmanygyears?g-gANSWER:g5
Aglifeginsurancegpolicygmaturedgorgendowsgwhengit'sgguaranteedgcashgvaluegequalsgi
t'sgfacegamount.gWithgangendowmentgcontract,gwhengdoesgthegpolicygendow?g-
gANSWER:gWellgbeforegageg120,gusuallyg65
Whengcollectinggpersonalgfinancialgorghealthginformation,ganginsurancegcompanygisg
NOTgsupposegto:g-
gANSWER:gProvidegindividualsgwithgcopiesgofgdocumentsgdisclosedgtogothergparti
es
Questgpublishingghasgsixgemployeesgandgappliesgforgaggroupghealthgplan.gWhatgmay
gtheginsurergdogwhengunderwritinggthegpolicy?g-
gANSWER:gRequiregthegemployeesgtogprovidegevidencegofginsurability
Angaccidentalgdeathgandgdismembermentgpolicygwillgpayg$10,000gforgtheglossgofgo
negarmgandg$30,000gforgtheglossgofgonegeye.gOngwhichgbasisgisgthegpolicygwritten?
- ANSWER:gValued
, 4g|gPg ag gg e
Davegownsgagsmallgbusiness.gHegwantsgdisabilitygcoveragegthatgwouldgpaygroutine
gbusinessgexpensesgifghegisgunablegtogwork.gWhatgkindgofginsurancegwouldgsuitgthi
sgneed?g-gANSWER:gBusinessgoverheadgexpenseginsurance
Togensuregthatgaggroupglifeginsurancegplangisgnotgdiscriminatory,gwhatgmustgthegplang
do?g-gANSWER:gBenefitgasgleastg70%gifgallgemployees
Forgpurposesgofggroupghealthginsurance,gagsmallgemployergisgdefinedgingMichigangas
ganygperks.gOrgentitygthatgemploysgnogmoregthanghowgmanygemployees?g-
gANSWER:g50
Allisonghasgagmedicalgplangthatgallowsghergtogchooseganygprovidergshegwishes.gSheg
mostglikelygisgunitedgundergwhichgofgthegfollowing?g-
gANSWER:gTraditionalgmedicalgexpensegplan
ThegHMOgclaimsgprocessg-
gANSWER:gClaimgformsgaregnotgnecessarygwhengagnetworkgprovidergperformsgtheg
health-caregservices
Billgfailedgtogsatisfygthegcontinuinggeducationgrequirementsgtogkeepghisgproducersglicens
egingMichigan.gOnegyearglatergdecidegtogrenewghisglicense.gCanghegdogso?g-
gANSWER:gNo;ghegmustgapplygforgagnewglicense.
OngJulyg1,gangemployergmakesgthegmaximumgannualgcontributiongtogemployeesghea
lthgsavingsgaccount.gTwogweeksglatergFranklin'sgquitsghisgjob.gWhatgisgcorrectgaboutg
thegcontributiongheghas?g-gANSWER:gFranklingwillgretaingthegfunds
Marcosglifeginsurancegpolicygcontainsgaglong-
termgcaregrider.gIfgMarcogeventuallygrequiresglong-
termgcaregwhatgisgtruegaboutghisgmonthlygbenefits?g-
gANSWER:gTheygwillgmostglikelygbegbasedgongagpercentagegofgthegfacegamountgof
ginsurance
