@PROFDOCDIGITALLIBRARIES
Michigan Life, Accident, and Health exam
with correct answers 2025
The Commissioner of Insurance is appointed by the Governor for a term of -
ANSWER-4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
PR
C. licensing of producers
D. collecting premiums - ANSWER-Correct answer: C - licensing of producers
O
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-
FD
180 days
Continuing Education (CE)
O
______ hours of CE every two years
______ hours must be in Ethics
C
______ day grace period to complete CE - ANSWER-24 total hours every two
years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - ANSWER-Protects
policy holders against failure insolvent insurers
,@PROFDOCDIGITALLIBRARIES
Controlled business - ANSWER-It is permitted provided it does not exceed 15%
of the premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a
gift equal to 50% of the commission. This is an example of __________. -
ANSWER-Rebating
Defamation - ANSWER-A written statement that is false and derogatory that is
designed to injure someone's reputation.
PR
The maximum fine for knowingly violating a cease and desist order is
$________ and __________________. - ANSWER-$10,000 and possible license
revocation
O
Insurance counselor - ANSWER-Provides advice concerning an insurance policy
and charges a fee for that advice.
FD
An applicant who has been denied an insurance license has _____ days to
request a hearing to protest the denial. - ANSWER-30 days
O
True / False
C
A producer may share commissions with another licensed producer - ANSWER-
True
True / False
A producer may not share commissions with a licensed nonresident producer -
ANSWER-False
, @PROFDOCDIGITALLIBRARIES
If, after a hearing, the Commissioner believes a producer knowingly violated
insurance licensing laws, the Commissioner can: - ANSWER-Fine the producer a
max of $2,500 per violation
A producer has a fiduciary responsibility to all of the following: - ANSWER--
Insured on cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and
PR
services? - ANSWER-The insurance product is not the producer's to barter; it
belongs to the insured.
O
How often must the Commissioner examine the books, records, and
documents of domestic insurers? - ANSWER-At least once every 5 years
FD
A producer has _____ days to respond to charges of violating insurance laws. -
ANSWER-30 days.
O
If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations. - ANSWER-$25,000
C
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
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
Michigan Life, Accident, and Health exam
with correct answers 2025
The Commissioner of Insurance is appointed by the Governor for a term of -
ANSWER-4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
PR
C. licensing of producers
D. collecting premiums - ANSWER-Correct answer: C - licensing of producers
O
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-
FD
180 days
Continuing Education (CE)
O
______ hours of CE every two years
______ hours must be in Ethics
C
______ day grace period to complete CE - ANSWER-24 total hours every two
years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - ANSWER-Protects
policy holders against failure insolvent insurers
,@PROFDOCDIGITALLIBRARIES
Controlled business - ANSWER-It is permitted provided it does not exceed 15%
of the premiums written in a 12-month period
To motivate a buyer to sign an application for insurance, a producer promises a
gift equal to 50% of the commission. This is an example of __________. -
ANSWER-Rebating
Defamation - ANSWER-A written statement that is false and derogatory that is
designed to injure someone's reputation.
PR
The maximum fine for knowingly violating a cease and desist order is
$________ and __________________. - ANSWER-$10,000 and possible license
revocation
O
Insurance counselor - ANSWER-Provides advice concerning an insurance policy
and charges a fee for that advice.
FD
An applicant who has been denied an insurance license has _____ days to
request a hearing to protest the denial. - ANSWER-30 days
O
True / False
C
A producer may share commissions with another licensed producer - ANSWER-
True
True / False
A producer may not share commissions with a licensed nonresident producer -
ANSWER-False
, @PROFDOCDIGITALLIBRARIES
If, after a hearing, the Commissioner believes a producer knowingly violated
insurance licensing laws, the Commissioner can: - ANSWER-Fine the producer a
max of $2,500 per violation
A producer has a fiduciary responsibility to all of the following: - ANSWER--
Insured on cancelled policies
- Insurer, for premiums due
- Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and
PR
services? - ANSWER-The insurance product is not the producer's to barter; it
belongs to the insured.
O
How often must the Commissioner examine the books, records, and
documents of domestic insurers? - ANSWER-At least once every 5 years
FD
A producer has _____ days to respond to charges of violating insurance laws. -
ANSWER-30 days.
O
If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations. - ANSWER-$25,000
C
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
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
