Final exam Michigan life and health Questions and Answers
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Course
Michigan life
Institution
Michigan Life
Final exam Michigan life and health Questions and Answers/Final exam Michigan life and health Questions and Answers/Final exam Michigan life and health Questions and Answers
Final exam Michigan life and health Questions and
Answers
What amount will be paid under a policy where the insured misstated his/her
age? - correct answer an amount the premium would have purchased at the
correct age
the acceptance of a credit life application requires the submission of a certificate
of insurance to the insured within_____ days - correct answer 30 days
which of these is considered to be a Living benefit option in a life insurance policy
- correct answer Accelerated death benefit
loans obtained by a policy owner against the cash value of a life insurance policy -
correct answer would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT
- correct answer acute care
the elimination period under a hospital indemnity plan is - correct answer the
specific # of days an insured must wait before becoming eligible to receive
benefits for each hospitalization
what is an insurance policy's grace period? - correct answer Period of time after
the premium is due but the policy remains in force
How do interest earnings accumulate in a deferred annuity - correct answer On a
tax-deferred basis
a licensee who is required to take continuing education Must include how many
ethics coursework hours - correct answer 3
the automatic premium loan provision authorizes an insurer to withdraw from a
policy's cash value the amount of - correct answer Past due premiums that have
not been paid by the end of the grace period
health insurance involves two perils, accident and ______ - correct answer
sickness
Who is responsible for assembling the policy forms for insureds - correct answer
Insurance carriers
,Final exam Michigan life and health Questions and
Answers
a securities license is required for a life insurance producer to sell - correct
answer variable life insurance
Which of the following is NOT an illegal inducement - correct answer giving the
insured an article of merchandise printed with the producers name costing 5$
Which of the following is NOT a federal requirement of a qualified plan? - correct
answer employee must be able to make unlimited contributions
Which dividend option would an insurer invest the policy owner's money and add
any interest earnings as the dividends accrue? - correct answer Accumulation at
interest option
a health insurance policy will typically cover - correct answer preventative health
services
a life insurance policy owner was injured in a car accident which results in a total
and permanent disability. which rider would pay a monthly amount because of
this disability? - correct answer Disability income rider
in addition to the actual policy, an entire contract includes which of the following?
- correct answer the application
field underwriting preformed by the producer involves - correct answer
completing the application and collecting initial premium
Kathy pays a monthly premium on her health insurance policy. How long is her
grace period? - correct answer 10 days
Pierre is covered by his employer's group major medical plan. His employer pays
for 75% of the premium and he pays for 25%. How much would a $10,000 benefit
be taxable as income under this plan? - correct answer 0$
-benefits that fall under a major medical plan are considered to be a
reimbursement for a loss, and is not taxable as income
After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - correct answer file a written proof of loss
, Final exam Michigan life and health Questions and
Answers
Under long term care insurance, which of the following MUST an insurer offer to
each policy owner at the time of purchase? - correct answer An inflation
protection feature
What is the primary factor that determines the benefits paid under a disability
income policy? - correct answer Wages
What is the tax liability for employer contributions in Health Savings Accounts
(HSA's)? - correct answer No tax payment needed
-Employer paid contributions to HSA's are tax free to the employee
In the state of MI, properly filed health claims are not timely paid require the
insurer to pay simple interest from a date 60 days from satisfactory proof of loss
at the rate of? - correct answer 12% annum
In MI, legal action can be taken against an insurer for failure to pay HEALTH
insurance claims for a period not to exceed - correct answer 3 years
Donald is the primary insured of life insurance policy and adds a children's term
rider. What is the advantage of adding this rider? - correct answer Can be
converted to permanent coverage without evidence of insurability
-An advantage of a children's term rider is the ability to convert to permanent
insurance without evidence of insurability
When an insured changes to a more hazardous occupation, which disability policy
provision allows an insurer to adjust policy benefits and rates? - correct answer
Change of occupation provision
The unfair trade practice of replacing an insurance policy from one insurer to
another based on misrepresentation is called? - correct answer Twisting
Which type of coverage pays an amount per day for hospitalization directly to the
insured regardless of the insured's other health insurance? - correct answer
Hospital Indemnity
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