Exam (elaborations)
MICHIGAN LIFE, ACCIDENT, AND HEALTH
- Course
- Institution
MICHIGAN LIFE, ACCIDENT, AND HEALTH
[Show more]
Content preview
MICHIGAN LIFE, ACCIDENT, AND HEALTHThe Commissioner of Insurance is appointed by the Governor for a term of - Answers -4
years
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 - Answers -Correct answer: C - licensing of producers
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 - Answers -180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE - Answers -24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association - Answers -Protects policy
holders against failure insolvent insurers
Controlled business - Answers -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 __________. - Answers -
Rebating
True/False
A Medicare supplement policy can indemnify against losses resulting from accidents on
a different basis than losses resulting from sickness. - Answers -False - Medicare
supplements must indemnify the same way for accidents and sickness.
True/False
A Medicare supplement policy must cover intermediate outpatient care for substance
abuse. - Answers -True - Intermediate care for substance abuse includes inpatient
treatment for drug addiction and alcohol abuse
In Michigan, the free-look or trial examination period for a LTC policy is ______ days. -
Answers -30
True/False
,All LTC policy owners must be offered a cost-of-living benefit adjustment option. -
Answers -True
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. - Answers -31 days
An individual that is continually insured under a group policy for at least ____ months
may convert to an individual policy upon policy termination. - Answers -3 months
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.
- Answers -65 years old, 90 days
The Medicare maximum preexisting condition exclusion period is ____ months. -
Answers -6 months
The free-look period for Medicare supplements and LTC policies is ____ days. -
Answers -30 days
An employee who works at least _____ hours weekly must be considered an eligible
employee for small employer medical plans. - Answers -30 hours / week
The number of eligible full-time employees for small group health plans is _____ to
_____. - Answers -2 to 50 employees
A LTC policy must provide coverage for at least ______ consecutive months. - Answers
-12 consecutive months
An insurance company must file a notice of appointment or give notice of appointment
termination to a producer within _____ days. - Answers -15 days
A producer has ______ days to notify the Department of Insurance of any name or
address changes. - Answers -30 days
Peril - Answers -Immediate specific event causing a loss
Hazard - Answers -A factor that gives rise to a loss.
The five methods of managing risk are: - Answers -STARR (sharing, transfer,
avoidance, reduction, retention)
Elimination period - Answers -Total # of days an insured must be disabled before
income benefits will pay out.
Coinsurance - Answers -Shared expenses between the insured and the insurer. The
insurer always has the higher %.
, Participating insurance company - Answers -Pays dividends
Unauthorized/non-admitted - Answers -Cannot transact insurance within the state.
Express authority - Answers -Explicit authority that an agent has per the written contract
Implied authority - Answers -Authority that is not expressly granted in the contract but is
necessary in order to conduct business
Apparent authority - Answers -Authority the agent seems to have to the general public
based on actions undertaken by the agent.
Waiver - Answers -Intentional giving up of a right
Aleatory contract - Answers -Dependent on an uncertain event
Contract of adhesion - Answers -The insurance company drafts the contract wording
and the insured simply follows it.
Unilateral contract - Answers -The insured makes the premium payments only one party
has the responsibility.
Loss Ratio % = - Answers -operating expenses / premiums
Contributory - Answers -The insured contributes $ to their group plan
____% of eligible employees must participate in a contributory plan. - Answers -75%
Non-contributory - Answers -Premium is paid entirely by the employer.
____% of eligible employees must participate in a non-contributory plan. - Answers -
100%
Enrollment period - Answers -Time in which you can enroll in benefits without having to
undergo medical underwriting. (No evidence of insurability)
Probationary period - Answers -The period of time before an employee is eligible to
enroll in benefits.
The human life value approach to selling life insurance focuses on an individual's
_______________. - Answers -An individual's future stream of income. (Annual salary,
expenses, years remaining until retirement, future value of current dollars)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82215 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now