Exam (elaborations)
MICHIGAN INSURANCE EXAM QUESTIONS AND ANSWERS 2024
- Course
- Institution
MICHIGAN INSURANCE EXAM QUESTIONS AND ANSWERS
[Show more]
Content preview
MICHIGAN INSURANCE EXAMQUESTIONS AND ANSWERS
In which of the following processes will the insurer oversee the insureds hospital stay to
confirm everything is going according to schedule and that the insured will be released
as planned? - Answer -concurrent review
According to the principle of Utmost Good Faith, the insured will answer questions on
the application to the best of their knowledge and pay the required premium, while the
insurer will deal fairly with the insured and it's - Answer -promises made
the limited period of time given to all members to sign up for a group health plan is
called - Answer -enrollment period
Which type of plan would be most appropriate for an individual on Medicare and is
concerned that Medicare will NOT pay for charges exceeding the approved amount? -
Answer -Medicare supplement Plan F
A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - Answer -
nonforfeiture provision
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase
an extended term insurance option. When the term insurance expires - Answer -the
protection ends
Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called - Answer -annuity certain
An annuitant dies during the distribution period. What kind of annuity will return to a
beneficiary the difference between the annuity value and the income payments already
made? - Answer -Refund annuity
,An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20
coinsurance. The insured incurs $25,000 of covered losses. How much will the insured
have to pay? - Answer -$5,000
Paul the producer has provided a false statement in relation to an insurance claim.
Which illegal act has been committed? - Answer -fraud
An insurer's claim settlement practices are regulated by the - Answer -State insurance
departments
Which of the following is included in the entire contract according to the entire contract
provision? - Answer -application
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on
any money withdrawn. - Answer -income
An example of a primary care physician would be a(n) - Answer -internist
Which situation would qualify an individual for receiving benefits from a qualified long-
term care policy? - Answer -Becoming cognitively impaired (mentally ill)
Which contract element is insurable interest a component of? - Answer -legal purpose
The acceptance of a credit life application requires the submission of a certificate of
insurance to the insured within
days. - Answer -30
Which of the following decisions would a Health Savings Account (HA) owner NOT be
able to make? - Answer -the amount contributed by the employer
Which of these is NOT subject to false advertising regulations? - Answer -gifts
XYZ Corp pays the tax-deductible insurance premiums for a key employee disability
policy. Which of the following would be the appropriate tax consequence? - Answer -
Benefits are fully taxable
What is the purpose of the Medical Information Bureau (MIB)? - Answer -To help
underwriters evaluate risk
An insured dies from what appears to be accidental causes. When confirming the cause
of death, which of these actions by the insurer takes precedence? - Answer -autopsy
An insurer would be committing Unfair Discrimination if coverage was denied based
upon - Answer -marital status
, Which of the following is an example of the insured's consideration? - Answer -A paid
premium
____ is NOT an element of a valid contract. - Answer -countersignature
If the annuitant dies before the annuity start date, - Answer -the premiums paid plus
interest earned will be given to the beneficiary
Credit Accident and Health plans are designed to - Answer -help pay off existing loans
during periods of disability
All of the following riders can increase the death benefit amount EXCEPT - Answer -
Waiver of Premium
The double indemnity provision in a life insurance policy pertains to an insured's death
caused by a(n) - Answer -accident
In contrast to a guaranteed renewable policy, a noncancellable policy - Answer -may
never raise premiums
Insurance companies determine risk exposure by which of the following? - Answer -Law
of large numbers and risk pooling
The election of COBRA for continuation of health coverage will - Answer -maintain the
same coverage and increase premium
A Universal Life policyowner must receive a notice of cash surrender value at LEAST
every - Answer -year
If a producer diverts funds from an insurer, he/she may be found guilty of - Answer -
fraud
What type of policy would only provide coverage for specific types of illnesses (cancer,
stroke, etc)? - Answer -Dread disease insurance
Loans obtained by a policyowner against the cash value of a life insurance policy -
Answer -would not be treated as taxable income
All of the following are qualifications for establishing a health savings account (HA)
EXCEPT - Answer -enrolled in a health plan with a prescription drug benefit
A life insurance applicant in Michigan may backdate the application for up to month(s). -
Answer -6
What makes an insurance policy a unilateral contract? - Answer -Only the insurer is
legally bound
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 mereka. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now