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Michigan Life and Health Final Exam Actual Questions and Answers 100% Correct
Question 1: 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
Question 2: the acceptance of a credit life application requires
the submission of a certificate of insurance to the insured within_____ days
CORRECT ANSWER : 30 days
Question 3: which of these is considered to be a Living benefit
option in a life insurance policy
CORRECT ANSWER : Accelerated death benefit
Question 4: loans obtained by a policy owner against the cash
value of a life insurance policy
CORRECT ANSWER : would not be treated as taxable income
Question 5: A long term care policy typically provides all of the
following levels of care EXCEPT
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CORRECT ANSWER : acute care
Question 6: 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
Question 7: what is an insurance policy's grace period?
CORRECT ANSWER : Period of time after the premium is due
but the policy remains in force
Question 8: How do interest earnings accumulate in a deferred
annuity
CORRECT ANSWER : On a tax-deferred basis
Question 9: a licensee who is required to take continuing
education Must include how many ethics coursework hours
CORRECT ANSWER: 3
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Question 10: 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
Question 11: health insurance involves two perils, accident and
______
CORRECT ANSWER : sickness
Question 12: Who is responsible for assembling the policy
forms for insureds
CORRECT ANSWER : Insurance carriers
Question 13: a securities license is required for a life insurance
producer to sell
CORRECT ANSWER : variable life insurance
Question 14: 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$
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Question 15: Which of the following is NOT a federal
requirement of a qualified plan?
CORRECT ANSWER : employee must be able to make
unlimited contributions
Question 16: 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
Question 17: a health insurance policy will typically cover
CORRECT ANSWER : preventative health services
Question 18: 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
Question 19: in addition to the actual policy, an entire contract
includes which of the following?