Final Exam-Michigan Life and Health Latest Update 2024-2025 400 Questions and 100% Verified Correct Answers Guaranteed A+
"Maximum benefits" refers to the - CORRECT ANSWER: upper limit of the total lifetime benefits the insurance company will pay
a 10% exercise tax is normally applied to an early withdrawal from an IRA. according to HIPAA, this tax will not be applied If the withdrawal is used for medical expenses that
exceed__ of the individuals adjusted gross income - CORRECT ANSWER: 7.5%
A change in an insurance application requires - CORRECT ANSWER: an initial made
by the applicant
A disability income policy can prevent an insured from earning a higher income than if
he/she were working by utilization - CORRECT ANSWER: benefit limits
a dread disease policy is considered to be a type of - CORRECT ANSWER: limited
health insurance policy
a father has a son who is mentally handicapped but not eligible for Medicare. the son is dependent on his father. under which of the following circumstances can the son remain on the fathers coverage after the age of 26. - CORRECT ANSWER: with written proof of disability and dependency
A fee for service health insurance plan will normally cover - CORRECT ANSWER: a
disease
a field underwriter's main task is - CORRECT ANSWER: to ensure an applicants
medical information is accurate and complete
a form of medical health insurance covering the treatment and care of gum disease is
called - CORRECT ANSWER: dental expense insurance
a group disability income plan that pays tax-free benefits to covered employees is
considered - CORRECT ANSWER: fully contributory
a health insurance policy that allows an insurer to change the policy owner's premiums,
but not cancel the policy is called a(n) - CORRECT ANSWER: guaranteed renewable
policy
a health insurance policy will typically cover - CORRECT ANSWER: preventative health services
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a hospital or medical expense policy will typically cover dental treatment expenses
under which circumstance - CORRECT ANSWER: dental treatment is needed to repair
an injury
A licensee who informs an insured of inaccurate terms, benefits, or advantages of any
policy is committing which of the following violations? - CORRECT ANSWER:
Misrepresentation
a licensee who is required to take continuing education Must include how many ethics
coursework hours - CORRECT ANSWER: 3
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
a limited payment whole life policy provides - CORRECT ANSWER: lifetime protections
A long term care policy typically provides all of the following levels of care EXCEPT -
CORRECT ANSWER: acute care
A master contract and certificate of coverage can be found in which type of policy? -
CORRECT ANSWER: group
a Medicare supplement plan can be canceled by the insurer - CORRECT ANSWER: for
nonpayments of premiums
A Medicare Supplement policy is issued in the state of Michigan is required to provide
each of the following EXCEPT - CORRECT ANSWER: It must include outpatient
prescription drug coverage
a non-contributory health insurance plan helps the insurer avoid - CORRECT ANSWER: adverse selection
A notice of cash surrender value must be sent to a Universal Life policy owner -
CORRECT ANSWER: At least Annually
A partial surrender is allowed in which of the following policies - CORRECT ANSWER: Universal life
A payment system for health care in which the provider is paid for each service given is
called - CORRECT ANSWER: Fee-for-Service
a person who is a nonsmoker, of average weight, and excellent health would most likely
be in which risk classification? - CORRECT ANSWER: preferred
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A pharmacy benefit covers prescription drugs derived from list called a(n) - CORRECT
ANSWER: Drug Formulary
A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues is called - CORRECT ANSWER: A self funded plan
A policy owner may exercise which of these dividend options that uses the dividend to
pay all or part of the next premium due? - CORRECT ANSWER: Reduction of Premium
Dividend Option
A policy owner suffers an injury the renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? - CORRECT ANSWER: Partial Disability
A producer's license has been suspended due to the failure of completing required continuing education credits. The license may be activated by completing the CE
requirement within how many days of the renewal date? - CORRECT ANSWER: 90
a producers fiduciary responsibility included which of the following - CORRECT
ANSWER: recording the recipe and distribution of premiums due to an insurer
A provision that allows a policy owner to temporarily give up ownership rights to secure
a loan is called a(n) - CORRECT ANSWER: collateral assignment
A rehabilitation benefit is intended to - CORRECT ANSWER: Prepare the insured to return to employment
A renewable term life policy can be renewed - CORRECT ANSWER: at a
predetermined date or age, regardless of the insured's health
A rider that assures premiums will be paid on a juvenile policy until the child reaches a
specific age is called - CORRECT ANSWER: Payout rider
A rollover from a Traditional IRA to another IRA MUST be done within __ days to avoid
tax consequences - CORRECT ANSWER: 60
a securities license is required for a life insurance producer to sell - CORRECT
ANSWER: variable life insurance
A securities license is required for a life insurance producer to sell - CORRECT
ANSWER: variable life insurance
A spouse and child can be added to the primary insured's coverage as what kind of
rider? - CORRECT ANSWER: Family Term
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