MI Life Producer Exam Prep | 134 Questions and Answers 100% Verified
Question: an insurance applicant with a below average
likelihood of loss is typically considered to be
Correct answer: Preferred Risk
Question: Tim is covered under a group plan and would like
to change is group coverage to an individual policy with the name insurer because of employment termination. Which of these describes the change that will take place?
Correct answer: Conversion
Question: Matt is applying for life insurance and requests a
double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt..
Correct answer: Dies instantly from a car accident
Question: which of the following is not covered under
workers comp?
Correct answer: Pain and Suffering
Question: All of the following are considered appropriate uses
of life insurance for business purposes except
Correct answer: Protecting the business by covering entry
level employees with life insurance
Question: Which of these retirement plans do not qualify for a
federal income tax deduction?
Correct answer: Roth IRA
Question: An insurer would be committing unfair
discrimination if coverage was denied based upon
Correct answer: Martial Status
Question: In an insurance contract, the insurer is the only
party legally obligated to perform. Because of this, an insurance contract is considered
Correct answer: Unilateral
Question: One of the most important considerations when
replacing health insurance would be the
Correct answer: Exclusions on a new policy
Question: A type of group that has a constitution and bylaws
and has been organized for the purpose other than obtaining insurance is called an
Correct answer: Association or Labor group
Question: Under the subrogation clause, legal action can be
taken by the insurer against the
Correct answer: Responsible Third Party
Question: An insured under a major medical expense plan
with a plan zero deductible and 80/20 coinsurance provision files a $1000 claim. How much of this claim is the insured responsible for?
Correct answer: $200
Question: Which of these is NOT a qualifying event for
Medicare?
Correct answer: Falling below the federal poverty level
Question: ABC insurance agency is entering each applicant
who purchase insurance thought their agency into a drawing to win a free trip. This is an unlawful insurance practice known as
Correct answer: Illegal Inducement
Question: When calculating the amount of life insurance
needed for an income earner, what has to be determined when using the Needs Approach?
Correct answer: Financial Objectives if the income earner
were to die/disabled
Question: Joe has life insurance policy that's has a face
amount of $300,000. After a number of years, the policy cash value accumulates $50K making it $350K.