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A set of multiple-choice questions and answers related to michigan life and health insurance. It covers various aspects of insurance, including policy types, coverage, regulations, and key concepts. The questions are designed to test knowledge of insurance principles and practices relevant to michigan.
Typology: Exams
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The acceptance of a credit life application requires the submission of a certificate of insurance to the insured within ___ days.
Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this?
Which of these factors is NOT taken into consideration when determining the cost of a long-term care policy?
Health of applicant
Amount of benefits provided
Age of applicant
Personal income ✔✔Personal income
Life insurance policies will normally pay for losses arising from
commercial aviation
Administrator Policyowner Insurance company Gatekeeper ✔✔Gatekeeper
Which of these is affected by the frequency of an insurance policy's premium payments?
Settlement options Cash value Death benefit Cost ✔✔cost
Which of the following is considered to be a point of service (POS) plan?
Preferred provider organization Managed care plan Protected care provider Restricted provider organization ✔✔Managed care plan
In a life or health insurance contract, "consideration" would be the
offer and acceptance
premium only
statements made in the application and the
premium
statements made in the application only ✔✔statements made in the application and the
premium
According to the Michigan Insurance Code, which of the following MUST a producer do when replacing a Life Insurance policy?
Notify the beneficiaries of all the policies or annuity contracts proposed to be replaced
The role of the federal government was expanded when Medicaid was established by allowing the state to
form a large PPO on a statewide level
purchase health insurance from the federal government
receive matching funds to expand public assistance programs
defer all costs to the federal government for public assistance programs ✔✔receive matching
funds to expand public assistance programs
A long-term care policy typically provides all of the following levels of care EXCEPT
skilled care intermediate care acute care custodial care ✔✔acute care
Funding for Medicare Part B is partially provided by
Municipal bonds
State bonds
private insurers
user premiums ✔✔user premiums
A policyowner suffers an injury that 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?
Partial disability
Nondisabling injury
Coverage can be different for each child
Premiums on this rider are not required until the limiting age is reached
Increases the policy's overall cash value ✔✔Can be converted to permanent coverage without
evidence of insurability
The legal action provision in a health contract is limited to no more than ___ years.
2 3 4 5 ✔✔ 5
Which of the following statements is TRUE about Medicaid?
It is health insurance for the elderly
It is administered by the Federal government
It is funded by federal, state, and local taxes
Coverage includes compulsory hospital and voluntary supplementary medical insurance ✔✔It is
funded by federal, state, and local taxes
Which of the following services MUST be provided by HMO plans?
Eye care
Dental care
Well child care
Home health care ✔✔Home health care
In determining whether a pre-existing condition applies, the enrollee CANNOT have more than how many days' gap in health insurance?
Daily minimum benefit levels
A decrease in annual benefit levels
An inflation protection feature ✔✔An inflation protection feature
All of these are standard exclusions found in a life insurance policy EXCEPT
hazardous occupations aviation disability war ✔✔disability
Which of the following statements regarding Group Disability Income insurance is TRUE?
It pays 100% or more of an insured's income in the event of disability
It provides benefits for nonoccupational illnesses and injuries
It is generally more expensive than individual policies
It usually pays for occupation-related disabilities ✔✔It provides benefits for nonoccupational
illnesses and injuries
What is Medicare Part B also known as?
Medicare supplement Supplementary medical insurance Comprehensive insurance Medicaid ✔✔Supplementary medical insurance
An insured's status under Social Security can be described as
partially insured actively insured
How many employees must an employer have for a terminated employee to be eligible for COBRA?
20 30 40 50 ✔✔ 20
A closed network plan offers a a primary physician copay of $25. If a subscriber chooses a primary care physician outside of the network, the subscriber will likely pay
$ $ 100% of the billed amount 100% of the allowed amount ✔✔100% of the billed amount
All of the following are qualifications for establishing a health savings account (HSA) EXCEPT
Enrolled in a high deductible health plan
Be under the age of 65 (not enrolled in Medicare)
Enrolled in a health plan with a prescription drug benefit
Enrolled in a health plan that limits out of pocket expenses ✔✔Enrolled in a health plan with a
prescription drug benefit
Which of the following BEST describes a conditional insurance contract?
A contract that requires certain conditions or acts by the insured individual
A contract that has the potential for the unequal exchange of consideration for both parties
A contract where one party "adheres" to the terms of the contract
A contract where only one party makes any kind of enforceable contract ✔✔A contract that
requires certain conditions or acts by the insured individual
Ambiguities in an insurance policy are always resolved in favor of the
divisible surplus life insurance policy
straight life insurance policy ✔✔participating life insurance policy
The elimination period under a hospital indemnity plan is
the period in which pre-existing conditions are not taken into consideration
the period in which all deductibles are eliminated
the specified number of days after an insurance policy's issue date during which coverage is not afforded for sickness
the specified number of days an insured must wait before becoming eligible to receive benefits
for each hospitalization ✔✔the specified number of days an insured must wait before becoming
eligible to receive benefits for each hospitalization
A producer MUST be appointed by the insurer within how many days from the date the agency contract application is submitted?
To qualify for a resident producer license in the state of Michigan, an individual
must complete the required pre-licensing education within 6 months of license application
must complete the required pre-licensing education within 12 months of license application
must complete the required pre-licensing education within 24 months of license application
is not required to complete pre-licensing education ✔✔must complete the required pre-licensing
education within 12 months of license application
Under a non-qualified annuity, interest is taxed after the
