Final Exam - Michigan Life and Health Latest

Final Exam - Michigan Life and Health Latest Update - 200 Questions and 100% Verified Correct Answers Guaranteed A+

$5 pen - CORRECT ANSWER: Which of the following gifts from a producer would NOT

be considered rebating?

$5,000 - CORRECT ANSWER: 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?

$500 - CORRECT ANSWER: If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1,000 monthly disability benefit?

$700 - CORRECT ANSWER: Kim has health insurance with a deductible of $500 and

an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500?

$700 - CORRECT ANSWER: Kim has health insurance with a deductible of $500 and

an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500?

$200

$500

$700

$1,300

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1 month - CORRECT ANSWER: An immediate annuity has been purchased with a

single premium. When does the annuitant typically begin receiving benefit payments?

• year - CORRECT ANSWER: The typical long-term care insurance policy is designed

to provide a minimum of __ year(s) of coverage.1 3 5 7

100% of costs - CORRECT ANSWER: Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of

costs that exceed 7 1/2 % of AGI

costs that exceed 10% of AGI

100% of costs

no deduction permitted

100% of his health insurance costs can be deducted from his gross income - CORRECT ANSWER: Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?

12 months - CORRECT ANSWER: Under an expense-incurred individual health policy,

what is the MAXIMUM length of time after issuance of the policy that an insurer can exclude coverage for a pre-existing condition?

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12% per annum - CORRECT ANSWER: In the state of Michigan, properly filed health

claims that are not timely paid require the insurer to pay simple interest from a date 60 days from satisfactory proof of loss at the rate of

17.5 - CORRECT ANSWER: An employee is REQUIRED to work AT LEAST how many

hours in a normal week to be eligible for small employer group insurance?

2 years - CORRECT ANSWER: When can a life policy no longer be cancelled for

nonfraudulent misstatements after its date of issue?

2-50 employees - CORRECT ANSWER: In Michigan, a small employer is comprised of

20 - CORRECT ANSWER: Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss.

• - CORRECT ANSWER: A licensee who is required to take continuing education MUST

include how many ethics coursework hours?

30 - CORRECT ANSWER: The acceptance of a credit life application requires the

submission of a certificate of insurance to the insured within ___ days.

• months - CORRECT ANSWER: In order to save on premiums, a Life Insurance policy

can legally be backdated up to

6 years - CORRECT ANSWER: In Michigan, legal action can be taken against an

insurer for failure to pay LIFE insurance claims for a period not to exceed

60% of the benefit - CORRECT ANSWER: In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at

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90 - CORRECT ANSWER: A producer's license has been suspended due to failure of

completing the required continuing education credits. The license may be activated by completing the CE requirement within how many days of the renewal date?

A business entity soliciting insurance - CORRECT ANSWER: Which of the following is REQUIRED to be licensed as an insurance producer?

a disease - CORRECT ANSWER: A fee for service health insurance plan will normally cover

A flexible premium schedule - CORRECT ANSWER: Which policy feature makes a

universal life policy different from a whole life policy?

A fixed cash value

A flexible premium schedule

A fixed death benefit

The ability to take out a policy loan

A life insurance contract which accumulates cash values higher than the IRS will allow -

CORRECT ANSWER: A Modified Endowment Contract (MEC) is best described as

A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age - CORRECT ANSWER: If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies?

A self-funded plan - CORRECT ANSWER: A plan in which an employer pays insurance

benefits from a fund derived from the employer's current revenues is called

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