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MICHIGAN LIFE AND HEALTH FINAL EXAM
CORRECT SOLUTIONS.
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
the acceptance of a credit life application requires the submission of a certificate of insurance to the insured within_____ days - correct answer- 30 days
which of these is considered to be a Living benefit option in a life insurance policy - correct answer- Accelerated death benefit
loans obtained by a policy owner against the cash value of a life insurance policy - correct answer- would not be treated as taxable income
A long term care policy typically provides all of the following levels of care EXCEPT - correct answer- acute care
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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
what is an insurance policy's grace period? - correct answer- Period of time after the premium is due but the policy remains in force
How do interest earnings accumulate in a deferred annuity - correct answer- On a tax-deferred basis
a licensee who is required to take continuing education Must include how many ethics coursework hours - correct answer- 3
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
health insurance involves two perils, accident and ______ - correct answer- sickness 2 / 4
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Who is responsible for assembling the policy forms for insureds
- correct answer- Insurance carriers
a securities license is required for a life insurance producer to sell - correct answer- variable life insurance
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$
Which of the following is NOT a federal requirement of a qualified plan? - correct answer- employee must be able to make unlimited contributions
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
a health insurance policy will typically cover - correct answer- preventative health services 3 / 4
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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
in addition to the actual policy, an entire contract includes which of the following? - correct answer- the application
field underwriting preformed by the producer involves - correct answer- completing the application and collecting initial premium
Kathy pays a monthly premium on her health insurance policy.How long is her grace period? - correct answer- 10 days
Pierre is covered by his employer's group major medical plan.His employer pays for 75% of the premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this plan? - correct answer- 0$
-benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and is not taxable as income
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