FINAL EXAM - MICHIGAN LIFE AND HEALTH

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FINAL EXAM - MICHIGAN LIFE AND HEALTH

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: at least annually

Answer:

A notice of cash surrender value must be sent to a Universal Life policyowner

Question 2: 2 years

Answer:

When can a life policy no longer be cancelled for nonfraudulent misstatements after its date of issue?

Question 3: must have an appointed guardian

Answer:

To receive proceeds from a death benefit, a minor

Question 4: Universal life

Answer:

A partial surrender is allowed in which of the following life policies?

Question 5: The shorter the payment period, the higher the premium

Answer:

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is

Question 6: Variable universal policy

Answer:

Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested?

Question 7: number of children

Answer:

Which of these characteristics of an applicant is NOT taken into consideration when assessing risk for Disability coverage?

Question 8: subrogation

Answer:

An insurer has the right to recover payment made to the insured from the negligent party. These rights are called Question 9: an authorized agency makes a written request to the insurer during an insurance fraud investigation

Answer:

Consumer privacy regulations permit the release of an insured's financial information when

Question 10: Irrevocable beneficiary

Answer:

A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation?

Question 11: Enroll in a health plan with a prescription drug benefit

Answer:

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

Question 12: The application

Answer:

In addition to the actual policy, an entire contract includes which of the following?

Question 13: have a legitimate non-insurance purpose

Answer:

An association wanting to buy insurance under a group health plan MUST

Question 14: Life annuity

Answer:

Which type of annuity stops all payments upon the death of the annuitant?

Question 15: A business entity soliciting insurance

Answer:

Which of the following is REQUIRED to be licensed as an insurance producer?

Question 16: Employer

Answer:

The policyholder for a group health benefit plan is considered to be the

Question 17: Net death benefit will be reduced if the loan is not repaid

Answer:

Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE?Question 18: It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill

Answer:

What is the purpose for having an accelerated death benefit on a life insurance policy?

Question 19: seeks temporary protection and lower premiums

Answer:

Term insurance is appropriate for someone who

Question 20: is eligible for coverage upon hire

Answer:

According to HIPAA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual

Question 21: Average age

Answer:

Which of these factors would an insurer consider when determining whether to accept a group life plan?

Question 22: Not tax deductible

Answer:

How are contributions made to a Roth IRA handled for tax purposes?Question 23: Determines what is paid by the primary and secondary insurers in the event of a claim

Answer:

In group health care, what is the purpose of the coordination of benefits provision?Determines where an insured goes to receive treatment Determines what is paid by the primary and secondary insurers in the event of a claim Ensures that a health provider receives the proper benefit amount owed Determines which parent's plan covers a dependent cHild

Question 24: universal life

Answer:

A life insurance policy that is subject to a contract interest rate is referred to as

Question 25: Noncancellable

Answer:

Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered Guaranteed Renewable Optionally Renewable Conditionally Renewable Noncancellable

Question 26: Exclusion Ratio

Answer:

The taxable portion of each annuity payment is calculated using which method?