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: the elimination period under a hospital indemnity plan is

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the specific # of days an insured must wait before becoming eligible to receive benefits for each hospitalization Question 2: When an insured has a major medical plan with first dollar coverage, how does this impact the benefits paid

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No deducible payment is required Question 3: A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilization

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benefit limits

Question 4: to receive proceeds from a death benefit, a minor

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must have an appointed guardian

Question 5: A pharmacy benefit covers prescription drugs derived from list called a(n)

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Drug Formulary

Question 6: what is issued to each employer health plan

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certificate Question 7: What is the primary factor that determines the benefits paid under a disability income policy?

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Wages Question 8: Which of the following is NOT a federal requirement of a qualified plan?

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employee must be able to make unlimited contributions Question 9: a father has a son who is mentally handicapped but not eligible for Medicare. the son is dependent on his father. under which of the following circumstances can the son remain on the fathers coverage after the age of 26.

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with written proof of disability and dependency

Question 10: A change in an insurance application requires

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an initial made by the applicant Question 11: Kathy pays a monthly premium on her health insurance policy. How long is her grace period?

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10 days Question 12: which of these is considered to be a Living benefit option in a life insurance policy

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Accelerated death benefit

Question 13: A notice of cash surrender value must be sent to a Universal Life policy owner

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At least Annually Question 14: Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy?

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$4,000

-$100,000 * .04=$4,000

Question 15: Major Medical insurance will typically cover medical expenses that result from

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a negative reaction to prescribed medication Question 16: Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?

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accidental bodily injury provision Question 17: According to the Michigan Insurance Code, which of the following MUST a producer do when replacing a Life Insurance Policy?

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Submit to the replacing insurer a list of all Life Insurance policies or annuity contracts proposed to be replaced Question 18: 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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A self funded plan Question 19: Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?

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Endowment Policy

Question 20: when an insurance licensee changes his or her address under the Michigan insurance code, who must be notified?

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The commissioner of the department of insurance Question 21: All of the following are examples of a Business Continuation Plan except

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Deferred Compensation Question 22: Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits.Which of these benefit options would he choose?

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Guaranteed lifetime withdrawal benefit Question 23: what is the automatic continuance of insurance coverage referred to as?

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renewal Question 24: which of the following decision would a Health Savings Account owner NOT be able to make?

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the amount contributed by the employee Question 25: Which dividend option would an insurer invest the policy owner's money and add any interest earnings as the dividends accrue?

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Accumulation at interest option Question 26: Upon receiving a producer complaint, the commissioner may immediately

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issue a cease and desist order Question 27: In MI, legal action can be taken against an insurer for failure to pay HEALTH insurance claims for a period not to exceed

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• years