FREE INSURANCE AND STUDY GAMES ABOUT INSURANCE

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FREE INSURANCE AND STUDY GAMES ABOUT INSURANCE

LICENSE MI EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: What is the capital sum in Accidental Death and Dismemberment (AD&D) coverage?

Answer:

A percentage of the principal sum Question 2: How is the information obtained for an investigative consumer report?

Answer:

Through interviews with the applicant's associates, friends, and neighbors

Question 3: What is the entire contract in health insurance underwriting?

Answer:

The application and the policy issued

Question 4: What is a warranty in an insurance contract?

Answer:

An absolutely true statement upon which the validity of the insurance contract is based

Question 5: Who determines the eligibility and contribution limits of an HRA?

Answer:

The employer

Question 6: What is the main principal of an HMO plan?

Answer:

Preventive care Question 7: To be eligible under HIPPA to convert group health coverage to an individual policy, the insured must apply for the individual plan within how many days of losing the group coverage?

Answer:

Sixty three days

Question 8: In insurance, what is the term for cause of loss?

Answer:

Peril Question 9: Can an insured who belongs to a POS plan use and out-of-network physician?

Answer:

Yes, but the co-pays and deductibles may be higher Question 10: In order to be eligible for coverage by an HSA, an individual must also be covered by what type of health plan?

Answer:

High Deductible Health Plan (HDHP) Question 11: What percentage, if any, of the individual disability income policy benefits are taxed to the insured?

Answer:

Benefits are not income taxable Question 12: What does the amount of disability benefit that an insured can receive depend on?

Answer:

The insured's income at the time of policy application

Question 13: What report is used to assess risk associated with a health insurance applicant's lifestyle and character?

Answer:

Investigative Consumer Report Question 14: What is the purpose of a buy-sell agreement for health insurance policies?

Answer:

To specify how the business will pass between owners when one of them dies or becomes disabled

Question 15: What the three types of basic medical expense insurance?

Answer:

Hospital, surgical, and medical

Question 16: When are newborns covered in individual health insurance policies?

Answer:

From the moment of birth Question 17: What is the term used for a condition for which the insured has received diagnosis, care, or treatment during a specific period of time prior to the health policy?

Answer:

Pre-existing condition

Question 18: At what age do individuals qualify for Medicare?

Answer:

Age sixty five Question 19: Health contracts are prepared by insurers and must be accepted by the insured on an 'as is' basis. This describes what aspect of a health insurance contract?

Answer:

Contract of adhesion

Question 20: Who is a field underwriter?

Answer:

Agent/Producer

Question 21: During which stage in the insurance process do insurers evaluate information that identifies adverse selection risks?

Answer:

Underwriting

Question 22: What is a presumptive disability provision?

Answer:

Provision found in most disability income policies that specifies the conditions that will automatically qualify for full disability benefits Question 23: If the insureds share in the cost of health insurance premium with the employer, this would be known as what type of health plan?

Answer:

Contributory

Question 24: What is adverse selection?

Answer:

People who are more likely to submit insurance claims are seeking insurance more often than preferred risks Question 25: With key person disability insurance, who pays the policy premiums?

Answer:

The business (employer)

Question 26: In health insurance, what is considered sickness?

Answer:

An illness that first arises while the policy is in force

Question 27: In insurance, when is the offer usually made on a contract?

Answer:

When the insurance application submitted Question 28: How many members must an association have to qualify for group insurance?

Answer:

one hundred members