MICHIGAN LIFE AND HEALTH INSURANCE LAW

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MICHIGAN LIFE AND HEALTH INSURANCE LAW

SUPPLEMENT - KAPLAN - STUDY STUDY EXAM QUESTIONS

Qs and Ans - Expert- Explanation - ing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Health Claims Payment Period

Answer:

60 days for insurers to pay claims.

Question 2: Flexible Premium Variable Policy Grace Period

Answer:

61 days grace period for flexible premium policies.

Question 3: Underwriting Requirements

Answer:

Standards for evaluating insurance applications.

Question 4: Small Group Health Plan Size

Answer:

Eligible employees range from 2 to 50.

Question 5: Eligibility Requirements

Answer:

Criteria to qualify for health insurance.

Question 6: Eligible Employee Hours

Answer:

Employees must work at least 30 hours weekly.

Question 7: LTC Violation Penalty

Answer:

Penalty is greater of three times commission or $10,000.

Question 8: Group Policy Conversion Period

Answer:

• months to convert to individual policy.

Question 9: Continuing Education Requirement

Answer:

Complete 24 hours of CE every two years.

Question 10: Exemption from Prelicensing

Answer:

Licensed producers within 12 months are exempt.

Question 11: Increased Fine for Knowledge

Answer:

$5,000 fine if violation was known.

Question 12: Business Entity Licensing

Answer:

Must designate a licensed producer for compliance.

Question 13: Administrative Action Notification

Answer:

Notify Director of actions within 30 days.

Question 14: Incontestability Period

Answer:

• years time limit on certain defenses.

Question 15: Long-Term Care Insurance

Answer:

Coverage for extended care services.

Question 16: Minimum Lives for Group Life Policy

Answer:

At least 2 lives must be covered.

Question 17: License Revocation Duration

Answer:

• year license revocation for twisting.

Question 18: Group Health Insurance

Answer:

Coverage for groups, typically through employers.

Question 19: Fine for Non-Compliance

Answer:

$1,000-$10,000 fine per violation.

Question 20: License Reinstatement Period

Answer:

Reinstatement allowed within 24 months of lapse.

Question 21: LTC Pre-existing Condition Exclusion

Answer:

Maximum exclusion period is 6 months.

Question 22: Termination Notification to Director

Answer:

Inform Director of termination within 30 days.

Question 23: Cash Value Requirement

Answer:

Policies must have cash value after 3 years.

Question 24: Variable Life Free Look Period

Answer:

45 days after application or 10 days after delivery.

Question 25: Interest Rate on Unpaid Claims

Answer:

12% interest if claims are unpaid.

Question 26: Producer Termination Notice

Answer:

Insurer must notify producer of termination in 15 days.

Question 27: Life Insurance Cash Value

Answer:

Cash value available from life insurance policies.

Question 28: Exchange to Whole Life Policy

Answer:

18 months to exchange for whole life policy.

Question 29: Medicare Supplements

Answer:

Policies that cover gaps in Medicare coverage.