Michigan Laws & Rules

A producer may give an insurance applicant an article of merchandise having an invoice value of _____ or less.

$5

A life insurance applicant in Michigan may backdate the application for up to _____ month(s).

6

In Michigan, legal action may be taken against an insurer for up to _____ years for failing to pay a life insurance claim after proof of loss was submitted.

6

A producer has allowed his/her license to lapse by failing to complete the required continuing education credits. The license may be reinstated by completing the requirement within _____ days of the renewal date.

90

An insurance producer license is required for which of the following?

A business entity soliciting insurance

Under Michigan Law, which of the following would NOT be considered an illegal inducement?

A promotional item with the producer's name and address valued at $5.00

Which of the following is included in the entire contract according to the entire contract provision?

Application

An insured dies from what appears to be accidental causes. When confirming the cause of death, which of these actions by the insurer takes precedence?

Autopsy

With a scheduled dental policy, how are covered expenses paid?

Benefits are limited to a specific maximum dollar amount per procedure

Which of the following is NOT a valid reason for an insurer to refuse renewal of a small employer group plan?

Claims were higher than expected

Any change of address by a licensee requires notice within 30 days to which of the following?

Commissioner

In Michigan, a person providing insurance advice to a person or business for a fee is required to hold which license?

Counselor

A producer's insurance license may ONLY be revoked by the

Department of Insurance and Financial Services (DIFS)

Which of the following is considered to be an act of misrepresentation?

Falsifying the terms, benefits, advantages, or conditions of an insurance policy

Under which circumstance may a deferred insurance commission be paid to an individual?

Individual was a licensed producer at the time of the sale

An insurer is REQUIRED to offer which of the following to each long-term care applicant at the time of purchase?

Inflation protection

A Medicare Supplement policy issued in the state of Michigan is required to provide each of the following EXCEPT

It must include outpatient prescription drug coverage

Which of the following is an example of the illegal act of defamation?

Making a statement that is false or maliciously critical of the financial condition of an insurer.

Which of these actions would NOT result in a producer's license revocation?

Not maintaining an adequate level of sales

The branch of dentistry which deals with the replacement of missing parts is called

Prosthodontics

Which of these is the BEST example of misrepresentation?

Providing incorrect, misleading, incomplete, or materially untrue information in a license application

Under which circumstance may a minor receive proceeds from a death benefit?

The minor must have an appointed guardian

Upon receiving a producer complaint, the Commissioner may immediately

issue a cease and desist order

A life insurance application may be backdated to

save on premiums

A(n) _____ company is owned exclusively by shareholders.

stock

The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as

twisting

A life insurance policy sold in Michigan may be contested by the insurer ONLY during the first _____ year(s) of the contract.

two

In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the following EXCEPT

additional premiums

A producer's fiduciary duty requires that

premiums are forwarded to the insurer on a timely basis

An example of an unfair claims settlement practice is

failing to promptly provide a reasonable explanation for the denial of claims

An example of endodontic treatment is a

root canal

An example of intimidation is

using threat or force to restrict fair trade in the transaction of insurance

A Universal Life policyowner must receive a notice of cash surrender value at LEAST every

year

An individual applying for a Michigan resident producer license must have completed the required pre-licensing education within _____ months of license application.

12

XYZ Insurance Company receives satisfactory proof of loss for a claim. If XYZ does NOT pay the claim within 60 days of receipt, the insurer MUST pay simple interest of _____ per annum.

12%

To be eligible for small employer group coverage, an employee must work a MINIMUM of _____ hours in a typical week.

17.5

To be classified as a small employer in Michigan, an employer must employ

2-50 employees

In Michigan, legal action can be taken for up to _____ year(s) against an insurer for failure to pay health insurance claims after proof of loss was submitted.

3

The acceptance of a credit life application requires the submission of a certificate of insurance to the insured within ______ days.

30

A baby is born to a husband and wife covered under a family accident and health insurance policy. If the newborn is covered at birth, the first payment for the additional coverage would become due in _____ days

31

Under which circumstance do consumer privacy regulations allow an insured's financial information to be released?

An authorized agency makes a written request to the insurer during an insurance fraud investigation

If an insured's unmarried child is incapable of self support because of a mental handicap, how long must this child be provided health coverage under the parent's policy?

Until policy termination with proof of incapacity

Newborn coverage under health insurance policies MUST include coverage for

birth abnormalities

Producer commissions may NOT be paid to

licensed producers not appointed by an insurer

An insurer would be committing Unfair Discrimination if coverage was denied based upon

marital status

Nate's dependent son is physically handicapped, but not eligible for Medicare. How long may the son remain on Nate's health coverage after the age of 26?

Coverage remains with written proof of disability and dependency

Which of the following is an example of a producer's fiduciary duty?

Recording receipt and remittance of premiums due to the insurance company.