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Life and Health Insurance Producer Exam

Conduct (MI): practice questions

Our Life & Health Insurance bank has 6 questions on this topic. Here are 4 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Michigan

A written complaint about an insurer is received by its Michigan agent. What must the agent do?

  1. Keep it in the agency's file and include it in a quarterly report to the insurer
  2. Return it to the insured with instructions to mail it to the insurer
  3. Send it directly to the director within 10 days, whether or not the complaint has been resolved by then
  4. Forward it promptly to the insurer, unless the agent resolves it to the insured's satisfaction
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D. Forward it promptly to the insurer, unless the agent resolves it to the insured's satisfaction — MCL 500.2026(2).

Question 2 · Michigan

Under Michigan law, a marketing method must conspicuously disclose which of the following?

  1. That the consumer may report the marketer to the director at any time
  2. The agent's total commission on the sale and the insurer's current financial strength rating from a rating agency
  3. That its purpose is insurance solicitation and contact will be made by an agent or insurer
  4. The dollar amount of the lowest-priced policy sold by the insurer
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C. That its purpose is insurance solicitation and contact will be made by an agent or insurer — MCL 500.2005a(c).

Question 3 · Michigan

Under Michigan law, what happens to an insured who knowingly accepts a premium rebate?

  1. The insurance is reduced in proportion to the rebate, and the insured is guilty of a misdemeanor
  2. The policy is void from inception and all premiums paid are forfeited to the insurer
  3. Nothing; only the agent or insurer that offered the rebate can be penalized under the code
  4. The insured must repay the rebate to the director, who credits it to the general fund
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A. The insurance is reduced in proportion to the rebate, and the insured is guilty of a misdemeanor — MCL 500.2070(2).

Question 4 · Michigan

An agent circulates a false, maliciously critical statement about a competing insurer's financial condition, intended to injure it. This is

  1. a violation only if the statement appears in printed advertising
  2. an issue only for the insurer's civil suit, not one regulated under the insurance code
  3. permitted if the agent reasonably believes the statement to be accurate
  4. an unfair or deceptive practice under MCL 500.2009 (defamation of an insurer)
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D. an unfair or deceptive practice under MCL 500.2009 (defamation of an insurer) — MCL 500.2009.

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