Free Michigan Life & Health Insurance Practice Exam 2026

Michigan life and health insurance exam sample questions and answers

6 of the 150 practice questions, one from each topic, with the answer explained.

1. 1. A Michigan buyer of a fixed deferred annuity changes her mind after it is delivered. She may cancel for a full refund within at least:

   • A.30 days after receipt
   • B.10 days after receipt
   • C.60 days after receipt
   • D.20 days after receipt

   Answer: B. MCL 500.4073(1) requires an annuity contract to state on its front page that the owner may cancel within not less than 10 days after receiving it for a prompt refund of premium. For a variable annuity the refund reflects the separate account value (500.4073(2)).

2. 2. No premium was paid with an application. The policy is issued on May 1 and delivered on May 10, when the producer collects the premium. Coverage begins:

   • A.On the application date
   • B.On the medical exam date
   • C.May 1
   • D.May 10

   Answer: D. With no premium at application, coverage starts only when the policy is delivered, the first premium is paid and a statement of good health is signed, which all happened on May 10. Issuing the policy on May 1 does not start coverage because the insurer had not yet received the premium.

3. 3. An insured father asks to add his son, who lives with the boy's mother out of state. The Michigan health insurer:

   • A.May not deny enrollment on that ground
   • B.May deny because the boy is not claimed
   • C.May charge a higher dependent rate
   • D.May add him only at open enrollment

   Answer: A. MCL 500.3403(2) bars a policy with dependent coverage from denying a child's enrollment because the child was born out of wedlock, is not claimed on the insured's tax return, or does not live with the insured or in the service area.

4. 4. An employee declined her Michigan small employer plan because she had her spouse's coverage, which has now ended. To use special enrollment, she must request it within:

   • A.31 days after coverage ends
   • B.90 days after coverage ends
   • C.30 days after coverage ends
   • D.60 days after coverage ends

   Answer: C. MCL 500.3708(2)(c) requires the employee to request enrollment not later than 30 days after the other coverage is exhausted or terminated, and coverage starts by the first day of the next month after the request is received.

5. 5. A Michigan agent collects the first premium for a Medicare supplement policy. The agent may accept:

   • A.Cash only, with no receipt required
   • B.A check payable to the agent
   • C.A check payable to the insurer
   • D.A money order payable to the agent

   Answer: C. MCL 500.1207(9) bars an agent from accepting a Medicare supplement premium by check or money order payable to the agent instead of the insurer, and requires an immediate written receipt to the insured.

6. 6. A Michigan insured's life policy names his wife and children as beneficiaries. When he dies owing debts, his creditors:

   • A.Cannot reach the proceeds
   • B.May claim the proceeds before the family
   • C.May claim only the cash value
   • D.May take half of the proceeds

   Answer: A. MCL 500.2207(1) exempts the proceeds and cash value of life insurance payable to the insured's spouse or children from execution and from the claims of the insured's creditors, except for premiums paid with intent to defraud creditors.