FINAL EXAM- MARYLAND LIFE AND HEALTH EXAM

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FINAL EXAM- MARYLAND LIFE AND HEALTH EXAM

QUESTIONS

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

-Format: Multiple-choice / Flashcard

Question 1: The grouping of two or more small employers in order to obtain group health insurance at a favorable rate is called a multiple employer

• grouping
• trust
• alliance
• corporation

Answer:

Trust Question 2: Group life plans sold in Maryland typically contain a conversion option. If the insured elects this option, the new policy

• does NOT require evidence of insurability
• requires evidence of insurability
• is in force for up to 5 years
• does NOT require premium payments from the insured

Answer:

Does NOT require evidence of insurability.Question 3: In a disability buy-sell agreement, the policies funding the agreement are owned by the

• business entity
• officers
• shareholders

d)employees

Answer:

Business entity Question 4: Mike recently lost sight in both eyes. He has a policy that pays a lump-sum benefit for this injury. What type of insurance does Mike have?

• catastrophic
• accidental death and dismemberment
• major medical
• hospital executive

Answer:

Accidental death and dismemberment Question 5: Which of these procedures is NOT designed for ambulatory care centers?

a) Inpatient surgery

b) Vaccinations

c) Outpatient surgery

d) Physical examinations

Answer:

Inpatient surgery

Question 6: Which type of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?

a) Variable universal life

• modified endowment contract

c) Adjustable life

d) Graded premium whole life

Answer:

Variable universal life

Question 7: In what situation could an insurance policy's coverage be modified

a) Applicant is preferred risk

b) Applicant is substandard risk

c) Applicant is standard risk

d) Applicant is uninsurable

Answer:

Applicant is substandard risk Question 8: XYZ Corp gives money to an employee to purchase a life insurance policy and allows the employee to select the beneficiary. What kind of plan is this?

• split-dollar
• cross purchase
• key employee
• deferred compensation

Answer:

Split-dollar

Question 9: John the insurance producer has an insurance license that expires in 6 months. If he files an application for renewal before the expiration date, his license will

• remain in effect until a new one is issued
• be automatically renewed regardless of any violations
• be renewed upon determination of legal compliance within a 60-day period following the

license expiration date

• renew without the normal requirements

Answer:

remain in effect until a new one is issued

Question 10: Insurable interest involves what assumption?

a) Insurable interest must exist during the entire life of the insured

• one person gains from the death of another person
• one person benefits from another person's continued life
• insurable interest must only exist at the time of the insured's death

Answer:

One person benefits from another person's continued life Question 11: Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the

• premium basis
• net proceeds
• cash basis
• cost basis

Answer:

Cost basis