MARYLAND LIFE AND HEALTH EXAM EXAM QUESTIONS

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MARYLAND LIFE AND HEALTH EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: treaty

Answer:

one of the 2 types of insurance agreements which automatically accepts all new risks presented by the ceding company

Question 2: risk retention

Answer:

assuming the responsbility for loss Question 3: which annuity requires the producer to hold a securitites registartion in order to sell it

Answer:

variable Question 4: with health and life insurance, what is requierd at the time of application?

Answer:

insurable interest Question 5: If an individual who is enrolled in a non-calendar year individual health benefit plan desires to enroll in a health benefit plan issued by the insurer, the insurer must provide:

Answer:

limited enrollment for at least 60 days

Question 6: A lump sum of money is placed into an account from which the annuitant will draw periodic benefits beginning more than a year from the date of purchase. This describes a:

Answer:

single premium deferred annuity

Question 7: MIB

Answer:

alerts insurer home office underwriters of errors, omissions or misrepresentations made on insruance applications

Question 8: policy reserves

Answer:

are the net premiums paid plus interest earned and reflect potential insurnace contract obligations

Question 9: Medicare part B coinsurance

Answer:

20%

Question 10: term life insurance

Answer:

designed for someone with a large insruance need but with limited cash flow

Question 11: nonconributory gruop life policy

Answer:

must cover 100% of elgible employees

Question 12: residual disability

Answer:

provides benefits for loss of income after the insured returns to work ususally following a total disability

Question 13: SEP uses employer funded ____ accounts

Answer:

IRA

Question 14: In order to make sure that a creditor of the insured is not paid more than the

outstanding loan at time of claim, the policyowner should:

Answer:

Purchase a decreasing benefit policy that matches the loan repayment schedule

Question 15: Most expensive premium?

Answer:

monthly Question 16: under an annuity with a joint life payment option, what will the survivor receive upon the death of the first annuitant?

Answer:

nothing Question 17: which death benefit is paid out to the beneficiary income tax free?

Answer:

life insurance when the insured dies while the policy is in force Question 18: a partial withdraw will cause the policy to have either the face amount or cash accumuation

Answer:

reduced by the amount of the withdrawl

Question 19: who is not eligible for continuation of group health coverage?

Answer:

involuntary terminated employees for cause Question 20: whT qualified plans puts the investment risk entirely on the employer sponsoring the plan?

Answer:

Defined benefit

Question 21: the higher the interest rate credited translates into

Answer:

the higher monthly income benefit payment

Question 22: if a corporation owns an annuity, what is the tax ramifications?

Answer:

there is no tax deferral beenfit on any earnings Question 23: the surrender charge schedule for a variable universal life policy generally____ over time

Answer:

decreases Question 24: The deductible that applies after the Basic Plan is exhausted and the Supplemental Major Medical Coverage begins is called

Answer:

corridor deductible Question 25: Which of the following provisions commence at the time of the delivery of the policy to the insured?

Answer:

free look period

Question 26: proceeds from a buy sell agreement are recieved

Answer:

income tax free

Question 27: who is responsible for ensuring the app is filled out?

Answer:

producer Question 28: In a viatical settlement transaction, the life insurance policyowner is referred to as

Answer:

viator

Question 29: blanket plan

Answer:

sold to groups whose membership fluctuates to provide medical and surgical benefits in excess of any primary coverage