MARYLAND LIFE AND HEALTH INSURANCE LICENSING

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MARYLAND LIFE AND HEALTH INSURANCE LICENSING

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

-Format: Multiple-choice / Flashcard

Question 1: Who were Keogh plans designed to provide pension benefits for?

Answer:

The self-employed Question 2: A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called

Answer:

A self-funded plan Question 3: Low frequency diseases can be exclusively covered by what kind of health insurance policies?

Answer:

Limited policies

Question 4: Employer

Answer:

In an employer-sponsored group accident and health plan, a master contract is issued to the

Question 5: 60

Answer:

Under a small group health plan, an insurer is required to provide a newly-married employee at least ____ days to add the new spouse to the plan

Question 6: Taxable income

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Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?Question 7: Chris is an insured bricklayer who severed his left hand in an automobile accident.Although his primary duty cannot be performed, Chris is also a substitute high school teacher.He collects a full disability income check every month. How does his policy define total disability?

Answer:

Own occupation (The "own occupation" definition of total disability requires that the insured be unable to perform the insured's current occupation as a result of an accident or sickness) Question 8: 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

Answer:

Remain in effect until a new one is issued

Question 9: Master policy

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What is the contract called that is issued to an employer for a Group Medical Insurance Plan?

Question 10: Doctor's charges

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Medicare Part B covers Question 11: Ron has a new employer and wishes to enroll in the company's group health plan.In determining whether his pre-existing health condition applies, Ron cannot have more than a __ day gap without previous health insurance

Answer:

63 (Under HiPAA, group health plan may not impose a pre-existing condition exclusion if the person has had creditable medical coverage for at least 12 months as long as the person had no more than 63 days with no coverage)

Question 12: Insurable interest can be established sufficiently by sentimental attachment alone

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In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest?

Question 13: Variable life insurance

Answer:

A securities license is required for a life insurance producer to sell

Question 14: First page

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The renewability provision for an individual long-term care insurance policy must be located on the policy form's Question 15: How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability?

Answer:

12 months (To qualify, the disability must be expected to last, or have lasted at least 12 months, or it must be expected to result in death)

Question 16: Fare-paying passenger

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A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT Question 17: A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)

Answer:

Collateral assignment

Question 18: A common exclusion with Vision plans is

Answer:

Lasik surgery

Question 19: A person who has a contract with an insurance company to represent it ("Insurance producer" or "producer" is a person required to be licensed pursuant to the laws of this state to sell, solicit, or negotiate insurance)

Answer:

An insurance producer is BEST defined as

Question 20: Adverse selection

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Group dental plans will frequently place a limit on annual benefits in order to minimize Question 21: Written notice of a health insurance claim should be given to the insurer within __ days after the occurrence of any loss covered by the policy

Answer:

20 (or as soon as reasonably possible)

Question 22: Insurer

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The identity of the ____ must be made clear in every health insurance advertisement

Question 23: Nonresident producer

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A producer who is licensed in Maryland but resident in another state is called a?Question 24: What does the Group Life underwriting risk selection process help protect insurance companies from?

Answer:

Adverse selection (Adverse selection is the tendency of less favorable insurance risks to seek or continue insurance to a greater extent than others) Question 25: Which of the following is a requirement for ANY change in an insurance application?

Answer:

Change must be initialed by the applicant