2026 MARYLAND LIFE AND HEALTH GENERAL
EXAM SIMULATOR|280+ REAL Qs&As|NEW
UPDATE|A+GRADE
If a disability income policy contains a cost-of-living adjustment rider, benefits
must typically be increased - ANS:->>>at least once per year from when
benefits begin
Which of these statements regarding the extended term insurance
nonforfeiture option in a life policy is accurate? - ANS:->>>the premium to
purchase the coverage comes from the policy's cash value
Which of the following is not a reason for a business to buy key person life
insurance? - ANS:->>>an increased pension liability if the key employee dies
Individuals covered with employer-paid group health plans will normally
receive tax-free benefits under all of these plans EXCEPT - ANS:-
>>>disability income
A life insurance policy's contingent beneficiary is the - ANS:->>>person who
receives the death benefits if the primary beneficiary dies before the insured
Ken is age 65 and has 2 years until he receives Social Security retirement
benefits. At his current age, which is true about Medicare Part A Hospital
Insurance coverage? - ANS:->>>It is available through application to Social
Security
When does the insured stop making payments under a thirty-payment whole
life policy? - ANS:->>>At the time of death or 30 years after the policy's
inception, whichever comes first
The powers directly given to a producer in an agency contract are called
- ANS:->>>express
,Which of the following relationships demonstrates insurable interest in the
absence of economic interest? - ANS:->>>marriage partners
An accident and health insurance policy's premium requirements are set forth
in which of the following provisions? - ANS:->>>Consideration clause
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy.
The funds for additional benefit payments will be derived primarily from funds
that were - ANS:->>>not distributed to life annuitants who died before life
expectancy
Under HIPAA requirements, eligibility for the pre-existing conditions
exclusion waiver under new coverage is lost if - ANS:->>>there is a break in
coverage of more than 63 days
The health insurance premiums paid for by each partner in a partnership is
considered to be - ANS:->>>100% tax deductible
An annuity which starts paying monthly benefits within a month after
issuance is called a(n) - ANS:->>>immediate annuity
Which of the following best describes the tax treatment of medical expense
policies for the self-employed? - ANS:->>>100% of medical expense plan
premiums are tax deductible
What is the insurer responsible for when a producer is acting within the scope
of authority granted in the agency contract? - ANS:->>>responsible for acts
by the producer that are authority only
What does a fixed life annuity offer protect against? - ANS:->>>savings
depletion due to longevity
Which of the following types of insurers limits the exposures it writes to
those of its owners? - ANS:->>>captive insurer
,An agent whose actions exceed the authority granted by contract is - ANS:-
>>> not backed by the insurer
Use of XYZ Insurance Company brochures, business cards, and rating guides
is an example of - ANS:->>>apparent authority
What kind of arrangement gives the policyowner the right to change the
beneficiary? - ANS:->>>Revocable designation
Which of these procedures is NOT designed for ambulatory care centers?
- ANS:->>>inpatient surgery
What is the guaranteed cash value of a whole life insurance policy when the
insured turns 65 years old? - ANS:->>>less than the policy's face amount
Alan is an enrollee of a health maintenance organization (HMO) which uses a
gatekeeper system. If there ever comes a time when he needs emergency
health services, what should he do? - ANS:->>>proceed to the nearest
emergency room
Which statement is INCORRECT about the interest-only settlement option in
alife insurance policy? - ANS:->>>interest on proceeds must be paid by the
beneficiary
What happens to a life insurance policy when the policy loan balance exceeds
the cash value? - ANS:->>>policy will no longer be in force
When using the needs approach for life insurance planning, a lump sum may
be created to provide for all of the following EXCEPT - ANS:-
>>>employee benefits
Which of the following would permit an insurer to delay a covered disability
policy claim? - ANS:->>>elimination period
, Emily is disabled. In order to become eligible for Social Security disability
income benefits, she must be - ANS:->>>Fully insured, according to Social
Security
An agent gives a conditional receipt to a client for an insurance policy
after collecting the initial premium. When will the policy become effective?
- ANS:->>>When the conditions of the receipt are met.(A conditional
receipt indicates that certain conditions must be met in order for the
insurance coverage to go into effect)
Short-term group disability income benefits are - ANS:->>>a percentage of
weekly earnings up to a stated maximum
Medicare supplement insurance that provides a preventative medical care
benefit will often cover - ANS:->>>Yearly Physical Examinations
Typically, states will permit the grouping of two or more small employers in
the same industry for obtaining group health insurance at a favorable rate.
This grouping of employers is known as a multiple employer - ANS:-
>>>trust
What effect can a long-term care benefit rider have on a life insurance policy? -
ANS:->>>reduced death benefit
Which of these plans allow a participant to choose either a network or non-
network provider at the time when medical care is needed? - ANS:-
>>>Point- of-service
A life insurance policy's waiver of premium rider has the ability to - ANS:-
>>> relieve the insured of premium payments following an initial waiting
period after the insured becomes totally disabled
The Coordination of Benefits provision is added to a group health plan in
order to - ANS:->>>avoid overinsurnance
EXAM SIMULATOR|280+ REAL Qs&As|NEW
UPDATE|A+GRADE
If a disability income policy contains a cost-of-living adjustment rider, benefits
must typically be increased - ANS:->>>at least once per year from when
benefits begin
Which of these statements regarding the extended term insurance
nonforfeiture option in a life policy is accurate? - ANS:->>>the premium to
purchase the coverage comes from the policy's cash value
Which of the following is not a reason for a business to buy key person life
insurance? - ANS:->>>an increased pension liability if the key employee dies
Individuals covered with employer-paid group health plans will normally
receive tax-free benefits under all of these plans EXCEPT - ANS:-
>>>disability income
A life insurance policy's contingent beneficiary is the - ANS:->>>person who
receives the death benefits if the primary beneficiary dies before the insured
Ken is age 65 and has 2 years until he receives Social Security retirement
benefits. At his current age, which is true about Medicare Part A Hospital
Insurance coverage? - ANS:->>>It is available through application to Social
Security
When does the insured stop making payments under a thirty-payment whole
life policy? - ANS:->>>At the time of death or 30 years after the policy's
inception, whichever comes first
The powers directly given to a producer in an agency contract are called
- ANS:->>>express
,Which of the following relationships demonstrates insurable interest in the
absence of economic interest? - ANS:->>>marriage partners
An accident and health insurance policy's premium requirements are set forth
in which of the following provisions? - ANS:->>>Consideration clause
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy.
The funds for additional benefit payments will be derived primarily from funds
that were - ANS:->>>not distributed to life annuitants who died before life
expectancy
Under HIPAA requirements, eligibility for the pre-existing conditions
exclusion waiver under new coverage is lost if - ANS:->>>there is a break in
coverage of more than 63 days
The health insurance premiums paid for by each partner in a partnership is
considered to be - ANS:->>>100% tax deductible
An annuity which starts paying monthly benefits within a month after
issuance is called a(n) - ANS:->>>immediate annuity
Which of the following best describes the tax treatment of medical expense
policies for the self-employed? - ANS:->>>100% of medical expense plan
premiums are tax deductible
What is the insurer responsible for when a producer is acting within the scope
of authority granted in the agency contract? - ANS:->>>responsible for acts
by the producer that are authority only
What does a fixed life annuity offer protect against? - ANS:->>>savings
depletion due to longevity
Which of the following types of insurers limits the exposures it writes to
those of its owners? - ANS:->>>captive insurer
,An agent whose actions exceed the authority granted by contract is - ANS:-
>>> not backed by the insurer
Use of XYZ Insurance Company brochures, business cards, and rating guides
is an example of - ANS:->>>apparent authority
What kind of arrangement gives the policyowner the right to change the
beneficiary? - ANS:->>>Revocable designation
Which of these procedures is NOT designed for ambulatory care centers?
- ANS:->>>inpatient surgery
What is the guaranteed cash value of a whole life insurance policy when the
insured turns 65 years old? - ANS:->>>less than the policy's face amount
Alan is an enrollee of a health maintenance organization (HMO) which uses a
gatekeeper system. If there ever comes a time when he needs emergency
health services, what should he do? - ANS:->>>proceed to the nearest
emergency room
Which statement is INCORRECT about the interest-only settlement option in
alife insurance policy? - ANS:->>>interest on proceeds must be paid by the
beneficiary
What happens to a life insurance policy when the policy loan balance exceeds
the cash value? - ANS:->>>policy will no longer be in force
When using the needs approach for life insurance planning, a lump sum may
be created to provide for all of the following EXCEPT - ANS:-
>>>employee benefits
Which of the following would permit an insurer to delay a covered disability
policy claim? - ANS:->>>elimination period
, Emily is disabled. In order to become eligible for Social Security disability
income benefits, she must be - ANS:->>>Fully insured, according to Social
Security
An agent gives a conditional receipt to a client for an insurance policy
after collecting the initial premium. When will the policy become effective?
- ANS:->>>When the conditions of the receipt are met.(A conditional
receipt indicates that certain conditions must be met in order for the
insurance coverage to go into effect)
Short-term group disability income benefits are - ANS:->>>a percentage of
weekly earnings up to a stated maximum
Medicare supplement insurance that provides a preventative medical care
benefit will often cover - ANS:->>>Yearly Physical Examinations
Typically, states will permit the grouping of two or more small employers in
the same industry for obtaining group health insurance at a favorable rate.
This grouping of employers is known as a multiple employer - ANS:-
>>>trust
What effect can a long-term care benefit rider have on a life insurance policy? -
ANS:->>>reduced death benefit
Which of these plans allow a participant to choose either a network or non-
network provider at the time when medical care is needed? - ANS:-
>>>Point- of-service
A life insurance policy's waiver of premium rider has the ability to - ANS:-
>>> relieve the insured of premium payments following an initial waiting
period after the insured becomes totally disabled
The Coordination of Benefits provision is added to a group health plan in
order to - ANS:->>>avoid overinsurnance
