Maryland Life And Health Insurance Final
Exam Questions And Correct Answers
How are monthly life annuity benefit payments treated under a tax sheltered annuity
(TSA)?
taxed as ordinary income in the year received
Life Insurance replacement can be best defined as _______?
a transaction in which a new life insurance policy is purchased and an existing life
insurance policy is surrendered
According the the affordable care act (ACA), dependent children may remain on their
parent's plan until what age?
26
Long-term care insurance provides ______?
one or more diagnostic, preventive, therapeutic, rehabilitative, maintenance, or
personal care services in a setting other than an acute care unit of a hospital
Reductions is coverage are one feature of ____ in Health Insurance policies?
cost containment (one feature)
,If group Health benefit levels are too high, what could be the end result?
Overutilization of the plan
Rick is a disabled worker receiving Social Security benefits. What benefits are his wife
and dependent children eligible for?
An income benefit which is a percentage of his primary insurance amount
An accident and health plan that typically covers ONLY the services of approved
providers is called a(n) _______?
HMO (Health Maintenance Organization) Plan
Contributions made by an employee to a qualified retirement plan are required to be
______?
subject to a vesting schedule
Under which circumstance can an insurance company offer group Health insurance?
The sponsoring group provides an employer-employee relationship
,Which reinsurance contract between two insurers involves an automatic sharing of
the risks assumed?
Treaty Reinsurance
Health Maintenance Organization (HMO) wellness programs may include each of the
following EXCEPT ________?
Diagnostic testing services
Which of these is NOT an Unfair Claims Settlement Practice?
Refusing to pay persons bringing false or fraudulent claims
Which of these statements regarding a managing general agent is NOT true?
A managing general agent generally represents the insured
The premiums paid by an employer for his employee's group life insurance are usually
considered to be ______?
tax deductible to the employer
Which of the following describes coverage for the Medicare Part B coinsurance?
A medicare supplement core benefit
, Which of the following can be defined as a cause of a loss?
Peril
An insurance policy may be issued with a preferred insurance premium in all of these
situations EXCEPT ______?
living in a rural area
Which situation would not require the insured's consent when a life insurance policy is
issued?
a policy is purchased by a parent for a minor child
Jim is covered under a disability income policy. He is hurt while engaged in an
occupation that is more hazardous than the occupation he specified in the policy.
What action will the insurer likely take?
reduce the benefit level
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy?
31 days
Exam Questions And Correct Answers
How are monthly life annuity benefit payments treated under a tax sheltered annuity
(TSA)?
taxed as ordinary income in the year received
Life Insurance replacement can be best defined as _______?
a transaction in which a new life insurance policy is purchased and an existing life
insurance policy is surrendered
According the the affordable care act (ACA), dependent children may remain on their
parent's plan until what age?
26
Long-term care insurance provides ______?
one or more diagnostic, preventive, therapeutic, rehabilitative, maintenance, or
personal care services in a setting other than an acute care unit of a hospital
Reductions is coverage are one feature of ____ in Health Insurance policies?
cost containment (one feature)
,If group Health benefit levels are too high, what could be the end result?
Overutilization of the plan
Rick is a disabled worker receiving Social Security benefits. What benefits are his wife
and dependent children eligible for?
An income benefit which is a percentage of his primary insurance amount
An accident and health plan that typically covers ONLY the services of approved
providers is called a(n) _______?
HMO (Health Maintenance Organization) Plan
Contributions made by an employee to a qualified retirement plan are required to be
______?
subject to a vesting schedule
Under which circumstance can an insurance company offer group Health insurance?
The sponsoring group provides an employer-employee relationship
,Which reinsurance contract between two insurers involves an automatic sharing of
the risks assumed?
Treaty Reinsurance
Health Maintenance Organization (HMO) wellness programs may include each of the
following EXCEPT ________?
Diagnostic testing services
Which of these is NOT an Unfair Claims Settlement Practice?
Refusing to pay persons bringing false or fraudulent claims
Which of these statements regarding a managing general agent is NOT true?
A managing general agent generally represents the insured
The premiums paid by an employer for his employee's group life insurance are usually
considered to be ______?
tax deductible to the employer
Which of the following describes coverage for the Medicare Part B coinsurance?
A medicare supplement core benefit
, Which of the following can be defined as a cause of a loss?
Peril
An insurance policy may be issued with a preferred insurance premium in all of these
situations EXCEPT ______?
living in a rural area
Which situation would not require the insured's consent when a life insurance policy is
issued?
a policy is purchased by a parent for a minor child
Jim is covered under a disability income policy. He is hurt while engaged in an
occupation that is more hazardous than the occupation he specified in the policy.
What action will the insurer likely take?
reduce the benefit level
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy?
31 days
