Maryland Life and Health General Exam
Simulator Questions With Complete
Solutions
If a disability income policy contains a cost-of-living adjustment rider, benefits
| | | | | | | | | | |
must typically be increased - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-an increased pension liability if the key
| | | | | | | | | |
employee dies |
Qualified long-term care premiums are treated for tax purposes as - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-...
Individuals covered with employer-paid group health plans will normally receive
| | | | | | | | | |
tax-free benefits under all of these plans EXCEPT - CORRECT ANSWER✔✔-
| | | | | | | | | |
disability income |
,A life insurance policy's contingent beneficiary is the - CORRECT ANSWER✔✔-
| | | | | | | | | |
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? - CORRECT ANSWER✔✔-It is available through application to Social
| | | | | | | | | |
Security
When does the insured stop making payments under a thirty-payment whole life
| | | | | | | | | | | |
policy? - CORRECT ANSWER✔✔-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 -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-express |
Which of the following relationships demonstrates insurable interest in the
| | | | | | | | | |
absence of economic interest? - CORRECT ANSWER✔✔-marriage partners
| | | | | | |
An accident and health insurance policy's premium requirements are set forth in
| | | | | | | | | | | |
which of the following provisions? - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-100% tax deductible
| | | | | | |
An annuity which starts paying monthly benefits within a month after issuance is
| | | | | | | | | | | | |
called a(n) - CORRECT ANSWER✔✔-immediate annuity
| | | | |
Which of the following best describes the tax treatment of medical expense
| | | | | | | | | | | |
policies for the self-employed? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-responsible for
| | | | | | | | |
acts by the producer that are authority only
| | | | | | | |
What does a fixed life annuity offer protect against? - CORRECT ANSWER✔✔-
| | | | | | | | | | |
savings depletion due to longevity
| | | |
Which of the following types of insurers limits the exposures it writes to those of
| | | | | | | | | | | | | | |
its owners? - CORRECT ANSWER✔✔-captive insurer
| | | | |
An agent whose actions exceed the authority granted by contract is - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-not backed by the insurer | | | |
, Use of XYZ Insurance Company brochures, business cards, and rating guides is an
| | | | | | | | | | | | |
example of - CORRECT ANSWER✔✔-apparent authority
| | | | |
What kind of arrangement gives the policyowner the right to change the
| | | | | | | | | | | |
beneficiary? - CORRECT ANSWER✔✔-Revocable designation
| | | |
Which of these procedures is NOT designed for ambulatory care centers? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-inpatient surgery
| |
What is the guaranteed cash value of a whole life insurance policy when the
| | | | | | | | | | | | | |
insured turns 65 years old? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-proceed to the nearest
| | | | | | | | | | |
emergency room |
Which statement is INCORRECT about the interest-only settlement option in a life
| | | | | | | | | | | |
insurance policy? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-policy will no longer be in force
| | | | | | | | | | |
Simulator Questions With Complete
Solutions
If a disability income policy contains a cost-of-living adjustment rider, benefits
| | | | | | | | | | |
must typically be increased - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-an increased pension liability if the key
| | | | | | | | | |
employee dies |
Qualified long-term care premiums are treated for tax purposes as - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-...
Individuals covered with employer-paid group health plans will normally receive
| | | | | | | | | |
tax-free benefits under all of these plans EXCEPT - CORRECT ANSWER✔✔-
| | | | | | | | | |
disability income |
,A life insurance policy's contingent beneficiary is the - CORRECT ANSWER✔✔-
| | | | | | | | | |
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? - CORRECT ANSWER✔✔-It is available through application to Social
| | | | | | | | | |
Security
When does the insured stop making payments under a thirty-payment whole life
| | | | | | | | | | | |
policy? - CORRECT ANSWER✔✔-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 -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-express |
Which of the following relationships demonstrates insurable interest in the
| | | | | | | | | |
absence of economic interest? - CORRECT ANSWER✔✔-marriage partners
| | | | | | |
An accident and health insurance policy's premium requirements are set forth in
| | | | | | | | | | | |
which of the following provisions? - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-100% tax deductible
| | | | | | |
An annuity which starts paying monthly benefits within a month after issuance is
| | | | | | | | | | | | |
called a(n) - CORRECT ANSWER✔✔-immediate annuity
| | | | |
Which of the following best describes the tax treatment of medical expense
| | | | | | | | | | | |
policies for the self-employed? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-responsible for
| | | | | | | | |
acts by the producer that are authority only
| | | | | | | |
What does a fixed life annuity offer protect against? - CORRECT ANSWER✔✔-
| | | | | | | | | | |
savings depletion due to longevity
| | | |
Which of the following types of insurers limits the exposures it writes to those of
| | | | | | | | | | | | | | |
its owners? - CORRECT ANSWER✔✔-captive insurer
| | | | |
An agent whose actions exceed the authority granted by contract is - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-not backed by the insurer | | | |
, Use of XYZ Insurance Company brochures, business cards, and rating guides is an
| | | | | | | | | | | | |
example of - CORRECT ANSWER✔✔-apparent authority
| | | | |
What kind of arrangement gives the policyowner the right to change the
| | | | | | | | | | | |
beneficiary? - CORRECT ANSWER✔✔-Revocable designation
| | | |
Which of these procedures is NOT designed for ambulatory care centers? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-inpatient surgery
| |
What is the guaranteed cash value of a whole life insurance policy when the
| | | | | | | | | | | | | |
insured turns 65 years old? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-proceed to the nearest
| | | | | | | | | | |
emergency room |
Which statement is INCORRECT about the interest-only settlement option in a life
| | | | | | | | | | | |
insurance policy? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-policy will no longer be in force
| | | | | | | | | | |
