Maryland life and health insurance final
exam questions with 100% correct Answers
Which of the following distinguishes field underwriting from home office
| | | | | | | | | |
underwriting - CORRECT ANSWER✔✔-An agent has personal contact with an
| | | | | | | | | |
applicant
ABC Company is attempting to minimize the severity of potential losses within its
| | | | | | | | | | | | |
company. The company is engaged in risk - CORRECT ANSWER✔✔-reduction
| | | | | | | | |
A life insurance policies, waiver of premium rider has the ability to - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-relieve the insured of premium payments following an initial waiting
| | | | | | | | |
period after the insured becomes totally disabled
| | | | | | |
Which statement is not true regarding health insurance policies that provide
| | | | | | | | | | |
limited benefits - CORRECT ANSWER✔✔-Only persons under the age of 65 are
| | | | | | | | | | | |
eligible
Which of the following reduces the opportunity for overinsurance? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-coordination of benefits provision | | |
Which of the following best describes the purpose of HIPAA - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-To reduce a pre-existing condition waiting period when coverage is
| | | | | | | | | |
sought for a new medical plan
| | | | |
,The main purpose of an annuity is to - CORRECT ANSWER✔✔-create a stream of
| | | | | | | | | | | | | |
income
For purposes of disability income insurance, earned income would include all of
| | | | | | | | | | | |
the following EXCEPT - CORRECT ANSWER✔✔-Dividends
| | | | |
A producer must maintain customer records for ____Year(s) following the
| | | | | | | | | |
completion date of the insurance transaction - CORRECT ANSWER✔✔-Five
| | | | | | | |
Under what circumstances does an accident and health insurer have the right to
| | | | | | | | | | | | |
request an autopsy - CORRECT ANSWER✔✔-When not prohibited by state law
| | | | | | | | | |
Switching Life insurance policies without tax consequence is permitted under -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Section 1035 rules
| | |
The insurer's obligation to pay a claim depends on whether the insured or
| | | | | | | | | | | | |
beneficiary has complied with all policy conditions. This makes the policy a(n) -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Conditional contract
| |
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-The participating employee
| | |
Which of the following actions may result in the suspension of a producers
| | | | | | | | | | | | |
license? - CORRECT ANSWER✔✔-Rebating part of a commission to the applicant
| | | | | | | | | |
, What minimum percentage of all eligible employees must participate in a group
| | | | | | | | | | | |
life insurance plan if the premiums are completely paid for by the employer?
| | | | | | | | | | | |
| 0%
| 50%
| 75%
| 100% - CORRECT ANSWER✔✔-100%
| | |
What would be the disadvantage of naming a trust as beneficiary of a life
| | | | | | | | | | | | | |
insurance policy? - CORRECT ANSWER✔✔-Trust administration fees would reduce
| | | | | | | |
|policy proceeds |
XYZ Insurance Company gives direct authority to its producers to sell insurance
| | | | | | | | | | | |
through an agency contract, but nothing is stated regarding the collection of
| | | | | | | | | | | |
premiums. Which authority grants the producer the right to collect premiums? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-Implied authority | |
An HMO prescription drug plan is generally characterized by - CORRECT
| | | | | | | | | | |
ANSWER✔✔-drugs dispensed through participating pharmacies | | | |
What is the purpose of the life and health insurance guaranty corporation -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Provides benefits in the event of an insurer's impairment
| | | | | | | | | |
or insolvency
|
Which of the following provisions is not required to be included in qualified, long-
| | | | | | | | | | | | |
term care policies - CORRECT ANSWER✔✔-Prior hospitalization
| | | | | |
exam questions with 100% correct Answers
Which of the following distinguishes field underwriting from home office
| | | | | | | | | |
underwriting - CORRECT ANSWER✔✔-An agent has personal contact with an
| | | | | | | | | |
applicant
ABC Company is attempting to minimize the severity of potential losses within its
| | | | | | | | | | | | |
company. The company is engaged in risk - CORRECT ANSWER✔✔-reduction
| | | | | | | | |
A life insurance policies, waiver of premium rider has the ability to - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-relieve the insured of premium payments following an initial waiting
| | | | | | | | |
period after the insured becomes totally disabled
| | | | | | |
Which statement is not true regarding health insurance policies that provide
| | | | | | | | | | |
limited benefits - CORRECT ANSWER✔✔-Only persons under the age of 65 are
| | | | | | | | | | | |
eligible
Which of the following reduces the opportunity for overinsurance? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-coordination of benefits provision | | |
Which of the following best describes the purpose of HIPAA - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-To reduce a pre-existing condition waiting period when coverage is
| | | | | | | | | |
sought for a new medical plan
| | | | |
,The main purpose of an annuity is to - CORRECT ANSWER✔✔-create a stream of
| | | | | | | | | | | | | |
income
For purposes of disability income insurance, earned income would include all of
| | | | | | | | | | | |
the following EXCEPT - CORRECT ANSWER✔✔-Dividends
| | | | |
A producer must maintain customer records for ____Year(s) following the
| | | | | | | | | |
completion date of the insurance transaction - CORRECT ANSWER✔✔-Five
| | | | | | | |
Under what circumstances does an accident and health insurer have the right to
| | | | | | | | | | | | |
request an autopsy - CORRECT ANSWER✔✔-When not prohibited by state law
| | | | | | | | | |
Switching Life insurance policies without tax consequence is permitted under -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Section 1035 rules
| | |
The insurer's obligation to pay a claim depends on whether the insured or
| | | | | | | | | | | | |
beneficiary has complied with all policy conditions. This makes the policy a(n) -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Conditional contract
| |
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-The participating employee
| | |
Which of the following actions may result in the suspension of a producers
| | | | | | | | | | | | |
license? - CORRECT ANSWER✔✔-Rebating part of a commission to the applicant
| | | | | | | | | |
, What minimum percentage of all eligible employees must participate in a group
| | | | | | | | | | | |
life insurance plan if the premiums are completely paid for by the employer?
| | | | | | | | | | | |
| 0%
| 50%
| 75%
| 100% - CORRECT ANSWER✔✔-100%
| | |
What would be the disadvantage of naming a trust as beneficiary of a life
| | | | | | | | | | | | | |
insurance policy? - CORRECT ANSWER✔✔-Trust administration fees would reduce
| | | | | | | |
|policy proceeds |
XYZ Insurance Company gives direct authority to its producers to sell insurance
| | | | | | | | | | | |
through an agency contract, but nothing is stated regarding the collection of
| | | | | | | | | | | |
premiums. Which authority grants the producer the right to collect premiums? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-Implied authority | |
An HMO prescription drug plan is generally characterized by - CORRECT
| | | | | | | | | | |
ANSWER✔✔-drugs dispensed through participating pharmacies | | | |
What is the purpose of the life and health insurance guaranty corporation -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Provides benefits in the event of an insurer's impairment
| | | | | | | | | |
or insolvency
|
Which of the following provisions is not required to be included in qualified, long-
| | | | | | | | | | | | |
term care policies - CORRECT ANSWER✔✔-Prior hospitalization
| | | | | |
