Maryland Life and Health exam questions
with correct answers
facultative - CORRECT ANSWER✔✔-one of the 2 types of resinsurance
|| || || || || || || || || ||
agreements which allow the resinsurer the opportunity to reject risks
|| || || || || || || || || ||
presented to it or to price them higher based on the risk exposure
|| || || || || || || || || || || ||
treaty - CORRECT ANSWER✔✔-one of the 2 types of insurance agreements
|| || || || || || || || || || ||
which automatically accepts all new risks presented by the ceding company
|| || || || || || || || || ||
law of agency - CORRECT ANSWER✔✔-states the principle is responsble for
|| || || || || || || || || || ||
acts of their agents
|| || ||
commissioner - CORRECT ANSWER✔✔-has the power to issue rules and
|| || || || || || || || || ||
regulation to help enforce insruance statutes
|| || || || ||
risk retention - CORRECT ANSWER✔✔-assuming the responsbility for loss
|| || || || || || || ||
contract of adhesion - CORRECT ANSWER✔✔-submitted on take it or leave it
|| || || || || || || || || || ||
bases, no input or alteration from the insured is considered
|| || || || || || || || || ||
conditional contract - CORRECT ANSWER✔✔-both parties to a contract must
|| || || || || || || || || ||
perform certain dutites to make the contract enforceable
|| || || || || || ||
,mortality rate is based on - CORRECT ANSWER✔✔-1000 people
|| || || || || || || ||
a producer must include their name and address on what? - CORRECT
|| || || || || || || || || || || ||
ANSWER✔✔-a policy summary || ||
which policy has a current and guaranteed maximum premium - CORRECT
|| || || || || || || || || || ||
ANSWER✔✔-interminatee premium life || ||
accidental death rider - CORRECT ANSWER✔✔-the policy pays the stated
|| || || || || || || || || ||
multiple of the face amount should the insured die as a result of an
|| || || || || || || || || || || || || ||
acciednt
Whole life is know as - CORRECT ANSWER✔✔-permanent
|| || || || || || ||
term life insurance - CORRECT ANSWER✔✔-designed for someone with a
|| || || || || || || || || ||
large insruance need but with limited cash flow
|| || || || || || ||
Variable whole life - CORRECT ANSWER✔✔-must be sold by prospectus
|| || || || || || || || ||
Equity Universal, Variable, and Variable Universal all have which of the
|| || || || || || || || || || ||
following characteristics in common? - CORRECT ANSWER✔✔-the overall
|| || || || || || || ||
policy performance has something to do with the stock market in general
|| || || || || || || || || || ||
The name of the beneficiary designation that will pay a deceased
|| || || || || || || || || || ||
beneficiary's share to the heirs of that beneficiary who predeceases the
|| || || || || || || || || || ||
insured is called: - CORRECT ANSWER✔✔-per stripes
|| || || || || ||
, on a variable universal life policy, what is the difference between the cash
|| || || || || || || || || || || || ||
value and the cash surrender values? - CORRECT ANSWER✔✔-the surrender
|| || || || || || || || || ||
charge
Most expensive premium? - CORRECT ANSWER✔✔-monthly
|| || || || ||
A lump sum of money is placed into an account from which the annuitant
|| || || || || || || || || || || || || ||
will draw periodic benefits beginning more than a year from the date of
|| || || || || || || || || || || || ||
purchase. This describes a: - CORRECT ANSWER✔✔-single premium deferred
|| || || || || || || || ||
annuity
nonconributory gruop life policy - CORRECT ANSWER✔✔-must cover 100% of
|| || || || || || || || ||
elgible employees
|| ||
how is the funding for SS provided? - CORRECT ANSWER✔✔-through FICA
|| || || || || || || || || || ||
taxes that are paid by both emploer and employees
|| || || || || || || ||
a non profit organization can set up a TSA for employees under - CORRECT
|| || || || || || || || || || || || || ||
ANSWER✔✔-IRC 500(c)(3) ||
If a corporation owns an annuity, what is the tax ramification? - CORRECT
|| || || || || || || || || || || || ||
ANSWER✔✔-there is no tax deferral benefit on any earnings || || || || || || || ||
Failure to take a required minimum distribution can lead to a - CORRECT
|| || || || || || || || || || || || ||
ANSWER✔✔-50% tax penalty || ||
with correct answers
facultative - CORRECT ANSWER✔✔-one of the 2 types of resinsurance
|| || || || || || || || || ||
agreements which allow the resinsurer the opportunity to reject risks
|| || || || || || || || || ||
presented to it or to price them higher based on the risk exposure
|| || || || || || || || || || || ||
treaty - CORRECT ANSWER✔✔-one of the 2 types of insurance agreements
|| || || || || || || || || || ||
which automatically accepts all new risks presented by the ceding company
|| || || || || || || || || ||
law of agency - CORRECT ANSWER✔✔-states the principle is responsble for
|| || || || || || || || || || ||
acts of their agents
|| || ||
commissioner - CORRECT ANSWER✔✔-has the power to issue rules and
|| || || || || || || || || ||
regulation to help enforce insruance statutes
|| || || || ||
risk retention - CORRECT ANSWER✔✔-assuming the responsbility for loss
|| || || || || || || ||
contract of adhesion - CORRECT ANSWER✔✔-submitted on take it or leave it
|| || || || || || || || || || ||
bases, no input or alteration from the insured is considered
|| || || || || || || || || ||
conditional contract - CORRECT ANSWER✔✔-both parties to a contract must
|| || || || || || || || || ||
perform certain dutites to make the contract enforceable
|| || || || || || ||
,mortality rate is based on - CORRECT ANSWER✔✔-1000 people
|| || || || || || || ||
a producer must include their name and address on what? - CORRECT
|| || || || || || || || || || || ||
ANSWER✔✔-a policy summary || ||
which policy has a current and guaranteed maximum premium - CORRECT
|| || || || || || || || || || ||
ANSWER✔✔-interminatee premium life || ||
accidental death rider - CORRECT ANSWER✔✔-the policy pays the stated
|| || || || || || || || || ||
multiple of the face amount should the insured die as a result of an
|| || || || || || || || || || || || || ||
acciednt
Whole life is know as - CORRECT ANSWER✔✔-permanent
|| || || || || || ||
term life insurance - CORRECT ANSWER✔✔-designed for someone with a
|| || || || || || || || || ||
large insruance need but with limited cash flow
|| || || || || || ||
Variable whole life - CORRECT ANSWER✔✔-must be sold by prospectus
|| || || || || || || || ||
Equity Universal, Variable, and Variable Universal all have which of the
|| || || || || || || || || || ||
following characteristics in common? - CORRECT ANSWER✔✔-the overall
|| || || || || || || ||
policy performance has something to do with the stock market in general
|| || || || || || || || || || ||
The name of the beneficiary designation that will pay a deceased
|| || || || || || || || || || ||
beneficiary's share to the heirs of that beneficiary who predeceases the
|| || || || || || || || || || ||
insured is called: - CORRECT ANSWER✔✔-per stripes
|| || || || || ||
, on a variable universal life policy, what is the difference between the cash
|| || || || || || || || || || || || ||
value and the cash surrender values? - CORRECT ANSWER✔✔-the surrender
|| || || || || || || || || ||
charge
Most expensive premium? - CORRECT ANSWER✔✔-monthly
|| || || || ||
A lump sum of money is placed into an account from which the annuitant
|| || || || || || || || || || || || || ||
will draw periodic benefits beginning more than a year from the date of
|| || || || || || || || || || || || ||
purchase. This describes a: - CORRECT ANSWER✔✔-single premium deferred
|| || || || || || || || ||
annuity
nonconributory gruop life policy - CORRECT ANSWER✔✔-must cover 100% of
|| || || || || || || || ||
elgible employees
|| ||
how is the funding for SS provided? - CORRECT ANSWER✔✔-through FICA
|| || || || || || || || || || ||
taxes that are paid by both emploer and employees
|| || || || || || || ||
a non profit organization can set up a TSA for employees under - CORRECT
|| || || || || || || || || || || || || ||
ANSWER✔✔-IRC 500(c)(3) ||
If a corporation owns an annuity, what is the tax ramification? - CORRECT
|| || || || || || || || || || || || ||
ANSWER✔✔-there is no tax deferral benefit on any earnings || || || || || || || ||
Failure to take a required minimum distribution can lead to a - CORRECT
|| || || || || || || || || || || || ||
ANSWER✔✔-50% tax penalty || ||
