MARYLAND LIFE AND HEALTH INSURANCE
COMPLETE EXAM STUDY QUESTIONS WITH
CORRECT ANSWERS | LATEST EDITION
1. Which of the following regulates the quality of care provided by a health
maintenance organization (HMO)? - ANSWER Secretary of the department
of health and mental hygiene.
2. A marketing system, which utilizes mass media advertising and mail, instead
of a producer, is called an blank, blank marketing system. - ANSWER
Direct response
3. An insurer is life insurance premium rate must be the same for all
individuals - ANSWER In the same risk class with equal life expectancy
4. When a sum of money undergoes capital liquidation, that sum will -
ANSWER decrease in size
5. A health insurance underwriter will most likely view alcohol as an -
ANSWER Increase exposure to risk
6. When does interest income for a flexible premium deferred annuity get
reported for federal income taxes - ANSWER Upon receiving distributions
from the contract
7. Which of these procedures is not designed for ambulatory care Center -
ANSWER Inpatient surgery
,8. Which of the following is not a condition that must be met for an accidental
death benefit to be paid? - ANSWER Cause of death must be from a job-
related injury
9. Julie is in need of assistance with one or two activities of daily living. She
may be eligible for a(n) - ANSWER assisted living facility
10.Doing the application process, a statement made by an applicant that
becomes part of the contract is considered to be (an) - ANSWER Warranty
11.Qualified long-term care premiums are treated for tax purposes as -
ANSWER tax-deductible to the extent they exceed 7 1/2% AGI
12.Where is the difference between a standard risk and is substandard risk
reflected? - ANSWER Premium charges
13.Jonas is covered with disability insurance through his employer. The
employer pays 75% of the premium, while Jonas pays the other 25%. What
is Jonas' tax liability for any benefits paid from the disability plan? -
ANSWER Taxes must be paid on 75% of the benefits received
14.Traditional Individual Retirement annuity (IRA) distributions must start by -
ANSWER April 1st of the year following the participant attains age 70 1/2
15.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? - ANSWER 31 days
,16.A life insurance policyowner would like a dividend option that results in a
limited current outlay of funds which dividend option would be chosen? -
ANSWER Reduction of premium payment
17.Which of these policies is considered a whole life policy? - ANSWER
Single premium life
18.Medicare part a coinsurance payments are covered by? - ANSWER
Medicare Supplement Plan A
19.The blank is responsible for determining the appropriateness of a Medicare
supplement policy for an applicant. - ANSWER Producer
20.Employers paid qualified, long-term care, insurance, premiums are typically
- ANSWER Excluded from the employees gross income
21.Under a deferred annuity, which contract feature initially charges a 5-10%
fee that eventually reduces to $0 after a stated amount of time? - ANSWER
surrender charge
22.What is normally the consequence for not obtaining pre-admission
certification prior to receiving inpatient medical care? - ANSWER A
reduction in benefits
23.Kate received a group accident and health termination notice. How many
days does she have to apply for a converted policy? - ANSWER 31 days
24.Which of the following is not covered by a comprehensive long term care
policy? - ANSWER acute care
, 25.Which of these is not a true statement of war exclusion? - ANSWER It
applies to civil insurrections
26.A change in a licensees name or address must be provided to the
Commissioner within __ days - ANSWER 30
27.What minimum percentage of all eligible employees must participate in a
group life insurance plan if the premiums are completely paid for by the
employers? - ANSWER 100%
28.The standard grace period for a life insurance policy sold in Maryland is -
ANSWER 30 days
29.In an individual retirement account (IRA), rollover contributions are -
ANSWER unlimited by dollar amount
30.The following are all elements of a valid contract, except - ANSWER
written evidence
31.Karen is a health maintenance organization (HMO) subscriber. Who
provides all of her preventative and routine care? - ANSWER primary care
physician
32.Which of the following types of health insurers is characterized by a limited
choice of providers? - ANSWER health maintenance organization
33.Which of the following is not an allowable exclusion for long-term care
insurance policies? - ANSWER Care for incurable conditions
COMPLETE EXAM STUDY QUESTIONS WITH
CORRECT ANSWERS | LATEST EDITION
1. Which of the following regulates the quality of care provided by a health
maintenance organization (HMO)? - ANSWER Secretary of the department
of health and mental hygiene.
2. A marketing system, which utilizes mass media advertising and mail, instead
of a producer, is called an blank, blank marketing system. - ANSWER
Direct response
3. An insurer is life insurance premium rate must be the same for all
individuals - ANSWER In the same risk class with equal life expectancy
4. When a sum of money undergoes capital liquidation, that sum will -
ANSWER decrease in size
5. A health insurance underwriter will most likely view alcohol as an -
ANSWER Increase exposure to risk
6. When does interest income for a flexible premium deferred annuity get
reported for federal income taxes - ANSWER Upon receiving distributions
from the contract
7. Which of these procedures is not designed for ambulatory care Center -
ANSWER Inpatient surgery
,8. Which of the following is not a condition that must be met for an accidental
death benefit to be paid? - ANSWER Cause of death must be from a job-
related injury
9. Julie is in need of assistance with one or two activities of daily living. She
may be eligible for a(n) - ANSWER assisted living facility
10.Doing the application process, a statement made by an applicant that
becomes part of the contract is considered to be (an) - ANSWER Warranty
11.Qualified long-term care premiums are treated for tax purposes as -
ANSWER tax-deductible to the extent they exceed 7 1/2% AGI
12.Where is the difference between a standard risk and is substandard risk
reflected? - ANSWER Premium charges
13.Jonas is covered with disability insurance through his employer. The
employer pays 75% of the premium, while Jonas pays the other 25%. What
is Jonas' tax liability for any benefits paid from the disability plan? -
ANSWER Taxes must be paid on 75% of the benefits received
14.Traditional Individual Retirement annuity (IRA) distributions must start by -
ANSWER April 1st of the year following the participant attains age 70 1/2
15.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? - ANSWER 31 days
,16.A life insurance policyowner would like a dividend option that results in a
limited current outlay of funds which dividend option would be chosen? -
ANSWER Reduction of premium payment
17.Which of these policies is considered a whole life policy? - ANSWER
Single premium life
18.Medicare part a coinsurance payments are covered by? - ANSWER
Medicare Supplement Plan A
19.The blank is responsible for determining the appropriateness of a Medicare
supplement policy for an applicant. - ANSWER Producer
20.Employers paid qualified, long-term care, insurance, premiums are typically
- ANSWER Excluded from the employees gross income
21.Under a deferred annuity, which contract feature initially charges a 5-10%
fee that eventually reduces to $0 after a stated amount of time? - ANSWER
surrender charge
22.What is normally the consequence for not obtaining pre-admission
certification prior to receiving inpatient medical care? - ANSWER A
reduction in benefits
23.Kate received a group accident and health termination notice. How many
days does she have to apply for a converted policy? - ANSWER 31 days
24.Which of the following is not covered by a comprehensive long term care
policy? - ANSWER acute care
, 25.Which of these is not a true statement of war exclusion? - ANSWER It
applies to civil insurrections
26.A change in a licensees name or address must be provided to the
Commissioner within __ days - ANSWER 30
27.What minimum percentage of all eligible employees must participate in a
group life insurance plan if the premiums are completely paid for by the
employers? - ANSWER 100%
28.The standard grace period for a life insurance policy sold in Maryland is -
ANSWER 30 days
29.In an individual retirement account (IRA), rollover contributions are -
ANSWER unlimited by dollar amount
30.The following are all elements of a valid contract, except - ANSWER
written evidence
31.Karen is a health maintenance organization (HMO) subscriber. Who
provides all of her preventative and routine care? - ANSWER primary care
physician
32.Which of the following types of health insurers is characterized by a limited
choice of providers? - ANSWER health maintenance organization
33.Which of the following is not an allowable exclusion for long-term care
insurance policies? - ANSWER Care for incurable conditions
