Maryland Life and Health General Exam Simulator Verified Answers

Maryland Life and Health General Exam Simulator Verified Answers A "premature distribution from a modified endowment contract (MEC) incurs a penalty tax of ️10% A business becoming incorporated is an example of risk ️transfer A certificate of coverage for a group health policy is best described as ️proof of coverage for the employee A contract is considered void in all of the following situations EXCEPT ️when consideration is unequal A description of a qualified plan's insurance contract may be found in which ERISA reporting form? ️Annual return/report (Form 5500) (Form 5500 is a disclosure document that employee benefit plans use to satisfy annual reporting requirements under ERISA) A disability income insurance policy was recently issued with a rating. What does this mean? ️policyowner will be charged an additional premium A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy? ️business overhead expense A family counseling benefit is typically offered under which of these coverages? ️hospice care A family counseling benefit is typically offered under which of these coverages? ️Hospice care A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a ️risk retention group A hold-harmless clause is an example of risk ️transfer A life insurance guaranteed insurability rider gives the insured the right, without proving insurability, to ️periodically purchase additional insurance A life insurance policy that includes a return of premium rider will pay the beneficiary how much upon the insured's death? ️Total premiums paid plus the policy face amount A life insurance policy's contingent beneficiary is the ️person who receives the death benefits if the primary beneficiary dies before the insured A life insurance policy's waiver of premium rider has the ability to ️relieve the insured of premium payments following an initial waiting period after the insured becomes totally disabled A life policy that has premiums that are lower than normal during the early years is called ️modified life A material change in a modified endowment contract (MEC) results in ️the seven pay test, adjusted for cash value, applies again A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be the ️highest amount payable A Medicare Supplement policy is required to do which of the following? ️provide a 30 day free-look period A MET third-party administrator may NOT perform which of the following functio