@PROFDOCDIGITALLIBRARIES
Maryland Life and Health General Exam
Simulator with complete solutions
If a disability income policy contains a cost-of-living adjustment rider, benefits
must typically be increased - 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? - ANSWER-the premium to
purchase the coverage comes from the policy's cash value
PR
Which of the following is not a reason for a business to buy key person life
insurance? - ANSWER-an increased pension liability if the key employee dies
O
Qualified long-term care premiums are treated for tax purposes as - ANSWER-
FD
...
Individuals covered with employer-paid group health plans will normally
O
receive tax-free benefits under all of these plans EXCEPT - ANSWER-disability
income
C
A life insurance policy's contingent beneficiary is the - 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? - ANSWER-It is available through application to Social
Security
,@PROFDOCDIGITALLIBRARIES
When does the insured stop making payments under a thirty-payment whole
life policy? - 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 -
ANSWER-express
Which of the following relationships demonstrates insurable interest in the
absence of economic interest? - ANSWER-marriage partners
PR
An accident and health insurance policy's premium requirements are set forth
in which of the following provisions? - ANSWER-Consideration clause
O
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 - ANSWER-not distributed to life annuitants who died before life
FD
expectancy
Under HIPAA requirements, eligibility for the pre-existing conditions exclusion
O
waiver under new coverage is lost if - ANSWER-there is a break in coverage of
more than 63 days
C
The health insurance premiums paid for by each partner in a partnership is
considered to be - ANSWER-100% tax deductible
An annuity which starts paying monthly benefits within a month after issuance
is called a(n) - ANSWER-immediate annuity
,@PROFDOCDIGITALLIBRARIES
Which of the following best describes the tax treatment of medical expense
policies for the self-employed? - 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? - ANSWER-responsible for acts by
the producer that are authority only
What does a fixed life annuity offer protect against? - ANSWER-savings
depletion due to longevity
PR
Which of the following types of insurers limits the exposures it writes to those
of its owners? - ANSWER-captive insurer
O
An agent whose actions exceed the authority granted by contract is - ANSWER-
not backed by the insurer
FD
Use of XYZ Insurance Company brochures, business cards, and rating guides is
an example of - ANSWER-apparent authority
O
What kind of arrangement gives the policyowner the right to change the
C
beneficiary? - ANSWER-Revocable designation
Which of these procedures is NOT designed for ambulatory care centers? -
ANSWER-inpatient surgery
What is the guaranteed cash value of a whole life insurance policy when the
insured turns 65 years old? - ANSWER-less than the policy's face amount
, @PROFDOCDIGITALLIBRARIES
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? - ANSWER-proceed to the nearest
emergency room
Which statement is INCORRECT about the interest-only settlement option in a
life insurance policy? - 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? - ANSWER-policy will no longer be in force
PR
When using the needs approach for life insurance planning, a lump sum may be
created to provide for all of the following EXCEPT - ANSWER-employee benefits
O
Which of the following would permit an insurer to delay a covered disability
FD
policy claim? - ANSWER-elimination period
Emily is disabled. In order to become eligible for Social Security disability
O
income benefits, she must be - ANSWER-Fully insured, according to Social
Security
C
An agent gives a conditional receipt to a client for an insurance policy after
collecting the initial premium. When will the policy become effective? -
ANSWER-When the conditions of the receipt are met.(A conditional receipt
indicates that certain conditions must be met in order for the insurance
coverage to go into effect)
Short-term group disability income benefits are - ANSWER-a percentage of
weekly earnings up to a stated maximum
Maryland Life and Health General Exam
Simulator with complete solutions
If a disability income policy contains a cost-of-living adjustment rider, benefits
must typically be increased - 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? - ANSWER-the premium to
purchase the coverage comes from the policy's cash value
PR
Which of the following is not a reason for a business to buy key person life
insurance? - ANSWER-an increased pension liability if the key employee dies
O
Qualified long-term care premiums are treated for tax purposes as - ANSWER-
FD
...
Individuals covered with employer-paid group health plans will normally
O
receive tax-free benefits under all of these plans EXCEPT - ANSWER-disability
income
C
A life insurance policy's contingent beneficiary is the - 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? - ANSWER-It is available through application to Social
Security
,@PROFDOCDIGITALLIBRARIES
When does the insured stop making payments under a thirty-payment whole
life policy? - 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 -
ANSWER-express
Which of the following relationships demonstrates insurable interest in the
absence of economic interest? - ANSWER-marriage partners
PR
An accident and health insurance policy's premium requirements are set forth
in which of the following provisions? - ANSWER-Consideration clause
O
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 - ANSWER-not distributed to life annuitants who died before life
FD
expectancy
Under HIPAA requirements, eligibility for the pre-existing conditions exclusion
O
waiver under new coverage is lost if - ANSWER-there is a break in coverage of
more than 63 days
C
The health insurance premiums paid for by each partner in a partnership is
considered to be - ANSWER-100% tax deductible
An annuity which starts paying monthly benefits within a month after issuance
is called a(n) - ANSWER-immediate annuity
,@PROFDOCDIGITALLIBRARIES
Which of the following best describes the tax treatment of medical expense
policies for the self-employed? - 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? - ANSWER-responsible for acts by
the producer that are authority only
What does a fixed life annuity offer protect against? - ANSWER-savings
depletion due to longevity
PR
Which of the following types of insurers limits the exposures it writes to those
of its owners? - ANSWER-captive insurer
O
An agent whose actions exceed the authority granted by contract is - ANSWER-
not backed by the insurer
FD
Use of XYZ Insurance Company brochures, business cards, and rating guides is
an example of - ANSWER-apparent authority
O
What kind of arrangement gives the policyowner the right to change the
C
beneficiary? - ANSWER-Revocable designation
Which of these procedures is NOT designed for ambulatory care centers? -
ANSWER-inpatient surgery
What is the guaranteed cash value of a whole life insurance policy when the
insured turns 65 years old? - ANSWER-less than the policy's face amount
, @PROFDOCDIGITALLIBRARIES
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? - ANSWER-proceed to the nearest
emergency room
Which statement is INCORRECT about the interest-only settlement option in a
life insurance policy? - 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? - ANSWER-policy will no longer be in force
PR
When using the needs approach for life insurance planning, a lump sum may be
created to provide for all of the following EXCEPT - ANSWER-employee benefits
O
Which of the following would permit an insurer to delay a covered disability
FD
policy claim? - ANSWER-elimination period
Emily is disabled. In order to become eligible for Social Security disability
O
income benefits, she must be - ANSWER-Fully insured, according to Social
Security
C
An agent gives a conditional receipt to a client for an insurance policy after
collecting the initial premium. When will the policy become effective? -
ANSWER-When the conditions of the receipt are met.(A conditional receipt
indicates that certain conditions must be met in order for the insurance
coverage to go into effect)
Short-term group disability income benefits are - ANSWER-a percentage of
weekly earnings up to a stated maximum
