Insurance Set Latest Edition 2025-
2026. Questions with Correct Verified
Answers. Graded A
_______ can be defined as "replacing a policy when it is NOT in the best
interest of the client" – ANS twisting
A business may purchase an annuity for all of the following reasons
EXCEPT - ANS informally funding a non-qualified deferred compensation
plan
A certificate of coverage for a group health policy is best described as -
ANSproof of coverage for the employee
A characteristic of preferred provider organizations (PPO) is - ANSif service
is obtained outside the PPO
A disability income insurance policy was recently issued with a rating. What
does this mean? - ANSpolicyowner will be charged an additional premium
A disabled business owner who has payroll and business expenses paid
for has what kind of insurance policy? - ANSbusiness overhead expense
A drug which is used for a medical condition that it is not approved to treat
according to the food and drug administration is called - ANSoff-label use
1
,A group health insurance policy is a contract between an - ANSemployer
and insurance company
A group Medicare Supplement policy was terminated and not replaced by
the insurer. In this situation, the insurer MUST - ANSprovide an offer of
conversion to individual coverage
A lapsed long-term care policy may be reinstated within ____ months of the
lapse date if the insured was mentally incapacitated. - ANS5
A large corporation pension plan purchased an accumulation annuity
contract where all of the participating employees received certificates of
participation. What is the contract called? - ANSgroup deferred annuity
A licensee who is required to take continuing education must complete 24
hours of continuing education, which includes ____ hours of ethics
coursework - ANS3
A life insurance company just paid a 100,000 death benefit to a beneficiary.
When the insured died, the cash value was 15,000 and the total premiums-
paid equaled 10,000. How much of the proceeds will be added to the
beneficiary's gross income for federal income tax purposes? - ANSnothing
A life insurance policy that includes a return of premium rider will pay the
beneficiary how much upon the insured's death? - ANStotal premiums paid
plus the policy face amount
2
, A life insurance producer's underwriting duties may include - ANSseeking
additional information requested by the insurance company
A life policy's spendthrift clause would have no effect if the beneficiary is
paid the proceeds as a - ANSlump sum payment
A Maryland resident producer must meet specified continuing education
requirements within a ____- year period. - ANS2
A policyowner is permitted to take out a policy loan on a whole life policy at
what point? - ANSwhen the policy has a cash value
A producer has indicated to a potential client that the proposed life
insurance policy is covered by the Maryland Life and Health Insurance
Guaranty corporation. This action taken by the producer is - ANSprohibited
by law
A producer is proposing that a policyowner replace an existing individual
health insurance policy with a new one. Under the new contract, a pre-
existing conditions exclusion - ANSmay reduce the insured's benefits
A producer may share commission with - ANSanother licensed but
unappointed producer
3
2026. Questions with Correct Verified
Answers. Graded A
_______ can be defined as "replacing a policy when it is NOT in the best
interest of the client" – ANS twisting
A business may purchase an annuity for all of the following reasons
EXCEPT - ANS informally funding a non-qualified deferred compensation
plan
A certificate of coverage for a group health policy is best described as -
ANSproof of coverage for the employee
A characteristic of preferred provider organizations (PPO) is - ANSif service
is obtained outside the PPO
A disability income insurance policy was recently issued with a rating. What
does this mean? - ANSpolicyowner will be charged an additional premium
A disabled business owner who has payroll and business expenses paid
for has what kind of insurance policy? - ANSbusiness overhead expense
A drug which is used for a medical condition that it is not approved to treat
according to the food and drug administration is called - ANSoff-label use
1
,A group health insurance policy is a contract between an - ANSemployer
and insurance company
A group Medicare Supplement policy was terminated and not replaced by
the insurer. In this situation, the insurer MUST - ANSprovide an offer of
conversion to individual coverage
A lapsed long-term care policy may be reinstated within ____ months of the
lapse date if the insured was mentally incapacitated. - ANS5
A large corporation pension plan purchased an accumulation annuity
contract where all of the participating employees received certificates of
participation. What is the contract called? - ANSgroup deferred annuity
A licensee who is required to take continuing education must complete 24
hours of continuing education, which includes ____ hours of ethics
coursework - ANS3
A life insurance company just paid a 100,000 death benefit to a beneficiary.
When the insured died, the cash value was 15,000 and the total premiums-
paid equaled 10,000. How much of the proceeds will be added to the
beneficiary's gross income for federal income tax purposes? - ANSnothing
A life insurance policy that includes a return of premium rider will pay the
beneficiary how much upon the insured's death? - ANStotal premiums paid
plus the policy face amount
2
, A life insurance producer's underwriting duties may include - ANSseeking
additional information requested by the insurance company
A life policy's spendthrift clause would have no effect if the beneficiary is
paid the proceeds as a - ANSlump sum payment
A Maryland resident producer must meet specified continuing education
requirements within a ____- year period. - ANS2
A policyowner is permitted to take out a policy loan on a whole life policy at
what point? - ANSwhen the policy has a cash value
A producer has indicated to a potential client that the proposed life
insurance policy is covered by the Maryland Life and Health Insurance
Guaranty corporation. This action taken by the producer is - ANSprohibited
by law
A producer is proposing that a policyowner replace an existing individual
health insurance policy with a new one. Under the new contract, a pre-
existing conditions exclusion - ANSmay reduce the insured's benefits
A producer may share commission with - ANSanother licensed but
unappointed producer
3
