Maryland life and health insurance
Which of the following is considered a limited accident and health plan
Cancer plan
Which of the following is not an allowable exclusion for long-term care insurance policies?
Care for incurable conditions
Which statement is regarding the waiver of premium rider is accurate
Cash payment is not directly provided to the policyowner
Which of the following is not a condition that must be met for an accidental death benefit to be paid?
Cause of death must be from a job-related injury
Which will be described as a beneficiary designation by class
Children of the insured
Prepaid dental plans differ from most other types of dental plans in what way?
Closed panel of dentists can only be used
Which report contains information regarding an individual's general reputation and credit standing?
Consumer report
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If Tom's employment is terminated, 20% of the funds would be forfeited
An insurer is life insurance premium rate must be the same for all individuals
In the same risk class with equal life expectancy
Hold Harm-less Clause
Transfer
A producer working for an insurance company may be personally liable for
acts performed which are prohibited in the agency contract
Which of the following is not covered by a comprehensive long term care policy?
acute care
What type of premiums are associated with individual mortgage protection life insurance policies?
level premiums
Inpatient psychiatric care is covered under part, a Medicare for 190 days per
lifetime
Respite Care coverage is typically found in a(n)
long term care policy
A signed good health statement may be requested by a life producer at the time of
Policy delivery
The blank is responsible for determining the appropriateness of a Medicare supplement policy for an applicant.
Producer
Which of the following would provide a reimbursement of some premiums when a long-term care policy is canceled?
Return of premium rider
Which of these policies is considered a whole life policy?
Single premium life
The automatic premium loan provision can be accurately described as a
provision that provides a policy loan to pay any premiums by the end of the grace period
A business becoming incorporated is an example of risk ____.
risk transfer
In an individual retirement account (IRA), rollover contributions are
unlimited by dollar amount
Which of the following is not true of a preferred provider plan
Hospitals can only initiate preferred provider plans
A health insurance underwriter will most likely view alcohol as an
Increase exposure to risk
Which of these procedures is not designed for ambulatory care Center
Inpatient surgery
A producer who sells an individual life insurance policy in Maryland MUST deliver to the policyowner a(n)
Policy Summary and Buyer's Guide
What happens to a life insurance policy when the policy loan balance exceeds the cash value ?
Policy becomes paid - up
Where is the difference between a standard risk and is substandard risk reflected?
Premium charges
A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called
Profit sharing plan
Which of the following would not be a reason for purchasing a life insurance on a child's life?
Provide benefits for the child is the parents die
Which of the following is an example of illegal inducement
Publishing guaranteed dividend rate on an insurance policy
Which of these occurrences could improve on insurers ability to reduce premiums
Rate of earnings on investments increase
How are qualified Roth IRA distributions normally treated for tax purposes ?
Received income tax - free
Which of the following is not a reason in the government provides insurance?
Reduce fraudulent claims
What effect can a long-term care benefit rider have on a life insurance policy?
Reduced death benefit
Which of the following statements best describes the HIPAA portability rules for an individual who changes from one group medical plan to another
Reduces or eliminates any pre-existing conditions excluded under the new plan
A life insurance policyowner would like a dividend option that results in a limited current outlay of funds which dividend option would be chosen?
Reduction of premium payment
How do benefit payments fluctuate over time in a variable life annuity?
Reflects changes in the market value of assets in a separate account
Which of these is not considered to be an unfair trade practice
Reinsurance
An insurer has a contractual agreement which transfers a portion of its risk exposure to another insurer. What type of contractual agreement is this?
Reinsurance contract
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 disable
XYZ Corp gives money to an employee to purchase a life insurance policy and allows the employee select the beneficiary . What kind of plan is this ?
Split - dollar
Who regulates insurance claims settlement practices?
State insurance departments
Which of these annuity contract features is meant to discourage withdrawals and exchanges?
Surrender charges
The interest paid doing an annuity's payout Is considered
Taxable as ordinary income
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?
Taxes must be paid on 75% of the benefits received
When a ten year renewable term life insurance policy issued at age 45 is renewed , the premium rate will be the current rate for
Ten year term insurance for a person aged 55
Which statement regarding the joint and survivor life insurance settlement option is not true?
The amount of each installment is larger than the single life income option
What is the effects of the market value adjustment in a market value adjustment annuity?
Transfer some of the investment risk to the policyowner
When does interest income for a flexible premium deferred annuity get reported for federal income taxes
Upon receiving distributions from the contract
When does interest income for a flexible, premium, deferred annuity get reported for federal income taxes?
Upon receiving distributions from the contract
Which type of life insurance policy allows a policy owner the choice of investments, along with flexible. Premium payments ?
Variable Universal Life
A policy owner of a terminal illness who sells his life insurance policy to a third-party is called a
Viator
Before a Medicare Supplement advertisement is released to the public, it must first be approved by the
commissioner
When a sum of money undergoes capital liquidation, that sum will
decrease in size
The amount of a covered loss to be paid by the insured before a major medical expense policy begins to pay is called the
deductible amount
Employer - paid qualified long - term care insurance premiums are typically
excluded from the employee's gross income
Death proceeds from a life insurance policy are typically included in a deceased insured's gross estate
for federal income tax reasons
Accident and health insurance claim handling is made more convenient to the insured by utilizing
assignment of benefits
Julie is in need of assistance with one or two activities of daily living. She may be eligible for a(n)
assisted living facility
A reciprocal insurer typically has an administrator who manages the premiums collected from the group's members . This administrator is called a ( n )
attorney - in - fact
The death proceeds of a credit life insurance policy are typically paid to the
lender
Carlos' producer license has been suspended due to non-renewal. He may apply for a reinstatement within the blank month period Following the date when the license should have been renewed
12
Part A Medicare includes coverage for all of the following services EXCEPT
120 days of Skilled Nursing Facility care
Mary has a Health Savings Account (HSA). Distributions that have been made for anything other than qualified medical expenses are considered taxable and subject to a penalty of
20%
What is normally the consequence for not obtaining pre-admission certification prior to receiving inpatient medical care?
A reduction in benefits
A life insurance policy provision that has the ability to reduce the death benefit is called the
Accelerated (living) benefit
What is a major difference between private commercial insurers and HMO's ?
An HMO combines medical care delivery and funding in one organization
Which of the following is not a valid contract exchange?
An annuity exchanged for a life insurance policy
Which type of group plan is excluded from HIPAA rules
Disability Income
Which of these noncontributory group would a claim likely result in the payment of federal income taxes
Disability income
Elimination periods typically apply to
Disability policies
Who is eligible for health coverage under a group policy issued to a labor union
Every member of that union
Employers paid qualified, long-term care, insurance, premiums are typically
Excluded from the employees gross income
How are benefit payments from individually-owned medical expense policies treated for tax purposes
Exempt from income taxes
Long-term care policies will usually pay for illegible benefits using which of the following methods
Expense incurred
an appointment to producer's implied authority is derived from
Express authority
Which statement concerning a decreasing term life policy is accurate?
Face amount decreases over the policy period
A producer must maintain customer records for how many years following the completion date of the insurance transaction?
Five years
An employer that offers a qualified retirement plan to its employees is eligible to
make tax-deductible contributions to the plan
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
mandatory income tax withholding on the amount transferred
Which of these is not used as selection criteria in the underwriting process of a life insurance application?
national origin
Specialty care is provided by which of the following health maintenance organization (HMO) providers?
neurologist
Jose recently had his long-term care policy replaced with a new policy. The new long-term care policy may NOT impose a(n)
new pre-existing conditions exclusion
Karen is a health maintenance organization (HMO) subscriber. Who provides all of her preventative and routine care?
primary care physician
A pre-existing condition exclusion in an accident and health insurance policy pertains to
prior health matters
Who typically makes the purchase payment in an individual annuity
Owner
Under a long-term care inflation rider, the benefit levels
Periodically increase without proof of insurability
A life insurance guaranteed rider gives the insured the right, without proving insurability, to
Periodically purchase additional insurance
A life insurance policy's contingent beneficiary is the
Person who receives the death benefits, if the primary beneficiary dies before the insured
Which of these is not a factor that influence the group health insurance underwriting
Physical exam of group members
Which of these is not an advantage of term life insurance
A cash benefit will be provided if the insured is alive at the end of the policy period
FaceTime homebuyers are able to withdraw up to how much from their qualified IRAs, without incurring the 10% early withdrawal penalty
$10,000
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?
100%
What are reasonable and customary charges for health insurance primarily based on?
Average charges within a geographic region
A licensee who is required to take continuing education must include how many ethics coursework hours?
3 hours
A change in a licensees name or address must be provided to the Commissioner within __ days
30
The standard grace period for a life insurance policy sold in Maryland is
30 days
Which type of life insurance policy is it best suited for pay off the outstanding balance of a 30 year mortgage in the event of the insured's death
30 year decreasing term
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?
31 days
Traditional Individual Retirement annuity (IRA) distributions must start by
April 1st of the year following the participant attains age 70 1/2
In the event of premium default, which life insurance provision, will use the cash value to keep the policy in force?
Automatic premium loan
Which of these is not a true statement of war exclusion?
It applies to civil insurrections
Which statement regarding the certificate of insurance is accurate
It indicates evidence of an employee's insurance coverage
What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured
Joint Life
Which of the following is associated with an immediate annuity
Lack of an accumulation period
Mark is covered by a policy that uses the regular occupation (own-occ) definition of total disability. Using this definition, he will be considered disabled if unable to
Perform the substantial and material duties of his regular occupation
All of these are common limiting factors with dental insurance, except for
Limit placed on number of teeth that may be treated annually
Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment?
Loan amount is increased to reflect the amount of interest due
Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is designed to help pay for this type of expense?
Long-term care benefit rider
Each of the following will trigger a benefit under the presumptive disability provision, except
Loss of any one limb
A life policy's spendthrift clause would have no effects if the beneficiary is paid the proceeds as a
Lump-sum payment
Which of these policy is considered to be a comprehensive health policy
Major medical policy
All long-term care policy sold in Maryland must contain an
Nonforfeiture clause
The contractual right which allows the owner of a deferred annuity to surrender the cash value several years before that annuity day or call
Nonforfeiture option
Which of these is not an unfair claims settlement practice
Offering to settle a claim by arbitration
Julie is an employee with a group health plan that contains the Mandatory Second Surgical Opinion provision. What is to be expected with this provision in place?
Out-of-pocket expenses are lower when a second surgical opinion is obtained as opposed to having only one
Which statement regarding a fixed period settlement option is correct
The installment payment amount is determined by the total number of installments
James is covered with health insurance by two different insurers. The "insurance with other insurers" provision in an individual health insurance policy allows an insurer to pay benefits to the insured on a pro-rata basis when
The insurer was not notified prior to the claim that the insured has other health coverage
What happens when a policy owner borrows against the cash value of his life insurance policy?
The policy proceeds would be reduced by the outstanding loan balance
What is considered the collateral in a life insurance policy loan
The policy's cash value
How is a community rating used for underwriting purposes
The same rates are charged for individual and group plans in the same geographical area
An annuitant is paid $495 per month until the contract value is exhausted at some undetermined date in the future. Which type of annuity payout option is this?
a fixed amount
An example of rebating would be
splitting the commission with the buyer on a sale of insurance
Under a deferred annuity, which contract feature initially charges a 5-10% fee that eventually reduces to $0 after a stated amount of time?
surrender charge
The premiums paid by an employer for his employee's group life insurance are usually considered to be
tax-deductible to the employer
Qualified long-term care premiums are treated for tax purposes as
tax-deductible to the extent they exceed 7 1/2% AGI
In order to contribute to a health savings account (HSA),
the applicant must be enrolled in a High Deductible Health Plan (HDHP)
Medicare part a does not provide coverage for
the first 3 pints of blood
The insureds consideration given for a health insurance policy is
the first premium payment and the application
Purchasing insurance is an example of risk
transference
Which of the following best describes the tax treatment of medical expense policies for the self-employed
100% of medical expense plan premiums are tax deductible
Kate received a group accident and health termination notice. How many days does she have to apply for a converted policy?
31 days
How long can an insurer legally defer paying the cash value of a surrendered life insurance policy
6 months
ABC Partnership is a business with a limited number of partners. Which disability buy-sell agreement is best suited for this business?
Cross-purchase agreement
What is considered a valid reason for small corporation to insure the lives of its major stockholders
Funds a buy-sell agreement
Insurable interest is once on life is legally considered as
Generally unlimited
The MET third-party administration may not perform which of the following functions?
Marketing the plan
Which of the following relationships demonstrates insurable interest in the absence of economic interest
Marriage partners
Which of the following is not a basic underwriting action for accident and health insurance?
Removing uniform policy provisions
Which of the following would provide a reimbursement of some premium when a long-term care policy is cancelled
Return of premium rider
Which of the following regulates the quality of care provided by a health maintenance organization (HMO)?
Secretary of the department of health and mental hygiene.
Why might it be beneficial for an employee to purchase, private disability income insurance for workplace injuries when he/she is already covered by workers compensation
The benefits arising from a worker's compensation claim could be inadequate to replace the loss of income
A life insurance guaranteed insurability rider gives the insured the right without proving insurability to
periodically purchase additional insurance
When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?
producer
When issuing disability income coverage on a substandard risk, an insurance company may
shorten the benefit period
When issuing disability income coverage to a substandard risk , an insurance company may
shorten the benefit period
The following are all elements of a valid contract, except
written evidence
Which of the following is generally a form of group credit life insurance?
Decreasing term insurance
Which of these is not an underwriting responsibility of a life insurance agent
Determining the final rate classification
A marketing system, which utilizes mass media advertising and mail, instead of a producer, is called an blank, blank marketing system.
Direct response
into an IRA . What is the tax consequence of the distribution sent to this employee ? Upon receipt of the distribution , she immediately had the funds rolled over An employee requested that the balance of her 401 ( k ) account be sent directly to her in one lump sum
Distribution is subject to federal income tax withholding
Which of the following would permit an insurer to delay, a covered disability policy claim?
Elimination period
Which life insurance settlement option pays a stated monthly payment until both principal and interest are exhausted?
Fixed amount installment option
Which of the following statement is not true concerning the relationship between group health insurance plans and Medicare? ( assuming the business has more than 20 employees)
Group health coverage is not available for workers over the age of 65
Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?
Guaranteed insurability rider
Greg applies for insurance and makes a false statement on the application that will influence whether or not the insurer will accept the risk. Greg's false statement is called a(n)
Material misrepresentation
Medicare part a coinsurance payments are covered by?
Medicare Supplement Plan A
Which individual would be best suited for Medicare supplement insurance
Medicare enrollee
When does the owner's contractual rights begin under an individual annuity contract?
Time of purchase
Why were Exchanges implemented by the Affordable Care Act (ACA)?
To create a one-stop market for standardized health insurance plans
Doing the application process, a statement made by an applicant that becomes part of the contract is considered to be (an)
Warranty
Under what circumstance does an accident and health insurer have the right to request an autopsy
When not prohibited by state law
A policy owner is permitted to take out a policy loan on a whole life policy at what point?
When the policy has a cash value
Which of the following types of health insurers is characterized by a limited choice of providers?
health maintenance organization