Maryland Life and Health Law Exam Simulator

John the insurance producer has an insurance license that expires in 6 months. If he files an application for renewal before the expiration date, his license will

a) remain in effect until a new one is issued.

Producers must complete a total of ____ Continuing Education hours for each two-year licensing period

b) 24 hours

A temporary producer license issued in Maryland is valid for up to

d) 15 months

How many days notice does the Affordable Care Act require insurers to give before rescinding coverage?

d) 30 days

How often must the Commissioner examine each domestic insurance company?

d) every 5 years

John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions?

d) given written consent by the state insurance regulatory agency

Which license if REQUIRED in order to solicit Long Term Care insurance in the State of Maryland?

d) health insurance producer license

Which of the following is NOT a valid reason for revoking a MD producer's license?

d) sharing commissions with license producers

At minimum, a carrier is required to offer which of the following health benefit plans to small employers?

d) the standard plan

Interest on death benefits are NOT required to be paid by an insurance company as long as proceeds are paid within ___ after the date of the death of the insured

a) 30 days

A Medicare Supplement policy may exclude coverage for a preexisting condition for up to ___ months

a) 6 months

A(n) _____ insurance company is one that was formed under the laws of another country outside of the US

a) alien

In Maryland, an insurance producer cannot sell, solicit, or negotiate policies for an insurer unless there is an agreement in place between the producer and insurer. This agreement is called

a) an appointment

Before a Medicare Supplement advertisement is released to the public, it must first be approved by the

a) commissioner

The "Notice to buyer" on the first page of each long term care policy delivered in MD

a) explains that some long term care costs may not be covered.

A producer's license may only be suspended or revoked if the producer

a) has been afforded a right to a hearing

Who is required to notify the producer in the event of appointment termination?

a) insurer

When is an existing health insurance policy required to provide coverage for a newborn child?

b) immediately

A producer has indicated to a potential client that the proposed life insurance policy is covered by the MD Life and Health Insurance Guaranty Association. This action taken by the producer is

b) prohibited by law

An insurance producer agrees to pay the first monthly premium for an insurance applicant. This is called a(n)

b) rebate

A producer has recently died and leaves behind a spouse. In order for the producer's insurance business to continue, the Commissioner may issue to the producer's spouse a(n)

b) temporary insurance license

An eligible employee can be excluded from group health coverage for up to ____ months if he/she is considered a "late enrollee"

c) 18 months

In MD a full time employee of a small employer MUST work an average of at least ___ per week

c) 30 hours

A lapsed long term care policy may be reinstated within ____ months of the lapse date if the insured was mentally incapacitated.

c) 5 months

Under a small group health plan, an insurer is required to provide a newly-married employee at least ____ days to add the new spouse to the plan.

c) 60 days.

The license required for an insurer to conduct business in the state is referred to as a(n)

c) certificate of authority

A Maryland insurance producer solicits an insurance policy. In the event of a controversy between the insured and the company, the producer is considered to represent the

c) company

The Maryland Insurance Commissioner

c) counsels and advises the Governor on all matters assigned to the MD Insurance Administration

Which of these is NOT an Unfair Claims Settlement Practice?

c) offering to settle a claim by arbitration

XYZ Corp was issued a group health policy for its employees. Under this plan a

c) policy must be issued to XYZ, and a certificate must be issued to each employee.

Insurance producer Kelly offers an insured a $500 shopping card if an insurance product is purchased through her. What is this an example of?

c) rebating

Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy?

c) submit to the replacing insurer a list of the policies to be replaced.

A producer's renewal date for his/her resident insurance license is on or before

c) the last day of the licensee's birth month

______ can be defined as "replacing a policy when it is NOT in the best interest of the client"

c) twisting