Maryland Laws and rules exam
WHo is eligible for insurance under a group policy issued to a labor union?
Every member of that union
An issuer may not issue an _____ contract
HMO
A buyer's guide MUST
Have it's content approved by the commissioner
Viatical Settlement Broker may NOT
Make any transactions before being approved for a license
Which of the following actions by a producer would NOT result in a license suspension or revocation?
Producing an inadequate amount of new premium
All of these are unfair claims settlement practices EXCEPT
Providing claim payments to insured's under the guidelines of the insurance contract.
A violation of US Code 1033, who is responsible for prosecution?
US Attorney General
At the option of the insurer, a separate converted policy may be issued to cover
a dependent
AN insurer formed according to the legal requirements of another country is called an
alien insurer
To provide the funds necessary to carry out the powers and duties of the Life and Health Guaranty Corporation, the Board of Directors shall
assess member insurers
An order issued by the commissioner that prohibits a specific practice listed in the order is called a(n)
cease and desist order
Which of the following does restorative dental treatment cover? X-rays Cleanings Dentures Crowns
crowns
A buyer's guide and policy summary must be
delivered with or prior to policy delivery
The __________ has the right to renew a small employer health plan
employer
How often must the commissioner examine each domestic insurance company?
every 5 years
Violations of US Code Title 18 section 1033, may result in
fine and/or imprisionment
Where on the policy form should individual long-term care insurance policies contain an appropriate captioned renewability provision?
first page
A producer's license may only be suspended or revoked if the producer
has been afforded a right to a hearing
A dependent child may remain on a parent's health insurance plan beyond the age of 26 if the child
has mental or physical handicap
An existing health benefit plan offered by a small employer may be replaced by a SHOP Exchange Navigator only if the small employer
is eligible for a federal lax credit through the shop exchange
Long-term care insurance provides
one or more diagnostic, preventative, therapeutic, rehab, maintenance, or personal care services in a setting other than an acute care unit
A producer who sells an individual life insurance policy in Maryland MUST deliver to the policyowner
policy summery & buyers guide
An insurance producer agrees to pay the first monthly premium for an insurance applicant. This is called a(n)
rebate
An advertisement for an insurance product may contain
the insurer's name
At minimum, a carrier is required to offer which of the following health benefit plans to small employers?
the standard plan
Two producers may share commissions ONLY if
they are both licensed in the same line of business
Beginning January 1, 2014, which of the following factors are acceptable in the rating of small group health insurance?
tobacco use
An insurance producer who replaces an existing policy by making false written or oral statements is committing the act of
twisting
A health insurance policy may NOT be contested by the insurance company after the policy has been in force for a MINIMUM of
two years
A producer license is not required
when providing referrals
A producer who is licensed in Maryland but resident in another state is called a 1. nonresident producer 2. foreign producer 3. reciprocal producer 4. limited lines producer
1
Each delivered life insurance policy in Maryland MUST include a(n) 1.legible and brief description of the policy on the first 2.page 3. underwriting manual 4. actuarial table on the first page notary seal
1
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 1. remain in effect until a new one is issued 2. be automatically renewed regardless of any violations 3.be renewed upon determination of legal compliance within a 60-day period following the license expiration date 4.renew without the normal requirements
1
The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as 1. twisting 2. subrogation 3. a life settlement 4.coercion
1
Which of the following is NOT an eligible dependent on an Accident and Health policy? 1. 27 year old married child 2. 25 yr old married child 3. 19 year old full time student 4. unmarried disabled child
1
Which of the following basics is a producer's fiduciary responsibility? 1. Collecting premiums and paying them to the insurance company 2. Maintaining a separate bank account for each insurance company the producer represents 3. Acting as a referee in the event of a disagreement between an insured and the insurance company 4. Advising prospective insureds of the lowest rates available
1.
A life insurance policyowner is allowed ___ days upon policy delivery to return the policy for a full premium refund.
10
a life insurance policyowner is allowed ___ days upon policy delivery to return the policy for a full premium refund
10
ABC Corporation has a group life insurance policy that covers its employees and their dependent children. Which of the following would be considered a "dependent child"? 1.Employed 22 year old child who relies on the insured employee for financial support 2.Child over the age of 18 years who attends an educational institution and relies on the insured employee for financial support 3.Child age 27 still living at home and not attending an educational institution 4.Married child over the age of 26
2
Any advertisement that mentions a dollar amount, period of time for which any benefit is payable, cost of policy, policy benefit, or the loss for which the benefit is payable MUST disclose 1.the date in which the advertisement was approved 2. the exceptions, reductions, and limitations affecting the 3.basic provisions of the policy 4. how much the advertisement cost to publish the person who wrote the advertisement
2
The licensing period for a producer's license is a ____ year term
2
The standard grace period for a life insurance policy sold in Maryland is 1. 15 days 2. 30 days 3. 45 days 4. 60 days
2
Which of the following is NOT a requirement for soliciting insurance in Maryland? 1.Pass insurance examination 2.At least 21 years old 3. Good character 4.Appointed by an insurer
2
The contestability period in MD for life insurance policies is
2 years
The contestable period for a life policy in MD is
2 years
Small employer in MD
2-50
Written notice of a health insurance claim should be given to the insurer within __ days after the occurrence of any loss covered by the policy.
20
Producers must complete a total of ___ continuing education credits for each two-year licensing period
24
An employer may qualify for health care tax credits through SHOP Marketplace if that employer has fewer than how many employees?
25 days
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 1. insured 2. beneficiary 3. company 4. policyholder
3
A producer may begin to solicit insurance ONLY when 1.registered for the state insurance examination 2. licensed by the state 3. appointed by an insurer 4. none of these
3
When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT 1. give the applicant a Notice Regarding Replacement of Life Insurance 2. give the applicant the original or a copy of the proposals used in the sales presentation 3. obtain the beneficiary's signature on a summary of all policies to be replaced 4. submit to the producer's insurance company a copy of the Notice Regarding Replacement of Life Insurance signed by the applicant
3
Which of the following is NOT a reason for the Commissioner to deny or refuse a producer license application? 1.Recently convicted of a felony 2.Engaged in fraudulent insurance practices 3.Unintentionally misrepresented a material fact on the application 4.Intentionally violated state insurance laws
3
If a producer has been engaged in an administrative action by any governmental agency, within how many days following the final deposition must the producer report the action to the Commissioner? 1. 7 2. 15 3. 30 4. 45
3. 30
A life insurance replacement gives the policyowner the right to return the policy for a 100% refund within ___ days of policy delivery
30
How many days notice must the commissioner give prior to a hearing
30
In Maryland, a full-time employee of a small employer must work an average of at least ____ hours per week
30
The right-to-examine period in Maryland for long-term care policies is ____ days
30
within how many days must a producer report to the commissioner any administrative actions made against him/her
30
What may be the result of replacing an existing life insurance policy with a new one? 1.Fine 2.Penalty tax 3.Capital gains tax 4. Surrender charge
4
Which license is REQUIRED in order to solicit Long Term Care insurance in the State of Maryland? 1. life insurance producer license 2. long term care insurance proiducer license 3. limited lines insurance producer license 4. Health insurance producer license
4
Which of the following is NOT required in an order from the Commissioner? 1. The purpose of the order 2. The grounds that the order is based on 3. The effective date of the order 4. The Governor's signature
4
How long is the commissioner's term?
4 years
A producer MUST maintain insurance transaction records for a minimum of ____ years
5
The commissioner must examine the financial affairs of each admitted insurer operating in Maryland at least once every how many years>
5
If an insurer refuses to pay claim, how many days must the insured wait to take legal action against a health insurer after submitting written proof of loss?
60
A life insurance policy cannot charge a fixed rate of interest higher than
8%
An insured is required to give written proof of loss to an insurer within ___ days after the date of loss
90
An example of fraud would be:
A producer who knowingly submits a false statement in support of a claim
Kiara filled out a life insurance application and was given a policy illustration that showed future premiums being paid out of non guaranteed values. This illustration MUST disclose that
she may need to resume premium payments, depending on actual results.
Under the Affordable Care Act, a large employer that does NOT provide health insurance and owes an employer mandate penalty MUST pay an annual penalty, which is calculated by multiplying $2,000 by the number of full time employees minus 20 the number of full time employees minus 30 the number of subsidized employees minus 10 the total number of full time employees
the number of full time employees minus 30
All of the following actions are considered rebating EXCEPT 1. sharing commissions with other licensed and appointed agents 2.refunding part of the premium as an inducement for purchase 3.offering special dividends 4. offering anything of value not specified in the policy
1
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(n) 1. appointment 2. license 3. binder 4. designation
1
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. 1. 30 days 2. 40 days 3. 50 days 4. 60 days
1
Which of the following is NOT information found in a life insurance buyer's guide? 1. How to take legal action against an insurance company 2. How to compare life insurance policy rates 3. How to compare life insurance policy requirements 4. How to determine how much life insurance to purchase
1
Which of the following is NOT considered to be an act of fraud? 1.Collecting a premium for insurance that is not provided 2.Collecting a charge for insurance that is less than the charge applicable to that insurance 3.Misappropriate or unreasonably withhold premiums or returned premiums 4.Willfully collecting a premium that exceeds the amount of the actual premium
2
An insurance producer has fiduciary responsibilities to all of the following entities EXCEPT
The guaranty association
Which of the following statements about the contestability of a life insurance policy is true? (a) the insurer cannot contest a policy once it is issued. (b) the policy is usually contestable by the insurer only during the first two years of the contract. (c) the policy is contestable by the insurer at all times. (d) the policy can be contested
b
Producer's fiduciary responsibility
collecting premiums and paying them to the insurance company
one role of the Commissioner is to
enforce state insurance laws
each delivered life insurance policy in MD must include a(n)
legible and brief description of the policy on the first page