Maryland Regulations

What is the minimum age required for open enrollment in Medicare Supplement insurance?

No minimum age required

How many days notice must be given prior to a scheduled hearing

10 days

Long-term care policies sold in MD may NOT exclude coverage for

Senile dementia

Security laws passed by Congress are enforced by which Federal agency?

Security and Exchange Commission (SEC)

What may be the result of replacing an existing life insurance policy with a new one?

Surrender charge to the insured

Benefits contained under a Medicare Supplement policy CANNOT

duplicate Medicare benefits

MD Life and Health guaranty Association protects the ____ in the event of insurer insolvency

insured Maryland Life and Health Guaranty Association exists to protect insureds of insolvent insurers

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 tax credit through the SHOP Exchange

An insurance producer is BEST defined as

a person who has a contract with an insurance company to represent it

Before soliciting insurance applications for an insurer, a producer must secure an

appointment

Two producers may share a commission ONLY if

they are both licensed in the same line of business

Fair Credit Reporting Act protects consumers

with guidelines regarding credit reporting and distribution

Prior to conducting an HIV-related test, the insurer must obtain a

written authorization from the proposed insured

How many days notice does the ACA require insurers to give before rescinding coverage?

30 days

Long-term care insurance and Medicare Supplement plans have a free-look period of

30 days

A licensee must notify the Commissioner of an address change within

30 days of the change

Greg has 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 Employee is responsible for the payment of premium

Commissioner must examine the financial affairs of each admitted insurer operating in MD at least once every how many years?

5 years

Life insurance replacement can be best defined as

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered

Which insurance company is one that was formed under the laws of another country outside of the US

Alien insurance company

Who sells, solicits, or negotiates insurance contracts for compensation

An Insurance Producer

A producer may begin to solicit insurance ONLY when

Appointed by an insurer

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 the insurer. This agreement is called an

Appointment

A separate converted policy may, at the option of the insurance company, be issued to cover a

Dependent

Who is eligible for insurance under a group policy issued to a labor union?

Every member of the union

Following the completion date of the insurance transaction, a producer must maintain customer records for

3 years

An insurer is required to offer which of the following to each long-term care applicant at the time of purchase

Inflation protection

Who is required to notify the commissioner in the event of a producer's appointment termination

Insurer Must be reported by the insurance company

According to the Affordable Care Act (ACA), new health Insurance Marketplaces are established by the

CCIIO - Center for Consumer Information and Insurance Oversight

Which of the following is required for an insurer to conduct business in this state?

Certificate of authority

Which of these is NOT considered a Federal punishment for unfair and deceptive practices?

Community Service Unfair practices include a fine, imprisonment and license revocation

In the event of a controversy between the insured and the company, the producer is considered to represent the

Company

Each delivered life insurance policy in MD Must include

a legible and brief description of the policy on the first page

A life insurance policyowner is allowed ____ days upon delivery to return the policy for a full premium refund

10 days. Life insurance policies must provide a minimum free look period of 10 days upon policy delivery

Carlos' producer license has been suspended due to non-renewal. HE may apply for reinstatement within the

12 month period following the date when the license should have been renewed

An eligible employee can be excluded from group health coverage for up to

18 months if he/she is considered a "late enrolee"

Once a health insurance policy has been in effect for ____ years, the policy may NOT be contested by the insurer

2

A Maryland resident producer must meet specified continuing education course requirements within a

2 year period

Interest on death benefits are NOT required to be paid by an insurance company as long as proceeds are paid within

30 days after the date of the death of the insured

How often must the Commissioner examine each domestic insurance company?

Every 5 years

An example of misrepresentation is

Falsifying the terms, benefits, advantages, or conditions of an insurance policy

Which insurance company is one that formed under the laws of a state other than MD

Foreign Insurance Company

According to the Affordable Care Act (ACA), the proportion of premium revenues spent on clinical services and quality improvements is called the

Medical loss ratio

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

Rebate (Which is illegal)

Which of the following is NOT a prohibited sales practice for marketing long-term care coverage?

Replacing existing coverage with a new policy Misrepresentation, high pressure tactics, and cold lead advertising are prohibited sales practices

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

has been afforded a right to a hearing

A viatical settlement broker may NOT

make any transactions before being approved for a license

A Buyer's Guide and Policy Summary

must be delivered with or prior to policy delivery

Food and Drug Administration (FDA) approves prescription drugs for treatment. The prescription of a drug for treatments other than what's labeled is known as

off label use

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

remain in effect until a new one is issued