MDH&LIE

which of these is not an unfair claims settlement practice

refusing to pay persons bringing false or fraudulent claims

When a lapsed policy's premium has been paid current, it has the potential of being

reinstated

which of these is NOT considered to be an unfair trade practice

reinsurance

how many days notice must a producer be given prior to a scheduled hearing

10

a premature distribution from a modified endowment contract incurs a penalty tax of

10%

what is the maximum number of employees (earning at least $5,000) that an employer can have in order to start a simple retirement plan

100

what is the maximum social security disability benefit amount an insured can receive

100% of the insured's primary insurance amount

Individuals seeking Social Security disability income benefits must have a disability that will eventually lead to death, or be expected to last at least

12 months

a licensee who is required to take continuing education must complete 24 hours of continuing education, which includes ___ hours of ethics course work

3

a change in a licensees name or address must be provided to the commissioner within ___ days

30

the free-look period for a medicare supplement policy in Maryland is ___ days

30

Kate received a group accident and health termination notice. How many days does she have to apply for a converted policy?

31

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

the financial records of each domestic company must be inspected every ___ years by the commisioner

5

a pre-existing conditions limitations may not exceed months in all medicare supplement policies sold in maryland

6

ERISA requires that a Summary Plan Description must be provided to a new plan member within how many days following the new member's eligibility date

90

a producer must notify the commissioner for

Conducting business under an assumed name

which of the following is an example of defamation

A producer who publicly and erroneously announces that an insurance company is insolvent

For employees covered in multiple states under a group health plan, jurisdiction rules cannot alter

COBRA laws

Tim is covered by Policy A with a $4,000 limit and by Policy B with a $2,000 limit. Policy A is primary. If a $6,000 loss is incurred, what will each policy pay?

Policy A will pay $4,000 and policy B will pay $2,000

what is a life insurance producer authorized to do

Solicit, receive and forward applications to the insurer

who is a beneficiary in a life insurance policy

The stated person or entity who is designated to receive the death proceeds

Insurance crimes which affect interstate commerce are prosecuted by the

US attorney general

After an applicant reads and signs an insurance application, he/she should be conscious of the fact that

a false statement could lead to loss of coverage

which of the following describes coverage for the medicare part b coinsurance

a medicare supplement core benefit

Short-term group disability income benefits are

a percentage of weekly earnings up to to a stated maximum

What do Limited accident and health policies normally cover?

a specific illness or event

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

the absolute assignment of a life insurance policy results in

all incidents of ownership transferred to an assignee

Which is an accurate description of the premium in a graded premium life insurance policy

annual increases in premium for a stated number of years then remains level

A producer may share commission with

another licensed but unappointed producer

According to the Pregnancy Discrimination Act of 1978, employers must treat pregnancy in the same manner as

any other medical disability

Before an individual is permitted to act as an insurance agent, he/she must hold a valid insurance license and be ____ by an authorized insurer

appointed

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

appointment

accident and health insurance claim handling is made more convenient to the insured by utilizing

assignments to benefits

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

In the event of premium default, which life insurance provision will use the cash value to keep the policy in force

automatic premium loan

all medicare supplement policies sold during the open enrollment period must

be issued regardless of health status

Who normally pays the premiums for group credit life insurance?

borrower

which of the following provisions allows the insured or the insurer to terminate the policy

cancelable provision

An example of replacement is

canceling a term life policy to buy a whole life policy

which would be described as a beneficiary designation by class

children of the insured

which of the following statements is true regarding accident and health insurance claims that reimburse on an identity basis

claims can be sent directly to the insured

Prepaid dental plans differ from most other types of dental plans in what way

closed panel of dentists can only be used

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

commissioner

Interest is credited to a fixed annuity no lower than the

contract guaranteed rate

The courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n)

contract of adhesion

individual and group health insurance typically exclude coverage for which of the following

cosmetic surgery

According to the needs approach, an emergency reserve fund's primary purpose is to

cover the cost of unexpected expenses

which of the following is not an intended use of an annuity

create new funds upon the death of a wage earner

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

which of the following disability buy-sell agreements is best suited for businesses with a limited number of partners

cross-purchase agreement

Linda is covered with long-term care insurance and has early-stage Alzheimer's. She is still able to reside in her home while receiving primary care, as opposed to moving into a nursing home. All of the following long-term benefits encourage this EXCEPT for

custodial care

Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective

date of issuance of the conditional receipt

what effect does interest income have upon insurance premiums

decreases premium

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

dependent

a marketing system utilizes mass media advertising and mail, instead of a producer, is called a(n) ______ ______ marketing system

direct response

group life plans sold in Maryland typically contain a conversion option. if the insured elects this option, the new policy

does NOT require evidence of insurability

which of these is not considered to be an activity of daily living

driving

when dealing with long term coverage, which of the following are classified as ADLs

eating, dressing, bathing, and mobility

Non-occupational disability coverage is designed for

employees who suffer from non-work related disabilities

how are benefit payments from individually owned medical expense policies treated for tax purposes

exempt from income taxes

the notice to buyer on the first page of each long term care policy delivered in maryland

explains that some long term care costs may not be covered

which life insurance policy announcement allows the policy owner to have coverage equal to the net death benefit of the lapsed policy

extended term non-forfeiture optioin

a producer may be found guilty of misrepresentation for

failing to disclose a policy's exclusions

which supplement added to a life insurance policy insures an entire family

family term rider

Which renewal provision must ALL Medicare Supplement policies contain?

guaranteed renewable

Tonya has been diagnosed with kidney failure and has group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months following her diagnosis

her employers group accident and health plan

Lamont has a point-of-service plan and is seeking to obtain health services outside the network. What will likely be the end result?

higher out of pocket costs

A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be the

highest amount payable

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 could be forfeited

which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed

incontestable period

a health insurance underwriter will most likely veiw alcohol abuse as a

increased exposure to risk

Which health policy clause specifies the amount of benefits to be paid

insuring

which of these statement is not true regarding a cash value loan against a life insurance policy

interest payments made by policy owner are deductible

which statement is incorrect about the interest only settlement option in a life insurance policy

interests on proceeds must be paid by the beneficiary

which of these would not be a valid reason to add the waiver of premium rider to a life insurance policy

it allows a policy loan to cover premium payments if the policy owner becomes totally disabled

which of the following statements regarding hospital pre-admission authorization is not true

it encourages weekend admission

which statement regarding the certificate of insurance is accurate

it indicates evidence of an employee's insurance coverage

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

what would be a valid reason for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual

management of proceeds would be provided

Karen is considering replacing her individual accident and health insurance policy with another individual policy. She has had issues in the past with her gall bladder that would be considered a pre-existing condition. How will a pre-existing conditions exclusion affect Karen's new insurance contract

may reduce her benefits

medicare part a coinsurance payments are covered by

medicare supplement plan a

in maryland, false advertising is an example of

misrepresentation

which of the following best defines the illegal act of twising

misrepresenting a policy for the purpose of inducing a policy owner to change or replace and existing policy

what is the eligibility requirement for medicare part b

must be eligible for medicare part a

Medicaid will pay for nursing home expenses under what condition

must have financial need

All long-term care policies sold in Maryland must contain a

non-forfeiture clause

When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT

obtain the beneficiary's signiature

which of these is not an unfair claims settlement practice

offering to settle a claim by arbitration

which statement is not true regarding health insurance policies that provide limited benefits

only persons under the age of 65 are eligible

How do benefit payments fluctuate over time in a variable life annuity

reflects changes in the market value of assets in a separate account

a disability income insurance policy was recently issued with a rating. what does this mean?

policy owner will be charged an addition premium

How are level term policies able to provide level premiums?

premiums are averaged over the term of the policy

a pre existing condition exclusion in an accident and health insurance policy pertains to

prior health matters

an individual appointed by an insurance company that represents the company and presents policies on its behalf is a(n)

producer

which of the following outlines the authority given to the producer on behalf of the insurer

producer contract

the commissioner is empowered to preform each of the following acts except

prosecute producers who violate state insurance laws

a group medicare supplement policy was terminated and not replaced by the insurer. in this situation, the insurer must

provide an offer of conversion to individual coverage

Group accident and health insurance may be offered by an insurer when the sponsoring group

provides an employer-employee relationship

what is considered interstate travel under the federal fraud and false statements act

puerto rico

which of these occurrences could improve an insurer's ability to reduce premiums

rate of earnings on investment increase

Jim is covered under a disability income policy. He is hurt while engaged in an occupation that is more hazardous than the occupation he specified in the policy. What action will the insurer likely take?

reduce the benefit level

What effect can a long-term care benefit rider have on a life insurance policy?

reduced death benefit

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

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary

request of the change will be refused

which of the following would provide a reimbursement of some premiums when a long term care policy is cancelled

return of premium rider

which term describes the elimination of a hazard

risk avoidance

which of the following best describes the act of insuring a risk against possible loss

risk transfer

Switching Life insurance policies without tax consequence is permitted under

section 1035 rules

long term care policies sold in Maryland may not exclude coverage for

senile dementia

which of the following is not a valid reason for a producers license to be revoked

sharing commissions with licensed agents

which of the following does a medicare advantage enrollee typically pay for

small co pay per visit or per service

Christine is receiving benefits provided from her disability income insurance. As compared to her previous earnings, the disability benefits should be

somewhat less

Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to refuse renewal of the policy for

specific reasons stated in the contract

in regards to technology and the ACA, which of the following statements is correct

states which operate with an exchange must offer an internet based portal

Once a child is born and covered under a health insurance plan, any reduction in benefits on the newborn is

strictly prohibited

an insurer will typically access a back-end load on a deferred annuity that is cancelled during the early contract years. what is this back-end load referred to as

surrender charge

qualified long term care premiums are treated for tax purposes as

tax deductible to the extent they exceed 7 1/2% AGI

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

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective

the date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

The Life and Health Insurance Guaranty corporation protects the public in the event of

the impairment of a member insurer not able to pay claims

which of these is a typical result of a concurrent review

the length of time spent in the hospital is reviewed

which of the following must clearly be illustrated in ALL sales material for market value adjusted annuities

the market value can be either upward or downward

under which circumstance can an insurance company offer group health insurance

the sponsoring group provides an employer-employee relationship

how does a continuous premium whole life policy differ from a limited payment whole life policy

the time period in which a premium will be paid

the reason for backdating a policy is

to obtain a premium rate based on an earlier age

a hold harmless clause is an example of risk

transfer

Which of the following is not considered to be an expense for surviving family members of a deceased wage earner

unemployment tax expenses

A policy owner with a terminal illness who sells his life insurance policy to a third party is called a

viator

which of these in not a mandatory health benefit that is required for individual health insurance policies issued in Maryland

weight reduction programs

Michelle recently purchased a longterm care policy. Her policy may temporarily exclude health conditions that

were treated during a specified period preceding the policy date

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