Maryland Regulations Part 2
A newborn is required to be covered for ____ days from the moment of birth
31 days
A producer may share commission with
another licensed but unappointed producer
Tim's individual life insurance policy has just recently lapsed. His policy may be reinstated at any time within
3 years
A Maryland resident produce must be at least ____ years of age
18
An individual life insurance policy can be contested by the insurer only during the first ___ years of the contract
2
A life insurance policy sold in Maryland can be cancelled for nonfraudulent misstatements for up to
2 years
How long after its effective date will an individual life insurance policy become incontestable?
2 years
How long is the Contestable Period for health insurance policies sold in Maryland?
2 years
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 days
To be eligible for small employer group coverage, an employee must work a MINIMUM of ____ hours in a typical week
25
The standard grace period for a life insurance policy sold in Maryland is
30 days
Within how many days must a producer report to the Commissioner any administrative actions made against him/her?
30 days
A life insurance policyowner is allowed ____ days upon delivery to return the policy for a full premium refund
10 days
Which of the following is NOT a requirement for soliciting insurance in Maryland?
At least 21 years old
An example of replacement is
Canceling a term life policy to buy a whole life policy
All of these are considered to be a violation of the Federal Fraud and False Statements Act EXCEPT
Claims reimbursement
Which of the following basics is a producer's fiduciary responsibility?
Collecting premiums and paying them to the insurance company
Jim recently sold his whole life insurance policy under a viatical settlement contract. The proceeds of this contract could be subject to the claims of
Creditors
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
Violations of US Code Title 18 section 1033, may result in
Fine and/or imprisonment
The renewability provision for an individual long-term care insurance policy must be located on the policy form's
First page
Which of the following is an example of defamation?
Making a statement that is false or maliciously critical of the financial condition of an insurer
All of the following are typically included in a life insurance policy illustration EXCEPT
Names of the beneficiaries
If a Medicare Supplement policy is cancelled by the insurer, which of these circumstances does NOT require prior approval by the Arizona Department of Insurance?
Nonpayment of premium
A(n) ____ producer lives in another state and transacts insurance in Maryland
Nonresident
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 signature
The _____ of Coverage describes policy features, benefits, exclusions, and riders in a LoNg-Term Care policy
Outline
A producer who sells an individual life insurance policy in Maryland MUST deliver to the policyowner a
Policy Summary and Buyer's Guide
Insurance producer Kelly offers insured a $500 shopping card if an insurance product is purchased through her. What is this an example of?
Rebating Offering valuable consideration or inducement to a prospective insured that is not specified in the contract
Which of these is NOT an Unfair Claims Settlement Practice?
Refusing to pay persons bringing false or fraudulent claims
What does "SHOP" stand for
Small Business Health Options Program
As of January 1, 2014, small group health insurance can be rated on the basis of
Tobacco use
The Affordable Care Act (ACA) established "exchanges" in order to
assist individuals and small businesses when making their health insurance purchases
All Medicare supplement polices sold during the open enrollment period MUST
be issued regardless of health status
Long-term care policies sold in Maryland may exclude coverage related to
dementia
All of these types of benefits may be covered by a nonprofit health service plan EXCEPT
disability income
A minor may receive a life insurance policy's death benefit ONLY
if the minor has an appointed guardian
Producer commissions may NOT be paid to
licensed producers not appointed by an insurer
A producer is proposing that a policyowner replace an existing individual health insurance policy with a new one. Under the new contract, a pre-existing conditions exclusion
may reduce the insured's benefits
A producer has indicated to a potential client that the proposed life insurance policy is covered by the Maryland Life and Health Insurance Guaranty Association. This action taken by the producer is
prohibited by law
Kiara filled out a life insurance application and was given a policy illustration that showed future premiums being paid out of nonguaranteed values. This illustration MUST disclose that
she may need to resume premium payments, depending on actual results
An example of rebating is
splitting the commission with the buyer on a scale of insurance
Once a child is born and covered under a health insurance plan, any reduction in benefits on the newborn is
strictly prohibited
A producer's renewal date for his/her resident insurance license is on or before
the last day of the licensee's birth month
The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as
twisting
Misrepresenting pertinent policy provisions relating to coverage after a loss is an
unfair claims settlement practice
Mary's Medicare Supplement Policy had been in effect for 12 months. She recently replaced the policy with a new one that provides better coverage. The replacing policy may only impose a ____ month time exclusion for pre-existing conditions
0
A long-term case policy may ONLY exclude pre-existing conditions for up to
6 months
A pre-existing conditions limitation may NOT exceed ___ in all long-term care policies sold in Maryland
6 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.
60
A life policy loan in Maryland cannot charge a fixed rate of interest higher than
8%
Proceeds payable under a life insurance contract to a policyowner in anticipation of death or upon the occurrence of specified life-threatening conditions as defined by the policy are best described as:
Accelerated benefits
Which of the following life events would allow an uninsured employee to qualify for special enrollment in a small employer health benefit plan?
Adoption of a child
An order issued by the commissioner that prohibits a specific practice listed in the order is called a
Cease and desist order
According to the Federal Fraud and False Statements Act, which of these is considered to be an intentional violation?
Making false entries in a company's books
A Medicare Supplement policy may be cancelled by an insurer for which of the following reasons?
Material misrepresentation
The life and health guaranty corporation provides funds to carry out its powers and duties by assessing
Member insurers
A producer may be disciplined by the commissioner for which of the following actions?
Misappropriation of premium funds
Which of the following BEST defines the illegal act of twisting?
Misrepresenting a policy for the purpose of inducing a policyholder to change or replace an existing policy
Which of these actions is NOT required to extend a newborn's health plan coverage beyond the initial coverage period?
Policyholder must certify the newborn's insurability
A(n) ___ negotiates an insurance contract on behalf of an insurer
Producer
Which of the following actions by a producer would NOT result in a license suspension or revocation?
Producing an inadequate amount of new premium
When must a claim on a life insurance policy be paid after proof of loss has been received by the insurer?
Promptly
What is a life insurance producer authorized to do?
Solicit, receive, and forward applications to the insurer
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
Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy?
Submit to the replacing insurer a list of the policies to be replaced
What may be the result of replacing an existing life insurance policy with a new one?
Surrender charge
Which of the following is NOT required in an order from the Commissioner?
The Governor's signature
How many days notice does the Affordable Care Act require insurers to give before rescinding coverage?
30
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?
30 days