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
