Download 2025 Maryland Life and Health Insurance Licensing Exam Q&As and more Exams Personal Health in PDF only on Docsity!
2025 MARYLAND LIFE AND HEALTH INSURANCE
LICENSING EXAM /ACTUAL 150 EXAM
Qs&As|LATEST 2025 SPRING|A+ GRADE ASSURED
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms? - ANS: - -File written proof of loss Which of these factors help determine an insured's life insurance premium? - ANS:-- Avocation (hobby) The Life and Health Guaranty Corporation provides funds to carry out its powers and duties by assessing - ANS: - -Member insurers Lifetime protection - ANS:--A limited payment whole life policy provides Decreasing term life - ANS :--The least expensive option to pay off a 30 - yea mortgage balance would be? May never raise premiums - ANS:-- In contrast to a guaranteed renewable policy, a noncancellable policy Period of time after the premium is due but the policy remains in force - ANS: - -What is an insurance policy's grace period? 30 days - ANS: - -The standard grace period for a life insurance policy sold in Maryland is At least 21 years old - ANS:--Which of the following is NOT a requirement for soliciting insurance in Maryland?
Medicare supplement Plan F - ANS:-- Which type of plan would be most appropriate for an individual on Medicare and is concerned that Medicare will NOT pay for charges exceeding the approved amount? Variable life insurance - ANS :--A securities license is required for a life insurance producer to sell Master policy - ANS:--What is the contract called that is issued to an employer for a Group Medical Insurance Plan? Insurable interest can be established sufficiently by sentimental attachment alone - ANS:- - In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest? How to take legal action against an insurance company - ANS:-- Which of the following is NOT information found in a life insurance buyer's guide? Lower than the typical whole life policy during the first few years and then higher than typical for the remainder - ANS: - -The premium for a Modified whole life policy is? Nonresident producer - ANS:-- A producer who is licensed in Maryland but resident in another state is called a?
Silver Plan - ANS:--According to the Affordable Care Act, what metal tier is required to have an actuarial value of 70% with covered individuals paying 30% through deductibles, co-pays, and other cost sharing features? Insurer - ANS :--The identity of the must be made clear in every health insurance advertisement Obtain the beneficiary's signature - ANS:--When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT Skilled nursing, intermediate, and custodial care - ANS:--Generally speaking, which three levels of care are Long-Term Care policies provided with? All premiums paid, plus interest, minus any withdrawals and surrender charges
- ANS:--What is the nonforfeiture value of an annuity before annuitization? Avoid overpayment of claims (This is achieved by identifying primary and secondary insurers) - ANS:--The purpose of the Coordination of Benefits provision in group accident and health plans is to A person who has a contract with an insurance company to represent it ("Insurance producer" or "producer" is a person required to be licensed pursuant to the laws of this state to sell, solicit, or negotiate insurance) - ANS:- - An insurance producer is BEST defined as
Insurance producer - ANS:--An sells, solicits, or negotiates insurance contracts for compensation Nonforfeiture options (A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to the existing amount of life insurance is called the extended term option) - ANS:--A whole life policy option where extended term insurance is selected is called a(n) Partial disability - ANS:--A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? Misrepresentation (It is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, the payment of dividends, etc. This also refers to oral statements) - ANS:--An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of It would be considered taxable income to the employee (Contributions to HSA may be made pre-tax under a Section 125 Cafeteria Plan) - ANS:--Without a Section 125 Plan in place what would happen to an employee's payroll contribution to an HSA? 60 - ANS:--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
Concurrent review - ANS:--In which of the following processes will the insurer oversee the insured's hospital stay to confirm everything is going according to schedule and that the insured will be released as planned? Life only - ANS:--Which of the following annuity payout options makes no additional payments regardless of the the annuitant dies? Assisted living facilities - ANS:--Which of the following nursing home options would BEST suit an individual who needs some nursing care and supervision but NOT full-time care? Adverse selection - ANS:--Group dental plans will frequently place a limit on annual benefits in order to minimize Temporary annuity certain (Under a temporary annuity certain, the company guarantees that payments will be made for a specified number of years. Since this income is guaranteed, if the annuitant dies before receiving payments for the full specified period of time, the annuitant's beneficiary will receive the payments for the remaining number of years) - ANS:--Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies, this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity? Human life value approach - ANS:--Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?
Accept payment based upon a defined Medicare schedule as payment in full - ANS:--A medical provider that accepts Medicare Assignment must Doctor's charges - ANS:--Medicare Part B covers The reduction of premium dividend option - ANS:--A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? Participation or contribution rules have been violated - ANS:--According tothe Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied? Funded by federal, state, and local taxes - ANS:--Which of these statements about Medicaid is CORRECT? Medicare in-hospital deductible - ANS:--Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance? Legible and brief description of the policy on the first page - ANS:--Each delivered life insurance policy in Maryland MUST include a(n) Employer - ANS:--In an employer-sponsored group accident and health plan, a master contract is issued to the
Which of the following is NOT an eligible dependent on an Accident and Health policy? - ANS:-- 27 year old married child Funding for Medicare Part B is partially provided by - ANS:--User premiums 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 - ANS:-- 20 (or as soon as reasonably possible) A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) - ANS:--Collateral assignment Ron has a new employer and wishes to enroll in the company's group health plan. In determining whether his pre-existing health condition applies, Ron cannot have more than a day gap without previous health insurance - ANS:-- 63 (Under HiPAA, group health plan may not impose a pre-existing condition exclusion if the person has had creditable medical coverage for at least 12 months as long as the person had no more than 63 days with no coverage) Level premium permanent insurance accumulates a reserve that will eventually
- ANS:--Equal the face amount of the policy A life insurance policy written on one contract for two people in which it is payable upon the first death is called - ANS:--Joint
What does the word "level" in Level Term describe? - ANS:--The face amount What is issued to each employee of an employer health plan? - ANS:-- Certificate Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? - ANS:--Death benefit All of these are considered key factors in underwriting life insurance EXCEPT - ANS:--Marital status 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 - ANS:--30 days Which of the following would be a valid reason why a policy premium would be higher than the standard premium - ANS:--The insured does not meet established underwriting requirements Which of these would be the best example of a limited pay life insurance policy? - ANS:--Whole life policy with premiums paid up after 20 years 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 - ANS:--The exceptions, reductions, and limitations affecting the basic provisions of the policy
Which of these will have the highest monthly payout upon annuitization?
- ANS:--Straight life The IRS allows a taxpayer to deduct medical expenses that exceed 7.5% of their adjusted gross income. Which of the following is considered a tax deductible medical expense under this rule? - ANS:--Long Term Care Insurance premiums Who were Keogh plans designed to provide pension benefits for? - ANS:-- The self-employed 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? - ANS:-- 30 Statements made by an insurance applicant on an application are considered to be - ANS:--Representations An insurance producer who replaces an existing policy by making false written or oral statements is committing the act of - ANS:--Twisting Which disability policy provision would address any concerns of the value of the benefits decreasing over time? - ANS:--Cost of living benefit A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called - ANS:--A self-funded plan
How long must an individual be unable to engage in any gainful activity due tophysical or mental disability in order to qualify for Social Security Total Disability? - ANS:-- 12 months (To qualify, the disability must be expected to last, or have lasted at least 12 months, or it must be expected to result in death) Credit Accident and Health plans are designed to - ANS:--Help pay off existing loans during periods of disability What does the Group Life underwriting risk selection process help protect insurance companies from? - ANS:--Adverse selection (Adverse selection is the tendency of less favorable insurance risks to seek or continue insurance toa greater extent than others) A common exclusion with Vision plans is - ANS:--Lasik surgery Which of the following is a requirement for ANY change in an insurance application? - ANS:--Change must be initialed by the applicant Who assumes the investment risk with a fixed annuity contract? - ANS:--The insurer(It is the insurance company that bears the investment risk of a fixed annuity. The insurance company guarantees the annuitant's principal as well as a guaranteed minimum rate of return, even if the underlying assets underperform the guaranteed rate.)
The deeds and actions of a producer indicate what kind of authority? - ANS:--Apparent (Apparent authority is the appearance or assumption of authority based on the actions, words, or deeds of the producer) Which of the following employers is required to follow ERISA regulations? - ANS:--A local electrical supply company with 12 employees All of these are valid policy dividend options for a life insurance policyowner EXCEPT - ANS:--Accumulate without interest What is the purpose for having an accelerated death benefit on a life insurance policy? - ANS:--It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the - ANS:--Reinsurer A health insurance policy will typically cover - ANS:--Preventative health services Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year? - ANS:--100% of his health insurance costs can be deducted from his gross income (S corporations "pass through" their taxable income and losses to owners who then report their share of profits or losses on their own individual tax return)
As classified by the Affordable Care Act (ACA), a Silver Plan offers - ANS:-- 70% actuarial level of coverage provided All of the following are examples of pure risk EXCEPT - ANS:--Losing money at a casino (Pure risk a category of risk in which loss is the only possible outcome, which is the opposite of speculative risk. Gambling is considered a speculative risk where there is a chance of either gain or loss) Which contract element is insurable interest a component of? - ANS:--Legal purpose Which of these is considered a major tax advantage of life insurance? - ANS:--Income tax is typically not owned on proceeds paid directly to a beneficiary The Federal Employees Benefit Program consists of two types of health plans for federal civilian employees. The two plans are fee-for-service and - ANS:-- Prepaid A common exclusion or limitation on a dental policy is - ANS:--Endodontics Shirley has a $500,000 10 - year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? - ANS:--Nothing
In an insurance contract, the applicant's "consideration" is the - ANS:-- Statements made in the application and the premium How are survivorship life insurance policies helpful in estate planning?
- ANS:--Provide funds to help pay taxes If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? - ANS:--A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age 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 - ANS:--The exceptions, reductions, and limitations affecting the basic provisions of the policy The time limit for filing claim disputes is addressed in which provision of an accident and health policy? - ANS:--Legal actions Paul is an employee who caught a disease unique to the trade in which he was exposed to. Paul has a(n) genetic predisposition worksite malady contagious disease occupational disease - ANS:--Occupational disease
Major Medical expense plans provide coverage for each of the following EXCEPT - ANS:--Work-related injuries The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as - ANS:--Twisting How soon can the benefit payments begin with a deferred annuity? - ANS:-- A minimum of 12 months after date of purchase Coordination of Benefits regulation applies to all of the following plans EXCEPT
- ANS:--Preferred Provider Organization plan Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? - ANS:--Accumulation at Interest Option An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called - ANS:--Partial Surrender A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. Which rider would pay a monthly amount because of this disability? - ANS:--Disability income rider
