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Questions and Answers
What are statements made by an insurance applicant on an application considered to be?
What are statements made by an insurance applicant on an application considered to be?
Representations
What act is committed by an insurance producer who replaces an existing policy by making false written or oral statements?
What act is committed by an insurance producer who replaces an existing policy by making false written or oral statements?
Twisting
Which disability policy provision addresses concerns of benefits decreasing over time?
Which disability policy provision addresses concerns of benefits decreasing over time?
Cost of living benefit
What is a plan called in which an employer pays insurance benefits from a fund derived from their current revenues?
What is a plan called in which an employer pays insurance benefits from a fund derived from their current revenues?
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How long must an individual be unable to engage in gainful activity due to disability to qualify for Social Security Total Disability?
How long must an individual be unable to engage in gainful activity due to disability to qualify for Social Security Total Disability?
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What are Credit Accident and Health plans designed to do?
What are Credit Accident and Health plans designed to do?
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What does the Group Life underwriting risk selection process help protect insurance companies from?
What does the Group Life underwriting risk selection process help protect insurance companies from?
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What is a common exclusion with Vision plans?
What is a common exclusion with Vision plans?
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What is a requirement for any change in an insurance application?
What is a requirement for any change in an insurance application?
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Who assumes the investment risk with a fixed annuity contract?
Who assumes the investment risk with a fixed annuity contract?
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After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
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Which of these factors help determine an insured's life insurance premium?
Which of these factors help determine an insured's life insurance premium?
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The Life and Health Guaranty Corporation provides funds to carry out its powers by assessing?
The Life and Health Guaranty Corporation provides funds to carry out its powers by assessing?
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A limited payment whole life policy provides what kind of protection?
A limited payment whole life policy provides what kind of protection?
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The least expensive option to pay off a 30-year mortgage balance would be?
The least expensive option to pay off a 30-year mortgage balance would be?
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A noncancellable policy may raise premiums.
A noncancellable policy may raise premiums.
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What is an insurance policy's grace period?
What is an insurance policy's grace period?
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The standard grace period for a life insurance policy sold in Maryland is?
The standard grace period for a life insurance policy sold in Maryland is?
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Which of the following is NOT a requirement for soliciting insurance in Maryland?
Which of the following is NOT a requirement for soliciting insurance in Maryland?
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Which type of plan would be most appropriate for an individual on Medicare who is concerned that Medicare will NOT pay for charges exceeding the approved amount?
Which type of plan would be most appropriate for an individual on Medicare who is concerned that Medicare will NOT pay for charges exceeding the approved amount?
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A securities license is required for a life insurance producer to sell?
A securities license is required for a life insurance producer to sell?
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What is the contract called that is issued to an employer for a Group Medical Insurance Plan?
What is the contract called that is issued to an employer for a Group Medical Insurance Plan?
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Insurable interest can be established sufficiently by sentimental attachment alone.
Insurable interest can be established sufficiently by sentimental attachment alone.
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Which of the following is NOT information found in a life insurance buyer's guide?
Which of the following is NOT information found in a life insurance buyer's guide?
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The premium for a Modified whole life policy is?
The premium for a Modified whole life policy is?
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A producer who is licensed in Maryland but resident in another state is called a?
A producer who is licensed in Maryland but resident in another state is called a?
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Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?
Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?
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The waiting period for a disability insurance policy excludes payments for?
The waiting period for a disability insurance policy excludes payments for?
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A policyowner may change two policy features on what type of life?
A policyowner may change two policy features on what type of life?
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Which of the following is NOT a required provision in an accident and health insurance policy?
Which of the following is NOT a required provision in an accident and health insurance policy?
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Fixed period settlement options are considered to be a form of a(n)?
Fixed period settlement options are considered to be a form of a(n)?
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Which of these factors is NOT taken into account when determining an applicant's life insurance needs?
Which of these factors is NOT taken into account when determining an applicant's life insurance needs?
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A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT?
A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT?
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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?
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?
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The identity of the ____ must be made clear in every health insurance advertisement.
The identity of the ____ must be made clear in every health insurance advertisement.
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When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT?
When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT?
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Generally speaking, which three levels of care are Long-Term Care policies provided with?
Generally speaking, which three levels of care are Long-Term Care policies provided with?
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What is the nonforfeiture value of an annuity before annuitization?
What is the nonforfeiture value of an annuity before annuitization?
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The purpose of the Coordination of Benefits provision in group accident and health plans is to?
The purpose of the Coordination of Benefits provision in group accident and health plans is to?
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An insurance producer is BEST defined as?
An insurance producer is BEST defined as?
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An ____ ____ sells, solicits, or negotiates insurance contracts for compensation.
An ____ ____ sells, solicits, or negotiates insurance contracts for compensation.
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A whole life policy option where extended term insurance is selected is called a(n)?
A whole life policy option where extended term insurance is selected is called a(n)?
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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?
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?
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An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of?
An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of?
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Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA?
Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA?
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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.
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.
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David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision?
David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision?
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The renewability provision for an individual long-term care insurance policy must be located on the policy form's?
The renewability provision for an individual long-term care insurance policy must be located on the policy form's?
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A long-term care policy typically provides all of the following levels of care EXCEPT?
A long-term care policy typically provides all of the following levels of care EXCEPT?
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What happens to the coverage under a children's term rider when that child reaches a certain specified age?
What happens to the coverage under a children's term rider when that child reaches a certain specified age?
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HIPAA considers which of the following as 'individually identifiable health information'?
HIPAA considers which of the following as 'individually identifiable health information'?
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How many employees must an employer have for a terminated employee to be eligible for COBRA?
How many employees must an employer have for a terminated employee to be eligible for COBRA?
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When does an immediate annuity begin making payments?
When does an immediate annuity begin making payments?
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In which of the following processes will the insurer oversee the insured's hospital stay to confirm everything is going according to schedule?
In which of the following processes will the insurer oversee the insured's hospital stay to confirm everything is going according to schedule?
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Which of the following annuity payout options makes no additional payments regardless of the annuitant dying?
Which of the following annuity payout options makes no additional payments regardless of the annuitant dying?
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Which of the following nursing home options would BEST suit an individual who needs some nursing care and supervision but NOT full-time care?
Which of the following nursing home options would BEST suit an individual who needs some nursing care and supervision but NOT full-time care?
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Group dental plans will frequently place a limit on annual benefits in order to minimize adverse selection.
Group dental plans will frequently place a limit on annual benefits in order to minimize adverse selection.
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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?
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?
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Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?
Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?
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A medical provider that accepts Medicare Assignment must?
A medical provider that accepts Medicare Assignment must?
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Medicare Part B covers?
Medicare Part B covers?
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A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?
A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?
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When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)?
When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)?
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Which of these statements about Medicaid is CORRECT?
Which of these statements about Medicaid is CORRECT?
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Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance?
Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance?
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Each delivered life insurance policy in Maryland MUST include a(n)?
Each delivered life insurance policy in Maryland MUST include a(n)?
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In an employer-sponsored group accident and health plan, a master contract is issued to the?
In an employer-sponsored group accident and health plan, a master contract is issued to the?
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When a decreasing term policy is purchased, it contains a decreasing death benefit and?
When a decreasing term policy is purchased, it contains a decreasing death benefit and?
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Under the Affordable Care Act, a large employer that does NOT provide health insurance and owes an employer mandate penalty MUST pay an annual penalty, which is calculated by multiplying $2,000 by?
Under the Affordable Care Act, a large employer that does NOT provide health insurance and owes an employer mandate penalty MUST pay an annual penalty, which is calculated by multiplying $2,000 by?
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Which of the following does Medicare Part D cover?
Which of the following does Medicare Part D cover?
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A Renewable Term Life insurance policy can be renewed?
A Renewable Term Life insurance policy can be renewed?
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Which of the following is NOT a reason for the Commissioner to deny or refuse a producer license application?
Which of the following is NOT a reason for the Commissioner to deny or refuse a producer license application?
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Which of the following provides Medicare supplement policies?
Which of the following provides Medicare supplement policies?
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The monthly benefit for an individual disability income policy is usually limited to a percentage of the insured's income in order to avoid?
The monthly benefit for an individual disability income policy is usually limited to a percentage of the insured's income in order to avoid?
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Limited policies can exclusively cover what kind of health insurance policies?
Limited policies can exclusively cover what kind of health insurance policies?
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Which of the following is NOT an eligible dependent on an Accident and Health policy?
Which of the following is NOT an eligible dependent on an Accident and Health policy?
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Funding for Medicare Part B is partially provided by?
Funding for Medicare Part B is partially provided by?
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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.
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.
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A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)?
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)?
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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.
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.
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Level premium permanent insurance accumulates a reserve that will eventually?
Level premium permanent insurance accumulates a reserve that will eventually?
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A life insurance policy written on one contract for two people in which it is payable upon the first death is called?
A life insurance policy written on one contract for two people in which it is payable upon the first death is called?
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What does the word 'level' in Level Term describe?
What does the word 'level' in Level Term describe?
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What is issued to each employee of an employer health plan?
What is issued to each employee of an employer health plan?
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Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)?
Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)?
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All of these are considered key factors in underwriting life insurance EXCEPT?
All of these are considered key factors in underwriting life insurance EXCEPT?
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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.
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.
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Which of the following would be a valid reason why a policy premium would be higher than the standard premium?
Which of the following would be a valid reason why a policy premium would be higher than the standard premium?
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Which of these would be the best example of a limited pay life insurance policy?
Which of these would be the best example of a limited pay life insurance policy?
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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?
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?
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A separate converted policy may, at the option of the insurance company, be issued to cover a(n)?
A separate converted policy may, at the option of the insurance company, be issued to cover a(n)?
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Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a full disability income check every month. How does his policy define total disability?
Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a full disability income check every month. How does his policy define total disability?
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The free-look provision gives the policyowner?
The free-look provision gives the policyowner?
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When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)?
When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)?
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John the 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?
John the 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?
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A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation?
A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation?
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Which of these will have the highest monthly payout upon annuitization?
Which of these will have the highest monthly payout upon annuitization?
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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?
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?
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Who were Keogh plans designed to provide pension benefits for?
Who were Keogh plans designed to provide pension benefits for?
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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?
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?
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Study Notes
General Insurance Concepts
- Written Proof of Loss: Required if the insurer does not provide forms after notice of loss is given.
- Life Insurance Premium Determinants: Avocation or hobbies can significantly impact the calculation of life insurance premiums.
Life and Health Guaranty Corporation
- Funding Source: Members insurers are assessed to provide the necessary funds for the corporation's powers and duties.
Policy Types and Features
- Limited Payment Whole Life Policy: Offers lifetime protection with premiums paid for a limited time.
- Decreasing Term Life Policy: An economical choice for covering a mortgage balance over 30 years, as the death benefit decreases over time.
- Noncancellable Policies: Guarantees that premiums may never be increased, unlike guaranteed renewable policies.
- Modified Whole Life Policy Premiums: Lower premiums initially, rising above typical rates in the later years.
Insurance Terms and Provisions
- Grace Period: Period after which a premium is due but the insurance remains in effect, typically 30 days in Maryland.
- Medicare Supplement Plan F: Ideal for Medicare recipients concerned about exceeding approved charges.
- Insurable Interest: Requires more than sentimental attachment; a business or economic interest is typically necessary.
Annuities and Health Insurance
- Fixed Period Settlement Options: Represent a type of annuity.
- Coordination of Benefits: Aims to prevent overpayment on claims by identifying primary and secondary insurers.
- Temporary Annuity Certain: Provides guaranteed payments for a specified period, transferable to beneficiaries if the annuitant dies early.
Medicaid and Medicare
- Funding for Medicaid: Financed through federal, state, and local taxes.
- Medicare Part B Coverage: Includes doctor's charges; additionally, Medicare Part D covers prescription drugs.
Regulations and Compliance
- HIPAA Regulations: Group health policy renewals can be denied if participation rules are violated.
- Producer License Renewals: A producer's license remains valid if a renewal application is submitted before the expiration date.
Disability Insurance
- Definition of Total Disability: Often linked to the inability to perform one's current occupation.
- Waiting Periods: Disability insurance policies generally exclude coverage for short-term illnesses or injuries.
Miscellaneous Concepts
- Irrevocable Beneficiary: Requires the policyowner to obtain the beneficiary's consent for any policy changes.
- Adverse Selection: Concerns around this are mitigated by placing limits on annual benefits in group dental plans.
- Twisting: Refers to the illegal act of misleading a prospective insured to purchase a policy through false statements.
Employment and Group Policies
- Eligibility for COBRA: Requires a minimum of 20 employees for a terminated employee to maintain health coverage.
- Employer-Sponsored Plans: Master contracts are issued to employers, defining the coverage details for employees.
Taxation and Financial Considerations
- Tax Treatment of Disability Benefits: Income received from employer-paid group disability policies is typically taxable.
- Nonforfeiture Value of Annuities: Defined as the total of all premiums paid plus interest, minus any withdrawals or charges before annuitization.
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Description
Test your knowledge and preparation for the Maryland Life and Health Insurance Licensing Exam with these comprehensive flashcards. Cover essential concepts such as proof of loss, life insurance premiums, and the role of the Life and Health Guaranty Corporation.
