Maryland Life Insurance Producer Final Exam
Questions with Verified Answers
Guarantee Passing score: 85% or higher
Consist of 90 multiple choices Questions and Answers
1. A business entity must meet all of the following qualifications EXCEPT
(A)Designate a licensed insurance producer to act on their behalf.
(B)Be appointed by an insurer.
(C)Have a board of directors.
(D)Be licensed for the type of insurance the entity will be transacting.
Answer> Have a board of directors
2. Events or conditions that increase the chances of an insured loss occurring are
referred to as
(A)Hazards.
(B)Perils. (C)Risks.
(D)Exposures.
Answer> Hazards
3. An applicant knowingly fails to communicate information that would help an
underwriter make a sound decision regarding coverage. This is an example of
(A)Breach of warranty.
(B)Fraud.
,(C)Waiver.
(D)Concealment.
Answer> Concealment
4. Which of the following is a required provision for Medicare supplement
policies?
(A)They may not apply pre-existing conditions exclusions.
(B)They may contain special exclusions and limitations as compared with
Medicare plans.
(C)They may not duplicate Medicare benefits.
(D)They may not be cancelled for any reason.
Answer> They may not duplicate Medicare benefits
5. All of the following are requirements of eligibility for Social Security disabil-
ity income benefits EXCEPT
(A)Waiting period of 5 months.
(B)Fully insured status.
(C)Inability to perform any gainful work.
(D)Being age 65.
Answer> Being age 65
6. Which of the following factors about the insured determines the amount
of disability benefit that the insured will receive?
(A)Gender
(B)Income
(C)Marital status
(D)Age
Answer> Income
,7. Which of the following answers does NOT describe the principal goal of a
Preferred Provider Organization?
(A)Provide the subscriber a choice of hospitals
(B)Provide medical services only from physicians in the network
(C)Provide the subscriber a choice of physicians
(D)Provide medical services at a reduced cost
Answer> Provide medical services only from physicians in the network
8. According to the reinstatement provision, if a policy is reinstated, which of
these benefits would be covered immediately upon reinstatement?
(A)Both accidental injury and sickness
(B)Sickness
(C)Accidental injury
(D)There is a delay, regardless of the type of loss.
Answer> Accidental injury
9. The main difference between immediate and deferred annuities is
(A)When the income payments begin.
(B)The amount of each payment. (C)How
the annuity is purchased.
(D)The number of insureds.
Answer> When the income payments begin
10. Bill is approaching retirement age and is concerned about having proper
coverage, should he have to be placed in a Long Term Care facility. Bill's
producer told him that LTC policies would provide necessary coverage at all of
the following levels, EXCEPT
(A)Custodial.
, (B)Acute.
(C)Skilled.
(D)Intermediate.
Answer> Acute
11. What type of information is NOT included in a certificate of insurance?
(A)The procedures for filing a claim
(B)The length of coverage
(C)The policy benefits and exclusions
(D)The cost the company is paying for monthly premiums
Answer> The cost the com- pany is paying for monthly premiums
12. Insurance that would pay for hiring a replacement for an important employ-
ee who becomes disabled is called
(A)Key employee disability insurance.
(B)Business overhead expense disability insurance.
(C)Blanket disability insurance.
(D)Long-term disability.
Answer> Key employee disability insurance
Questions with Verified Answers
Guarantee Passing score: 85% or higher
Consist of 90 multiple choices Questions and Answers
1. A business entity must meet all of the following qualifications EXCEPT
(A)Designate a licensed insurance producer to act on their behalf.
(B)Be appointed by an insurer.
(C)Have a board of directors.
(D)Be licensed for the type of insurance the entity will be transacting.
Answer> Have a board of directors
2. Events or conditions that increase the chances of an insured loss occurring are
referred to as
(A)Hazards.
(B)Perils. (C)Risks.
(D)Exposures.
Answer> Hazards
3. An applicant knowingly fails to communicate information that would help an
underwriter make a sound decision regarding coverage. This is an example of
(A)Breach of warranty.
(B)Fraud.
,(C)Waiver.
(D)Concealment.
Answer> Concealment
4. Which of the following is a required provision for Medicare supplement
policies?
(A)They may not apply pre-existing conditions exclusions.
(B)They may contain special exclusions and limitations as compared with
Medicare plans.
(C)They may not duplicate Medicare benefits.
(D)They may not be cancelled for any reason.
Answer> They may not duplicate Medicare benefits
5. All of the following are requirements of eligibility for Social Security disabil-
ity income benefits EXCEPT
(A)Waiting period of 5 months.
(B)Fully insured status.
(C)Inability to perform any gainful work.
(D)Being age 65.
Answer> Being age 65
6. Which of the following factors about the insured determines the amount
of disability benefit that the insured will receive?
(A)Gender
(B)Income
(C)Marital status
(D)Age
Answer> Income
,7. Which of the following answers does NOT describe the principal goal of a
Preferred Provider Organization?
(A)Provide the subscriber a choice of hospitals
(B)Provide medical services only from physicians in the network
(C)Provide the subscriber a choice of physicians
(D)Provide medical services at a reduced cost
Answer> Provide medical services only from physicians in the network
8. According to the reinstatement provision, if a policy is reinstated, which of
these benefits would be covered immediately upon reinstatement?
(A)Both accidental injury and sickness
(B)Sickness
(C)Accidental injury
(D)There is a delay, regardless of the type of loss.
Answer> Accidental injury
9. The main difference between immediate and deferred annuities is
(A)When the income payments begin.
(B)The amount of each payment. (C)How
the annuity is purchased.
(D)The number of insureds.
Answer> When the income payments begin
10. Bill is approaching retirement age and is concerned about having proper
coverage, should he have to be placed in a Long Term Care facility. Bill's
producer told him that LTC policies would provide necessary coverage at all of
the following levels, EXCEPT
(A)Custodial.
, (B)Acute.
(C)Skilled.
(D)Intermediate.
Answer> Acute
11. What type of information is NOT included in a certificate of insurance?
(A)The procedures for filing a claim
(B)The length of coverage
(C)The policy benefits and exclusions
(D)The cost the company is paying for monthly premiums
Answer> The cost the com- pany is paying for monthly premiums
12. Insurance that would pay for hiring a replacement for an important employ-
ee who becomes disabled is called
(A)Key employee disability insurance.
(B)Business overhead expense disability insurance.
(C)Blanket disability insurance.
(D)Long-term disability.
Answer> Key employee disability insurance
