XCEL CHAPTER 11 - LAWS AND RULES
(NEW) EXAM 2025 QUESTIONS AND
ANSWERS
When is an existing health insurance policy required to provide coverage for a newborn child? -
ANS Immediately
When must a claim on a life insurance policy be paid after proof of loss has been received by
the insurer? - ANS Promptly
Who is required to notify the producer in the event of appointment termination? -
ANS Insurer
A domestic insurance company in Maryland MUST - ANS be formed under Maryland
insurance laws
which of the following is an example fraud? - ANS A producer who knowingly submits a false
statement in support of a claim
A Long-Term Care policy may only exclude pre-existing conditions for up to ___ months. -
ANS 6
who is eligible for insurance under a group policy issued to a labor union? - ANS Every
member of that union
1 @COPYRIGHT THEBRIGHT 2025/2026
,Which license is REQUIRED in order to solicit Long Term Care insurance in the State of
Maryland? - ANS Health Insurance Producer License
A producer MUST maintain insurance transaction records for a minimum of ___ years. -
ANS 5
a producer's license must be renewed every ___ year(s). - ANS 2
An example of rebating is - ANS a producer who shares commissions with a client
ABC Insurance Agency is entering each applicant who purchases insurance through their agency
into a drawing to win a free trip. This is an unlawful insurance practice known as - ANS illegal
inducement
Which of the following actions by a producer would NOT result in a license suspension or
revocation? - ANS Producing an inadequate amount of new premium
A dependent child may remain on a parent's health insurance plan beyond age 26 if the child -
ANS has a mental or physical handicap and remains dependent on the parent
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: - ANS accelerated benefits
Producer commissions may NOT be paid to - ANS licensed producers not appointed by an
insurer
A(n) _______ insurance company is one that was formed under the laws of another country
outside of the U.S. - ANS alien
2 @COPYRIGHT THEBRIGHT 2025/2026
, When a producer is replacing an existing ordinary life insurance policy, the producer must take
all of the following actions EXCEPT - ANS obtain the beneficiary's signature
If an insurer refuses to pay a claim, how many days must the insured wait to take legal action
against a health insurer after submitting written proof of loss? - ANS 60
Prior to conducting an HIV-related test, the insurer must obtain a(n) - ANS written
authorization from the proposed insured
A minor may receive a life insurance policy's death benefit ONLY - ANS if the minor has an
appointed guardian
The Fair Credit Reporting Act protects consumers - ANS with guidelines regarding credit
reporting and distribution
A life policy loan in Maryland cannot charge a fixed rate of interest higher than - ANS 8%
How many days notice must the Commissioner give prior to a hearing? - ANS 10 days
A Buyer's Guide MUST - ANS have it's content approved by the commissioner
as of January 1, 2014, small group health insurance can be rated on the basis of -
ANS Tobacco use
Which type of contract may NOT be issued by an insurance company? - ANS HMO contract
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
3 @COPYRIGHT THEBRIGHT 2025/2026
(NEW) EXAM 2025 QUESTIONS AND
ANSWERS
When is an existing health insurance policy required to provide coverage for a newborn child? -
ANS Immediately
When must a claim on a life insurance policy be paid after proof of loss has been received by
the insurer? - ANS Promptly
Who is required to notify the producer in the event of appointment termination? -
ANS Insurer
A domestic insurance company in Maryland MUST - ANS be formed under Maryland
insurance laws
which of the following is an example fraud? - ANS A producer who knowingly submits a false
statement in support of a claim
A Long-Term Care policy may only exclude pre-existing conditions for up to ___ months. -
ANS 6
who is eligible for insurance under a group policy issued to a labor union? - ANS Every
member of that union
1 @COPYRIGHT THEBRIGHT 2025/2026
,Which license is REQUIRED in order to solicit Long Term Care insurance in the State of
Maryland? - ANS Health Insurance Producer License
A producer MUST maintain insurance transaction records for a minimum of ___ years. -
ANS 5
a producer's license must be renewed every ___ year(s). - ANS 2
An example of rebating is - ANS a producer who shares commissions with a client
ABC Insurance Agency is entering each applicant who purchases insurance through their agency
into a drawing to win a free trip. This is an unlawful insurance practice known as - ANS illegal
inducement
Which of the following actions by a producer would NOT result in a license suspension or
revocation? - ANS Producing an inadequate amount of new premium
A dependent child may remain on a parent's health insurance plan beyond age 26 if the child -
ANS has a mental or physical handicap and remains dependent on the parent
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: - ANS accelerated benefits
Producer commissions may NOT be paid to - ANS licensed producers not appointed by an
insurer
A(n) _______ insurance company is one that was formed under the laws of another country
outside of the U.S. - ANS alien
2 @COPYRIGHT THEBRIGHT 2025/2026
, When a producer is replacing an existing ordinary life insurance policy, the producer must take
all of the following actions EXCEPT - ANS obtain the beneficiary's signature
If an insurer refuses to pay a claim, how many days must the insured wait to take legal action
against a health insurer after submitting written proof of loss? - ANS 60
Prior to conducting an HIV-related test, the insurer must obtain a(n) - ANS written
authorization from the proposed insured
A minor may receive a life insurance policy's death benefit ONLY - ANS if the minor has an
appointed guardian
The Fair Credit Reporting Act protects consumers - ANS with guidelines regarding credit
reporting and distribution
A life policy loan in Maryland cannot charge a fixed rate of interest higher than - ANS 8%
How many days notice must the Commissioner give prior to a hearing? - ANS 10 days
A Buyer's Guide MUST - ANS have it's content approved by the commissioner
as of January 1, 2014, small group health insurance can be rated on the basis of -
ANS Tobacco use
Which type of contract may NOT be issued by an insurance company? - ANS HMO contract
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
3 @COPYRIGHT THEBRIGHT 2025/2026
