Maryland Life and Health General Exam
Simulator ACTUAL QUESTIONS AND
CORRECT ANSWERS
What happens when an initial offer is answered with a counteroffer? -
CORRECT ANSWERS Initial offer is void
Which report contains information regarding an individual's general reputation
and credit standing? - CORRECT ANSWERS Consumer report
Steve has a group disability income policy where the premiums are paid by his
employer. He elected to pay for additional residual disability coverage. Which
of the following statements is true? - CORRECT ANSWERS Steve will
pay taxes on the disability benefit received from his employer, but will receive
any residual disability benefits tax-free
Which life insurance policy would be eligible to include an automatic premium
loan provision? - CORRECT ANSWERS Whole life
ABC Corporation purchases and is beneficiary of an individual disability
income insurance policy on a key employee. Which of the following statements
is true? - CORRECT ANSWERS Benefits are received tax-free by the
company
What is another name for a Keogh plan? - CORRECT ANSWERS HR 10
plan
A certificate of coverage for a group health policy is best described as -
CORRECT ANSWERS proof of coverage for the employee
,After the initial enrollment period for Medicare Part B has expired, when may
an individual purchase again? - CORRECT ANSWERS January through
March of each year
Terry suffers an injury at his workplace which is covered by workers
compensation. Terry also has a medical expense insurance policy. Under
medical expense insurance policies, losses that are covered by workers
compensation are typically - CORRECT ANSWERS excluded from
coverage
What is a major difference between private commercial insurers and HMO's? -
CORRECT ANSWERS An HMO combines medical care delivery and
funding in one organization insurer
Which of these procedures is NOT designed for ambulatory care centers? -
CORRECT ANSWERS Vaccinations
The insured's consideration given for a health insurance policy is - CORRECT
ANSWERS the first premium payment and the application
An employee welfare plan exempt from ERISA regulations would be -
CORRECT ANSWERS church plans
Death proceeds from a life insurance policy are typically included in a deceased
insured's gross estate - CORRECT ANSWERS for federal income tax
reasons
Which of the following contracts offer deferred taxation, flexible payments, a
guaranteed interest rate, and death benefits equal to the cash value? -
CORRECT ANSWERS Flexible premium fixed annuity
, Each of the following will trigger a benefit under the presumptive disability
provision, EXCEPT - CORRECT ANSWERS Loss of any one limb
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? - CORRECT ANSWERS Date of issuance of the conditional
receipt
John received a one-time distribution of $50,000 from his modified endowment
contract (MEC). Prior to that, the contract's cash value was $150,000, the
contract investment amount was $100,000, and the death benefit was $500,000.
What percentage of the $50,000 distribution was taxable as ordinary income? -
CORRECT ANSWERS 100%
Which of the following is NOT true of participants in multiple-employer trusts?
- CORRECT ANSWERS Participants must purchase all coverages the
trust offers
Jim is covered under a disability income policy. He is hurt while hazardous than
the occupation he specified in the policy. What action will the insurer likely
take? engaged in an occupation that is more - CORRECT ANSWERS
Reduce the benefit level
Which tax is normally associated with an individual's death? - CORRECT
ANSWERS Federal estate tax
What does a 401 (k) plan generally provide its participants? - CORRECT
ANSWERS Salary-deferral option
established through An arrangement where an individual is authorized to act on
behalf of another person or company is - CORRECT ANSWERS The
law of agency
Simulator ACTUAL QUESTIONS AND
CORRECT ANSWERS
What happens when an initial offer is answered with a counteroffer? -
CORRECT ANSWERS Initial offer is void
Which report contains information regarding an individual's general reputation
and credit standing? - CORRECT ANSWERS Consumer report
Steve has a group disability income policy where the premiums are paid by his
employer. He elected to pay for additional residual disability coverage. Which
of the following statements is true? - CORRECT ANSWERS Steve will
pay taxes on the disability benefit received from his employer, but will receive
any residual disability benefits tax-free
Which life insurance policy would be eligible to include an automatic premium
loan provision? - CORRECT ANSWERS Whole life
ABC Corporation purchases and is beneficiary of an individual disability
income insurance policy on a key employee. Which of the following statements
is true? - CORRECT ANSWERS Benefits are received tax-free by the
company
What is another name for a Keogh plan? - CORRECT ANSWERS HR 10
plan
A certificate of coverage for a group health policy is best described as -
CORRECT ANSWERS proof of coverage for the employee
,After the initial enrollment period for Medicare Part B has expired, when may
an individual purchase again? - CORRECT ANSWERS January through
March of each year
Terry suffers an injury at his workplace which is covered by workers
compensation. Terry also has a medical expense insurance policy. Under
medical expense insurance policies, losses that are covered by workers
compensation are typically - CORRECT ANSWERS excluded from
coverage
What is a major difference between private commercial insurers and HMO's? -
CORRECT ANSWERS An HMO combines medical care delivery and
funding in one organization insurer
Which of these procedures is NOT designed for ambulatory care centers? -
CORRECT ANSWERS Vaccinations
The insured's consideration given for a health insurance policy is - CORRECT
ANSWERS the first premium payment and the application
An employee welfare plan exempt from ERISA regulations would be -
CORRECT ANSWERS church plans
Death proceeds from a life insurance policy are typically included in a deceased
insured's gross estate - CORRECT ANSWERS for federal income tax
reasons
Which of the following contracts offer deferred taxation, flexible payments, a
guaranteed interest rate, and death benefits equal to the cash value? -
CORRECT ANSWERS Flexible premium fixed annuity
, Each of the following will trigger a benefit under the presumptive disability
provision, EXCEPT - CORRECT ANSWERS Loss of any one limb
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? - CORRECT ANSWERS Date of issuance of the conditional
receipt
John received a one-time distribution of $50,000 from his modified endowment
contract (MEC). Prior to that, the contract's cash value was $150,000, the
contract investment amount was $100,000, and the death benefit was $500,000.
What percentage of the $50,000 distribution was taxable as ordinary income? -
CORRECT ANSWERS 100%
Which of the following is NOT true of participants in multiple-employer trusts?
- CORRECT ANSWERS Participants must purchase all coverages the
trust offers
Jim is covered under a disability income policy. He is hurt while hazardous than
the occupation he specified in the policy. What action will the insurer likely
take? engaged in an occupation that is more - CORRECT ANSWERS
Reduce the benefit level
Which tax is normally associated with an individual's death? - CORRECT
ANSWERS Federal estate tax
What does a 401 (k) plan generally provide its participants? - CORRECT
ANSWERS Salary-deferral option
established through An arrangement where an individual is authorized to act on
behalf of another person or company is - CORRECT ANSWERS The
law of agency
