Maryland life and health general exam
simulator UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
The type of policy where the insurer can send a notice to the insured that the
policy has been cancelled in the middle of the term is called?
A) non-cancelable
B) conditionally renewable
C) optionally renewable
D) cancelable - CORRECT ANSWER D)cancelable
The cause of a loss is referred to as a(n)
A) hazard
B) adversity
C) peril
D) risk - CORRECT ANSWER C) peril
Maria is a Preferred Provider Organization (PPO) subscriber and received care
from an out-of-network provider. Which of the following is the likely result
A) care is covered
B) care is not covered
C) care is only covered in a government facility
D) care is only covered if primary care physician gives a referral - CORRECT
ANSWER Care is covered
A person covered with an individual health plan
A) is issued a policy
B) is issued a certificate of medical costs
, C) does not contract directly with the insurance company
D) is not subject to medical underwriting - CORRECT ANSWER A) is
issued a policy
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?
A) Medicaid
B) Long-term care
C) Medicare supplement plan F
D) Comprehensive major medical - CORRECT ANSWER C) Medicare
supplement plan F
Joe has a life insurance policy that has a face amount of $300,000. After a
number of years, the policy's cash value accumulates to $50,000 and the face
amount becomes $350,000. What kind of policy is this?
A) increasing term life policy
B) nonparticipating policy
C) modifies whole life policy
D) Universal life policy - CORRECT ANSWER D) Universal life policy
An underwriter's primary responsibility to an insurer is to protect against
A) natural selection
B) inverse selection
C) adverse selection
D) risk selection - CORRECT ANSWER C) adverse selection
Which of the following is an example of the insured's consideration?
A) insurer's promise to pay benefits
simulator UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
The type of policy where the insurer can send a notice to the insured that the
policy has been cancelled in the middle of the term is called?
A) non-cancelable
B) conditionally renewable
C) optionally renewable
D) cancelable - CORRECT ANSWER D)cancelable
The cause of a loss is referred to as a(n)
A) hazard
B) adversity
C) peril
D) risk - CORRECT ANSWER C) peril
Maria is a Preferred Provider Organization (PPO) subscriber and received care
from an out-of-network provider. Which of the following is the likely result
A) care is covered
B) care is not covered
C) care is only covered in a government facility
D) care is only covered if primary care physician gives a referral - CORRECT
ANSWER Care is covered
A person covered with an individual health plan
A) is issued a policy
B) is issued a certificate of medical costs
, C) does not contract directly with the insurance company
D) is not subject to medical underwriting - CORRECT ANSWER A) is
issued a policy
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?
A) Medicaid
B) Long-term care
C) Medicare supplement plan F
D) Comprehensive major medical - CORRECT ANSWER C) Medicare
supplement plan F
Joe has a life insurance policy that has a face amount of $300,000. After a
number of years, the policy's cash value accumulates to $50,000 and the face
amount becomes $350,000. What kind of policy is this?
A) increasing term life policy
B) nonparticipating policy
C) modifies whole life policy
D) Universal life policy - CORRECT ANSWER D) Universal life policy
An underwriter's primary responsibility to an insurer is to protect against
A) natural selection
B) inverse selection
C) adverse selection
D) risk selection - CORRECT ANSWER C) adverse selection
Which of the following is an example of the insured's consideration?
A) insurer's promise to pay benefits
