MARYLAND LIFE AND HEALTH
INSURANCE LICENSING EXAM 2026
ALL QUESTIONS AND VERIFIED
ANSWERS | RATED A +| NEW AND
REVISED
Which of the following is NOT a required provision in an accident and
health insurance policy? - ANSWER- Change of occupation (The
change of occupation provision is considered an OPTIONAL provision)
Fixed period settlement options are considered to be a form of a(n) -
ANSWER- Annuity
Which of these factors is NOT taken into account when determining an
applicant's life insurance needs? - ANSWER- Automobile
A life insurance policy normally contains a provision that restricts
coverage in the event of death under all of the following situations
EXCEPT - ANSWER- Fare-paying passenger
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? -
ANSWER- Silver Plan
,The identity of the ____ must be made clear in every health insurance
advertisement - ANSWER- Insurer
When a producer is replacing an existing ordinary life insurance policy,
the producer must take all of the following actions EXCEPT -
ANSWER- Obtain the beneficiary's signature
Generally speaking, which three levels of care are Long-Term Care
policies provided with? - ANSWER- Skilled nursing, intermediate, and
custodial care
What is the nonforfeiture value of an annuity before annuitization? -
ANSWER- All premiums paid, plus interest, minus any withdrawals and
surrender charges
The purpose of the Coordination of Benefits provision in group accident
and health plans is to - ANSWER- Avoid overpayment of claims (This
is achieved by identifying primary and secondary insurers)
An insurance producer is BEST defined as - ANSWER- A person who
has a contract with an insurance company to represent it ("Insurance
producer" or "producer" is a person required to be licensed pursuant to
the laws of this state to sell, solicit, or negotiate insurance)
An ____ ____ sells, solicits, or negotiates insurance contracts for
compensation - ANSWER- Insurance producer
, A whole life policy option where extended term insurance is selected is
called a(n) - ANSWER- Nonforfeiture options (A nonforfeiture
provision in a whole life policy that uses cash value to purchase term
insurance equal to the existing amount of life insurance is called the
extended term option)
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? - ANSWER- Partial disability
An insurance producer who convinces a prospective insured to purchase
a policy by exaggerating the benefits of the policy may be found guilty
of - ANSWER- Misrepresentation (It is illegal to issue, publish, or
circulate any illustration or sales material that is false, misleading, or
deceptive as to policy benefits or terms, the payment of dividends, etc.
This also refers to oral statements)
Without a Section 125 Plan in place what would happen to an
employee's payroll contribution to an HSA? - ANSWER- It would be
considered taxable income to the employee (Contributions to HSA may
be made pre-tax under a Section 125 Cafeteria 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 - ANSWER- 60
INSURANCE LICENSING EXAM 2026
ALL QUESTIONS AND VERIFIED
ANSWERS | RATED A +| NEW AND
REVISED
Which of the following is NOT a required provision in an accident and
health insurance policy? - ANSWER- Change of occupation (The
change of occupation provision is considered an OPTIONAL provision)
Fixed period settlement options are considered to be a form of a(n) -
ANSWER- Annuity
Which of these factors is NOT taken into account when determining an
applicant's life insurance needs? - ANSWER- Automobile
A life insurance policy normally contains a provision that restricts
coverage in the event of death under all of the following situations
EXCEPT - ANSWER- Fare-paying passenger
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? -
ANSWER- Silver Plan
,The identity of the ____ must be made clear in every health insurance
advertisement - ANSWER- Insurer
When a producer is replacing an existing ordinary life insurance policy,
the producer must take all of the following actions EXCEPT -
ANSWER- Obtain the beneficiary's signature
Generally speaking, which three levels of care are Long-Term Care
policies provided with? - ANSWER- Skilled nursing, intermediate, and
custodial care
What is the nonforfeiture value of an annuity before annuitization? -
ANSWER- All premiums paid, plus interest, minus any withdrawals and
surrender charges
The purpose of the Coordination of Benefits provision in group accident
and health plans is to - ANSWER- Avoid overpayment of claims (This
is achieved by identifying primary and secondary insurers)
An insurance producer is BEST defined as - ANSWER- A person who
has a contract with an insurance company to represent it ("Insurance
producer" or "producer" is a person required to be licensed pursuant to
the laws of this state to sell, solicit, or negotiate insurance)
An ____ ____ sells, solicits, or negotiates insurance contracts for
compensation - ANSWER- Insurance producer
, A whole life policy option where extended term insurance is selected is
called a(n) - ANSWER- Nonforfeiture options (A nonforfeiture
provision in a whole life policy that uses cash value to purchase term
insurance equal to the existing amount of life insurance is called the
extended term option)
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? - ANSWER- Partial disability
An insurance producer who convinces a prospective insured to purchase
a policy by exaggerating the benefits of the policy may be found guilty
of - ANSWER- Misrepresentation (It is illegal to issue, publish, or
circulate any illustration or sales material that is false, misleading, or
deceptive as to policy benefits or terms, the payment of dividends, etc.
This also refers to oral statements)
Without a Section 125 Plan in place what would happen to an
employee's payroll contribution to an HSA? - ANSWER- It would be
considered taxable income to the employee (Contributions to HSA may
be made pre-tax under a Section 125 Cafeteria 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 - ANSWER- 60
