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
/i /i /i /i /i /i /i /i /i /i /i
/i these benefits would be covered immediately upon reinstatement?
/i /i /i /i /i /i /i
(A)Both accidental injury and sickness
/i /i /i /i
/i (B)Sickness
(C)Accidental injury /i
(D)There is a delay, regardless of the type of loss.
/i /i /i /i /i /i /i /i /i
Answer> Accidental injury /i /i
9. The main difference between immediate and deferred annuities
/i /i /i /i /i /i /i
/i is (A)When the income payments begin.
/i /i /i /i /i
(B)The amount of each payment.
/i /i /i /i
/i (C)How the annuity is purchased.
/i /i /i /i
(D)The number of insureds.
/i /i /i
Answer> When the income payments begin
/i /i /i /i /i
10. Bill is approaching retirement age and is concerned about having
/i /i /i /i /i /i /i /i /i
/i proper coverage, should he have to be placed in a Long Term Care facility.
/i /i /i /i /i /i /i /i /i /i /i /i /i
Bill's producer told him that LTC policies would provide necessary coverage
/i /i /i /i /i /i /i /i /i /i /i
/i at all of the following levels, EXCEPT
/i /i /i /i /i /i
(A)Custodial.
/i (B)Acute.
/i (C)Skilled.
(D)Intermediate.
Answer> Acute /i
11. What type of information is NOT included in a certificate of insurance?
/i /i /i /i /i /i /i /i /i /i /i
/i (A)The procedures for filing a claim
/i /i /i /i /i
(B)The length of coverage
/i /i /i
(C)The policy benefits and exclusions
/i /i /i /i
(D)The cost the company is paying for monthly premiums
/i /i /i /i /i /i /i /i
Answer> The cost the com- pany is paying for monthly premiums
/i /i /i /i /i /i /i /i /i /i
12. Insurance that would pay for hiring a replacement for an important employ-
/i /i /i /i /i /i /i /i /i /i /i
, /i ee who becomes disabled is called
/i /i /i /i /i
(A)Key employee disability insurance.
/i /i /i
(B)Business overhead expense disability insurance.
/i /i /i /i
/i (C)Blanket disability insurance.
/i /i
(D)Long-term disability. /i
Answer> Key employee disability insurance
/i /i /i /i
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
/i /i /i /i /i /i /i /i /i /i /i
/i these benefits would be covered immediately upon reinstatement?
/i /i /i /i /i /i /i
(A)Both accidental injury and sickness
/i /i /i /i
/i (B)Sickness
(C)Accidental injury /i
(D)There is a delay, regardless of the type of loss.
/i /i /i /i /i /i /i /i /i
Answer> Accidental injury /i /i
9. The main difference between immediate and deferred annuities
/i /i /i /i /i /i /i
/i is (A)When the income payments begin.
/i /i /i /i /i
(B)The amount of each payment.
/i /i /i /i
/i (C)How the annuity is purchased.
/i /i /i /i
(D)The number of insureds.
/i /i /i
Answer> When the income payments begin
/i /i /i /i /i
10. Bill is approaching retirement age and is concerned about having
/i /i /i /i /i /i /i /i /i
/i proper coverage, should he have to be placed in a Long Term Care facility.
/i /i /i /i /i /i /i /i /i /i /i /i /i
Bill's producer told him that LTC policies would provide necessary coverage
/i /i /i /i /i /i /i /i /i /i /i
/i at all of the following levels, EXCEPT
/i /i /i /i /i /i
(A)Custodial.
/i (B)Acute.
/i (C)Skilled.
(D)Intermediate.
Answer> Acute /i
11. What type of information is NOT included in a certificate of insurance?
/i /i /i /i /i /i /i /i /i /i /i
/i (A)The procedures for filing a claim
/i /i /i /i /i
(B)The length of coverage
/i /i /i
(C)The policy benefits and exclusions
/i /i /i /i
(D)The cost the company is paying for monthly premiums
/i /i /i /i /i /i /i /i
Answer> The cost the com- pany is paying for monthly premiums
/i /i /i /i /i /i /i /i /i /i
12. Insurance that would pay for hiring a replacement for an important employ-
/i /i /i /i /i /i /i /i /i /i /i
, /i ee who becomes disabled is called
/i /i /i /i /i
(A)Key employee disability insurance.
/i /i /i
(B)Business overhead expense disability insurance.
/i /i /i /i
/i (C)Blanket disability insurance.
/i /i
(D)Long-term disability. /i
Answer> Key employee disability insurance
/i /i /i /i
