Page 1 of 64
Accident and Health Insurance Agent-Broker
this Academic Year Complete Practice Exam
Material with Solutions
Introduction
This document contains practice examination questions and
precise answers covering Accident and Health Insurance
principles, Medicare, Medicaid, long-term care insurance,
disability income insurance, group health insurance, and
Maryland insurance regulations. It is designed to help
students prepare for licensing examinations by reviewing key
concepts, policy provisions, underwriting practices, and
federal health insurance legislation. The material includes
comprehensive multiple-choice questions with solutions
spanning mandatory policy provisions, unfair trade practices,
managed care plans, and insurance law requirements. It
serves as a complete exam preparation resource for Accident
and Health Insurance Agent-Broker candidates.
Exam Questions and Answers
,Page 2 of 64
Norbert was not making quota as set by his company. As a
way of inducing more clients, Norbert offered to split his
commissions, provide tickets to a sold out show and use of his
vacation condo if they would purchase or renew a policy. This
action is considered:
Rebating
Coercion
Intimidation
Twisting --- correct precise answer ---Rebating
If a producer is terminated, the Insurer must notify the
Commissioner if the termination was a result, in part or whole,
by the producer's violation of Maryland insurance laws and
regulations. How many days does the Insurer have to notify
the Commission of the termination?
Within 30 days
7 working days
Immediately
Up to 21 days --- correct precise answer ---Within 30 days
The Uniform Provisions Law requires all of the following as
mandatory EXCEPT:
Grace Period
Waiver of Premium
Physical examination and autopsy
,Page 3 of 64
Entire Contract --- correct precise answer ---Waiver of
Premium
All of the following provisions are required provisions for
health policies EXCEPT:
Grace Period
Proof of loss
Exclusions
Reinstatement --- correct precise answer ---Exclusions
The N.A.I.C. proposes many pieces of model legislation in
order to help standardize policy wordings, regulations and
required benefits. The initials NAIC stand for:
1.National Association of Insurance Commissioners
2.National Association of International Companies
3.National Association of Interlocking Consortiums
4.National Association of Insurance Companies --- correct
precise answer ---National Association of Insurance
Commissioners
Medicare is funded primarily from which of the following
sources?
1.It comes from a payroll tax ear marked for Medicare
2.Loans from China provide most of the funding
3.The premiums that retirees pay provides most of the funding
, Page 4 of 64
4.It comes from the general revenue fund from all tax sources
--- correct precise answer ---It comes from a payroll tax ear
marked for Medicare
Which of the following characterizes risk pooling?
none of the above
spreading risk over a small number of people
spreading risk over a large number of people
dissimilar risks --- correct precise answer ---spreading risk
over a large number of people
Peter is covered by a hospital expense policy that has
specified benefits. His plan allows $100 for daily room and
board and $1,000 maximum for ancillary expenses. The
surgical expense allows $500 maximum on a scheduled basis.
Peter is hospitalized for 10 days with a surgeon's fee of
$2,000. How much of the total expense for this hospital stay
will Peter's insurance provide? The room rate is $200 and the
ancillary expense is $1,500
$5,500
$1,000
$2,500
$3,500 --- correct precise answer ---$2,500
Ken has a medical plan through his employer that provides a
schedule of benefits and payment allowances for those
Accident and Health Insurance Agent-Broker
this Academic Year Complete Practice Exam
Material with Solutions
Introduction
This document contains practice examination questions and
precise answers covering Accident and Health Insurance
principles, Medicare, Medicaid, long-term care insurance,
disability income insurance, group health insurance, and
Maryland insurance regulations. It is designed to help
students prepare for licensing examinations by reviewing key
concepts, policy provisions, underwriting practices, and
federal health insurance legislation. The material includes
comprehensive multiple-choice questions with solutions
spanning mandatory policy provisions, unfair trade practices,
managed care plans, and insurance law requirements. It
serves as a complete exam preparation resource for Accident
and Health Insurance Agent-Broker candidates.
Exam Questions and Answers
,Page 2 of 64
Norbert was not making quota as set by his company. As a
way of inducing more clients, Norbert offered to split his
commissions, provide tickets to a sold out show and use of his
vacation condo if they would purchase or renew a policy. This
action is considered:
Rebating
Coercion
Intimidation
Twisting --- correct precise answer ---Rebating
If a producer is terminated, the Insurer must notify the
Commissioner if the termination was a result, in part or whole,
by the producer's violation of Maryland insurance laws and
regulations. How many days does the Insurer have to notify
the Commission of the termination?
Within 30 days
7 working days
Immediately
Up to 21 days --- correct precise answer ---Within 30 days
The Uniform Provisions Law requires all of the following as
mandatory EXCEPT:
Grace Period
Waiver of Premium
Physical examination and autopsy
,Page 3 of 64
Entire Contract --- correct precise answer ---Waiver of
Premium
All of the following provisions are required provisions for
health policies EXCEPT:
Grace Period
Proof of loss
Exclusions
Reinstatement --- correct precise answer ---Exclusions
The N.A.I.C. proposes many pieces of model legislation in
order to help standardize policy wordings, regulations and
required benefits. The initials NAIC stand for:
1.National Association of Insurance Commissioners
2.National Association of International Companies
3.National Association of Interlocking Consortiums
4.National Association of Insurance Companies --- correct
precise answer ---National Association of Insurance
Commissioners
Medicare is funded primarily from which of the following
sources?
1.It comes from a payroll tax ear marked for Medicare
2.Loans from China provide most of the funding
3.The premiums that retirees pay provides most of the funding
, Page 4 of 64
4.It comes from the general revenue fund from all tax sources
--- correct precise answer ---It comes from a payroll tax ear
marked for Medicare
Which of the following characterizes risk pooling?
none of the above
spreading risk over a small number of people
spreading risk over a large number of people
dissimilar risks --- correct precise answer ---spreading risk
over a large number of people
Peter is covered by a hospital expense policy that has
specified benefits. His plan allows $100 for daily room and
board and $1,000 maximum for ancillary expenses. The
surgical expense allows $500 maximum on a scheduled basis.
Peter is hospitalized for 10 days with a surgeon's fee of
$2,000. How much of the total expense for this hospital stay
will Peter's insurance provide? The room rate is $200 and the
ancillary expense is $1,500
$5,500
$1,000
$2,500
$3,500 --- correct precise answer ---$2,500
Ken has a medical plan through his employer that provides a
schedule of benefits and payment allowances for those
