MD Laws Questions and Answers Already Passed

MD Laws Questions and Answers Already Passed Which of the following is NOT considered to be an act of fraud? A. Collecting a premium for insurance that is not provided B. Collecting a charge for insurance that is less than the charge applicable to that insurance C. Misappropriate or unreasonably withhold premiums or returned premiums D. Willfully collecting a premium that exceeds the amount of the actual premium B. Collecting a charge for insurance that is less than the charge applicable to that insurance Under the Maryland Health Insurance Plan, comprehensive health benefits are provided to A. children of disabled residents B. senior citizen residents C. medically uninsurable residents D. low income residents C. medically uninsurable residents A producer who sells an individual life insurance policy in Maryland MUST deliver to the policyowner A Policy Summary and Buyer's Guide Failing to promptly provide a reasonable explanation for the denial of a claim is considered to be a(n) unfair claim settlement practice A Maryland insurance producer solicits an insurance policy. In the event of a controversy between the insured and the company, the producer is considered to represent the company When an insurance appointment with a producer is terminated, the party that must notify the producer of the termination is the insurer Written notice of a health insurance claim should be given to the insurer within __ days after the occurrence of any loss covered by the policy. 20 days At minimum, a carrier is required to offer which of the following health benefit plans to small employers? Standard plan The Commissioner must examine the financial affairs of each admitted insurer operating in Maryland at least once every how many years? A. 1 B. 3 C. 5 D. 7 C. 5 Maria the insurance producer completes a sale by collecting the required signatures on the application and obtaining the initial premium. Afterwards, she deposits the check into her personal checking account. Maria has committed what crime? Fraud According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan? March 23, 2010 An insurance producer is BEST defined as A. a person appointed by more than one insurance company to issue policies B. a person who has a contract with an insurance company to represent it C. a person who places insurance with nonadmitted companies D. an employee of an insurance company who has the authority to underwrite insurance B. a person who has a contract with an insurance company to represent it A producer who is licensed in Maryland but resident in another state is called a nonresident producer A producer may begin to solicit insurance ONLY when A. registered for the state insurance examination B. licensed by the state C. appointed by an insurer D. none of these C. appointed by an insurer Which of the following basics is a producer's fiduciary responsibility? 1. Collecting premiums and paying them to the insurance company 2. Maintaining a separate bank account for each insurance company the producer represents 3. Acting as a referee in the event of a disagreement between an insured and the insurance company 4. Advising prospective insureds of the lowest rates available 1. Collecting premiums and paying them to the insurance company The Life and Health Guaranty Corporation provides funds to carry out its powers and duties by assessing A. taxpayers B. policyowners C. beneficiaries D. member insurers D. member insurers An example of replacement is A. canceling disability policy to buy a term life policy B. canceling a term life policy to buy a whole life policy C. canceling a long-term care policy to buy a whole life policy D. canceling a whole life policy to buy a major medical policy B. canceling a term life policy to buy a whole life policy When must a claim on a life insurance policy be paid after proof of loss has been received by the insurer? A. Promptly B. Within 10 days C.Within 20 days D. Within 30 days A. Promptly Select the appropriate response A person who, for a fee, gives advice or recommendations on benefits provided by an insurance contract is called an advisor When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT A. give the applicant a Notice Regarding Replacement of Life Insurance B. give the applicant the original or a copy of the proposals used in the sales presentation C. obtain the beneficiary's signature on a summary of all policies to be replaced D. submit to the producer's insurance company a copy of the Notice Regarding Replacement of Life Insurance signed by the applicant C. obtain the beneficiary's signature on a summary of all policies to be replaced An employer may qualify for health care tax credits through SHOP Marketplace if that employer has fewer than how many employees? 25. You may qualify for employer health care tax credits through SHOP if you have fewer than 25 full-time employees making an average of about $50,000 a year or less. What are the levels of coverage as defined by the Affordable Care Act? Bronze, Silver, Gold, Platinum In Maryland, an insurance producer cannot sell, solicit, or negotiate policies for an insurer unless there is an agreement in place between the producer and insurer. This agreement is called a(n) appointment Which of the following statements is CORRECT about a Buyer's Guide? A. It must explain specific policy values B. It's content must be approved by the Insurance Commissioner C. It must include the amount of the equivalent level annual dividend D. It must give the name and address of the producer making the sales presentation B. It's content must be approved by the Insurance Commissioner Which of the following is NOT required in an order from the Commissioner? A. The purpose of the order B. The grounds that the order is based on C. The effective date of the order D. The Governor's signature D. The Governor's signature How long can an insurer exclude coverage for a preexisting condition on a Medicare Supplement Policy? 6 months Which of the following is NOT a requirement for soliciting insurance in Maryland? A. Pass insurance examination B. At least 21 years old C. Good character D. Appointed by an insurer B. At least 21 years old The Maryland Insurance Commissioner A. serves a three year term B. is elected by the Maryland Senate C. counsels and advises the Governor on all matters assigned to the Maryland Insurance Administration D. must examine an insurer at least every 10 years C. counsels and advises the Governor on all matters assigned to the Maryland Insurance Administration If a producer has been engaged in an administrative action by any governmental agency, within how many days following the final deposition must the producer report the action to the Commissioner? 30 day The promise of a discount in premium as an inducement to purchase insurance is an Unfair Trade Practice known as A. Misappropriation B. Misrepresentation C. Intimidation D. Rebating D. Rebating The free look period provided in a life insurance policy is usually A. 10 days B. 31 days C. 45 days D. 60 days A. 10 days The renewability provision for an individual long-term care insurance policy must be located on the policy form's A. schedule page B. last page C. second page D. first page D. first page Group dental plans will frequently place a limit on annual benefits in order to minimize A. adverse selection B. enrollment C. coinsurance D. administrative costs A. adverse selection How many days is the free-look period for Medicare supplements and long-term care insurance? A. 5 days B. 10 days C. 30 days D. 45 days C. 30 days Interest on death benefits are NOT required to be paid by an insurance company as long as proceeds are paid within ___ after the date of the death of the insured. A. 30 days B. 40 days C. 50 days D. 60 days A. 30 days The Food and Drug Administration approves prescription drugs for treatment as stated on the drug's labeling. The prescription of a drug for treatments other than what's labeled is known as ___ use A. illegal B. trial C. generic D. off-label D. off-label All of the following actions are considered rebating EXCEPT A. sharing commissions with other licensed and appointed agents B. refunding part of the premium as an inducement for purchase C. offering special dividends D. offering anything of value not specified in the policy A. sharing commissions with other licensed and appointed agents Each delivered life insurance policy in Maryland MUST include a(n) A. legible and brief description of the policy on the first page B. underwriting manual C. actuarial table on the first page D. notary seal A. legible and brief description of the policy on the first page An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of A. twisting B. illegal placement C. coercion D. misrepresentation D. misrepresentation The standard grace period for a life insurance policy sold in Maryland is 30 days According to the Affordable Care Act, what is the maximum amount an individual can contribute to a Flexible Savings Account? $2,500 An existing health benefit plan offered by a small employer may be replaced by a SHOP Exchange Navigator only if the small employer A. pays a surrender charge B. signs a release form C. votes to replace the existing coverage D. is eligible for a Federal tax credit through the SHOP Exchange D. is eligible for a Federal tax credit through the SHOP Exchange John the insurance producer has an insurance license that expires in 6 months. If he files an application for renewal before the expiration date, his license will A. remain in effect until a new one is issued B. be automatically renewed regardless of any violations C. be renewed upon determination of legal compliance within a 60-day period following the license expiration date D. renew without the normal requirements A. remain in effect until a new one is issued An insurance producer who replaces an existing policy by making false written or oral statements is committing the act of twisting ABC Corporation has a group life insurance policy that covers its employees and their dependent children. Which of the following would be considered a "dependent child"? A. Employed 22 year old child who relies on the insured employee for financial support B. Child over the age of 18 years who attends an educational institution and relies on the insured employee for financial support C. Child age 27 still living at home and not attending an educational institution D. Married child over the age of 26 B. Child over the age of 18 years who attends an educational institution and relies on the insured employee for financial support The MAXIMUM time period that an eligible employee can be excluded from coverage under a group health policy as a late enrollee is A. 6 months B. 10 months C. 18 months D. 24 months C. 18 months Replacing an existing life insurance policy with a new one may result in a surrender charge an insurance producer agrees to pay the first quarterly premium for the applicant for new insurance. This is called a rebate how long must a life insurance policy be in effect before the policyowner may use the nonforfeiture provision? 3 years After the date of marriage, an insurer is REQUIRED to provide what MINIMUM period of time for an employee to add a new spouse to a small group health plan 30 days