Maryland Life and Health Insurance Licensing Exam 150
Questions with Verified Answers
After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - CORRECT ANSWER File written proof of loss
Which of these factors help determine an insured's life insurance premium? -
CORRECT ANSWER Avocation (hobby)
The Life and Health Guaranty Corporation provides funds to carry out its powers
and duties by assessing - CORRECT ANSWER Member insurers
Lifetime protection - CORRECT ANSWER A limited payment whole life policy
provides
Decreasing term life - CORRECT ANSWER The least expensive option to pay off a
30-yea mortgage balance would be?
May never raise premiums - CORRECT ANSWER In contrast to a guaranteed
renewable policy, a noncancellable policy
Period of time after the premium is due but the policy remains in force - CORRECT
ANSWER What is an insurance policy's grace period?
30 days - CORRECT ANSWER The standard grace period for a life insurance policy
sold in Maryland is
At least 21 years old - CORRECT ANSWER Which of the following is NOT a
requirement for soliciting insurance in Maryland?
Medicare supplement Plan F - CORRECT ANSWER 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?
,Variable life insurance - CORRECT ANSWER A securities license is required for a
life insurance producer to sell
Master policy - CORRECT ANSWER What is the contract called that is issued to an
employer for a Group Medical Insurance Plan?
Insurable interest can be established sufficiently by sentimental attachment alone
- CORRECT ANSWER In regards to a life insurance contract, which of the following
statements is NOT true regarding the concept of insurable interest?
How to take legal action against an insurance company - CORRECT ANSWER
Which of the following is NOT information found in a life insurance buyer's guide?
Lower than the typical whole life policy during the first few years and then higher
than typical for the remainder - CORRECT ANSWER The premium for a Modified
whole life policy is?
Nonresident producer - CORRECT ANSWER A producer who is licensed in
Maryland but resident in another state is called a?
Taxable income - CORRECT ANSWER Justin is receiving disability income benefits
from a group policy paid for by his employer. How are these benefits treated for
tax purposes?
Excludes payments for a short-term illness or injury - CORRECT ANSWER The
waiting period for a disability insurance policy
Adjustable Life (Adjustable Life allows the policyowner to change two policy
features: premium and face amount) - CORRECT ANSWER A policyowner may
change two policy features on what type of life
Change of occupation (The change of occupation provision is considered an
OPTIONAL provision) - CORRECT ANSWER Which of the following is NOT a
required provision in an accident and health insurance policy?
Annuity - CORRECT ANSWER Fixed period settlement options are considered to be
a form of a(n)
, Automobile - CORRECT ANSWER Which of these factors is NOT taken into account
when determining an applicant's life insurance needs?
Fare-paying passenger - CORRECT ANSWER A life insurance policy normally
contains a provision that restricts coverage in the event of death under all of the
following situations EXCEPT
Silver Plan - CORRECT ANSWER 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?
Insurer - CORRECT ANSWER The identity of the ____ must be made clear in every
health insurance advertisement
Obtain the beneficiary's signature - CORRECT ANSWER When a producer is
replacing an existing ordinary life insurance policy, the producer must take all of
the following actions EXCEPT
Skilled nursing, intermediate, and custodial care - CORRECT ANSWER Generally
speaking, which three levels of care are Long-Term Care policies provided with?
All premiums paid, plus interest, minus any withdrawals and surrender charges -
CORRECT ANSWER What is the nonforfeiture value of an annuity before
annuitization?
Avoid overpayment of claims (This is achieved by identifying primary and
secondary insurers) - CORRECT ANSWER The purpose of the Coordination of
Benefits provision in group accident and health plans is to
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) - CORRECT ANSWER
An insurance producer is BEST defined as
Insurance producer - CORRECT ANSWER An ____ ____ sells, solicits, or negotiates
insurance contracts for compensation
Questions with Verified Answers
After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - CORRECT ANSWER File written proof of loss
Which of these factors help determine an insured's life insurance premium? -
CORRECT ANSWER Avocation (hobby)
The Life and Health Guaranty Corporation provides funds to carry out its powers
and duties by assessing - CORRECT ANSWER Member insurers
Lifetime protection - CORRECT ANSWER A limited payment whole life policy
provides
Decreasing term life - CORRECT ANSWER The least expensive option to pay off a
30-yea mortgage balance would be?
May never raise premiums - CORRECT ANSWER In contrast to a guaranteed
renewable policy, a noncancellable policy
Period of time after the premium is due but the policy remains in force - CORRECT
ANSWER What is an insurance policy's grace period?
30 days - CORRECT ANSWER The standard grace period for a life insurance policy
sold in Maryland is
At least 21 years old - CORRECT ANSWER Which of the following is NOT a
requirement for soliciting insurance in Maryland?
Medicare supplement Plan F - CORRECT ANSWER 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?
,Variable life insurance - CORRECT ANSWER A securities license is required for a
life insurance producer to sell
Master policy - CORRECT ANSWER What is the contract called that is issued to an
employer for a Group Medical Insurance Plan?
Insurable interest can be established sufficiently by sentimental attachment alone
- CORRECT ANSWER In regards to a life insurance contract, which of the following
statements is NOT true regarding the concept of insurable interest?
How to take legal action against an insurance company - CORRECT ANSWER
Which of the following is NOT information found in a life insurance buyer's guide?
Lower than the typical whole life policy during the first few years and then higher
than typical for the remainder - CORRECT ANSWER The premium for a Modified
whole life policy is?
Nonresident producer - CORRECT ANSWER A producer who is licensed in
Maryland but resident in another state is called a?
Taxable income - CORRECT ANSWER Justin is receiving disability income benefits
from a group policy paid for by his employer. How are these benefits treated for
tax purposes?
Excludes payments for a short-term illness or injury - CORRECT ANSWER The
waiting period for a disability insurance policy
Adjustable Life (Adjustable Life allows the policyowner to change two policy
features: premium and face amount) - CORRECT ANSWER A policyowner may
change two policy features on what type of life
Change of occupation (The change of occupation provision is considered an
OPTIONAL provision) - CORRECT ANSWER Which of the following is NOT a
required provision in an accident and health insurance policy?
Annuity - CORRECT ANSWER Fixed period settlement options are considered to be
a form of a(n)
, Automobile - CORRECT ANSWER Which of these factors is NOT taken into account
when determining an applicant's life insurance needs?
Fare-paying passenger - CORRECT ANSWER A life insurance policy normally
contains a provision that restricts coverage in the event of death under all of the
following situations EXCEPT
Silver Plan - CORRECT ANSWER 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?
Insurer - CORRECT ANSWER The identity of the ____ must be made clear in every
health insurance advertisement
Obtain the beneficiary's signature - CORRECT ANSWER When a producer is
replacing an existing ordinary life insurance policy, the producer must take all of
the following actions EXCEPT
Skilled nursing, intermediate, and custodial care - CORRECT ANSWER Generally
speaking, which three levels of care are Long-Term Care policies provided with?
All premiums paid, plus interest, minus any withdrawals and surrender charges -
CORRECT ANSWER What is the nonforfeiture value of an annuity before
annuitization?
Avoid overpayment of claims (This is achieved by identifying primary and
secondary insurers) - CORRECT ANSWER The purpose of the Coordination of
Benefits provision in group accident and health plans is to
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) - CORRECT ANSWER
An insurance producer is BEST defined as
Insurance producer - CORRECT ANSWER An ____ ____ sells, solicits, or negotiates
insurance contracts for compensation
