Maryland life and health general exam
simulator UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
If a disability income policy contains a cost-of-living adjustment rider, benefits
must typically be increased - CORRECT ANSWERS at least once per
year from when benefits begin
Which of these statements regarding the extended term insurance nonforfeiture
option in a life policy is accurate? - CORRECT ANSWERS the premium
to purchase the coverage comes from the policy's cash value
Which of the following is not a reason for a business to buy key person life
insurance? - CORRECT ANSWERS an increased pension liability if the
key employee dies
Qualified long-term care premiums are treated for tax purposes as - CORRECT
ANSWERS ...
Individuals covered with employer-paid group health plans will normally
receive tax-free benefits under all of these plans EXCEPT - CORRECT
ANSWERS disability income
A life insurance policy's contingent beneficiary is the - CORRECT ANSWERS
person who receives the death benefits if the primary beneficiary dies
before the insured
Ken is age 65 and has 2 years until he receives Social Security retirement
benefits. At his current age, which is true about Medicare Part A Hospital
Insurance coverage? - CORRECT ANSWERS It is available through
application to Social Security
,When does the insured stop making payments under a thirty-payment whole life
policy? - CORRECT ANSWERS At the time of death or 30 years after
the policy's inception, whichever comes first
The powers directly given to a producer in an agency contract are called -
CORRECT ANSWERS express
Which of the following relationships demonstrates insurable interest in the
absence of economic interest? - CORRECT ANSWERS marriage
partners
An accident and health insurance policy's premium requirements are set forth in
which of the following provisions? - CORRECT ANSWERS
Consideration clause
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The
funds for additional benefit payments will be derived primarily from funds that
were - CORRECT ANSWERS not distributed to life annuitants who died
before life expectancy
Under HIPAA requirements, eligibility for the pre-existing conditions exclusion
waiver under new coverage is lost if - CORRECT ANSWERS there is a
break in coverage of more than 63 days
The health insurance premiums paid for by each partner in a partnership is
considered to be - CORRECT ANSWERS 100% tax deductible
An annuity which starts paying monthly benefits within a month after issuance
is called a(n) - CORRECT ANSWERS immediate annuity
,Which of the following best describes the tax treatment of medical expense
policies for the self-employed? - CORRECT ANSWERS 100% of
medical expense plan premiums are tax deductible
What is the insurer responsible for when a producer is acting within the scope of
authority granted in the agency contract? - CORRECT ANSWERS
responsible for acts by the producer that are authority only
What does a fixed life annuity offer protect against? - CORRECT ANSWERS
savings depletion due to longevity
Which of the following types of insurers limits the exposures it writes to those
of its owners? - CORRECT ANSWERS captive insurer
An agent whose actions exceed the authority granted by contract is - CORRECT
ANSWERS not backed by the insurer
Use of XYZ Insurance Company brochures, business cards, and rating guides is
an example of - CORRECT ANSWERS apparent authority
What kind of arrangement gives the policyowner the right to change the
beneficiary? - CORRECT ANSWERS Revocable designation
Which of these procedures is NOT designed for ambulatory care centers? -
CORRECT ANSWERS inpatient surgery
What is the guaranteed cash value of a whole life insurance policy when the
insured turns 65 years old? - CORRECT ANSWERS less than the
policy's face amount
, Alan is an enrollee of a health maintenance organization (HMO) which uses a
gatekeeper system. If there ever comes a time when he needs emergency health
services, what should he do? - CORRECT ANSWERS proceed to the
nearest emergency room
Which statement is INCORRECT about the interest-only settlement option in a
life insurance policy? - CORRECT ANSWERS interest on proceeds must
be paid by the beneficiary
What happens to a life insurance policy when the policy loan balance exceeds
the cash value? - CORRECT ANSWERS policy will no longer be in
force
When using the needs approach for life insurance planning, a lump sum may be
created to provide for all of the following EXCEPT - CORRECT ANSWERS
employee benefits
Which of the following would permit an insurer to delay a covered disability
policy claim? - CORRECT ANSWERS elimination period
Emily is disabled. In order to become eligible for Social Security disability
income benefits, she must be - CORRECT ANSWERS Fully insured,
according to Social Security
An agent gives a conditional receipt to a client for an insurance policy after
collecting the initial premium. When will the policy become effective? -
CORRECT ANSWERS When the conditions of the receipt are met.(A
conditional receipt indicates that certain conditions must be met in order for the
insurance coverage to go into effect)
Short-term group disability income benefits are - CORRECT ANSWERS
a percentage of weekly earnings up to a stated maximum
simulator UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
If a disability income policy contains a cost-of-living adjustment rider, benefits
must typically be increased - CORRECT ANSWERS at least once per
year from when benefits begin
Which of these statements regarding the extended term insurance nonforfeiture
option in a life policy is accurate? - CORRECT ANSWERS the premium
to purchase the coverage comes from the policy's cash value
Which of the following is not a reason for a business to buy key person life
insurance? - CORRECT ANSWERS an increased pension liability if the
key employee dies
Qualified long-term care premiums are treated for tax purposes as - CORRECT
ANSWERS ...
Individuals covered with employer-paid group health plans will normally
receive tax-free benefits under all of these plans EXCEPT - CORRECT
ANSWERS disability income
A life insurance policy's contingent beneficiary is the - CORRECT ANSWERS
person who receives the death benefits if the primary beneficiary dies
before the insured
Ken is age 65 and has 2 years until he receives Social Security retirement
benefits. At his current age, which is true about Medicare Part A Hospital
Insurance coverage? - CORRECT ANSWERS It is available through
application to Social Security
,When does the insured stop making payments under a thirty-payment whole life
policy? - CORRECT ANSWERS At the time of death or 30 years after
the policy's inception, whichever comes first
The powers directly given to a producer in an agency contract are called -
CORRECT ANSWERS express
Which of the following relationships demonstrates insurable interest in the
absence of economic interest? - CORRECT ANSWERS marriage
partners
An accident and health insurance policy's premium requirements are set forth in
which of the following provisions? - CORRECT ANSWERS
Consideration clause
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The
funds for additional benefit payments will be derived primarily from funds that
were - CORRECT ANSWERS not distributed to life annuitants who died
before life expectancy
Under HIPAA requirements, eligibility for the pre-existing conditions exclusion
waiver under new coverage is lost if - CORRECT ANSWERS there is a
break in coverage of more than 63 days
The health insurance premiums paid for by each partner in a partnership is
considered to be - CORRECT ANSWERS 100% tax deductible
An annuity which starts paying monthly benefits within a month after issuance
is called a(n) - CORRECT ANSWERS immediate annuity
,Which of the following best describes the tax treatment of medical expense
policies for the self-employed? - CORRECT ANSWERS 100% of
medical expense plan premiums are tax deductible
What is the insurer responsible for when a producer is acting within the scope of
authority granted in the agency contract? - CORRECT ANSWERS
responsible for acts by the producer that are authority only
What does a fixed life annuity offer protect against? - CORRECT ANSWERS
savings depletion due to longevity
Which of the following types of insurers limits the exposures it writes to those
of its owners? - CORRECT ANSWERS captive insurer
An agent whose actions exceed the authority granted by contract is - CORRECT
ANSWERS not backed by the insurer
Use of XYZ Insurance Company brochures, business cards, and rating guides is
an example of - CORRECT ANSWERS apparent authority
What kind of arrangement gives the policyowner the right to change the
beneficiary? - CORRECT ANSWERS Revocable designation
Which of these procedures is NOT designed for ambulatory care centers? -
CORRECT ANSWERS inpatient surgery
What is the guaranteed cash value of a whole life insurance policy when the
insured turns 65 years old? - CORRECT ANSWERS less than the
policy's face amount
, Alan is an enrollee of a health maintenance organization (HMO) which uses a
gatekeeper system. If there ever comes a time when he needs emergency health
services, what should he do? - CORRECT ANSWERS proceed to the
nearest emergency room
Which statement is INCORRECT about the interest-only settlement option in a
life insurance policy? - CORRECT ANSWERS interest on proceeds must
be paid by the beneficiary
What happens to a life insurance policy when the policy loan balance exceeds
the cash value? - CORRECT ANSWERS policy will no longer be in
force
When using the needs approach for life insurance planning, a lump sum may be
created to provide for all of the following EXCEPT - CORRECT ANSWERS
employee benefits
Which of the following would permit an insurer to delay a covered disability
policy claim? - CORRECT ANSWERS elimination period
Emily is disabled. In order to become eligible for Social Security disability
income benefits, she must be - CORRECT ANSWERS Fully insured,
according to Social Security
An agent gives a conditional receipt to a client for an insurance policy after
collecting the initial premium. When will the policy become effective? -
CORRECT ANSWERS When the conditions of the receipt are met.(A
conditional receipt indicates that certain conditions must be met in order for the
insurance coverage to go into effect)
Short-term group disability income benefits are - CORRECT ANSWERS
a percentage of weekly earnings up to a stated maximum
