Maryland life and health general exam simulator questions and answers with verified solutions

Maryland life and health general exam simulator questions and answers with verified solutions The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called? A) non-cancelable B) conditionally renewable C) optionally renewable D) cancelable D)cancelable The cause of a loss is referred to as a(n) A) hazard B) adversity C) peril D) risk C) peril Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-of-network provider. Which of the following is the likely result A) care is covered B) care is not covered C) care is only covered in a government facility D) care is only covered if primary care physician gives a referral Care is covered A person covered with an individual health plan A) is issued a policy B) is issued a certificate of medical costs C) does not contract directly with the insurance company D) is not subject to medical underwriting A) is issued a policy 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? A) Medicaid B) Long-term care C) Medicare supplement plan F D) Comprehensive major medical C) Medicare supplement plan F Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? A) increasing term life policy B) nonparticipating policy C) modifies whole life policy D) Universal life policy D) Universal life policy An underwriter's primary responsibility to an insurer is to protect against A) natural selection B) inverse selection C) adverse selection D) risk selection C) adverse selection Which of the following is an example of the insured's consideration? A) insurer's promise to pay benefits B) a paid premium C) legal purpose D) intent B) a paid premium Medicare Part A covers A) outpatient services B) doctor's fees C) inpatient hospital stay D) prescription drugs C) inpatient hospital stay Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequences? A) section 1040 exchange B) section 1035 exchange C) nonforfeiture option D) spendthrift opetion B) section1035 exchange A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing A) elimination period