Accident, Health And Life Md Law Practice Exam

20 Questions

Settings
Please wait...
Life And Health Quizzes & Trivia

Questions and Answers
  • 1. 
    Dan’s policy was reinstated on March 15th. On March 29th he was involved in an accident, and seriously injured. When would his injuries be covered from his accident?
    • A. 

      Never

    • B. 

      On March 25th, 10 days after his policy was reinstated

    • C. 

      Immediately

    • D. 

      In 30 days

  • 2. 
    Carl’s policy lapsed. Which of the following would reinstate his policy?  
    • A. 

      Carl’s insurance company accepted his late payment

    • B. 

      Carl sent a written noticed regarding his late payment

    • C. 

      Carl was issued a reinstatement application

    • D. 

      Carl contacted his agent

  • 3. 
    Which of the following is a unique characteristic of a Non Profit Health Service?  
    • A. 

      It provides services to individuals in need of medicare

    • B. 

      It is exempt from State taxes

    • C. 

      It is an HMO

    • D. 

      It may issue a policy that covers Disability Income Benefits

  • 4. 
    When can a patient be a dependent on a policy?  
    • A. 

      Always

    • B. 

      Never

    • C. 

      If the parent was claimed on an insured’s Income Tax return

    • D. 

      After the 30 days waiting period has been satisfied

  • 5. 
     Jim pays his premium monthly. What is his Grace Period?  
    • A. 

      7 days

    • B. 

      30 days

    • C. 

      31 days

    • D. 

      10 days

  • 6. 
     Mr. Jones answered questions on his application. What are they called?  
    • A. 

      Warranties

    • B. 

      Responses

    • C. 

      Representations

    • D. 

      Perils

  • 7. 
    An insurer who issued a policy to be replaced is which of the following?  
    • A. 

      Existing Insurer

    • B. 

      Replacing Insurer

    • C. 

      Conservation

    • D. 

      Primary Insurer

  • 8. 
     What are issued to employees under a Master Policy?  
    • A. 

      Certificates of Qualification

    • B. 

      Certificates of participation

    • C. 

      Certificates of Authority

    • D. 

      Certificates of Insurance

  • 9. 
    What is required if an employee joins a group plan after an Enrollment Period?  
    • A. 

      Evidence of insurability

    • B. 

      Evidence of payment

    • C. 

      Evidence of conversion

    • D. 

      Evidence of incontestability

  • 10. 
    All insurance companies must participate and fund which of the following?  
    • A. 

      Life Association

    • B. 

      Life and Annuity Association

    • C. 

      Life and Health Guaranty Association

    • D. 

      Insurance Association

  • 11. 
    Who pays for a Noncontributory Plan?  
    • A. 

      Employee

    • B. 

      Employer

    • C. 

      Both the employer and employee

    • D. 

      Executive Officer

  • 12. 
    One Unfair Trade practice is defamation, which is described in which fo the following?  
    • A. 

      Misrepresenting the terms and coverage of a policy

    • B. 

      Attempting to harm the reputation of a producer or insurer by making false accusations pertaining to solvency

    • C. 

      Giving Super bowl tickets to an applicant as an inducement to purchase insurance

    • D. 

      Charging different rates for separate persons in the same classification

  • 13. 
    When making a loan on a life insurance policy’s cash value, the insurer may deduct from the loan value all of the following EXCEPT:
    • A. 

      Any unpaid balance of the premium for the current policy year

    • B. 

      Interest on the loan to the end of the current policy year

    • C. 

      Any existing indebtedness to the insurer not already deducted.

    • D. 

      Future years premiums that are not yet due

  • 14. 
    An insurance producer’s license can be renewed for an additional:  
    • A. 

      1 year

    • B. 

      2 Years

    • C. 

      3 years

    • D. 

      4 years

  • 15. 
    If a lender refuses to extend a loan unless the applicant also purchases insurance, this is considered to be:
    • A. 

      Aggressive sales practices

    • B. 

      Leverage

    • C. 

      Coercion

    • D. 

      Twisting

  • 16. 
    In replacement, an existing insurer must provide policyowners with a policy summary for existing Life Insurance within how many days of receiving the written communication and replacement?
    • A. 

      31 days

    • B. 

      5 days

    • C. 

      60 days

    • D. 

      15 days

  • 17. 
    Twisting involves:  
    • A. 

      Defamation

    • B. 

      Discrimination

    • C. 

      Misrepresentation

    • D. 

      Rebating

  • 18. 
    • A. 

      The replacement of policies in force

    • B. 

      Receiving commissions without a valid insurance license

    • C. 

      Obtaining an insurance license for the purpose of writing controlled business

    • D. 

      The commingling of your funds with the insured’s premiums

  • 19. 
     The Commissioner must examine the affairs, transactions, accounts, records, and assets of each domestic insurer at least every:
    • A. 

      3 years

    • B. 

      5 years

    • C. 

      2 years

    • D. 

      1 year

  • 20. 
    What is Maryland’s premium tax rate?  
    • A. 

      6%

    • B. 

      7%

    • C. 

      5%

    • D. 

      2%