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Maryland Insurance Administration Accident-and-Health-or-Sickness-Producer MarylandAccident and Health or Sickness Producer Series 20-24 Exam Exam Practice Test

MarylandAccident and Health or Sickness Producer Series 20-24 Exam Questions and Answers

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Question 1

After completing an application for insurance, the insurance producer collects the premiums but deposits the check in the insurance producer’s checking account. What crime has been committed?

Options:

A.

Twisting

B.

Rebating

C.

Fraud

D.

Replacement

Question 2

The typical group disability income insurance policy EXCLUDES coverage for disability resulting from:

Options:

A.

Commercial airline crashes

B.

Injuries occurring in the home

C.

Automobile accidents

D.

Military service

Question 3

All of the following are typical health maintenance organization (HMO) preventive care services provided by a primary care physician EXCEPT:

Options:

A.

Well-baby checkups

B.

Immunizations for children

C.

Experimental surgery

D.

Physical examinations

Question 4

When a producer engages in unfair practices, all of the following are true EXCEPT:

Options:

A.

The Maryland Insurance Administration can investigate the problem and hold a hearing

B.

The Maryland Insurance Administration’s decision is final

C.

The Maryland Insurance Administration can suspend the producer’s license

D.

The Maryland Insurance Administration can issue a cease and desist order

Question 5

When a single major medical contract covers all medical expenses, the plan is considered to be:

Options:

A.

Comprehensive

B.

Limited

C.

First-dollar

D.

Supplemental

Question 6

Medical expense insurance typically EXCLUDES coverage for treatment of:

Options:

A.

Chronic back pain

B.

Eating disorders

C.

Intentionally self-inflicted injuries

D.

Undiagnosed diseases

Question 7

Group health insurance contracts providing coverage for employees in more than one state are usually controlled by the laws of the state where:

Options:

A.

The application is signed

B.

The producer resides

C.

The master contract is issued

D.

The majority of employees reside

Question 8

Pre-existing conditions include conditions of health that:

Options:

A.

Are never insurable under any circumstances or degree of severity

B.

Must exist before an applicant can be accepted by an insurer

C.

Have been medically treated or diagnosed prior to the effective date of coverage

D.

Develop after the effective date of the policy but before the expiration of the time limit on certain defenses

Question 9

When the employer pays the premium, covered individuals normally receive tax-free benefits under all of the following group health plans EXCEPT:

Options:

A.

Disability income

B.

Major medical

C.

Dental

D.

Health maintenance organization

Question 10

Which type of Medicare Supplement information can be used without prior state approval?

Options:

A.

Insurance company brochures

B.

Radio announcements approved by the insurer

C.

Television advertisements approved by the insurer

D.

Government publications

Question 11

Before issuing a policy of long-term care insurance to an applicant who is at least 80 years old, unless the policy is guaranteed issue, the carrier shall obtain a:

Options:

A.

Report of a physical examination

B.

Applicant’s family’s consent

C.

Copy of the person’s living will

D.

Power of attorney

Question 12

A health maintenance organization may issue a contract that provides benefits for the following:

Options:

A.

Replacement of income lost by a member due to the member’s disability

B.

Health care services provided to members of the HMO

C.

The accidental death of an HMO member

D.

The dismemberment of an HMO member

Question 13

All advertisements for health insurance shall make clear the identity of the:

Options:

A.

Insurance Commissioner

B.

Beneficiary

C.

Insurer

D.

Insured

Question 14

An insurance producer's license may be suspended or revoked by:

Options:

A.

The appointing insurer

B.

The continuing education course provider

C.

The Maryland Insurance Administration

D.

The Attorney General

Question 15

All of the following services are covered under the Medicare Supplement preventive care benefit EXCEPT:

Options:

A.

Immunizations

B.

Hearing tests

C.

Outpatient prescription vitamins

D.

Routine physical examinations

Question 16

An insurance policy could be issued to cover losses resulting from any of the following EXCEPT:

Options:

A.

A drug smuggling operation

B.

A skydiving exhibition

C.

A state-sponsored centennial celebration

D.

A nuclear power plant

Question 17

All of the following are true of insurance EXCEPT:

Options:

A.

It transfers risk

B.

It is a means of sharing losses

C.

It eliminates risk

D.

It protects against uncertainty

Question 18

The free-look period provided in a life insurance policy is usually:

Options:

A.

10 days

B.

31 days

C.

45 days

D.

60 days

Question 19

In Maryland, an insurance producer is a person who solicits, negotiates, or sells insurance plans PRIMARILY in conjunction with:

Options:

A.

Earning commission

B.

Performing clerical duties

C.

Enrolling individuals in group plans

D.

Acting as a regularly salaried officer

Question 20

Reasonable and customary charges for health care are based primarily on:

Options:

A.

Actuarial tables

B.

Insurance industry studies

C.

Average charges within a geographic area

D.

National physician surveys

Question 21

When the insured’s willful failure to disclose a material fact at the time of application is discovered by the insurer shortly after the policy is issued:

Options:

A.

The insurer must continue the insurance policy in full force

B.

The insurer may cancel the policy only at the expiration or renewal date

C.

The policy is automatically void

D.

The policy is voidable at the insurer’s option

Question 22

The waiver of premium provision in a disability income policy provides that premiums will be waived during:

Options:

A.

The disability benefit period

B.

The elimination period

C.

The grace period

D.

The time limit on certain defenses

Question 23

The Maryland Health Insurance Plan is designed to provide comprehensive health benefits for:

Options:

A.

Low-income residents of Maryland

B.

Senior citizens residing in Maryland

C.

Medically uninsurable Maryland residents

D.

Children of low-income Maryland residents

Question 24

An insured’s statements on an accident and health insurance application are deemed to be:

Options:

A.

Representations

B.

Warranties

C.

Categorical

D.

General provisions

Question 25

The Maryland Insurance Administration is an agency of the:

Options:

A.

Federal government

B.

State government

C.

National Association of Insurance Commissioners

D.

Maryland General Assembly

Question 26

In dental insurance coverage, which one of the following typically is EXCLUDED?

Options:

A.

Treatment started prior to the eligibility date

B.

Preventive care

C.

Dental X-rays

D.

Root canal therapy

Question 27

All of the following are common features found in health maintenance organizations (HMOs) EXCEPT:

Options:

A.

Wellness programs

B.

Discounts on local health spa memberships

C.

Twenty-four hour access to emergency care

D.

Outpatient medical services