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2025 MARYLAND LIFE AND HEALTH TEST/NEW
UPDATE WITH 120+Qs&As|A+GRADE
Facultative - ANS:--- one of the 2 types of resinsurance agreements which allow the resinsurer the opportunity to reject risks presented to it or to price them higher based on the risk exposure Treaty - ANS:--- one of the 2 types of insurance agreements which automatically accepts all new risks presented by the ceding company Law of agency - ANS:--- states the principle is responsble for acts of their agents Commissioner - ANS:--- has the power to issue rules and regulation to help enforce insruance statutes Risk retention - ANS:--- assuming the responsbility for loss Contract of adhesion - ANS:---submitted on take it or leave it bases, no input or alteration from the insured is considered Conditional contract - ANS:--- both parties to a contract must perform certain dutites to make the contract enforceable Mortality rate is based on - ANS:--- 1000 people A producer must include their name and address on what? - ANS:--- a policy summary
which policy has a current and guaranteed maximum premium - ANS:--- interminatee premium life accidental death rider - ANS:--- the policy pays the stated multiple of the face amount should the insured die as a result of an acciednt Whole life is know as - ANS:--- permanent term life insurance - ANS:--- designed for someone with a large insruance need but with limited cash flow Variable whole life - ANS :---must be sold by prospectus Equity Universal, Variable, and Variable Universal all have which of the following characteristics in common? - ANS:--- the overall policy performance has something to do with the stock market in general The name of the beneficiary designation that will pay a deceased beneficiary's share to the heirs of that beneficiary who predeceases the insured is called: - ANS: ---per stripes on a variable universal life policy, what is the difference between the cash value and the cash surrender values? - ANS :---the surrender charge Most expensive premium? - ANS:--- monthly A lump sum of money is placed into an account from which the annuitant will draw periodic benefits beginning more than a year from the date of purchase. This describes a: - ANS:--- single premium deferred annuity nonconributory gruop life policy - ANS:--- must cover 100% of elgible employees
What medicare supplemtents have core benefits? - ANS:--- plans A thru N Medicare part B coinsurance - ANS:--- 20% How long does medicare pay for confinements in a skilled nursing facility? - ANS:--- up to 100 days how soon should the insured receive necessary claim forms? - ANS:--- 15 days time limit on certain defenses (incontestable) period? - ANS:--- 2 years guaranteed renewable means - ANS:--- Renewable with adjustable premiums, by classification only ERISA - ANS:---the federal law that governs employer-sponsored employee retirement and welfare and benefit plan who is not eligible for continuation of group health coverage? - ANS:--- involuntary terminated employees for cause when an applicant for life insurance faces potential financial loss in the event of injury or sickness of an insured, it is said the applicant has - ANS:---insurable intesrest judicial branch - ANS:--- responsible for interpreting and determining the constitutionality of the statutes residual market - ANS:--- private source of coverage of last resort for individuals or businesses that have been rejected by voluntary market insurers policy reserves - ANS:--- are the net premiums paid plus interest earned and reflect potential insurnace contract obligations
pre need plan - ANS:--- typically pays the burial expenses of the insured purpose of re-entry term? - ANS:---obtain a new term policy at a lower rate In order to make sure that a creditor of the insured is not paid more than the outstanding loan at time of claim, the policyowner should: - ANS:---Purchase a decreasing benefit policy that matches the loan repayment schedule after a life insurance policy has been in force for more than yearsr the policy is considered incontestable - ANS:--- 2 Which of the following provisions commence at the time of the delivery of the policy to the insured? - ANS:---free look period which annuity is not backed by the insurers general account - ANS:---variable indexed annuity - ANS:---"upside potential, but no downside risk" when it comes to the stock market overall which annuity requires the producer to hold a securitites registartion in order to sell it - ANS:---variable franchise insurance is also known as - ANS:---wholesale what portion of an employees pension plan withdrawl is subject to tax - ANS:---The entire withdrawl morbidity table - ANS:---the mathematical probability table used by insurance companies to determin loss due to sickness or injury blanket plan - ANS:---sold to groups whose membership fluctuates toprovide medical and surgical benefits in excess of any primary coverage
implied authority - ANS:---not written in the contract, but is assumed bu the piblic based on the producers actions capital liquidation approach is similar to - ANS:---period certain settlement option An existing term life insruance policy may be exchanged for a new term life insurance policy on the date - ANS:---re-entry which whole life policy is designed to provide a substantial immediate cash value - ANS:---single premium whole life policy Automatic premium loan - ANS:---prevents a whole life policy from lapsing, as long as there is an adequate cash value, if the insured/policyowner forgets to pay the permium by the end of the grace period whole life policy - ANS:---the company can pay the premium if you forget under an annuity with a joint life payment option, what will the survivor receive upon the death of the first annuitant? - ANS:---nothing proceeds from a buy sell agreement are recieved - ANS:---income tax free entity plan - ANS:---the business to buy life insurance policies on the business owners
qualified plan employer contributions are tax deductible when - ANS:---they are made MIB - ANS:---alerts insurer home office underwriters of errors, omissions or misrepresentations made on insruance applications limited accident policy - ANS:---provides specific benefits for specific injuries from specific causese which act was implemeted in order to protect consumers from questionable medicare supplemetn policy marketing practicse - ANS:---NAIC model law medicare part b - ANS:---benefits are funded by a combitation of taxes and premium dollars and coverage is elective Legislativen branch - ANS:---writes and apsses state insurance laws, statutes to protect the insuring public in order to receive a stock dividend, the policyowerner must own - ANS:--- common stock of the insurer the surrender charge schedule for a variable universal life policy generally over time - ANS:---decreases which death benefit is paid out to the beneficiary income tax free? - ANS:--- life insurance when the insured dies while the policy is in force
expenses loading from company to company - ANS:---varies In a viatical settlement transaction, the life insurance policyowner is referred to as - ANS:---viator the decides which dividend option is in effect and can change their election at any time - ANS:---policyowner one of the benefits of an annuity in regards to taxes is - ANS:---earnings are tax deferred during the accumulation phase eRISA sets minimum standards for pension plans primarily in the industry. - ANS:---private whT qualified plans puts the investment risk entirely on the employer sponsoring the plan? - ANS:---Defined benefit The following statement is true concerning the income received from an individually owned disability income policy - ANS:---premiums paid with after tax dollars, Income benefit not taxable why have states outlawed stranger originated life insurane transactions - ANS:---at policy inception there is a lack of insurable interest a partial withdraw will cause the policy to have either the face amount or cash accumuation - ANS:---reduced by the amount of the withdrawl
surrender charges typically over tie - ANS:---decrease the social security survivor benefit is computed using? - ANS:---PIA what plan could generate a taxable event to the recipient? - ANS:---business overhead expense the insurance commissioner is - ANS:---appointed by the governor, subject to the state senate with regard to a privacy regulation, a customer relationship is estalblished when - ANS:---a consumer becomes a licensee policyholder or agrees to pay for financial advice about insurance Which of the following best describes 'Capital Retention/Conservation' in an effort to meet an income objective? - ANS:---investment earnings are paid out A life insurance applicant wants a combination of savings and insurance protection with guarantees. If the applicant is willing to pay premiums only until the age of 65, at which time the policy is fully paid-up, which of the following should he/she purchase? - ANS:---limited pay to whole life age 65 A policy is issued with a rider. Years later the policyowner would like to drop the rider in order to save some money. Who has the authority to effect that policy change? - ANS:---executive officer or the insurer
Which of the following could initiate the Accelerated Benefits Provision or Rider of a life policy? - ANS:---a condition that is terminal The exclusion ratio states that once the entire cost basis has been recovered from a non-qualified annuity income benefit payout then any further payments are. - ANS:---fully taxable since the excess payments must represent only earnings The cost basis of a life insurance policy is - ANS:---Premiums paid less dividends or withdrawals Medicare Select Policy - ANS:---The insured may select a managed care version of a traditional Medicare Supplement Policy at a lower premium by choosing a policy that limits care to a specific list of hospitals and physicians.
