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Quiz Fantastic Maryland Insurance Administration - Accident-and-Health-or-Sickness-Producer Valid Exam Pdf
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Maryland Insurance Administration MarylandAccident and Health or Sickness Producer Series 20-24 Exam Sample Questions (Q12-Q17):
NEW QUESTION # 12
A policy of life insurance may NOT be delivered unless the policy has a:
- A. Financial statement of the life insurance company
- B. Legible and brief description of the policy on the first page
- C. Premium coupon book
- D. Notary seal
Answer: B
Explanation:
Comprehensive and Detailed Step by Step Explanation:Maryland law mandates that life insurance policies include aclear and concise description of the policyon the first page to ensure transparency and understanding for policyholders.
Legible and brief description (A):Correct. This ensures the buyer can quickly identify key terms and benefits of the policy.
Notary seal (B):Not required for delivering life insurance policies.
Premium coupon book (C):Optional, often replaced with digital billing methods.
Financial statement of the insurer (D):Not required in the policy itself, although insurers must provide financial stability information upon request.
References:Maryland Insurance Article §16-206, COMAR 31.09.04, and Policy Form Filing Standards.
NEW QUESTION # 13
Under which marketing system do insurers solicit customers by mass media advertising and mail without the services of a producer?
- A. Branch office
- B. Contingent
- C. Captive agent
- D. Direct response
Answer: D
Explanation:
Direct response (Insurance Article, § 10-101) uses mass media and mail to sell directly, bypassing producers, unlike branch offices, captive agents, or contingent systems, which involve intermediaries.
References:Maryland Insurance Article, § 10-101; MIA marketing guidelines.
NEW QUESTION # 14
When a single major medical contract covers all medical expenses, the plan is considered to be:
- A. Limited
- B. First-dollar
- C. Supplemental
- D. Comprehensive
Answer: D
Explanation:
A single policy covering all medical expenses (Insurance Article, § 15-201) is comprehensive, unlike limited (specific), first-dollar (no deductible), or supplemental (add-on) plans.
References:Maryland Insurance Article, § 15-201; MIA major medical standards.
NEW QUESTION # 15
The waiver of premium provision in a disability income policy provides that premiums will be waived during:
- A. The time limit on certain defenses
- B. The grace period
- C. The elimination period
- D. The disability benefit period
Answer: D
Explanation:
The waiver of premium provision (Insurance Article, § 15-201) waives premiums during the disability benefit period-when benefits are paid-easing financial strain. The elimination period requires premium payment, the grace period is for late payments, and the time limit on defenses relates to incontestability, not waivers.
References:Maryland Insurance Article, § 15-201; MIA disability insurance standards.
NEW QUESTION # 16
When a producer sells an individual accident and health insurance policy, how is the initial premium usually paid?
- A. The producer collects and forwards it to the insurer
- B. The applicant sends it directly to the insurer with the application
- C. The insurer utilizes the applicant's automatic bank draft authorization
- D. The insurer bills the applicant when the application is approved
Answer: A
Explanation:
Producers (Insurance Article, § 10-126) typically collect the initial premium with the application and forward it to the insurer, streamlining the process, unlike direct payment, billing, or bank drafts, which are less common initially.
References:Maryland Insurance Article, § 10-126; MIA producer procedures.
NEW QUESTION # 17
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